Order Description
Write two page paper on the IBM case follow the model I posted on the RDV case, make sure to follow the same format. This paper should be formatted in the following fashion: double-spaced, using #11 Times New Roman
font (with normal character spacing) and margins which are one-inch. Your entire IWBP (disregarding any cover sheet) should be no more than two pages in length (using letter-sized paper,i.e., 8.5 x 11 inches).
1. Context:
As appropriate:
Relevant Processes, Constituencies, Change in Circumstances, Goal.
(Try to mention the facts most significant in the reasoning.)
2. Proposal: What to do?
“I propose Alternative #1, instead of Alternative #2.
“Ultimate Reason”
because #1 is more likely to result in more NOPAT in the long run than the long-run NOPAT resulting from #2.”
Why adopt Alternative #1? 3. “Balanced &
Comparative Reasoning”
Why Alternative #2 (i.e., why not adopt Alternative #1)?
(“Because”)
#1 offers more revenue than #2.
#1 offers more opportunity than #2
#1 results in less cost than #2.
#1 results less risk than #2.
These “line items” are mutually exclusive. (“Even though”)
#1 offers less revenue than #2.
#1 offers less opportunity than #2
#1 results in more cost than #2.
#1 results in more risk than #2.
**And the reasons in favor of #1 outweigh the reasons in favor of #2 (or, the reasons against #1.)
4. Implementation:
How do we implement Proposal?
(Best Next Steps for #1)
Discussion:
To be balanced, choose at least one reason from each of the two columns above.
To be comparative, use the formulations set forth in the line items.
You must give at least one reason, expressed in comparative terms, in favor of your proposal and one reason against it, again expressed in comparative terms. Hopefully the reason(s) you give are the most important reason(s) in
each case.
Your reasons should explain how the different alternatives impact NOPAT (i.e., (1) parties’ expectations, (2) parties’ responses, (3) impact of those responses on the company’s financial results).
It is important to distinguish between revenues/opportunities and costs/risks. (An increase in costs is not the same as a decrease in revenues, even though the impact on NOPAT is the same.) It is important to distinguish
between increases and decreases (avoiding a decrease in revenue is not the same as obtaining an increase in revenue).
When comparing quantities, the fundamental elements are: (1) amount, (2) time, and (3) certainty.
Implementation should include appropriate reference to a communications plan and to governance.
RVD Construction Company
What is best for RVD?
Karl Mann is the local project manager on a construction contract for the RVD Construction Company to install sewer lines in the city of Mandasor, India. RVD, based in Munich, Germany, has built its reputation with
infrastructure projects in developing countries. Although the Mandasor project was subcontracted from a British company, RVD itself has frequently been the lead contractor. Further, RVD has become adept at winning
contracts funded by the World Bank.
The Mandasor project is a very desirable one with high profits for RVD. Further, it is the first project on which Mann is manager. Success on this project will ensure his advancement in the company. Mann’s boss, Frans
Hauser, has been paying close attention to the project, since it is Mann’s first.
Because of heavy rains during the past two weeks the work is behind schedule. If the project is not completed on time, the company will have to pay the city a fee for each day the project is behind schedule. This could
significantly reduce RVD’s profits and would reflect badly on Mann. Thus Mann is looking for ways to speed up the work. He has consulted with his construction supervisors and received the following suggestions:
• Frans Hauser, Karl’s boss and an expatriate from Germany: You could save lots of time by changing the way you shore up the trenches. I know that in Germany, there are laws that trenches like these should be
reinforced. But the reinforcements cost a lot and take a lot of time. The only point of them is to prevent cave-ins on top of the workers who are down in the trenches installing the sewer pipe. Once the pipe is installed, the
reinforcements are not needed. Our laws do not require all that reinforcement. For as long as I can remember (and I have been working here for six years), there have only been three deaths and maybe a dozen real injuries.
• Prakash Singh, a local resident: You could save time by digging more shallow trenches that will not even need reinforcing. You are putting these pipes 10-12 feet underground. I do not think that is necessary. Of
course it is possible that there could be problems down the line if you only go in 5-6 feet, but by then you will be out of here. Besides, the problems will not really harm anyone. Maybe there will be some flooding and some
property damage, but unless someone is in the wrong place at the wrong time I would not expect anyone to get hurt.
• Raj Bhagwati, a local resident: You could get the work done faster by working round-the-clock. You’d need to hire more workers, but you could also make these guys work longer hours without raising their wages.
They won’t complain since there’re so many guys looking for work right now. You know they’re kind of spoiled by you – working just 8 hours a day. Move’em up to 12 hours, hire another shift of workers and you’ve got a 24-
hour operation. You’d need to get some lighting for the night work, but at least you’d get done on time. I’m guessing that RVD would rather pay some extra labor costs than pay fines to the government.
• Raga Varman, a local resident: My brother works for the city. He could probably find a way to avoid the fees for missed deadlines, at a cost much lower than the fees.
Questions for the RVD Construction Case
Please understand in reasonable detail :
(1) the processes which RVD generally implements in pursuing its goal of maximizing its net operating profits (“NOPAT”) in the long run (e.g., marketing, R&D, supplies, production, delivering goods or services, after-delivery
services, collecting payments, and making payments), all as stated in the case or suggested by its operations in Mandasor.
(2), in addition to RVD itself, the various types of parties (i.e., “constituencies”) generally involved, affected and concerned with RVD’s business operations around the world (e.g., customers, users, suppliers, employees,
distributors, competitors, local communities, media, and governments).
(3) the profile of RVD’s constituents’ capacities and expectations in general based on RVD’s business operations; and the ways in which those operations take advantage of those capacities, and meet or exceed those
expectations.
(4) the manner and extent to which RVD’s success in general depends on each of its corporate constituencies.
In addition to understanding the answers to items (1) to (4) above in respect of the Mandasor project, also please:
(a) – (b) identify the significant change in Mandasor with a potential impact on RVD’s NOPAT in the long run. (The change may be possibly internal to RVD, possibly external to RVD, and possibly both.) (This is important to
address the issue: How can RVD have the greatest likelihood of maximizing its NOPAT in the long run?)
(c) identify the alternatives available to RVD in order to adapt to the change in the business environment while still pursuing NOPAT in the long run, including taking no action, i.e. continuing as currently operating.
(d) estimate each alternative’s impact on each constituent’s expectations/ capacities/ responses in respect of RVD’s conduct – both in Mandasor and elsewhere – and, therefore, the impact of each alternative on RVD’s NOPAT
in the long run, including the alternative of RVD taking no action. i.e., continuing as currently operating.
(e) select the alternative which has the best chance of most enhancing RVD’s NOPAT in the long run.
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