Australian Paper Manufacturers

Case Highlights: Salient Issue: Should APM adopt a Competitive Gaming Model relative to their expansion into the fine paper market, and if so, what capacity and service level should be allocated to meet their market demand? Complications/Complexities: y y y y y y y Forestry management (resource management) Transform/Upgrade Machine 3 to meet production/capacity levels required to sustain APMs entry into the fine paper market (40,000 tons- short run/150,000 tons- long run) Changing APMs order processing to a Customer Direct focus with a centralized call center (Live or Real-Time Ordering System) Aligning production runs to fulfill or meet customer orders and delivery deadlines (within a three-day window) Introduce and market new products related to APMs initiative (CopyRight, PrintRight, and DataRight) Environmental concerns relative to bleach processing of fine paper (look at oxygenation alternatives) As a result of the environmental attitudes of consumers, consider ramping up re-cycle processes and products (APM Office Paper Chase and ReRight recycled paper- including endorsements from the World Wildlife Fund)

Recommended Actions (and Rationale): Strategic Implications (Effects on Core Business Strategy, Importance to Competitive Advantage): Capacity Issues Surrounding APMs Desires to Expand into the Fine Paper Market

Key Decision Factors Recommended Approach to Adding Capacity