Big Sky, Inc.: The Magasco Paper Mill (a)

13 Pages Posted: 21 Oct 2008

See all articles by Alexander Horniman

Alexander Horniman

University of Virginia - Darden School of Business

F. Brake

affiliation not provided to SSRN

Multiple version iconThere are 2 versions of this paper


What should managers do when old habits and customs interfere with progress? Magasco Paper Mill was once a state-of-the-art operation. But changes such as new equipment and the advent of unions have strained employee relations and inhibited productivity. The case ends with a labor dispute, a strike, and a period of enormous tension and conflict. This case should be accompanied by the B case (UVA-OB-0411).



Rev. Oct. 2, 2008



Big Sky, Inc.

Big Sky was an integrated forest-products company headquartered in the Northwest, with operations throughout the United States and Canada. Founded when two well-established lumber companies merged operations, Big Sky was a young organization by industry standards. The company manufactured and distributed paper and paper products, office products, and building products, and owned and managed timberland to support its operations. In 1990, Big Sky reported sales of $ 4.5 billion and earnings of $ 275 million. Paper and paper products accounted for $ 2.5 billion in sales and represented 70% of the company's operating income and 55% of its revenue. Office and building products accounted for the balance.

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Keywords: change implementation, change, management of, labor relations, labor unions, organizational change, work-force management, crisis, failure to lead, culture, ideas, stakeholder dynamics

Suggested Citation

Horniman, Alexander and Brake, F., Big Sky, Inc.: The Magasco Paper Mill (a). Darden Case No. UVA-OB-0396, Available at SSRN:

Alexander Horniman (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States


F. Brake

affiliation not provided to SSRN

No Address Available

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