1. Restituto R. Mines Jr.
May 18, 2010
May 18, 2010 1

2. TOPIC
Potential Total market
Primary Target Market
Positioning
Product
Price
Promo
Place
May 18, 2010 2

3. Potential Total Market
Other people
Office
Colleagues
Relatives
All in the
Family Members
Loop
Businessman
Corporations
Friends
Professionals
May 18, 2010 3

4. Primary Target Market
Office
Colleagues
Relatives
Corporations
Friends
Manpower Services BPO
May 18, 2010 4

5. 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

6. Product
Manpower Services
BPO Services
May 18, 2010 6 (Payroll, Accounting)

7. Price
Contract-based pricing
Value - Price
Earnings based on
Percentage
May 18, 2010 7

8. Promotion
Bank on Center of Influence
Presentations
Prospecting Referrals
(Corporate)
Business Meetings
Presentation
Sales Call (Business
May 18, 2010 8
Associations)

9. Place
US Operations Demand & BPO Philippine Operations
Supply of Manpower & BPO
May 18, 2010 9

10. 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.

11. 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.

12. 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

13. 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.

14. 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

15. 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.

16. 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

17. 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

18. Restituto R. Mines Jr.
May 18, 2010
May 18, 2010 18