mmers so that more precision sheeters can be bought. The
third option is to purchase a pulp mill or secure long-term contracts from pulp suppliers in
hopes of getting a lower rate. The fourth option is to increase communication between de-
parments in order to ensure a more coherent production process.
After careful consideration of the options, it is our recommendation that Champion
management take the following steps into consideration: cease production of the Kromokote
paper line, replace the cutters and trimmers with precision sheeters, and secure a steady sup-
ply of pulp at a lower fixed price. These actions will assist the mill in regaining its competi-
tive position in the premium paper marketplace.
Hamilton Mill is a producer of three different types of paper. Kromekote is a paper that
was patented by the mill back in the 1930's. The difference between Kromekote and
plain paper is the special coating that gives it a smooth, mirror-like finish. The second
type of premium paper is the All-Purpose Litho, a paper stock mainly used for calendars
and labels. When finished, it conveys a shiny, glossy surface. Third is the Premium Text
and Cover paper which is not a coated paper like the previous two lines. This type of paper
can be used for annual reports, business cards, stationary and promotional materials. Sales
are made to direct purchasers and through paper merchants and brokers from the 16 sales
offices jointly maintained by the publication papers operation and the printing and writing
papers operation, and from the Hamilton, Ohio order services office.
The fact that the mill now produces only three types of paper instead of numerous paper
stocks for the mass market reflects their transition from a commodity-based operation to
a premium paper facility. There is nothing wrong with the fact they shifted their market
focus since they were able to adapt to the changi...