Cover Page : Cover Page : T
Topic: Holmesafe Ltdopic: Holmesafe Ltd
Course: Written Analysis & Communication Course: Written Analysis & Communication Instructor: Prof. Seema Khanil!ar
Instructor: Prof. Seema Khanil!ar "itesh #$eroi% PP'(% )* "itesh #$eroi% PP'(% )* Letter of Transmittal. Letter of Transmittal. T To%o% Prof
Prof. See. Seema Khama Khanil!ar.nil!ar.
Executive Summary Executive Summary..
eor+e Holmes% an en+ineer conerts his ideas of a noel home eor+e Holmes% an en+ineer conerts his ideas of a noel home security into a full
security into a full ,ed+e runnin+ $usiness there $y increas,ed+e runnin+ $usiness there $y increasin+ hisin+ his sales eery year -ith
sales eery year -ith the help of the help of ran! /ac!son one of ran! /ac!son one of the e0ecutiethe e0ecutie of 1a-son2s Limited -ho later
of 1a-son2s Limited -ho later on loo!in+ at on loo!in+ at the +ro-th prospect ofthe +ro-th prospect of this $usiness tries to ta!e an adanta+e out of the situation $y
this $usiness tries to ta!e an adanta+e out of the situation $y creatin+ a pressure to purchase the same product from one of the creatin+ a pressure to purchase the same product from one of the competitors of Holmesafe Ltd
competitors of Holmesafe Ltd there$y informin+ eor+e Holmesthere$y informin+ eor+e Holmes a$out his 3nancial need -ith the l
a$out his 3nancial need -ith the loss of his part time 4o$% to oss of his part time 4o$% to +et out+et out of this situation
of this situation -ithout spoilin+ the relationship -ith ran! /ac!son-ithout spoilin+ the relationship -ith ran! /ac!son alon+ -ith
alon+ -ith !eepin+ the !eepin+ the purchases from purchases from 1a-son2s 1a-son2s Ltd Ltd unchan+eunchan+edd one of
one of the !ey recommthe !ey recommendations for eor+e -ould $e endations for eor+e -ould $e to helpto help /ac!son 3nd an alter
/ac!son 3nd an alternatie 4o$ or if not help him natie 4o$ or if not help him 3nancially till his3nancially till his 3nancial di5culties are soled.
Situation Analysis
eor+e Holmes% an en+ineer and desi+ner of a successful product for home security system -as in search of a $uyer to purchase his product% In the course of the search he -as introduced to a potential $uyer ran! /ac!son% an e0ecutie of 1a-son2s Ltd -ho -as
interested in the product% ran! introduced Holmes to his immediate superior and chief $uyer Harry Thomas. #n meetin+ them he found $oth of them to $e complete opposite in terms of their ethical
principles to-ards their professional life% ran! $ein+ ery morally drien for -or!in+ to-ards his company2s $ene3t -hereas /ac!son $ein+ more of an e+ocentric personality.
After successfully sellin+ all the products from the trial $atch Holmes started producin+ more products and -ithin a span of 6 months
Holmes and 1a-son2s Ltd could see the optimistic potential sale of the product -ith 678 increase in sales. 9)7*( ; <st =ear to (>>
; 7nd =ear?
With a constant increase in the transaction $et-een Holmes &
/ac!son the friendship $et-een them $e+an to deelop and soon a sin+le handed company $ecame Limited -ith Holmes four friends $ein+ the director and a proposal to /ac!son to 4oin as the 3fth director $ut $ecause of the con,ict on interest that -ould arise as pointed $y Thomas% /ac!son dropped the idea of acceptin+ the proposal.
Thou+h he re4ected the proposal $ut /ac!son still helped Holmes -ith the sale of the products eentually leadin+ to the +reed of
ma!in+ money $y ta!in+ a self@adanta+e out of the eer@escalatin+ +ro-th of the sales. /ac!son tried to portrait the competitie
adanta+e of 'ro-n2s oer Holmesafe Ltd and his intention to
source the product from 'ro-n and later connectin+ the topic to his intention to earn more money $y -or!in+ part time. This entire
situation leads Holmes in a dilemma of -hether /ac!son is doin+ this for -arnin+ us a+ainst competition or to 3ll up his o-n poc!et.
Problem Statement.
Ho- should Holmes tac!le /ac!son2s +reed of ma!in+ money out of Holmesafe Ltd -ithout loosin+ 1a-son2s Ltd purchases that is one of their ma4or $uyers.
Options
7? 'y not hirin+ /ac!son $ut compensatin+ his purchases -ith commission.
6? 'y tal!in+ to Thomas a$out this situation & +ettin+ clari3cation on 'ro-n2s competitie adanta+e.
)? Searchin+ for an alternatie 4o$ for /ac!son -ith +ood compensation.
Criteria :
<? Bect on sales.
7? Personal relationship -ith ran! /ac!son & Harry Thomas. 6? elationship -ith 1a-son2s Ltd 9Con,ict of Interest?
)? Daintainin+ Competitie adanta+e.
Evaluation of options. Option 1 ;
'y hirin+ /ac!son as a part time -or!er the eBect on sales -ould $e positie $ecause Holmesafe Ltd since the start -anted to hire
/ac!son -hich -ill $ene3t them -ith more human resources -ho also has an insi+ht of the $usiness.
With hirin+ /ac!son the $ond -ith /ac!son -ill increase een further $ut -e mi+ht dra- a line $et-een Holmesafe Ltd2s Sale and Harry Thomas.
Hirin+ /ac!son -ill eentually lead to a con,ict of interest that is eentually a threat to /ac!son2s position in 1a-son2s & a potential ris! to the sales of Holmesafe Ltd.
Alon+ -ith an added manpo-er to the company /ac!son can also help us disclosin+ the competitie adanta+e of other companies if they e0ist at the same leel as Holmesafe Ltd.
Option !
'y not hirin+ /ac!son -e can compensate him -ith commission $asis on the sales he -ould +enerate for Holmesafe Ltd% Someho-this -ill help Holmesafe to push its sales een further.
'y compensatin+ /ac!son for the sales he -ill $e ma!in+ for
Holmesafe -e are $y no chance harmin+ the relationsip $ut it is a possi$ility -e mi+ht create a ne+atie ima+e in front of Harry Thomas -hen he -ill come to !no- a$out it eentually landin+ in
the $lac! $oo!s of 1a-sons Ltd $ut on the positie side -e -ill still $e maintainin+ the competitie adanta+e in the mar!et.
Option " !
'y tal!in+ to Harry Thomas -e are +ettin+ out of our comfort Eone $y approachin+ a person -ho is a 3rm $elieer of thics and -or!s in full interest of his company. 'y approachin+ him -e -ill not $e a$le to ma!e any si+ni3cant impact on the sales $ut eentually if not properly structured -e may end up messin+ our relationship -ith /ac!son% There lies no point of con,ict of interest in e0ercisin+ this option $ut neither -ill -e $e a$le to +rasp the competitie adanta+e of the companies in the mar!et.
Option # !
/ac!son2s only motie is to ful3ll is monetary needs -hich can also $e done -ith helpin+ him to 3nd some part time alternatie 4o$s% This -ill hae no eBect on sales and the transactions $et-een
1a-son2s & Holmesafe. The relationship -ith /ac!son -ill stren+then -ithout causin+ any harm to Harry Thomas% this option does not
$reaches the con,ict of interest and if possi$le a 4o$ in any competitie company -ill also help in e0plorin+ competitie adanta+e at a price.
$ecommen%ation.
Keepin+ into consideration /ac!son2s 3nancial needs searchin+ an alternatie 4o$ for him sounds li!e the perfect deal for Holmes.
Action Plan.
Holmes should 3rst try to loo! for 4o$s in /ac!son2s 3eld of interest throu+h his contacts if not an alternatie 4o$ for +ood money -ill oerpo-er the interest of 3eld in /ac!son2s case. A 4o$ in one of the competitie companies of Holmesafe -ould $e a perfect -ay to penetrate into the mar!et $y e0ploitin+ the loopholes of the industry.
Contingency Plan.
If Holmes is not a$le to 3nd an alternatie 4o$ for /ac!son% Holmes should 3nancially help /ac!son2s as their relationship has deeloped $eyond 4ust corporate acFuaintance till the time /ac!son is a$le to sole his 3nancial needs.
