The case revolves around the strategic planning retreat MacTara Limited (MacTara), the largest wood products company in Nova Scotia. While there are some very good opportunities for the company in some sectors, such as wood pellets as a fuel (high demand for inexpensively priced, renewable energy sources), the Canadian lumber industry as a whole is at this time not attractive (distortive effects of the Canada-US softwood lumber armed, low price of lumber, sales into freefall loud … Read More »

The case revolves around the strategic planning retreat MacTara Limited (MacTara), the largest wood products company in Nova Scotia. While there are some very good opportunities for the company in some sectors, such as wood pellets as a fuel (high demand for inexpensively priced, renewable energy sources), the Canadian lumber industry as a whole is at this time not attractive (distortive effects of the Canada-US softwood lumber armed, low price of lumber, sales in the free-falling U.S. dollar, inflexible cost structure, etc) are denominated. The fact that a slightly MacTara vertically integrated company – from lumber to chips for paper mills to fuel pellets from wood waste – makes planning very difficult, because the health of each sector impact on the outlook for the other. The leaders must find a way to all the different parts of the company fit together into a profitable whole while they still find time and money. The Canadian lumber industry is in crisis and the eastern Canadian industry is ripe for consolidation.
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from
Julia Sagebien,
Rick Shaver
Source: Ivey Publishing
12 pages.
Release Date: 4 January 2008. Prod #: 907M70-PDF-ENG
MacTara Limited and the wood products industry in Nova Scotia HBR case solution

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