Organizing Work - Smurfit
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Organizing Work - Smurfit
MGT / 521
March 29, 2014
Organizing Work
Team C believes that the Smurfit-Stone Container Corporation will need restructuring of their company due to many factors. Emerging from bankruptcy in 2009, with a debt of $1.2 Billion, the corporation was forced to shut down two mills during and begin corporate reorganization. Another reason for restructuring of the company would be to diversify their portfolio, which will provide shareholders additional sources of income when corrugated container sales are down. Our research shows the corporation produced much success and had many beneficial resources. While Smurfit-Stone was unable to support their financial obligations to employees, they maintained a strong presence in the market. By focusing on the enhancement of sales opportunities through restructuring, marketing, and diversifying of services, we believe the international corporation would have the capability to turn their issues around.
Currently, 75 percent of Smurfit’s net sales are in the containerboard and corrugated containers, and 20 percent being in consumer packaging. Another reason for restructuring would be to recession proof the corporation by investing and producing different products. Lastly, Smurfit-Stone Container Corporation will build a stronger balance sheet by reducing their operating ratio and their average cost per ton which would provide the corporation with a greater capability to liquefy as well as place them under the national average, making Smurfit-Stone an industry leader.
Work to be completed
In an effort to initiate change, there are three very important factors that must be addressed. Ensuring that the mission, vision, and strategy is understood and accepted by the management team, ensuring the right people, processes and organizational strategy is moving the company forward to achieve higher profitable margins, and readjusting the organization structure. This will aid in...
MGT / 521
March 29, 2014
Organizing Work
Team C believes that the Smurfit-Stone Container Corporation will need restructuring of their company due to many factors. Emerging from bankruptcy in 2009, with a debt of $1.2 Billion, the corporation was forced to shut down two mills during and begin corporate reorganization. Another reason for restructuring of the company would be to diversify their portfolio, which will provide shareholders additional sources of income when corrugated container sales are down. Our research shows the corporation produced much success and had many beneficial resources. While Smurfit-Stone was unable to support their financial obligations to employees, they maintained a strong presence in the market. By focusing on the enhancement of sales opportunities through restructuring, marketing, and diversifying of services, we believe the international corporation would have the capability to turn their issues around.
Currently, 75 percent of Smurfit’s net sales are in the containerboard and corrugated containers, and 20 percent being in consumer packaging. Another reason for restructuring would be to recession proof the corporation by investing and producing different products. Lastly, Smurfit-Stone Container Corporation will build a stronger balance sheet by reducing their operating ratio and their average cost per ton which would provide the corporation with a greater capability to liquefy as well as place them under the national average, making Smurfit-Stone an industry leader.
Work to be completed
In an effort to initiate change, there are three very important factors that must be addressed. Ensuring that the mission, vision, and strategy is understood and accepted by the management team, ensuring the right people, processes and organizational strategy is moving the company forward to achieve higher profitable margins, and readjusting the organization structure. This will aid in...