Northwest Case Study

Topics: Investment, Risk, Management Pages: 4 (1457 words) Published: December 7, 2010
Northwest Canadian Forest Products Limited is a company that owns and operates five saw mills in British Columbia and Alberta, Canada. They produce lumber for construction in a few different countries. The President of the company is dealing with a tough situation with one of her mills in Jackson, British Columbia. The mill in Jackson is her least productive mill and she soon has to make a decision that could cost the company a substantial amount of money. She has the choice of either investing 50 million in the weak Jackson mill or to invest more that 50 million in a new mill high demand area. The president has been informed of the many complaints from the managers and supervisors, but nothing seems to be the right solution. The Jackson mill faces many problems with their safety regimen as well as the overall structure of the employees. The mill cannot operate productively internal employee disputes. The president stated that she will not invest 50 million in Jackson unless the new general manager makes some much needed improvement. The president soon needs to make the decision on whether to upgrade the Jackson Mill, or to start a new mill and lay off a large number of workers Diagnosis:

Northwest Canadian Forest Products Limited has many problems they are facing with their Jackson mill. The problem is that there are poor labor-management relations. Workers have gone on strike multiple times leaving the company with physical and financial damage. There is no way a company will succeed unless there is some type of control within this branch. The managers are not taking their jobs seriously or even acting within reason. It has been noted that the overall safety of the employees is at risk due to past inspections. This company has no structure what so ever and has no goal oriented drive. Apparently almost every employee has some complaint directed at someone else. Not one employee seems to be willing to compromise toward a particular goal. Managers...
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