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Case Study 2-7% of total grade As part of the case study, you will be graded on the following 2 submissions Oral presentation in class Written report submitted in D2L many Canadian manufacturers struggled between 2008 and 2014 because of the high anle. But Winpak continued to grow because of technological and efficiency advan pel. Also, because the company had some assets in the United States, it could take vantage of lower wage rates there. zate of productivity for every dollar it pays in wages must be of a world standard. It CRITICAL THINKING CASE Valike all manufacturers, Winpak faces competition from all over the world, so the he US dollar, which has risen again against the Canadian currency, the euto has not come back to its early 2000s level of $1.60 Canadian to buy 1 euro. which gives it better access to the European market and more room to grow. Unlike Thinking Critically you common to buy 29 Tough Times? Not at Winpak that we drous for business doesn't have to be Andok at what has happen That becomes dear when we take Marhabad company catid Winpak between 2000 and 2014 many people thought the high value of the one again the US dollar would eat Canada malacturing sector hadly Business comments tors and manchmal all the monetary policy of the Bank of Canada and how it was hurting porn. When the doll dropped or cent US was supposed to www many industries to financial difficulties. But some compani Drew even when the dollar wash Winpak was sic of them When the Canadian dollar was its high point, Winpak washining new van the market, at the company was producing most of its in Canada Hy 2015 company has expand to 10 plants acrom North America and was looking to Into South America Winpak makes contain for many ince pod pill toll blister plan will many other party percent of tes are made me 10 It's growth industry wel on the desire for commenced Company w tried to hand to growth in the tough times, the human department se hundreds of romsday free werken at the webs which are cutting back Show can winul compete when so many other manufacturer their plans to lowerage cool that the high aber and prie of supplies in Canadian dollar wone Winpal, We many other com the The company in technoly and in employees holes and patients for create a packaging by conmully wrote and many waters, the company continues to become more prive. The way to do Wohndeshin its nice of the market The good we pain ad tumes Taka dW explain to the won the company is a los precno matur the economico There market for convergent those gooche package sale come to run million in 2010 more than 1 million 2014 with a tothom in 2014 and pol to hit 52 barn worldwide 30 Blny percent of many customer in the United States, a market in which 1. What type of unemployment is occurring when manufacturers close plants because they cannot compete with labour rates in other countries? Explain what this might do the circular flow of the Canadian economy 2. What factors of production is Winpak using to be able to compete with developing nations? 1. How have the actions of the Bank of Canada influenced the value of the Canadian dollar compared with the U.S. dollar in the past three years? 4 If wage rates in Canada are increasing more than those in other countries, how should this affect prices and inflation rates? Explain the type of inflation for defla- tion) that is occurring What sort of business arrangement have Winpak and Wipak entered into? If they end up controlling all the patents in the coffee creamer market, what sort of com- petitive system might be in place? Sung The National September 14 2011: B. Bracing WiA Gewing Company She Mall May 12. 2014 Stanley Cox and Kevin Myer"Bore US - 01525. Mark S. Kohar, 1995. Winpak Portion Packaging 590 WAL FRobarde 1997, Dieser System won Calacables 42.1997 Win a $25 Mon for Expansion 11 D. CRITICAL THINKING CASE Tough Times? Not at Winpak An economic environment that seems disastrous for businesses doesn't have to be That becomes clear when we take a close look at what has happened in recent years to a Manitoba-based company called Winpak. Between 2000 and 2014, many people thought the high value of the loonie against the U.S. dollar would affect Canada's manufacturing sector badly. Business commenta- tors and manufacturers complained about the monetary policy of the Bank of Canada was supposed to save many industries from financial difficulties. But some companies grew even when the dollar was high. Winpak was one of them. When the Canadian dollar was at its high point, Winpak was hiring new staff in Winnipeg and Montral. Its Chicago plant gave the company an advantage in the U.S. market, but the company was producing most of its goods in Canada. By 2015 the company had expanded to 10 plants across North America and was looking to move into South America Winpak makes containers for many convenience goods, pill foil blister packages as well as many other similar types of products. It makes more than 10 billion single serving coffee creamer packages a year (only 14 percent of sales are inside Canada). It's a growth industry based on the desire for convenience foods. Company workers are thrilled to have jobs and to see growth in these tough times. The human resources department sees hundreds of rsums a day-many from workers at other plants nearby, which are cutting back. So, how can Winpak compete when so many other manufacturers are moving their plants to lower-wage countries? It would seem that the high labour costs and the price of supplies in Canadian dollars would force Winpak, like many other companies to move. The company invests in technology and its employees. It holds and licenses patents for creative food packaging. By continually improving systems and training workers, the company continues to become more productive. The key is to do a great job and produce within its niche of the market. explains. In other words, the company sees a market for its products no matter what "In good times we package steak, in bad times we package hot dogs," Winpak the economic conditions are. There is always a market for convenience goods, and those goods require packaging. Sales continue to grow from $600 million in 2010 to more than $720 million in 2014, with a target of $1 billion in 2017 and a goal to hit $2 billion worldwide by 2020. Eighty percent of company customers are in the United States, a market in which ment manufacturers struggled between 2008 and 2014 because of the high Canadian many o Camalan to buy .com 2 loonie. But Winpak continued to grow because of technological and efficiency advan- tages. Also, because the company had some assets in the United States, it could take advantage of lower wage rates there. Like all manufacturers, Winpak faces competition from all over the world, so the rate of productivity for every dollar it pays in wages must be of a world standard. It also must participate in world markets to expand. It has aligned with Wipak of Finland, which gives it better access to the European market and more room to grow. Unlike the U.S. dollar, which has risen again against the Canadian currency, the euro has not come back to its early 2000s level of $1.60 Canadian to buy 1 euro. Thinking Critically 1. What type of unemployment is occurring when manufacturers close plants because they cannot compete with labour rates in other countries? Explain what this might do the circular flow of the Canadian economy. 2. What factors of production is Winpak using to be able to compete with developing nations? 3. How have the actions of the Bank of Canada influenced the value of the Canadian dollar compared with the U.S. dollar in the past three years? 4. If wage rates in Canada are increasing more than those in other countries, how should this affect prices and inflation rates? Explain the type of inflation (or defla- tion) that is occurring. 5. What sort of business arrangement have Winpak and Wipak entered into? If they end up controlling all the patents in the coffee creamer market, what sort of com- petitive system might be in place? SOURCES. Crisis Hiring." The National, September 14, 2011; 8. Bouw, "Unpacking Winpak: A Growing Company, a Pricey Stock," The Globe and Mail, May 12, 2014; Stanley J. Cox and Kevin M. Byers, 1996, "Bone-Guard Bag." U.S. Patents, www.google.com pents/US5501525; Mark S. Kuhar, 1995, "Winpak Portion Packaging Inc.,"Occupational Hazards, 57, 10:94: William A. Lane Steven D. Davis, and Chester F. Robards Jr., 1997, "Dispenser System with Collapsible Pouch. - U.S. Patents, www.google.com/ Patents/U55634572, Michael Lauzon, 1997, "Winpak Slates $25 Million for Expansion, Plastics News, 9, 15:1-2