GENERAL INFORMATION OF THE COMPANY
Name of the Company: Cascade Inc.
Name of the CEO- Mario Plourde
Location of Home Office: Kingsey Falls
Ending date of last fiscal year (31/12/2020)
Main Geographic Area of Activity: Canada
STOCK MARKET SITUATION
Name of the Stock Exchange on which it is listed: Toronto Stock Exchange
Company’s Ticker on the Stock Exchange: CAS
The most recent price of the stock: $14.7
Industry Analysis
Cascade Inc. operates in the containers and packaging industry in Canada. The packaging business mainly targets other companies as the primary consumers but sells the products and services to individuals across Canada. The packaging and containers industry in Canada is an open market with stiff competition from other similar brands.
As a result of such high competition levels in the industry, the brand has devised methods of ensuring that it differentiates its products from others through creativity and innovation. Furthermore, the brand’s driving force is creativity and innovation. Also, other than the differentiation of individual products, Cascade has diversified to increase its chances of surviving in the market. Besides packaging material, the brand is also involved in producing hygiene items such as toilet paper and paper toilet rolls a sector that has proliferated to be the leader in the region. Hygiene products diversify the brand’s products in the market and allow the brand to meet its vision of being the leader in recycling and meeting its sustainability objectives through paper recycling.
Delegate your assignment to our experts and they will do the rest.
With more firms and consumers now aware of the need for sustainability and its benefits, Cascade Inc. has a successful future in the industry it operates it. This should be backed up by strategies to meet consumer needs at all levels and to be flexible enough to change with changes in consumer needs and patterns. By so doing, Cascade Inc. can grow in size and revenue.
Company Products and Services
In the current economic condition and the new Covid-19 pandemic, which has resulted in changes in how people carry out business, more innovative products will are deemed essential; especially those relating to consumer comfort and basic needs. The new normal has led to a rise in the sale of fast-moving consumer goods while other items such as luxury goods and services have seen a drop in sales. As a result, waste handling companies such as Cascade Inc. are experiencing an increase in their demand.
Cascade Inc. offers packaging solutions to the small, medium-sized firm, large firms and even individuals wishing to preserve foods. The ideology is founded on the rationale of sustainability and working to create solutions for food shortage among most people. Brands under the business's packaging branch include Cascade fresh providing packaging solution for perishable food, packaging boxes for different food types, retail packaging materials, egg solutions, and protective packaging.
An essential aspect of the business is the E-commerce, and consumer packaging line of products as more businesses across adopt creative and environment-friendly packaging to attract consumers. This business branch has thrived due to increased competition by firms in different industries, making it necessary for firms to remain competitive to differentiate their brands through various methods, including attractive packaging. Guided by the mission, Cascade Inc. offers creative packaging solutions for these businesses.
The brand also deals with the production of tissue papers and other hygiene products. The covid-19 pandemic has led to an increase in demand for such products leading to growth in this business sector. Besides meeting consumer demand, the brand also uses this avenue as a way of recycling and meeting its sustainability goals.
Employee Policies and Engagement
As stated on the company website, the brand mission is to reveal people's full potential, materials, and ideas. The implication is that the firm works towards ensuring that employee satisfaction and independence is achieved at all levels. Also, Cascade Inc. employs over 12,000 people in various business sections. Through testimonials shared on the website, the brand centres its services on people, ensuring that employees are satisfied and allowed to be creative in their areas.
Some key employee policies for the brand include equality. Cascade Inc. is an equal opportunity employer implying that it does not discriminate employees on gender, race or ethnic group and only employees on merit. Once employees join the team, they are trained on the company’s mission and vision and can understand their role and how this role drives the brand towards attaining all the set goals and objectives.
Employee motivation is yet another strategy implemented by the brand in ensuring that employees are willing and able to work on their roles while giving the best input. This is because employees who are motivated perform better than employees who feel that they do not receive treatment equal from what they offer. Hence, firms must invest in employee loyalty and treat them as resources to allow them to give input that increases brand visibility, revenue, and market share.
Sustainability Efforts: Greenhouse Emissions, Land Protection and Water usage
Cascade Inc. is giant on sustainability strategies. One significant aspect of the brands' efforts is that sustainable actions support their operations. The brands 2016-2020 sustainable development plan is based on creating an environment that is friendly for future generations while benefiting the community in which it operates as a corporate social responsibility. Sustainability for the brand is rooted in its ability to value people and create a sense of belonging for its employees, allowing it to attain the set goals. The 2016-2020 sustainable development plan is founded on ten strategies than the nine in the previous program.
The brand’s sustainability plan on the environment is divided into two key areas; the planet and water. The two are treated as resources that should be used well and in a conservative measure to ensure that the environment is conserved for future generations. Areas of vital interest in the company’s five-year sustainable development plan include energy, greenhouse and residual material. The goal is to reduce greenhouse gas emissions to lower than what was attained in the previous development plan and adopt measures that allow the company to reduce fossil energy use due to carbon emissions and conserve energy. For example, in the current program, Cascade is working towards an innovative plan to process the plastic contents present in recycled paper. By so doing, the brand hopes to reduce the amount of plastic impact it leaves on the planet. In terms of energy, the brand has made changes to its plants to reduce energy consumption and improve efficiency. One step by the company was to upgrade one of the two natural gas boilers at Trenton containerboard plant, increasing efficiency to do away with one boiler eventually and still operate at optimum with the remaining one.
Analysis of Employment and Wealth Creation
In 2019 the firm managed to obtain a ROCE of 5.4% compared to the 4.6% attained in 2018. The increase in ROCE benefited investors and the community within which the brand operates. The growth is due to the improved results of the brand's tissue sector, which is also a consequent of the average price. The mix of products sold was also favourable to the market. Primarily, Cascade Inc.'s success has also been influenced by the firm's ability to acquire cheap raw materials from waste. The ease in obtaining raw materials has made it easy to sell its products at an affordable price compared to its competitors. The firm has consequently attracted more consumers of hygiene products such as tissue.
Another impact of the brand to the community is through taxes payment. Based on its profits in 2019, the firm could pay taxes amounting to $11 million in the last quarter of the year as per the income statement. The firm's tax contributions play a significant role in boosting government operations to serve communities in Canada. In 2020, the brand's direct community intervention programs entailed donation of more than 150,000 boxes of food and hygiene items to food assistance organizations. Considering the business environment in 2020 and the impact of the Covid-19 pandemic on individuals in Canada, the donations went a long way in reducing the pandemic's food shortage crisis.
As an organization, Cascade encourages employee community involvement, founded on the belief that communities support the brand and provide a conducive environment for business hence the need for positive corporate social responsibility efforts. Cascade boosts employees who are willing to offer their time to community service and development. In 2019, for example, Cascade employees provided over 19,036 hours of voluntary work. Employees who perform well in voluntary work are given donations to present to their organizations of choice.
Measuring Risk and Ethical Behaviour
Just as any other brand involved in manufacture or production of goods, Cascade has a health and safety policy that ensures all employees and stakeholders understand the dangers involved in the production process and the safety measures that should be taken to prevent accidents. One primary strategy for Cascade lies in the prevention of accidents. This is attained through clearly set ground rules, which guide employees on the use of machinery, plant and the spaces they work in. In 2019, for example, the firm recorded an OSHA frequency rate of 1.7 surpassing the previous rate of 1.9. 33% of the company’s plants reported zero accidents in the year.
New measures have been put in place to improve the current rate. In 2019, the brand implemented its new Health and Safety Pledge as an agreement signed by all employees promising to comply with safety measures and maintain constant vigilance at their workspaces. This new initiative aims to make employees accountable for their actions and take the lead in ensuring safety at the workplace.
Cascade Inc. has a set code of conduct and business ethics that stipulates what is acceptable and what is not. The code of conduct guides employees on their relationship with each other and other stakeholders. Integrity and accountability are to be upheld at all times. Some critical elements of the code of ethics and business conduct include responsibility, morality, reliability, trust, behaviour, choice, principle and relationship. Employees are also required to avoid conflict of interest at all levels. The code also gives guidance on acceptance of gifts, the use of company assets and resources, social media conduct, use of drugs and alcohol, and human rights. The company also provides a platform to allow people to report any misconduct cases for action.
