The introductory video clip which was part of Mark's presentation at the Marcliffe when he came first place in the 2009 Hughes Christensen Prize competition.
BACKGROUND INFORMATION
Rockbits, a division of Service Company Inc. is a US based Multinational involved in the manufacture and sale of oilfield drilling materials.
Rockbits has four marketing divisions, based in Houston, Buenos Aires, Dubai and Aberdeen. From these four centres, the world is covered by a team of experienced marketing representatives.
Houston is the HQ for Rockbits and has a support infrastructure of worldwide engineering, marketing training and finance support. Rockbits manufactures its goods in three separate plants - Houston, Belfast and Maracaibo, Venezuela.
Rockbits and its competitors produce drill bits. Physically the products are quite small, ranging from 50cm x 50cm to 1m x 1m.
There is no clear market leader in design, manufacture and provision of drill bits.
World demand for oil and gas is currently buoyant and the longer term outlook is equally positive.
You are the District Manager for Burasia. Burasia is a small Third World country where you know drilling activity is set to mushroom due to a recent large oil discovery. Your customers are becoming increasingly sophisticated and demanding a quality service similar to what they would receive in established oil areas such as the North Sea.
Your Region Manager has set you the following target to hit at the end of a 2 year period commencing in 3 months.
(1) REVENUES TO INCREASE BY THREE TIMES CURRENT ANNUAL REVENUE - $2MM
(2)MARKET SHARE TO DOUBLE CURRENT MARKET SHARE 25%
(3)ACHIEVE A 5% PER ANNUM PRICE RISE
(4)PROVIDE AN IMPROVED TECHNICAL SERVICE TO CUSTOMERS
Your current local organisation is as follows:-
You work in the country from an office you rent from a sister company, you are the only employee here. Your wife and family do not enjoy living in Burasia due to the humidity and poor sanitation. The complex your sister company owns is large and has plenty of warehouse space which they would rent at $5 per square metre per month.
The Burasian Government is trying to encourage investment in the Petroleum industry and offers generous grants to companies which are expanding.
In addition, the Government has subsidised various international airlines to provide weekly flights to and from the country. Flight costs to Europe are about $500.
You also pay a large commission 10% on sales to a lazy agent who provides a very poor technical service, but warehouses your product and delivers it to your customers. His warehouse is small but large enough to handle forecast demand increases.
REQUIRED:
Please provide a short presentation to the Board of Rockbits on how you would change your current organisation to service this burgeoning market
POINTS TO COVER:
•How would you attract people to work in Burasia and motivate them?
•How would you, if you wanted to keep him, motivate your agent?
•What changes in your organisations infrastructure may be required?
•As competition is stiff, how would you go about differentiating your company from the competition?
•Highlight the approaches which could be taken to assess the market in Burasia and the challenges which the company faces in assessing a market of this type.
•In terms of service quality, describe the factors which should be measured and how this can be done
•There are a number of problems which may be encountered in entering a market in a foreign developing country. Identify the issues and how these may be overcome.
•For a company such as Service Company Inc., indicate the type of decisions which the Burasia district should be given the authority to make locally and those which should remain central decisions by top management of the organisation.
•The revenue, market share and price targets can be measured comparatively easily. Describe how the success of the target of improved technical service to customers may be measured effectively.
•Give an estimate of what headcount could be required.
•Provide an estimated simple Profit and Loss Statement as at the end of years 1 and 2, noting major assumptions. Assume zero inflation and you start in FY2008
•How realistic are your Region Managers targets?
Financial Information Current Structure
$ $
Rental Cost/month 10m x 10m office 5,000
Utilities month 2,500
Salaries - Expat. Month 5,000 Local - month 1,500
Revenue FY2008.Tricone Bits 1,500,000
Diamond Bits 500,000 2,000,000
Cost of goods soldTricone Bits 600,000
Diamond Bits 250,000 850,000
Tax rate15% of profit
Your Profit and Loss Account should reflect your new organisation and infrastructure as it evolves over the two year period.
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Upfront CFD for the Drilling Industry - tricone bit assemblyby thevirtualengineer9,780 views
yeah, what % did Brad want?
stephenlowe9 2 years ago
How did they get brad pitt to do the interview?
captainbenbow 2 years ago