LEARNING PROJECT: COMPANY ANALYSIS AND EVALUATION 1
Learning Project: Company Analysis and Evaluation
James Rod
Student, Liberty University
Mrs. Joanne Jordan
November 21, 2022
LEARNING PROJECT: COMPANY ANALYSIS AND EVALUATION 2
Learning Project: Company Analysis and Evaluation
This learning project provides an analysis and evaluation of International Paper Company
(International Paper) with the use of a SWOT analysis and balanced scorecard. Critical success
factors of International Paper will be identified and discussed. The critical success factors will be
analyzed to measure the company’s performance and determine the company’s competitive
advantage and success within the industry (Blocher et al., 2022). This learning project will begin
with a brief overview of International Paper, followed by a SWOT analysis, then a detailed
discussion on the critical success factors identified in the balanced scorecard. The project will
conclude with an evaluation of International Paper’s achievements for each critical success
factor.
International Paper Company
International Paper is a manufacturing company of packaging products. The company
operates in two reportable business segments which include industrial packaging and global
cellulose fibers (MarketLine, 2022). The company was established in 1898 as a pulp and paper
company. Over the years, International Paper has grown and now operates in North America,
Latin America, Europe, Asia, the Middle East, and Africa. It manufactures various products such
as printing and writing paper, containerboards, corrugated sheets, and folding carton boards
(MarketLine, 2022). International Paper is an environmental, social, and governance-conscious
company instilling three core values of safety, ethics, and stewardship into its business strategy
(International Paper, 2022). In 2021, the total revenue for International Paper was approximately
$19 billion and it employed approximately 38,200 people (International Paper, 2021). Figure 1
displays the company’s strengths, weaknesses, opportunities, and threats.
LEARNING PROJECT: COMPANY ANALYSIS AND EVALUATION 3
Figure 1: SWOT Analysis
Source: GlobalData. (2021).
Critical Success Factors
By conducting a SWOT analysis, International Paper can assess critical success factors
allowing executives and managers to discover and agree upon the key factors that are vital to the
company’s success (Blocher et al., 2022). The key is to identify performance measures that will
help drive the performance of the employees toward the mission and vision of the company
(Lisoski, 2022). Once those measures are identified, it is important to effectively communicate
those measures throughout the company to all employees (Lisoski, 2021). In early 1990, Robert
Kaplan and David Norton introduced a strategic framework that identifies and communicates
measurable outcomes for critical success factors within an organization (Blocher et al., 2022;
Shelton, 2021). The balanced scorecard evaluates an organization from four perspectives that
include financial, customers, internal processes, and learning and growth (Blocher et al., 2022;
Shelton, 2021). These four perspectives are driven by the organization’s vision, values, and
Strengths
L Position
O Net
I Operations
Weaknesses O P
Opportunitites
G e-Commer Market
G Paper an Paperboard Mar
K Acquisiti
Threats
F Exchange Ri
P Outb
R E
LEARNING PROJECT: COMPANY ANALYSIS AND EVALUATION 4
strategy (Shelton, 2021). Figure 2 displays International Paper’s balanced scorecard and
identifies the objectives and measures for each perspective.
Figure 2: Balance Scorecard
Perspective Objective Measure
Financial
Investment Excellence
Return Cash to Shareholders
Maintain a Strong Balance Sheet
Cost reduction in Capital Expenditure
Sustainable Dividends
Share repurchases
Debt to EBITDA ratio
Customer Product Satisfaction
Innovative products
Product sales data
Number of customers
Number of active innovation ideas
Internal
Processes
Sustainable Operations
Renewable Solutions
Percentage of greenhouse gas
emissions released into the
environment.
Percentage of reusable, recyclable, or
compostable products
Learning
and Growth
Promote employees’ well-being
Diverse and Inclusive Workplace
Number of work-related injuries and
incidents.
Diversity percentages
Source: International Paper. (2022, October 27).
Financial Perspective
The financial perspective examines the company’s financial performance, operating
income, and financial resources (Shelton, 2021). The evaluation of the company’s financial
performance will assist with “bottom-line improvement by raising revenues, lowering cost, and
improving asset utilization” (Shelton, 2021, p. 116). As identified in figure 2, International
Paper’s financial perspective objectives include investment excellence, return cash to
shareholders, and maintaining a strong balance sheet (International Paper, 2022).
The investment excellence objective includes capital expenditures that improve product
quality and environmental performance while maintaining low-cost, reliable operations and
increasing strategic capital for expansion (International Paper, 2021). The investment excellence
objective is measured by evaluating financial data and comparing it to previous years and the
LEARNING PROJECT: COMPANY ANALYSIS AND EVALUATION 5
company’s competitors. One specific measure is assessing the cost reduction in capital
expenditures. The main goal of International Paper’s capital structure is to “maximize financial
flexibility and maintain appropriate levels of liquidity” (International Paper, 2021, p. 34).
Another objective that is considered from a financial perspective is the return of cash to
shareholders. This is done by the reduction of debt and strengthening of the balance sheet.
Maintaining a strong balance sheet is the third objective that coincides with investment
excellence and the return of cash to shareholders. These objectives are measured through the
number of sustainable dividends, share repurchases, and analyzing the debt to EBITDA ratio. In
2021, International Paper’s reduced its debt by $2.5 billion and returned $1.6 billion to
shareholders through dividends and share repurchases. From a financial perspective, the
company achieved each objective in 2021.
Customer Perspective
The customer perspective focuses on performance from key stakeholders’ points of view.
Key stakeholders include employees, customers, suppliers, communities, governmental and non-
governmental organizations, and shareholders. International Paper upholds a sustainability
strategy that engages internal and external stakeholders that consider environmental, social, and
governance in its processes (International Paper, 2021). Figure 2 identifies International Paper’s
objectives from the customer perspective to include product satisfaction and the innovation of
products.
As mentioned, International Paper operates in two business segments. The global
cellulose fibers segment includes absorbent personal care products, paper, tissue, and specialty
pulp used in textiles, construction materials, paints, and coatings (International Paper, 2021). The
industrial packaging segments include fiber-based packaging for processed food and beverages,
LEARNING PROJECT: COMPANY ANALYSIS AND EVALUATION 6
retail packaging and displays, and corrugated boxes. Product satisfaction and providing
innovative products are critical success factors that International Paper aims to achieve. These
objectives are measured by evaluating net sales, the number of customers, and the number of
active innovation ideas. In 2021, International Paper had net sales of $17.2 billion in North
America, over 20,000 customers, and approximately 1,000 active innovation ideas (International
Paper, 2022). These achievements positioned International Paper in “attractive markets with low-
cost assets that generated strong free cash flow and returns above its cost-of-capital”
(International Paper, 2022, p. 28).
Internal Process Perspective
The internal process perspective assesses the quality and efficiency of the company’s
performance associated with productivity, services, speed, and other processes that will enhance
the value of the company (Blocher et al., 2022; Shelton, 2021). The critical success factors will
vary among industries and businesses. Like the customer perspective, the internal process
perspective will consider environmental, social, and governmental factors. International Paper’s
objectives from the internal process perspective include sustainable operations and renewable
solutions.
The goal of sustainable operations is to improve International Paper’s climate impact and
manage water usage effectively. This is measured by evaluating the percentage of greenhouse
gas emissions that are released into the environment and calculating the among of water used at
International Paper’s plants and mills (International Paper, 2022). International Paper was able to
reduce its greenhouse gas emissions by twenty percent in the last ten years. The company has a
target to lower its emissions to thirty-five percent by 2030 (International Paper, 2021).
LEARNING PROJECT: COMPANY ANALYSIS AND EVALUATION 7
The goal of renewable solutions is to “accelerate the transition to a low-carbon economy
through innovative fiber-based products” (International Paper, 2022, p. 9). This is measured by
calculating the percentage of reusable, recyclable, and compostable products. The company
continues to develop and identify opportunities to expand circular systems that focus on sourcing
raw materials responsibly and making renewable and recyclable products (International Paper,
2021). The company’s goal for 2030 is to have a low-carbon, circular economy by designing
products that are 100 percent reusable, recyclable, or compostable (International Paper, 2021).
Learn and Growth Perspective
The learn and growth perspective focuses on human capital, infrastructure, technology,
culture, and other elements that will improve company performance (Shelton, 2021). Executives
and managers must consider ways to achieve the company’s mission and continue the ability to
change and improve (Shelton, 2021). Figure 2 identifies International Paper’s objectives from a
learn and growth perspective that “promote employee well-being by providing safe, caring and
inclusive workplaces” (International Paper, 2022, p. 9).
The safety of International Paper’s employees is a core effort. The company’s goal is to
promote employees’ well-being at the workplace ensuring it is 100% injury free by stressing how
business is conducted which is the “IP Way of doing things – we do the right things, in the right
ways, for the right reasons, all of the time (International Paper, 2021, p. 19). In 2021, 94 percent
of International Paper’s sites operated without serious injuries through its continued focus on a
resilient safety program. Another key objective is promoting diversity and inclusion in the
workplace. The company host several diversity and inclusion training, forums, and mentoring
boards to engage and empower innovation and decisions (International Paper, 2021).
International Paper’s vision for 2030 is to have 30 percent overall representation of women and
LEARNING PROJECT: COMPANY ANALYSIS AND EVALUATION 8
50 percent of the women in salaried positions, and 30 percent racial and ethnic minority
representation in U.S. salaried positions (International Paper, 2021). The company plans to reach
this goal by investing in the development and capabilities of minority groups, focusing hiring on
a diverse pool of talent, and improving the retention of current employees (International Paper,
2021).
Conclusion
International Paper is meeting most of its objectives associated with the balanced
scorecard’s four perspectives. From the financial and customer perspective, the company is
achieving its goals and continues to meet expectations. The internal process perspective has
room for improvement in the reduction of greenhouse gas emissions but has a solid plan to reach
its goal by 2030. Finally, the learning and growth perspective is right on track to reaching its
objectives in safety and creating a diverse and inclusive workplace. Using a SWOT analysis and
balanced scorecard, International Paper can clearly and concisely identify and communicate its
critical success factors and the measures to evaluate its objectives. These tools effectively
communicate with the employees and help drive them to success.
LEARNING PROJECT: COMPANY ANALYSIS AND EVALUATION 9
References:
Blocher, E. J., Juras, P. E., & Smith, S. D. (2022). Cost management: a strategic emphasis, 9th
edition. McGraw-Hill Education.
GlobalData (2021). International Paper Co – financial and strategic analysis review. Gale
Business Insights: Global. https://bi.gale.com/global/showpdf?
pdfdocid=304672_GDPP9781FSA
International Paper. (2021, December 31). 2021 Annual Report.
https://s1.q4cdn.com/597881801/files/doc_financials/2022/ar/2021-IP-Annual-Report.pdf
International Paper. (2022, July 27). Company Overview.
https://www.internationalpaper.com/docs/default-source/english/global-homepage/
footer/2021-international-paper-company-overview.pdf?sfvrsn=62ff8a33_50
International Paper. (2022, October 27). Investor Roadshow.
https://s1.q4cdn.com/597881801/files/doc_downloads/Roadshow/2022/11/Roadshow-
Handout_EXTERNAL_Website.pdf
Lisoski, E. (2022). Checking your business gauges.OSupervision,O83(8), 3–6.
https://search.ebscohost.com/login.aspx?
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MarketLine. (2022, November 14). International Paper Company. https://advantage-marketline-
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Shelton, J. (2021). The balanced scorecard.OFacility Management Journal / FMJ,O31(5), 113–
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