Free Essay

What Should Be Stone Container’s Long-Term Financial Strategy

In:

Submitted By ceazyboy
Words 759
Pages 4
I. Barriers of changing waste behaviour
Most people know the current environmental problems, but only a few of them would participate in the recycling program continuingly and keep changing of their waste behaviour. So, what are their barriers of changing waste behaviour? According to the study of Tucker and Speirs about behavioural change in household waste management (Tucker & Speirs, 2010), many surveys result provided that “inconvenience factors” like effort involved, insufficient of storage space and time consuming were the main reasons household not to participate in recycle. Many households claimed recycling activities are time consuming, they did not willing to spend extra time to separate the recycled items from waste and taking them to the collection containers, many of working people engaged their in work and gathering with friends and family members rather than enrolling recycling activities during the rest time. Generally, insufficient of storage space is a main reason that discourage people to recycle, people who lived in small flats might not have space to store theirs recycled items. Apart from the above inconvenience factors, there are other factors that discourage them to recycle. Many people did not believe that their waste behaviour causing negative effect on environment, although they know that they may not change their 27 behaviour (Davidson et al, 2012).

Furthermore, many people believe that individual bebavioural change could not solve the environmental problems, and such attitude causes to the failure of all zero waste or recycling measures. Conversely, many young people create many of unnecessary waste, such as buying new products or appliances not because those products are out of function, they replace the old model appliance because they think it is socially need rather than actual need (Crocker, 2012).

II. Changing Waste Behaviour
In fact, many factors may influence human recycling behaviour which lead to better and more effective recycling programs, some of previous research on this topic has led to the discovery of many different explanatory variables. Hornik et al (1995) reviewed approximately 70 of these studies and found four recurring classes or categories of variables that were best used to determine recycling behaviour:, they are Internal Facilitators (IF), External Facilitators (EF), Internal Motivators (or Incentives) (IM), and External Motivators (or Incentives) (EM). These four main classes of variables are critical factors that can influence pro-environmental attitudes and action.

Internal Motivators are psychological factors that lead individuals to be self-motivated in continuing a certain act or task (Do Valle et al 2004).

External Motivators are psychological factors that motivate individuals in continuing an act through things they cannot control (Hornik et al 1995, Werner and Makela 1998, Bratt 1999).

Internal Facilitators are factors that provide individuals with the knowledge and mental capacity to complete a task properly.

External Facilitators can be characteristics of the surrounding physical environment that allow for the completion of a task and also barriers that can discourage individuals from doing a task. (Hornik J., J. Cherian, M. Madansky, and C. Narayana. 1995. Determinants of recycling behavior: a synthesis of research results. The Journal of Socioeconomics 24:105-127.)

Corraliza and Berenguer (2000) examined and have the result in the relationship between how the 4 categories affect human recycling behaviors. The different categories of variable factors do interact with each other and all types of variables factors must be taken into account when trying to determine what influences an individual’s recycling behavior.

Besides, there is another theory, The Theory of Planned Behavior (TOPB) was a main structural component to Do Valle et al’s combined behavioral model and it is also widely used in many other research studies on environmental psychology and behavior. TOPB allows for better prediction of pro-environmental behavior. TOPB can find a link between the different factors affecting recycling behavior, unlike in Hornik et al’s (1995) proposed model. TOPB finds direct and indirect relationships between the variables: attitude towards act, subjective norm

The TOPB, combined with models about internal motivations, values, and knowledge, contributed to Do Valle et al’s combined model. This resulting model has a complex web where there are many paths to actual recycling behavior.

Werner and Makela Study
Werner and Makela (1998) studied human motivations that influenced recycling behavior. Their study revealed that the more knowledge and personal satisfaction people receive from recycling, the more likely they are to do it on a long term basis.
Besides, the study claims that making a task mandatory does not necessarily change behavior; rather, the best way to get people to do something is to make the task a fun and positive experience.

Similar Documents

Premium Essay

Business Administrative

...Tuesday, February 21: Stone Container Corporation (A) a. Compare Roger Stone’s growth and financial strategies with those of his predecessors. b. Examine the sensitivity of Stone Container’s earnings and cash flow to the paper and linerboard pricing cycle. Assume sales volume of 7.5 million tons per year and a 35% marginal tax rate. What would be the effect of a $50 per ton price increase? Is such an industry-wide price increase plausible? c. What should be Stone Container’s financial priorities in 1993? d. Of the financing alternatives described in the case, which would be in the best interests of Stone’s shareholders? Which would be in the best interests of its high-yield debt holders? Which would be favored by its bank creditors? 1. What was the basis of Stone Container’s successful growth during its first fifty years? What was the product market strategy? What was its financial strategy? How did Roger Stone’s management of the company compare to that of his predecessors? 2. How sensitive are Stone Container’s earnings to the paper and linerboard pricing cycle? Estimate the effect on earnings and cash flows of a $50 per ton industry-wide increase in prices. What if there were a $100 per ton industry-wide increase? In each case, assume Stone Container’s sales volume approximates its1992 production level of 7.5 million tones per year -- while costs remain the same. Also assume a 35% tax rate. 3. What would be the effect under both these pricing...

Words: 364 - Pages: 2

Premium Essay

Business

...FINA 6092 Advanced Financial Management 2014-15 Term 1 Case questions   Case #A: Butler Lumber Company Questions 1. Why does Mr. Butler have to borrow so much money to support this profitable business? 2. Do you agree with his estimate of the company’s loan requirements? How much will he need to borrow to finance his expected expansion in sales (assume a 1991 sales volume of $3.6 million)? 3. As Mr. Butler’s financial advisor, would you urge him to go ahead with, or to reconsider, his anticipated expansion and his plans for additional debt financing? As the banker, would you approve Mr. Butler’s loan request, and, if so, what conditions would you put on the loan? 4. Has Butler Lumber Company created value for shareholders? Hint: It might help you to analyze the case if you conduct the following analyses: 1. 2. 3. 4. Construct a common-size (percentage) income statement. Construct a common-size (percentage) B/S Using information from 1&2 to find out the operating efficiency Assuming the same operating efficiency in 1990, forecast cash needs for the target growth Case #B: Ocean Carriers Questions Ocean Carriers uses a 9% discount rate. 1. Do you expect daily spot hire rates to increase or decrease next year? 2. What factors drive daily hire rates? 3. How would you characterize the long-term prospects of the capesize dry bulk industry? 4. Should Ms Linn purchase the $39M capesize? Make 2 different assumptions. First, assume that Ocean Carriers in a U.S. firm subject to...

Words: 1115 - Pages: 5

Premium Essay

Case Questions

...expansion in sales (assume a 1991 sales volume of $3.6 million)? 3. As Mr. Butler’s financial advisor, would you urge him to go ahead with, or to reconsider, his anticipated expansion and his plans for additional debt financing? As the banker, would you approve Mr. Butler’s loan request, and, if so, what conditions would you put on the loan? 4. Has Butler Lumber Company created value for shareholders? Hint: It might help you to analyze the case if you conduct the following analyses: 1. 2. 3. 4. Construct a common-size (percentage) income statement. Construct a common-size (percentage) B/S Using information from 1&2 to find out the operating efficiency Assuming the same operating efficiency in 1990, forecast cash needs for the target growth Case #2: Ocean Carriers Questions Ocean Carriers uses a 9% discount rate. 1. Do you expect daily spot hire rates to increase or decrease next year? 2. What factors drive daily hire rates? 3. How would you characterize the long-term prospects of the capesize dry bulk industry? 4. Should Ms Linn purchase the $39M capesize? Make 2 different assumptions. First, assume that Ocean Carriers in a U.S. firm subject to 35% taxation. Second, assume that Ocean Carriers is located in Hong Kong, where owners of Hong Kong ships are not required to pay any tax on profits made overseas and are also exempt from paying any tax on profit made on cargo uplifted from Hong Kong. 5. What do you think of the company’s policy of not operating ships over 15 years old? ...

Words: 947 - Pages: 4

Premium Essay

Stone Container Corporation

...leadership to have been successful? Why or why not? Stone Container Corporation (“Stone”) has historically been an acquisitive company. However, in the wake of the Great Depression, its founders established a longstanding policy to “not to carry any significant debt for long periods of time”. Prior to 1979, acquisitions that served to diversify the company’s product offering and geographic presence were typically paid for with a combination of cash and loans that were repaid early. While Stone completed an initial public offering in 1947, the business remained conservatively capitalized thereafter with family ownership in the majority at 57%. Roger Stone, with highly leveraged acquisitions of distressed producers, stimulated much higher financial and equity risks with the addition of layered debt. He was able to expand capacity more than 5 times at one-fifth of the normal cost of building new plants; however the high degree of operating leverage inherent in the production of paper/ paperboard exposed the company to a greater degree of cyclicality and pricing risk. Given the high fixed-cost nature of paper manufacturing, Roger’s aggressive capacity expansion left the company particularly exposed to periods of decline where producers will cut prices before production. Further, via additional equity offerings overseen by Roger, the Company’s family ownership was diluted to 30% by the late 1980’s. Initially, Roger’s strategy was fairly successful as he was growing the earnings...

Words: 1639 - Pages: 7

Premium Essay

Tttt

...Case Seminar Advanced Corporate Finance Tuesday 10:00 – 13:00, Room 23 Instructor: Tim Adam This case seminar discusses real-world business cases, which relate to the materials covered in Corporate Finance and Advanced Corporate Finance. The main topics are company valuation, capital structure, bankruptcy, corporate governance, project finance and corporate risk management. The main objective of the seminar is to apply the theoretical concepts of corporate finance and corporate governance to real-world situations. To do so we will discuss six Harvard Business School cases. In addition, there will be several company presentations of real-world business cases. This seminar has a high level of practical relevance, but it is also very labor intensive. Expect to spend at least eight hours each week on case preparations. Prerequisites All participants must have successfully passed Corporate Finance, and take Advanced Corporate Finance parallel or prior to this case seminar. Registration Students need to register for this seminar. Please submit your applications electronically (CV, most recent transcript) to Mrs. Bulwahn by April 8, 2016. If you do not attend the first session, your place may be given to other students on the waiting list. Evaluation Four case reports (80%), class participation (20%). Seminar attendance is obligatory. Course materials Cases can be purchased for a total cost of US$ 23.70 using a credit...

Words: 2908 - Pages: 12

Premium Essay

Dean

...Thursday, January 19: Clarkson Lumber Company Reading: Note on Financial Analysis a. How is the company's financial performance? (Examine appropriate financial ratios.) b. Why has Clarkson Lumber borrowed increasing amounts despite its consistent profitability? c. How has Mr. Clarkson met the financing needs of the company during the period 1993 through 1995? Has the financial strength of Clarkson Lumber improved or deteriorated? d. How attractive is it to take trade discounts? Tuesday, January 24: Clarkson Lumber Company (continued) Reading: a. Note on Financial Forecasting b. Note on Bank Loans a. How much of a loan will Mr. Clarkson need to finance the expected expansion in sales to $5.5 million in 1996 and to take all the trade discounts? (Prepare a projected income statement for 1996 and a pro forma balance sheet as of December 31, 1996.) b. As Mr. Clarkson’s financial adviser, would you urge him to go ahead with, or to reconsider, his anticipated expansion and plans for additional debt financing? c. As the banker, would you approve Mr. Clarkson’s loan request; and if so, what conditions would you put on the loan? Thursday, January 26: SureCut Shears, Inc. a. Evaluate SureCut’s financial performance using standard ratios. b. Why can’t SureCut repay it’s loan on time...

Words: 2003 - Pages: 9

Free Essay

Aes Case Study

...for that matter, much staff at all — had been one of the themes guiding the design and operation of the corporation since its founding. The company, in addition to having no personnel department, had no public relations, legal, environmental, or strategic planning departments. Its chief financial officer, Barry Sharp, saw his job not so much as running a centralized finance function but rather as helping all the AES employees as they made important decisions about financing and investments in a very capital intensive business. But the company was becoming much larger and increasingly geographically dispersed. Perhaps those early decisions needed to be rethought. Could what worked for so long continue to work as the corporation grew and operated increasingly on a global basis? Could the advantages of flexibility and having virtually every employee feel responsible for almost all aspects of the corporation's operations continue to outweigh the costs of an absence of specialization and the need to have people always learning new tasks and new things? Was this continuous learning of new things really a disadvantage at all, or as Bakke thought, how one created a real "learning organization?" What Bakke recognized was that...

Words: 10340 - Pages: 42

Premium Essay

Working Capital Management

...SUMMER TRAINING PROJECT REPORT ON ANALYSIS OF PACKAGING STRATEGIES OF ITC Submitted for partial fulfillment of award of Master of Business Administration (MBA) From Uttar Pradesh Technical University, Lucknow UNDER THE GUIDANCE OF SUBMITTED BY ABHISHEK KUMAR SAXENA ROLL NO.1380170008 Session: 2013-15 DECLARATION I ABHISHEK KUMAR SAXENA (ROLL NO.: 1380170008) student of MBA IIIrd semester , Year 2013-15, hereby declare that the Research Project Report titled “ANALYSIS OF PACKAGING STRATEGIES OF ITC” being submitted in partial fulfillment for the award of MBA degree by UPTU is my original work of Research and it has not been submitted...

Words: 15862 - Pages: 64