Birch Paper Company Birch Paper company is a medium-sized‚ partly integrated paper company‚ producing white and kraft papers and paperboard. The company has four producing divisions and a timberland division. The responsibility structure of the Birch Paper Company and all of its divisions is a Profit or Investment Centre‚ which is stated in the case: For several years‚ each division had been judged independently on the basis of its profit and return on investment. Top management had been working
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Case 6-2 Birch Paper Company 1 Case 6-2 Birch Paper Company "If I were to price these boxes any lower than $480 a thousand‚" said James Brunner‚ manager of Birch Paper Company’sThompsonDivision‚ "I’d becountermanding my order of last month for our salesmento stop shaving their bids and to bid full-cost quotations. I’ve been trying for weeksto improve the quality of our business‚and if I turn around now and acceptthis job at $430or $450 or somethingless than $480‚I’ll be tearing down this
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Birch Paper Company Individual Case Strategy & Key Success Factors: Birch Paper (BP) company is structured in such a way that it is decentralized‚ and each division acts as a profit centre. Furthermore‚ it uses vertical integration with examples such as Timberland division supplying pulp‚ and the Thompson Division (TD) providing printing and colouring. This strategy‚ which composes of decentralization along with the design of profit centres indicates a profit
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BIRCH PAPER COMPANY Overview Birch Paper is a classic case that provides an excellent opportunity to present‚ analyze‚ and evaluate transfer pricing issues. In only two pages‚ the case presents a common business situation involving the relationship between three divisions and suggests several typical transfer pricing solutions: (1) at variable cost; (2) at full cost; (3) at full cost plus profit; (4) at market price; and (5) at a negotiated price. This setting facilitates the discussion of the
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Birch Paper Company Information given (All costs are for quantity of 1000) 1. If Northern accepts the bid from Thompson Thompson companies Out of Pocket costs for 1000 boxes = $400 70% of Thompson Out of Pocket costs = Selling price of Southern division (line and corrugating medium) Hence‚ selling price of Southern = 70% * 400 = $280 Hence‚ Out of Pocket costs for Southern = 60% 280 = $168 2. If Northern accepts the bid from West No out of pocket costs Thompson and Southern 3. If Northern accepts
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of this case is whether the Northern Division of Birch Paper Company should buy corrugated boxes for a new product internally from the Thompson Division at a transfer price higher than the market price‚ or from one of their external suppliers. Also‚ should the vice president of Birch Paper Company take any action on the bidding price or final purchase decision for one internal division to another internal division? EXECUTIVE SUMMARY Birch Paper Company is a medium sized‚ partly integrated
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Group Case Analysis Project: “Birch Paper Company” ------------------------------------------------- Question1 Mr. Kenton should accept Bid #2 – West Paper Company at $430 as it was the lowest bid and thus will give Northern Division the highest return. Under the current company policy each division is judged independently based on profit and return‚ thus Mr. Kenton would only be interested in his own division’s success and not the overall success of the company. -------------------------------------------------
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sport world and by extension issues that are present in our society. "This book is concerned primarily with ethically evaluating principles that people associate with sport and implying that analysis to examine specific issues. Its major focus is the nature of principles and values that should apply to sport". (Simon‚ p.19) The major points of importance that the text focuses on are: Moral issues of tactical fouling‚ ethical cheating‚ reason for deviance in competitive sports‚ and performance enhancing
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are being transformed from being nice and civilized to mean and savages. Simon on the other hand who is distant from the other boys has a relationship with nature. He goes off to the forest and thinks. He wants to know the truth about the island. He is very in touch with nature to the point where he starts to hallucinate with the “lord of the flies”. Simon tells Ralph that he will make it out safe and will soon be rescued. Simon was spiritual with nature‚ he knew by nature that goodness was coming‚
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one. It’s not so much about what I can get for myself; it’s about how we can all get by together.” Eve Birch; “The Art of Being A Neighbor” Owning your own home and having all those fancy gadgets and gizmos is only a small fraction of the American dream. What really makes the dream so wonderful and worth achieving is the people who help you achieve it. “The Art of Being A Neighbor” by Eve Birch is an essay about a time when Eve depended on her neighbors around her to stay alive. “The locals knew
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