FIN 374S Hw - Aneal Tenjarla Nick Rayo Brittany Jefferson...

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Aneal Tenjarla Nick Rayo Brittany Jefferson Lucas Jeter 1. The lumber business involves preparing wood in order to make homebuilding products. Specifically, Mr. Wilson’s business covers plywood, moldings, and sash and door products. There are many factors to success in this industry. First, the location is very important to lumber business. Business locating in growing areas with substantial homebuilding face an advantage. Additional, wholesale producers benefit from being near a major form of transportation. Furthermore, because of the competition within the industry, companies that can provide substantial discounts have a large advantage. They can do this by either gaining economies of scale or controlling operating expenses. 2. Wilson Lumber is doing very well from an operational point of view. His business is located in a growing suburb with substantial homebuilding needs. Additionally since his company is near a major railroad, he can easily end products. Furthermore, Mr. Wilson keeps a tight control of his
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This note was uploaded on 09/10/2010 for the course FIN 374s taught by Professor Staff during the Fall '08 term at University of Texas at Austin.

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