Business analysis Research Paper Example | Topics and Well Written Essays - 1500 words

Business analysis - Research Paper Example The market prices for paper and other wood products have been fluctuating with the ever-changing supply. To be able to succeed under the stressful market conditions, Domtar Corporation has had to set its goals clearly and come up with strategies of achieving these goals. This paper discusses how the recent economic trends have influenced Domtar business, the strategies that Domtar management has used as well as those it can use to adapt to the changing market. Additionally, the paper will focus on the tactics that Domtar has implemented and others that it can implement to adjust to the changing market in addition to the role that the Domtar Corporation human resource department has played in enabling Domtar adapt. How Recent Economic Trends Are Influencing Domtar Business Like any other industry, the paper industry has also been gravely affected by the recent frequent economic crisis that has hit the global economy. One of the direct effects of the global economic crisis has been a c onsiderable decline in the price of Domtar shares. The economic crisis has affected the market prices of not just the paper but also the cost of obtaining machineries and fuels to run Domtar’s factories. Additionally, factor such as global warming that have become a great concern have affected Domtar due to its reliance on forest for raw materials. The need to sustain the environment has led to limitation on the tree harvesting making the raw material expensive and less available. Additionally, forest products tend to be seasonal which might not coincidence with high market prices. What is more, forest products, inclusive of the paper and pulp are global and tend to be affected by fluctuations in the value of United States dollar. Over the last few years, the dollar has been depreciating greatly which has negatively affected the Domtar earnings. The fluctuations have affected even the prices of raw materials hence affecting Domtar’s operating margins negatively. Anothe r factor that has changed in the paper market is the decline in the demand for paper products as well as pulp (Domtar, 2011; Clancy, 2004). Other factors have affected the Domtar market for its products include, poor conditions in the credit market in its core operational area which are Canada and U.S. Likewise, the frequent windstorm and hurricanes slow down the shipment of Domtar paper and other products. Additionally, there have been increased taxes particularly in United States, which is also one of the major markets of Domtar. The increased taxes have negatively affected the Domtar income earnings. The increasing costs of fuels such as petroleum and coal have increased the transport costs. Additionally, Domtar is frequently affected by the ever-changing currency exchanges, especially those involving the Canadian Dollar and the U.S. dollar (Domtar, 2011). Strategies That Domtar Has Used to Adapt to Changing Market Over the last two decades, more paper companies have started comp eting with Domtar for market in the North America where it had previously enjoyed little competition. To curb competition, Domtar mainly relies on producing highly specialized, quality, and customized products that enables it to thrive in the competitive market. Additionally, Domtar relies on its wide market as compared to other paper companies. Domtar’s paper products are competitively priced. Additionally, they keep analyzing the changing market requirements that characterize the paper industry through their website. After