Strategic Analysis, the Balanced Scorecard, and Value-Chain Analysis; the Packaging Industry Dana Packaging Company is a large producer of paper and coated-paper containers with salesworldwide. The market for Dana's products has become very competitive in recent years becauseof the entrance of two large European competitors. In response, Dana has decided to enter newmarkets where the competition is less severe. The new markets are principally the high end of thepackaging business for products that require more technological sophistication and better materi-als. Food and consumer products companies use these more advanced products to enhance theappeal of their high-end products. In particular, more sturdy, more colorful, more attractive, andbetter-sealing packaging has some appeal in the gourmet food business, especially in coffees, bakedgoods, and some dairy products. As a consequence of the shift, Dana has had to reorient its factoryto produce the smaller batches of product associated with this new line of business. This changehas required additional training for plant personnel and some upgrading of factory equipment toreduce setup time.Dana's manufacturing process begins with pulp paper, which it produces in its own mills aroundthe world.
Some of the pulp material is purchased from recycling operators when price and availabil-ity are favorable. The pulp paper is then converted into paperboard, which is produced at Dana's ownplants or purchased at times from outside vendors. In most cases, the paperboard plants are locatednear the pulp mills. At this point in the manufacturing process, the paperboard might be coated witha plastic material, a special embossing, or some other feature. This process is done at separate plantsowned by Dana. On occasion, but infrequently when Dana's plants are very busy, the coating andembossing process is outsourced to other manufacturers. The final step in the process is filling thecontainers with the food product or consumer product. This step is done exclusively at Dana-ownedplants. Dana has tried to maintain a high reputation for the quality of the filling process, stressingsafety, cleanliness, and low cost to its customers. Required 1. Describe Dana Company's new strategic competitive position.2. Develop a value chain for Dana. What are its opportunities for cost reduction and/or value enhancement?3. Dana's management is considering the use of a balanced scorecard for the firm. For each of the fourareas within the balanced scorecard, list two or three examples of measurable critical success factors that should be included?