May 18, 2010 1

Restituto R. Mines Jr.

May 18, 2010

May 18, 2010 2

TOPIC

Potential Total market

Primary Target Market

Positioning

Product

Price

Promo

Place

May 18, 2010 3

Potential Total Market

Family Members

ColleaguesOffice

Professionals

Businessman

Relatives

Friends

All in the Loop

Corporations

Other people

May 18, 2010 4

Primary Target Market

Manpower Services BPO

Friends

Relatives

ColleaguesOffice

Corporations

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

Positioning

May 18, 2010 6

Product

Manpower Services

BPO Services

(Payroll, Accounting)

May 18, 2010 7

Price

� Contract-based pricing

� Value - Price

� Earnings based on

Percentage

May 18, 2010 8

Promotion

Prospecting Referrals Presentations

(Corporate)

Presentation (Business Associations)

Business Meetings

Sales Call

Bank on Center of Influence

May 18, 2010 9

Place

US Operations Demand & BPO Philippine Operations Supply of Manpower & BPO

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 longas 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 andcompliance 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 industrygrowth, 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.

Project Name

Term of Contract YearYear Now 1Net Sales 2,500,000 Cost Increase 0.0%COGS 0Gross Profit 2,500,000 GP % 100.0%Accounting Cost 36,000 Supply Chain (Freight & W /H) 0.00%Equipm ent FOL (Less than $2,000) 50,000 Selling Expenses 10.00% 250,000Total Expenses 336,000Net Cash Flow 2,164,000

Cash GenerationSelling contribution (+) 2,164,000less royalties (-) 0.00% 0Cash generated 2,164,000Selling EBITDA 86.6%

Inventory - 0AR 7 52,740payable 0Working Capital 52,740Capital - Additional Investm ents (Greater than $1000)

Cash Flows (52,740) 2,164,000Cumm Cash Flow (52,740) 2,111,260Payback m nths 0IRR - 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

NPV ROI

RTD, LLC

Payroll Services

OUTRIGHT � EBITDA of 86%

� Net Cash Flow of USD 2.1 M

� IRR of 4003%

� NPV is Positive amounting to USD 1.5 M

No investment on capital expenditures, no fixed cost

May 18, 2010 17

Summary

Contract-based Pricing & Value pricingPrice

Manpower Services & BPOProduct

Total System ReliabilityPositioning

Referrals, business meetings, presentation (Corporation, Group), Sales Call

Promotion

Manpower Services – Relatives, Colleagues, Friends and others who needs legal household help

BPO – Office, Corporations

Primary Target Market

US – Manpower Services & BPO

Philippines – Supply of Manpower & BPO

Place

Colleagues, Family, Relatives, Friends, Office, Corporations, Businessman, Professionals

Potential Total Market

May 18, 2010 18

Restituto R. Mines Jr.

May 18, 2010