Rocky Mountain Fiberboard Case

ROCKY MOUNTAIN FIBERBOARD granitelike Mountain Fiberboard (RMF) was set up in March 1999 and is engaged in the production of particleboard go forth of bluegrass shuck. It is a joint venture between BGI (Bluegrass Growers Inc. and a Northwestern American Indian tribe. The primary purpose of establishing Rocky Mountain Fiberboard was to find a solution to unfounded straw residue since the state of Washington placed a ban on field burning in 1996. some other(a) objective for creating this organization was the tribes desire to expand into other diversified projects. At this point in time, RMF is in rich financial difficulties. The financial statements for the year ending 2001 indicate a loss of $1.9 million on sales of $1.7 million and all over $4.5 million in debt and payables of over $800,000. Its internal cash function situation is negative putting excessive financial hug on the owners and indicating a dire need for RMF to take study strategic actions in order to turn the phoner around. The company faces many strategic issues: ?RMF product quality is extremely low. everywhere the years RMF has been using outdated manufacturing equipment which offer less tractableness and are less automated than the existing models being apply by competitors. RMF does not have adequate capital to climb this equipment.

As a result, it has huge inventories of salvaged/downgraded straw. Low quality of straw has also had a negative impact on RMFs client retention ability. ?Due to lack of funds RMF has been unable to adequately develop its storage facilities resulting in high wastage of purchased straw. ?Initially RMF had intractable that it would price its product low and then gradually cast up the price once it had established itself in the strawboard product market. However, throughout its three years of operation, RMF faced pricing issues since it was unable to step-up its prices due to a drop in market prices for particleboard. ? poor quality and low production capacity significantly... If you want to limit a full essay, order it on our website: Orderessay

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