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Resolute Forest Products Inc - Research Paper Example

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RESOLUTE FOREST PRODUCTS INC 1.0 Executive Summary Resolute Forest Products Inc finds itself in a very unique and peculiar global competition that goes beyond inter-corporation competition. This is because as a leading paper producer, the company is in fierce competition with other external phenomena such as the reduced dependence on paper in the current generation we find ourselves in as compared to what prepared before the 2000s…
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Resolute Forest Products Inc
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Download file to see previous pages Where there is competition, there is always the need to devise a competitive strategy that can guarantee competitive advantage for the company. It is in line with this that a comprehensive company analysis is necessary to identifying the current market position of the company, understanding ways in which the company has responded to the competitions that it is faced with, what the weaknesses and strengths of the company has been in its quest to be competitive, corporate strategies that can work best for the company, and a comprehensive financial assessment for the company. Presently, Resolute Forest Product Inc can be said to be at a position where the company has failed to maximise its potential on the global economic competition. As a result, even though the company continues to record increases in revenue and operating incomes, these have not been translated into net income, total assets, and total equity. 2.0 Organization Overview Resolute Forest Product Inc is the outcome of a merger between Bowater and Abitibi-Consolidated, which took place in January 2007. The company is mainly into the manufacturing of pulp and paper and is headquartered in Montreal, Quebec, Canada. Noting the importance of supply chain management to the company and the devastating consequence that can be associated with shortages in supply of raw materials, the company has as part of its major corporate strategies to operate and manage its own forest base that is responsible for supplying the company with its raw materials (Kanter, 2012). In line with this, the company boasts of owning an approximate value of 14.9 million hectares of forestland in North America as at the end of 2011 (Kim, 2011). This has generally being a workable strategy that has made the company to become recognized with efficiency in meeting demand from consumers. With growing concerns on global warming and the need to reduce the emission of greenhouse gases, Resolute Forest Product Inc pledged its commitment to this call in November 2011 when it became a member of the World Wildlife Fund’s Climate Saver’s Program (Chen, 2012). Together with other stakeholders and members therefore, the company is in a joint course to helping reduce greenhouse gas emission by 65% by 2015. The operations of the company have not been free from lawsuits to and from the company. For example in May 2013, The Star (2013) reported of a $7,000,000 defamation lawsuit filed against Greenpeace Canada and some of its employees for alleged interference with economic relations with their customers (Aulakh, 2013). Greenpeace Canada has however seen the lawsuit as a mere attempt to for Resolute to launch a Strategic Lawsuit Against Public Participation (SLAPP). 3.0 SWOT Analysis Strength Weaknesses 1. The company has a very reliable raw material base that makes the dependence on suppliers very limited. 2. Reduced dependence on suppliers means the company has sufficient savings on external spending that minimized the cost of doing business 3. The company commands very high annual revenue and operating income that makes it have very strong competitive urge over its competitors, knowing that diversification and other means of raising funds for the company with ...Download file to see next pagesRead More
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