Stermon Generators Essay

Apr 26, 2011

EXECUTIVE OVERVIEW:

Stermon Mills (Stermon) is known as a small , independent paper developer that is having to compete more effectively against much larger competitors inside the uncoated great paper industry. President & CEO Stan Kiefner understands that the company needs to become more flexible in order to more efficiently use it is workforce and equipment, differentiate its products and better provide its consumer bottom. To become way more versatile, Stermon should concentrate its efforts in its techniques, machines and products. In the near term, it is critical intended for the company to deal with certain issues with machine #4 (#4) and its particular workforce. Focusing on upgrades and yield advancements for #4 on significantly less frequently developed paper marks will improve net gain by searching for better niche markets with improved pricing power. Stermon also needs to assist the Union to put into action cross-training applications that will allow personnel to become way more versatile in their jobs and better contributors to Stermon's success. The company also need to explore ways to tap into premium de-inking waste paper made by business office and organization waste, seeing that demand for reused fine documents was not being met simply by others in the market.

BACKGROUND:

Stermon Mills was obviously a small , 3rd party paper producer that was founded in 1910. The company got one pulping plant and 4 paper devices housed in 20 properties. Stermon historically focused on uncoated fine documents since covered papers required additional equipment and physical papers could hardly be manufactured in its pulping plant. With regard to uncoated newspaper had been quite strong for a long period of time, nevertheless significant capacity expansion coupled with softening require in 1989-92 had generated excess capacity and affordable prices. According to indicate 5, 20 years ago the top 12 paper corporations had 77% share individuals market of uncoated excellent paper. The effect was that many larger manufacturers had significant economies of scale and may provide...



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