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Lakewood Forest Products Introduction Ward, Beda

This is an excerpt from the paper...

Ward, Bedas Canadian Ltd. Initially sold Canadian lumber and salmon to overseas markets, most notably those in the Middle East. When the Iran-Iraq war broke out, the company found that its market largely disappeared in a very short period of time. After doing some amount of research, the company's founder settled on producing and exporting chopsticks from a plant in Minnesota. The company obtained favorable financing through the auspices of the state of Minnesota, the Iron Range Resources Rehabilitation Board, local government tax credits, and similar arrangements. By making his plant nearly completed automated, the company's owner was able to not only build enough capacity to dominate the chopstick market, but also to pre-sell that capacity for five years.

The problem facing Ward is that of long-term survival. While the company has been able to successfully enter and penetrate the chopstick market, it did so through keeping its costs low. To some degree, these low costs came about through the effective but limited use of one-time concessions. Enterprise zone credits, wage subsidies and tax increment financing cannot be counted on to last over the long-term, with the result that the company's costs may well increase considerably over time.

In addition, the company current dominates the chopstick market in large part because it automated its factory. However, it is unlikely to remain the sole factory tha

. . .
uable in business, they can be tenuous and dangerous to companies that are too dependent on them. Recommendations It is recommended that Damar increase the amount it requires as a deposit from its customers, and that it form more alliances such as it has with its West Coast distributor in order to increase its profile in the United States. The French deal should be put on hold for the time being until the company can be assured that it can adequately handle the customs and other regulations, and until the company develops a formal agreement to be used with its suppliers. Finn-Vase Global Introduction Finn-Vise is a Finnish construction company that has targeted the Middle East as a key market area. The company has built on several successes, in Saudi Arabia and Egypt, for example, and is targeting a university campus in Iraq. Finn-Vise has a policy of using Finnish employees who are fluent in Arabic, or Arab employees who are fluent in Finnish, for key personnel, but management roles and key administrative positions are reserved for Finnish personnel. The company requires much interaction with local employees, and the projects that it took on in Saudi Arabia and Egypt, while successful, were generally run by Finnish man
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Approximate Word count = 2186
Approximate Pages = 9 (250 words per page)

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