htvc radco

7/25/2019 HTVC radco

1/10

RADCO ELECTRONICSRADCO ELECTRONICS

Case analysisCase analysisBy

Team A2

Naim ShaikhHarit TilvaParth MairSonam Tilva


2/10

SmmarySmmary

!o"se# on the $ro%lems arisine ra$i# &ro'th o( RADCO)

Small s"ale start $ 'hi"h &re' into

a s""ess(l "ommer"ial ventretho&h it 'as %ase# on rathersim$le $ro%e te"hnolo&y an#"hemi"al sensors)

*erti"al an# hori+ontal &ro'th o( the"om$any 'hi"h simltaneosly le#to or&ani+ational #ynami"s $ro%lem


3/10

Consi#eration o( restr"trin&hierar"hy an# %#&etin& "ontrols

Main Isse is resor"e allo"ation

an# %illin& metho#


4/10

Q1. Describe the Business Model of RADCO.A) Revenue Generation- Revene &enerate# %y

%illin& "stomers on the %asis o( man horsre.ire# to #eliver $ro#"ts as $er the &ivens$e"i/"ation) In"ome (rom varios states an#!e#eral "ontra"ts)

Product- 0Initially1 Sensor %ase# atomate#systems (or #ete"tion o( moistre mineral "ontent

a"i#ity an# (ertili+ation levels) 0Later1 Sensors (or$re"ios metal #ete"tion o"eano&ra$hi" st#ies$olltion level #ete"tors et")

Target Maret- !armers State an# !e#erala&ri"ltral a&en"ies Oil an# mineral e3$loration

"om$anies in#stries re.irin& $olltion "ontrolnorms)Cost Drivers- Salaries to marketin& $ersonnel

$ro#"t an# a$$li"ation #evelo$ment investmentin te"hnolo&y (or $&ra#in& res$onse to "stomerotsor"in& o( sensors)


5/10

Discuss the con!ict of interestDiscuss the con!ict of interest

issues "ithin RADCO. #o" the$issues "ithin RADCO. #o" the$

can be i%&roved'can be i%&roved'1. Pro(t sharingThe $ro/ts 'ere initially se# to o4set e3$enses

in ne' ventres an# resear"h an# later they'ere &iven to the three (on#ers as"om$ensation) A(ter some years the $ro/t 'ere

#istri%te# a""or#in& to the #e"ision taken %yE3e"tive Committee 0E3Com1 'hi"h %ase#more on 5#&ement rather than on$er(orman"e)

A more (ormal an# e3$li"it $ro/t sharin& (ormlashol# %e $t #o'n in or#er to a""ont (or thee6"ien"y o( ea"h #e$artment an# theirres$e"tive em$loyees) E)&) the $ro/t shol# %e#istri%te# in $ro$ortion o( the ratios o(revene an# "ost)


6/10

). Relationshi& of Albert *ells andDonna Poulos + Sells an# Polos 'ere#atin& an# livin& to&ether 'hi"h ma#eothers ss$i"ios a%ot #e"isionmakin& in the "om$any) Bi&&s 'asa&ainst it %t Beller #i#n7t see a$ro%lem nless an# ntil it "reate#

#eviate# %siness #e"isions)Sells shol# not %e allo'e# to take

#e"isions in matters involvin& Donna$rimarily)


7/10

,. Cost -s. *alar$ +The resor"eallo"ation an# %illin& $ro"e#re 'as s"hthat the em$loyees 'ere motivate# toin"rease overhea# "ost allo"ation %y the"om$any rather than to #e"reaseo$erational "osts) They trie# to minimi+etheir %illin& hors an# allo"ate their time tonon%illin& hors 0overhea# "osts 'ere"har&e# 2889 as "om$are# to %illin& hors1)

Allo"ation an# %illin& $ro"e#res shol# %e"han&e# to more realisti" i)e) "osts to %e"al"late# on in#ivi#al #e$artmenta"tivities rather than revene &enerate#)


8/10

Q,. *hould the$ add aQ,. *hould the$ add a

#u%an Resource#u%an Resource

Manager'Manager':esA s$e"ial $erson in re"ritin& an# trainin& o( ne'

em$loyees 'hi"h relieves the mana&er o( manyres$onsi%ilities an# ths (o"ses on his o'n'ork)

HR mana&er 'ol# hel$ in mana&in& the &ro'in&hierar"hy 'ith the &ro'th o( or&ani+ation)Per(orman"e a$$raisal an# $ro/t sharin& "an %e

more e6"iently im$lemente#) Isses $ertainin& to em$loyee "on;i"ts "an %e

solve# more easily)A (ormal #e$artment 'ol# enhan"e the

"om$any7s re$tation in 5o% market ths moretalente# em$loyees "an %e (on# 'ith relativeease)


9/10

Q. /hat (nancial controls areQ. /hat (nancial controls are

needed for i%&roved budgetingneeded for i%&roved budgeting

and control'and control'De"entrali+ation o( /nan"e"ontrol)

The %#&etin& "ontrol system

shol# %e "han&e# in line 'iths&&estion %y Bran)

Title A* B* C* Administrative costs Total

Salaries and Benefits 10

0

10

0

10

0

10 310

Fixed Expenses 50 80 70 0 200

Variable Expenses 10 50 30 0 90

Total Expenses (a) 160

230

200

0 600

Billable Salaries and

Benefits

60 75 65 0 200

Customer Billing() 1!

0

22

"

1#

"

0 600

Cost Li!idation "b#a$ 20 "5$ "5$ "10$ 0


10/10

Thank:o

htvc radco

Documents