Summary of Management Strategies
After doing extensive research on Weyerhaeuser Co., I have found that this particular worldwide fortune 200 firm follows all the rules that I have learned taking this course by the book. I found that they value employees, and place emphasis on maintaining values and ethics.
The company is also very strict about meeting certain production quotas. They offer competitive salaries and extensive employer-paid benefits to employees and their families. Employees of the firm have also formed a union, which also offers banking services exclusively to employees of Weyerhaeuser. The firm also offers a variety of programs such as a wellness program which offers employer-paid discounts on exercising facilities. These are a few of the many benefits of being employed by Weyerhaeuser Company.
Summary of Marketing Strategies
Weyerhaeuser Company one of the world’s largest integrated forest product companies which is based out of Canada has been in business for over 100 years. So they have pretty much made a name for themselves in the industry years ago. Weyerhaeuser offers a 100% customer guarantee that if the customer is not satisfied, Weyerhaeuser will replace the product free of charge. And with the 100% customer satisfaction guarantee that they stand by, who wouldn’t choose Weyerhaeuser for any paper or containerboard need.
I found out that back in 2000, Weyerhaeuser increased the price of containerboard products even to existing customers. This caused a slight decline in sales for a brief 3 month period. Soon after, all the customers returned to Weyerhaeuser finding that no other company could compete with Weyerhaeuser’s 100% customer satisfaction guarantee.
Summary of Financing Strategies
Weyerhaeuser’s goal is to earn a 17% return on net assets over the industry cycle. A goal they say they will achieve by executing their strategies, focusing on customers, and maintaining a disciplined approach to capital spending.
Federal Way Wash., Nov 14, 2001- Weyerhaeuser Company today announced it plans to close or reposition 3 of its North American Operations during the fourth quarter to maintain the company’s competitive position in the lumber market.
This news story relates to the concept that the economy has much to do with a company’s ability to grow and stay in business. As emphasized in chapter 4, economic growth is a critical macroeconomic factor that affects business performance. Weyerhaeuser knows that the economy took a downfall after events on Sept. 11.
That’s the reason for the closing down 3 of its North American operations. This was in a way a smart move on Weyerhaeuser’s part because right now since the economy is in such turmoil, the demand for paper and lumber products as well as almost everything else has declined. I have even heard some things on the news about a possible recession. With the unemployment rate being the highest right now than it’s been in the past 6 years, it’s obvious why Weyerhaeuser chose to proceed with these closures.
Also as I noticed on Weyerhaeuser’s Annual Report, operating earnings were down 71% from last year. That is a major downfall in my opinion. Steven R. Rogel, chairman and CEO of Weyerhaeuser says “Weak Global economic conditions throughout the quarter affected our third-quarter results.”
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