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Rtd Rtd Presentation Transcript

  • Restituto R. Mines Jr. May 18, 2010 May 18, 2010 1
  • TOPIC Potential Total market Primary Target Market Positioning Product Price Promo Place May 18, 2010 2
  • Potential Total Market Other people Office Colleagues Relatives All in the Family Members Loop Businessman Corporations Friends Professionals May 18, 2010 3
  • Primary Target Market Office Colleagues Relatives Corporations Friends Manpower Services BPO May 18, 2010 4
  • Positioning RTD offers Total System Reliability Systematic & Quality System Deliver service on time Focus on efficiencies of complete operation to bring cost savings Minimize complexity in day to day operation with support to keep it working smoothly May 18, 2010 5
  • Product Manpower Services BPO Services May 18, 2010 6 (Payroll, Accounting)
  • Price Contract-based pricing Value - Price Earnings based on Percentage May 18, 2010 7
  • Promotion Bank on Center of Influence Presentations Prospecting Referrals (Corporate) Business Meetings Presentation Sales Call (Business May 18, 2010 8 Associations)
  • Place US Operations Demand & BPO Philippine Operations Supply of Manpower & BPO May 18, 2010 9
  • 1. Identify the different transformations that were happening in the case and describe their effects on RTD. a. Increasing demand for legal household help - The demand poses an opportunity for the husband and Wife Team to explore this business and expand RTD line of service offering. But due to 911 Terrorist attacks, the business was affected especially the advanced payment for the target prospect for employment b. BPO Office Sourcing to Philippines - The decision will affect the total business operation of RTD. Savings on cost will be maximized if outsourcing will be implemented. c. EJC Payroll System - The granting of small pilot project to RTD paves the way for RTD to show their capability as a solution provider. This eventually leads to bigger contracts in other multinational companies.
  • 2. Ramon was never an entrepreneur during his professional career. What factors allowed him to become a successful, first-time entrepreneur at age 62? Although Ramon was never exposed to entrepreneur-like environment, the experiences he accumulated throughout his corporate career contributes to his skills as an entrepreneur. What prompt him to do this is the idea of what to do next after retirement and the opportunity presented to him when the demand for legal household help is increasing. In addition, the demand for BPO continue to rise. Coupled with communication skills and knowledge of the industry, Ramon makes RTD a successful enterprise. Vision about the future, confidence, persistence and result- driven competence also added value to the RTD business.
  • 3. What did you learn out about the BPO industry in general and the RTD LLC in particular? BPO The BPO is really a big industry where Philippines can be a great source of talent BPO provides cost-savings in operation to maximize ROI; Cost flexibility for the company since they will not invest in fixed cost The company can focus on its core competencies and problems on local regulations, expectation levels, contractual issues can also be encountered RTD RTD enjoys the support of the state since some of the services were outsourced to them Earning potential is huge if they focus on their core competencies You can be profitable even if your staff is very minimal as long as you know how to do delegation and outsourcing
  • 4. Explain the hesitancy of RTD partners to shift their operations to their Philippine office. Do you agree with the decision to postpone the transfer? What factors should be present for the off-shoring to finally happen? It is but natural for businessmen to have some apprehension especially for a big decision to shift operations to a land miles away from your headquarters. If you’re belief is not supported by facts, you will certainly be hesitant to change. Monitoring of performance is another issue. Yes, I agree. A thorough analysis and business case must be prepared before the final decision. A complete study and preparation is a must. Guidelines on transfer of information & training, quality of customer service, technical support, strict control measures and compliance will be needed. Much more importantly, if this will help a Company maximize even more its return on investment.
  • 5. What should Joseph do to encourage the shift to the Philippines? Sell the over-all concept to the decision-makers of the mother company - Submit a thorough analysis and opportunity assessment and prepare a business case - Focus on the concrete cost-savings comparison and earning potential of doing the process in the US and in the Philippines. Show incentive program of the government for BPO industries - Since the owners are Filipinos, influence them and emphasize their contribution to the Philippine economy if they pursue their plans; give it back to your country - Joseph must prove his worth. Credibility, trust and result-oriented competency plays an important role
  • 6. Should Ronald Feldman be interested in becoming a partner of RTD? Why? Explain his non-interest in buying shares of the company. Yes, because of the potential of RTD for growth and based on the profitability of the whole industry. Aside from the industry growth, Ronald Feldman need not worry on finding a new customer since RTD had a ready customer database. It is the best place for him to nurture his skills and competencies with the challenges provided by the clientele of RTD. His non-interest in buying the shares shows that Ronald was not wholly committed to RTD. Since he owned the programs, it is much wise for him to just sell it to the company where he can earn more and no expenses or cash-outs on his part. As the owner of the program, he can easily get-out and establish his own company.
  • 7. Using an Excel spreadsheet and the figures cited in the case, develop an Excel spreadsheet that shows how profitable RTD really is as a company. NP V R O I R TD , LLC Project Nam e Payroll Services OU TRIG HT EBITDA of 86% Term of Contract Y ear Y ear Now 1 Net Sales Cost Increase 2,500,000 0.0% Net Cash Flow of USD 2.1 CO G S 0 G ross Profit GP % 2,500,000 100.0% M Accounting Cost 36,000 Supply Chain (Freight & W /H) 0.00% Equipm ent FO L (Less than $2,000) Selling Expenses 10.00% 50,000 250,000 IRR of 4003% Total Expenses 336,000 Net Cash Flow 2,164,000 NPV is Positive amounting Cash G eneration Selling contribution (+) less royalties (-) 0.00% 2,164,000 0 to USD 1.5 M Cash generated 2,164,000 Selling EBIT DA 86.6% Inventory - 0 AR 7 52,740 payable W orking Capital Capital - Additional Investm ents (G reater 0 52,740 No investment on capital than $1000) expenditures, no fixed cost Cash Flows (52,740) 2,164,000 Cum m Cash Flow (52,740) 2,111,260 Payback m nths 0 IRR - Aim greater than 25% 4003% Payback m nths - Aim less than 12 m ths 0 NPV - Aim to be Positive 15.0% 1,590,434
  • Summary Potential Total Market Colleagues, Family, Relatives, Friends, Office, Corporations, Businessman, Professionals Primary Target Market Manpower Services – Relatives, Colleagues, Friends and others who needs legal household help BPO – Office, Corporations Positioning Total System Reliability Product Manpower Services & BPO Price Contract-based Pricing & Value pricing Promotion Referrals, business meetings, presentation (Corporation, Group), Sales Call Place US – Manpower Services & BPO Philippines – Supply of Manpower & BPO May 18, 2010 17
  • Restituto R. Mines Jr. May 18, 2010 May 18, 2010 18