Wood Pulp for Manufacturing - Term Paper Example

1.Introduction Timber is wood in any stage from felling to being used as a structural material for construction, or wood pulp for paper manufacturing. Timber is supplied in a rough or finished state. Rough timber, besides pulpwood, is the material used for furniture-making where further cutting and shaping is essential. While finished timber is supplied in standard sizes, mostly for the construction industry. With more public and corporate sustainable timber procurement policies in progress companies and organisations along the forest products supply chain need to work together to secure a sufficient supply of certified timber to meet increasing demand. The challenges of bringing certified timber to the market are dual. Firstly, companies along the supply chain need to get certified. Secondly, forest certification systems must work to expand the total area of certified forests.1 The various threats to woods and forests range from inappropriate activities such as extreme public recreation to more menacing threats from pollution, drainage, acid rain, climate change, disease, invasive plants and the activities of certain animals. A significant proportion of income from woods is from timber sales. Timber is a global commodity and prices for most products are established on world markets; world timber prices however are currently at an all-time downturn. Woods present great benefits to society, and when economists evaluate some of the 'non-market benefits' (such as landscape value etc), it becomes clear that the wider public gets more advantage from woodland management than does the owner who offers those benefits. In Scotland, just recently, it is said that if the number of trees being planted commercially does not increase, the timber industry will be facing some serious issues. 2.Major Organizations Following is a list of a few organizations operating worldwide in the forestry sector in order to provide the general public and all other interested parties with key information on timber and other forest related issues. 1. The International Wood Collectors Society is a non-profit Society committed to delivering information on collecting wood, correctly identifying and naming wood specimens, and using wood in creative crafts. 2 2. ProFor is a multi-donor partnership formed to practice a shared goal of enhancing forests' contribution to poverty reduction, sustainable development and protection of environmental services. ProFor supports analytic work, and knowledge management and dissemination of forest issues related to livelihoods, governance, finance and cross-sectoral cooperation.3 3. L' Association Technique International des Bois Tropicaux (ATIBT) is an NGO which brings together tropical wood producers and countries, related institutions and research institutes. ATIBT intends to promote sustainable management of tropical forests, to increase knowledge about tropical timber material and to promote its use and consumption. 4. Confederation of Forest Industries (UK) Ltd (ConFor) has been established to help build the market for timber, timber products and forest services, create a supportive policy environment for the forest industries and to help our members become more competitive and successful. 5. The European Forest Institute (EFI) conducts research and provides policy advice on forest related issues. Further, it facilitates and stimulates forest related networking as well as promotes the supply of unbiased and policy relevant information on forests and forestry.  6. The Royal Forestry Society is a society dedicated to the wise management of trees and woodlands, and to increasing people's understanding of forestry. Their work includes forestry education, publications etc. 7. The Forests, Trees and People Programme Network is designed to share information about improving community forestry activities and about initiatives of interest to its members. 3.Carbon rights and carbon emissions A carbon right is a new and unique form of land interest that bestows upon the holder a right to the benefit of carbon sequestration on a piece of forested land. Carbon sequestration refers to the absorption from the atmosphere of carbon dioxide by vegetation and soils and the storage of carbon in vegetation and soils.  The introduction of uniform forestry carbon rights legislation would promote a seamless economic framework for carbon trading, and a more consistent and structured approach to proprietary verification.  Carbon rights should continue to be articulated as property interests which exist separately from the ownership of the underlying land to which they attach. 4 Carbon emissions are generally an abbreviation of emissions of greenhouse gases. Greenhouse gases are a number of different gases that all have the ability to influence the global energy balance of the Earth, the greenhouse effect. These greenhouse gases are namely, carbon dioxide, methane, nitrous oxide, perfluorocarbons, hydrofluorocarbons and sulphur hexafluoride. 5 Carbon trading schemes aim to reduce overall emissions produced by nations and organizations. One way of doing this is through a cap and trade scheme, such as the Carbon Pollution Reduction Scheme (CPRS) proposed by the Australian Government. The CPRS puts a cap on Australia's emissions. The cap can be lowered each year so that total emissions are gradually lowered until they meet the government's long term target. Organizations that are part of the scheme must compete for the available emission permits, which are issued by the government. If an organization does not manage to acquire enough permits from the government to cover its emissions then it must either: reduce its emissions to the level for which it has permits; or it must buy more permits from an organization that has a surplus. Tradable carbon rights are claims on carbon-conserving or 'carbon-sequestering' assets such as forests. The potential buyers are industrial companies which, in order to meet their environmental obligations under the Kyoto Protocol - or other international regimes to control greenhouse gases - could trade a purchase of carbon assets in one part of the world for the right to continue polluting in another.6 4.Timber Branding B&Q sells home improvement products for the do-it-yourselfer (DIY) throughout the UK with about 330 stores, including large warehouses and smaller supercenters. It also does business in China through about 40 locations. Stores offer tools, lumber, insulation, and related products for building and repair projects, as well as items for home decor, such as flooring, hardware, paint, and wallpaper. B&Q has a number of competitors of which the following are the most prominent: 1. Focus (DIY) Limited 2. Homebase Limited 3. Travis Perkins plc. B&Q competes in the wide range of industries namely, Home Improvement & Hardware Retail Consumer Products Manufacturers Furniture Manufacturing Retail Building Materials Retail & Distribution Floor & Window Coverings Retail In order to remain up to mark and hold the upper hand in their business, B&Q needs to keep up to date on the their branding policies. The competitors have a strong CSR advantage when it comes to timber. Branding of timber refers to the marking of timber with identification symbols linking to the type or quality of the timber. After the timber has been felled it is standard procedure to rough saw the green timber before it is dried. The green timber has elevated moisture content (e.g. greater than 100% for softwoods and up to 150% for hardwoods) and must be dried before use. Green timber is particularly difficult to brand because of the high water content. Freshly sawn timber can be branded with the help of numerous types of ink widely available. Some of the timber traded around the world comes from unlawful or ill managed sources. In spite of the efforts of many countries to conserve their forests, prohibited and negligent practices continue to affect natural biodiversity, loss of wildlife habitats and, in some areas, deforestation at an increasing rate. B&Q, Focus and Homebase all use and sell a lot of timber and products made from it. The policies of all three are quite similar when it comes to being dedicated to guaranteeing that the timber extraction linked with the products they use and sell does not harm forest conservation or the lives of people who live and work in the forests. All three commit to sourcing timber only from proven, well-managed forests and we will continue to use our buying power to promote good forest management. The inappropriate harvest of timber can do major environmental and social harm. As the international trade in timber and wood expands it becomes more difficult to trace forest products back to their origin and to ensure that standards are acceptable. There are a number of these standards, which aim to provide certification systems for well-managed sustainable forests. The most robust third party forest certification system continues to be that of the Forest Stewardship Council (FSC). This system includes all the principal environmental, social and economic issues arising from well managed-forestry and has a wide backing from stakeholders. Wood and forest products that can trace their origins back to FSC certified forests are entitled to bear the FSC logo, allowing the consumer to make a positive choice when selecting wood products.7 B&Q’s Timber Buying Policy is to ensure that all tropical hardwood we store is FSC certified with full Chain of Custody or comes from suppliers and supply chains that have a Memorandum of Understanding with the Tropical Forest Trust.8 Focus and Homebase, also as retailers selling a wide range of timber products, hope to use materials that only come from legal and well-managed sources and looks into it that they are FSC certified.9 5.Marketing Mix Before we commence on shaping an appropriate marketing mix for the coming five years for B&Q, here is an excerpt from the company’s website: Our products B&Q offer a huge range of products to help turn your dream home into a reality. From pots of paint to fully-fitted kitchens, we've got everything you need to do the job. Our buyers travel the world to bring back novel and cost-effective home ideas. Working with designers such as Laurence Llewellyn-Bowen, Linda Barker, Jeff Banks and Wayne Hemingway, ensures we offer cutting-edge style. We also insist on sourcing products from ethical suppliers. Our services And we don't just sell things. We help our customers by providing expert advice from people with real experience and practical skills. We have a dedicated planning and design team at most stores, and we'll help get your products installed. We'll even help spread the cost with finance at preferential rates. Plus, visitors to the B&Q website get practical advice, decorating inspiration and access to thousands of products. Our customer promises There are five promises that we make to our customers: Value - "You can trust B&Q to give you the best value" Our People - "Our friendly experts are here to help" Inspiration - "Always something new, exciting, innovative" Choice - "We have what you want and need , when and where you need it" Ease - "We make it easy for you" 10 Our products are widely available in 330 stores across UK and Ireland and 40 stores in China. It is recommended that as a leading brand in these countries we expand our business in Europe, i.e. France, Germany, Spain, Switzerland, Italy etc. The DIY trend is on a high popular rise in these countries and currently there are no major suppliers of timber related products in these countries the size of B&Q. Starting with one store in each country for the first year and gradually expanding to at least 50 stores in each country by the end of the 5 years we can ensure brand and market leadership. These stores will have wholesale sections for our customers who are suppliers or construction business owners as well as a super mart for our DIY customers. At this point it is necessary to note that our major competitors in Europe would be Castorama and Brico Dépôt which are both part of our father company Kingfisher. What sets us apart from our competitors is our pledge to provide timber that is strictly branded and certified by FSC and ensures that no forest or wildlife has been endangered. Continuing to stick to this promise, we are likely to gain customer loyalty at a high pace. B&Q currently offers a range of products in the building category which contain timber in them. They are: Timber stair parts Sawn timber Timber furniture boards Timber sheets Timber mouldings The above mentioned can be used in DIY projects by any individual who wishes to make his/her own building projects like furniture etc. B&Q offers the best quality available and is leading the industry by far as compared to its competitors. As discussed in earlier sections, we can note that timber is of much importance when it comes to greenhouse gases and its preservation is necessary to withhold the planet’s environmental balance. For the coming five years, it is recommended that the same products are offered to the public including slight modifications when it comes to styles and trends of a given time. With the great variety that we offer, it is of no doubt that the masses in our newly targeted populations will be driven towards us. Another advantage of our brand leadership is our pricing. We sell the best quality at the most affordable prices, hence proving B&Q to be the most cost efficient DIY brand in UK. Continuing this pricing strategy in our new locations, we aim to holding a big market share of this industry all over Europe. The pricing schemes that we will be enduring are “Competitor based” and “Market penetrating”. Initially, we will convert our prices to Euros and set them as it is. The next step would be to check the competitor prices. In the case that our prices are higher than them, we will lower our prices such that we have the lowest prices in the market so that maximum number of customers is attracted to our brand. This would be a mix of both competitor based and market penetration. We aim to carry on with this scheme for the first two years at least up till the point where we have established ourselves as a leading brand all over Europe. The packaging of our products has always been simple yet classy, appealing to everyone in the first gaze. The customer knows that this is indeed the wood that he will use for the house of his dreams. The packaging is always aimed to be light weighted so that there is no extra burden for the customer. The major change that is required in our packaging department is the availability of inscriptions in different languages on the covers of all our products. This is an extremely essential requirement as without this people will not know what they are being offered. The best way for this is to offer a multi-lingual descriptive packaging that can be used in all the countries of Europe at the same time. Promoting ourselves in our new target market has to be the most essential step of all. It is necessary that our campaign is innovative and creative and sets us apart from our competitors. Press releases and television/print advertisements are obviously on top of the list. These have to be catchy to our audience. In addition to this, trade fairs would be very beneficial at this point. An introductory trade fair in every country would help us spread the word in the new market. Our staff that will be available on call in these trade fairs would guide potential customers about the traits of our products and also help them make the right choices. Another important aspect that needs to be considered here is that we need to hire staff that is familiar with the country and language we are selling in. Therefore, we can note that the HR section of our company will have to be very careful with the hiring and selection of staff. 6. Press Release “B&Q brings the best quality timber now in your country!” B&Q a leading supplier of timber in UK and Ireland as well as China is now spreading itself all across Europe this coming summer. The growing need of a control for greenhouse gases, timber will store carbon for years to come and what better use of it then to use it to build the house of your dreams. Be it a construction project or a piece of furniture for your living room, B&Q bring to you FSC certified and branded timber at the most unbelievable prices like never seen before. B&Q representatives have scheduled trade fairs for a one of a kind personal one on one with their customers in all capitals of the major European countries they are locating themselves in by the summer of 2011. B&Q claims to get its timber for the best managed sources and has proved itself in the past and hence expects to make great success with its integration in the European countries. Read More