Management Strategy and Decision Making Case Study

Management Strategy and Decision Making - Case Study Example The decline in consumption of manufactured products is the biggest reason. Paper is being replaced by electronic impressions. The majority of tasks performed in schools and offices have shifted towards soft copies instead of solid paper. Moreover, environmentalists have seized this opportunity by promoting electronic formats of books. So people don’t need to cut trees for paper. High Australian dollar, labour rate, and different regulations in other countries have made it hard for Australian manufacturers to keep up with the international competition. The pulp and paper industry is highly competitive. Developing, selecting and retaining organizational routines, is a comprehensive strategy for winning. The key drivers of profitability in the pulp and paper manufacturing industry include environmental, competition, market share, export legislation, environmental laws, recycling laws and export prices. The case states that over the past years Australian exports declined by $128 million due to falling export prices. There will be a very narrow margin for profitability in the future. The pulp and paper industry will face difficult time in the next five years. Increased environmental protection legislation will make it difficult for them to operate profitably. Only environmental hazard is not the only threat, people find it more convenient to have smart phone or tablet in their hand that can store thousands of books and documents, instead of carrying kilograms of paper. Pulp and paper manufacturers of Australia face even harsher challenges as increased competition from around world drives their profits down and captures their market share, while the Australian manufacturers are restricted due to strict legislations. Gunns should only enter this industry if they can ensure significant investment in technology to come up with cleaner and safer operations processes. The company should have a concrete plan (preferably the company