Case Studies

Case 1

Case question 2:

Domtar Corporation is the third largest producing company of uncoated fresh sheet of paper in North America. Time period prior to 1996, Domtar's financial records were worst in the pulp and paper industry. At that time, it was a hierarchical corporation with no set and clear goals. Half of the business of the organization was in areas of trouble. Additionally, the organization had no critical mass in order to compete with the other larger organizations in the country. Their balance sheet was not in good shape. Also, it did not have the status of investment grade on their long term debt (http://www.arunk.com). In July, 1996 Raymond Royer was the Chief Executive and President Officer of the organization. This thing was quite surprising as though He was successful at Bombardier, yet He had no little knowledge of paper and pulp industry. It was a belief of many that in order to be successful at Domtar one must know about the industry and its trends. Royer thought that in order to be effective in any industry, an organization needed to have some strategies, their directions and some clear, specific goals. Therefore, He made the decision of focusing on two main goals; one was to return on an investment, and the second was to value the customer service. Royer told the executives of Domtar that in order to recover and survive the organization people must need to participate in the industry's consolidation and also increase the critical mass of the company. The prime goal of the organization was to become a supplier that is preferred overall. The strategy of facing the competition was to focus on invasion that is being innovative in the designing of products. Also, producing a high quality product and being unique in providing the customer services. While doing all this, organization had to adopt all the possible ways for keeping costs down at the same time. At the time when Royer took over the company, He explained to the team of executives that there were mainly three pillars in the company. First was the customers, second the shareholders and third themselves. He further notified that it is only them who have the impact of bringing the change in the company. Then further he backed on from his words by hiring the guru Kaizen from his older company Bombardier. Kaizen is a process of having the employees involved by analyzing and using their expert capabilities in the process of development (Thomas). That is the development of new and more ways of doing the tasks that had been very much efficient at Bombardier earlier. To Royer, there was no such reason that Kaizen would not be successful at Domtar. Royer also noted that for the implementation of new strategies and their directions focus on the path of success, everyone needed to accept the change which is being proposed. Also, He believed that everyone has the skills of achieving them. Hence, for the success of any process change, it ...