Running head: IP Case Study

Green Team
Joshua Gillaspie
William S. Hall
Niki Ford
Trevor Lancaster
Amanda Hayes
8/15/2015
MAN 4741
Professor Justice
Team Assignment #3

IP Case Study

Abstract
The paper goes into details answering questions in reference to International Papers
Wildlife and recreation Program." It covers the transformation of IPs program that Tom
Bourland took over in 1980. The costs and revenue associated with the program, and the
obstacles Tom and IP faced. The paper also describes what contributed to the success of the
wildlife and recreation program. It also discussed the differences between management styles of
IP and state forest services. Lastly, how things may have been different for IP if the land was
holdings were not contiguous but fragmented, and what the future holds for IPs wildlife and
recreation program.

IP Case Study

HowdidIPsattitudetowardsrecreationandwildlifemanagementchange?Whatarethe
benefitsofthemindset?
TomBourlandjoinedthecompanyin1980,IPdidnthaveasuccessfulrecreation
program.Theprogramwasjustbasedontheprotectionofendangeredspecies,andthecompany
wasfocusedontimberproduction.Bourlandfacedthedauntingtaskofchangingthemindsetof
IPexecutives.IPscommitmenttowildlifemanagementchangeddramaticallyduringthe1980s
and1990s.(Csi.gsb.stanford.edu)Executivessawthebenefitstothebottomlinefromthe
recreationandwildlifeprogram.Theprogramallowedforwildlifetogrow,whichinturn
increasedthetimberforthecompany.
Whatarethecostsoftherecreationprogram?
Internationalpapersrecreationandwildlifeprogramfinancialcostforthemidsouth
regionwaslessthan$100,000.IPactuallyearnsmoneyfromtheirprogram,andbeforethey
TomBourlandtookover,theyearned$1.1millionCompanywide.Revenuesfromtheprogram
reached$10millionin1990,45percentofwhichcamefromthemidsouthregion.In1998
revenueincreaseto$25millioncompanywide,$5.5millionforthemidsouthregion.Thecost
torunthemidsouthregionwas$1millionduring1998.
What obstacles existed to getting the recreation program off the ground? How were these
overcome?
There were many different obstacles that the program faced. One of the many obstacles
was the heavy investments in infrastructure. The company also suffered public outlook because
local hunters will have to pay a fee for hunting. Some lawsuits were actually against the

IP Case Study

company because the program cut off access to company roads. Political entities also made
threats to raise taxes and worked with State biologists to publically attack the company.
Even though there was numerous obstacles, the programs staff stood committed to the
project. While game populations came back and good public relations became reality, the
organization was able to stand through the obstacles and overcome.
What contributed to the success of the wildlife and recreation program?
There were many things that contributed to the success of the program. Good public and
customer relations, game populations increased, and IPs corporate mission expanded to embrace
a commitment to the health and abundance of wildlife on its lands. The hunting clubs, fishing
permits allowed the program to gain momentum because of the revenue it generated. It allowed
Bourland to show executives how important it was to invest in the program, and it definitely
helped it cause by the added revenue.
HowmightIPsmanagementstyledifferfromthemanagementstyleoftheForestService
orthemanagementofthestateforest?
Whatmighttheenvironmentalconsequencesofthosedifferencebe?
HowmightIPsrecreationprogrambedifferentifthetimberlandswerelocatedinthe
westernUnitedStatesratherthantheSouth?
International Paper has exhibited management techniques that have been able to serve the
environment for many years. In 1957, International Paper was one of the first timber production
companies to hire a wildlife biologist with in depth research analysis. This enabled International
paper to think about what types of plants would benefit the environment. Most of the benefits
would be aimed towards animals living in the areas being harvested. International paper then
learned of the importance of burning vegetation in order to increase timber production. In doing

IP Case Study

so, burning would ensure the growth of yield tree plantations and the healthy proliferation of
wildlife. International paper had other issues to resolve too. Littering and hunters were two that
management was significantly worried about. International paper was able to settle these
situations by leasing recreational opportunities such as hunting and camping. Unfortunately, the
public was not happy. In the 1980s and 1990s, International paper planted hardwood that would
that benefitted certain species and the patterns were made irregularly. Better enforcement and
management reduced poaching and cut down on the legal hunting limit. This gave animal
populations a chance to sustain themselves. IP also made improves to their recreation facilities
and started to make money by introducing recreational fees. Hunting clubs were also introduced
to help manage wildlife, restrict certain hunting practices, and helped record wildlife
populations.
The management techniques of Forest Services and International paper differ in some aspects.
International Paper managed its practices in order to cut back on its carbon footprint. IP wanted
to ensure that the work they were doing was being combed over and treated by biologists to
ensure the protection on the environment. Although International Paper was responsible for the
destruction of forests, they were able to put plans into place that enabled forests to grow back
and preserve the wildlife that lived in those areas. International Paper was also keen on
cleanliness and hunters. They had to set up recreational areas for people to camp and had hunting
clubs set up to manage hunters. Forest Services are set up to protect the environment from
outsiders. Forest Services ensure that people are prepared to behave rationally and take steps in
order to maintain order within recreational parks. Forest Services are more about educating the
public about forests and the natural habitats that surround them.

IP Case Study

WhatdoesthefutureholdforIPsrecreationalopportunities?Foritswildlifemanagement
program?
In the future, IP plans to take advantage of protecting its wildlife and further developing
the recreational use of its forestlands. Because of the declining population of hunters, the
company is also focusing on a new hunting lease program. This lease will include more
assistance in managing leased areas, and increased education in both wildlife and timber
management. With this plan, and the help of entrepreneurs Bourland and Boitnott, IP will
generate more revenue from its wildlife and recreation program. It has a bright future ahead.
How would the task and cost of implementing these programs have been different if the
land holdings were not contiguous but were fragmented?
The task and cost of implementing these programs would have been different if the land
holdings were not contiguous but were fragmented. People that wanted to come see what they
were doing might not have been as intrigued as they were to see what the company was doing.
After making all of the changes and implementing programs, people wanted to go there to fish,
hunt and camp. If the land holdings were fragmented, the company may have had a hard time
watching everything happen and keeping a close eye on the progress. If the land was scattered
they might not have been so successful. It was a good idea for the company to have them
together.
This could have also affected their profits. If there was not as much money coming in,
then they might have not been so successful. According to the paper Does Land Fragmentation
Reduce Efficiency written by Monchuk, they author states land consolidation programs from a
distributional tend to benefit those with larger land holdings more than those with smaller

IP Case Study

holdings since the implicit costs of land fragmentation are higher. Therefore it was a good idea
for them to keep the land holdings contiguous.

REFERENCES

Csi.gsb.stanford.edu,. 'International Paper's Wildlife And Recreation Program : Center

For Social Innovation (CSI)'. N.p., 2015. Web. 15 Aug. 2015.
Monchuk, Daniel. (2010, July 27). Does land fragmentation reduce efficiency. Retrieved from
http://ageconsearch.umn.edu/bitstream/61652/2/WB-land-frag-alt_measures-AAEA.pdf