Indonesian Economy: Asia Pulp and Paper
Indonesian Economy
Asia Pulp and Paper
A short strategy analysis of APP mission , vision and strategy Indonesian Economy Asia Pulp and Paper
A short strategy analysis of APP mission , vision and strategy
Summary Introduction 2 I. company overview 3 II. APP’s financials, environment issues and mattel 4 1. APP’s financials 2. Environment issues 3. Mattel III. The challenges and recomanded strategy 7 1. The challeges 2. Recommandations IV. APP, a company to watch 9 Conclusion 10 References
Introduction Corporate governance refers to the control of the firm, its ownership structure, and the disclosure quality. It was widely discussed in relation to the Asian crisis in 1997-98, because poor firm performance was assumed to be related to bad corporate governance . In particular, the East Asian economic model was said to reveal a "crony capitalism", with the presence of numerous family-controlled groups, a high ownership concentration, a weak public governance, and poor monitoring of bank loans . The group Asia Pulp & Paper (APP) expanded impressively in the 1990s and became the largest pulp and paper producer in Asia outside Japan, and one of the top ten producers in the world. It attracted investors from all over the world in a context of "Asian miracle", and because the giant pulp mills built in Indonesia were assumed to produce at the lowest cost in the world .Surprisingly, the group announced a debt standstill on $13 billion in 2001, the largest default for a private group in an emerging country At the same time, it was revealed that the industrial capacities had expanded at a much faster pace than the forest plantations, thus representing a high risk that operations would not be sustainable. Available studies showed the apparent lack of rationality in the decisions of the group, and the critical situation it faces from both financial and wood supply points of
Asia Pulp and Paper
A short strategy analysis of APP mission , vision and strategy Indonesian Economy Asia Pulp and Paper
A short strategy analysis of APP mission , vision and strategy
Summary Introduction 2 I. company overview 3 II. APP’s financials, environment issues and mattel 4 1. APP’s financials 2. Environment issues 3. Mattel III. The challenges and recomanded strategy 7 1. The challeges 2. Recommandations IV. APP, a company to watch 9 Conclusion 10 References
Introduction Corporate governance refers to the control of the firm, its ownership structure, and the disclosure quality. It was widely discussed in relation to the Asian crisis in 1997-98, because poor firm performance was assumed to be related to bad corporate governance . In particular, the East Asian economic model was said to reveal a "crony capitalism", with the presence of numerous family-controlled groups, a high ownership concentration, a weak public governance, and poor monitoring of bank loans . The group Asia Pulp & Paper (APP) expanded impressively in the 1990s and became the largest pulp and paper producer in Asia outside Japan, and one of the top ten producers in the world. It attracted investors from all over the world in a context of "Asian miracle", and because the giant pulp mills built in Indonesia were assumed to produce at the lowest cost in the world .Surprisingly, the group announced a debt standstill on $13 billion in 2001, the largest default for a private group in an emerging country At the same time, it was revealed that the industrial capacities had expanded at a much faster pace than the forest plantations, thus representing a high risk that operations would not be sustainable. Available studies showed the apparent lack of rationality in the decisions of the group, and the critical situation it faces from both financial and wood supply points of