Acct Case Study

What do you see as Eastvaco’s strengths and weaknesses?

Upon reading the 10-k Report and the supplementary data I am only given a quick glimpse into the organization. At first glance the first thing that stands out to me is that this is a large organization with facilities spread across the world. Eastvaco, because of its many locations employs a lot of people, which are necessary to keep the operations running.

Strengths

Eastvaco is a solid large organization with facilities across the world allowing it to do business in all parts of the world. Eastvaco employs a large number of people which allows it to run its many facilities. Eastvaco currently brings in a large revenue stream with a lot of assets and fluid pieces. Eastvaco’s primary raw material is wood- the company owns a substantial amount of forest land which is essential in supplying its raw material needs. Because Eastvaco has invested large amounts of money in research and development they have been able to obtain patents within the industry.

Weaknesses

After reading the reports the main weakness I took notice of is the organizations expenses. Eastvaco incurs a large amount of expenses. Eastvaco is subject to federal and state environmental laws and regulations in all jurisdictions in which it operates. Compliance with these laws and regulations increases operating costs- while competing companies have to incur these costs as well, these are still substantial amounts of costs for Eastvaco to incur. If the new regulations go into effect Eastvaco will have to incur even more costs further cutting into its profits. Eastvaco’s current and future legal battles as well are a weakness as Eastvaco must incur large amounts of expenses for these as well.

MEMORANDUM

To: Terry Thompson

From: Julio Diez

Date: January 20, 2012

Subject: Management Accounting vs. Financial Accounting

Management accounting and financial accounting are different in their own right. Management accounting...