In comes Julie Rhodes with her product head Doug Warren and financial guru Rita Hayes. Julie looks annoyed at where Reece is siting.
Julie comes over and leans forward. Reece, this seat is mine. I will be chairing the meeting.
Reece: Very well. He gets up and moves to the other end of the table, Tom and Penny following.
Julie seats herself with Doug and Rita next to her.
Julie: Now that we have the seating sorted, let's begin. Penta Cars is losing money and we will be integrating Penta into Diamond Motors.
Reece: What does that mean in practical terms?
Julie: It means all decisions must be approved by my team. It will also mean that all product and financial decisions are made by Diamond Motors.
Reece: So Penta as a company is totally under the control of Diamond Motors?
Julie: That is correct.
Reece: Julie, I was employed to turn this company around. How can I do that now?
Tom: I feel the same way. Wasn't the take over bid based around working together?
Julie: Doug, explain.
Doug: The Rhodes family wants a quick return to profit for Penta. This will be achieved by integrating the companies to work more closely.
Julie: Now Tom, as head of product for several years, your performance has been, shall we say, less than stellar. I expect your resignation on my desk tomorrow. I'm here for a few days and my desk will be in Reece's office temporarily.
Penny: If Tom goes, I go.
Julie: Your choice. Like Tom, your resignation letter will likewise be on my desk tomorrow.
Reece: Can we all just calm down here? Tom had limited funds to work with. He did well under the circumstances. Penny has proved herself also, eking out what little Penta had to maximum benefit.
Julie: Reece, I don't need advice from you. You must decide if you are staying with Penta Cars.
Tom: It's okay Reece. I'm done here and so is Penny. You have done a great job in six months. Penta needs you.
The next day he enters his office now officially vacated by Julie. But there she is, still sitting at his desk. Next to her is standing a woman.
Julie seats herself with Doug and Rita next to her.
Julie: Now that we have the seating sorted, let's begin. Penta Cars is losing money and we will be integrating Penta into Diamond Motors.
Reece: What does that mean in practical terms?
Julie: It means all decisions must be approved by my team. It will also mean that all product and financial decisions are made by Diamond Motors.
Reece: So Penta as a company is totally under the control of Diamond Motors?
Julie: That is correct.
Reece: Julie, I was employed to turn this company around. How can I do that now?
Tom: I feel the same way. Wasn't the take over bid based around working together?
Julie: Doug, explain.
Doug: The Rhodes family wants a quick return to profit for Penta. This will be achieved by integrating the companies to work more closely.
Julie: Now Tom, as head of product for several years, your performance has been, shall we say, less than stellar. I expect your resignation on my desk tomorrow. I'm here for a few days and my desk will be in Reece's office temporarily.
Penny: If Tom goes, I go.
Julie: Your choice. Like Tom, your resignation letter will likewise be on my desk tomorrow.
Reece: Can we all just calm down here? Tom had limited funds to work with. He did well under the circumstances. Penny has proved herself also, eking out what little Penta had to maximum benefit.
Julie: Reece, I don't need advice from you. You must decide if you are staying with Penta Cars.
Tom: It's okay Reece. I'm done here and so is Penny. You have done a great job in six months. Penta needs you.
Reece looks down, confused and feeling blindsided by the speed in which all this has happened.
Julie: Reece, what do you want to do?
Reece: Julie, I need to think about this.
Julie: Fine. Take a few days off. I insist. I hear you have worked really hard since you've been here. It will also give me time to get a feel for Penta Car Co admin.
Reece reluctantly agrees and heads home to his wife Sylvia. He tells her what’s happened and his concern.
Julie: Reece, what do you want to do?
Reece: Julie, I need to think about this.
Julie: Fine. Take a few days off. I insist. I hear you have worked really hard since you've been here. It will also give me time to get a feel for Penta Car Co admin.
Reece reluctantly agrees and heads home to his wife Sylvia. He tells her what’s happened and his concern.
Sylvia: Reece, whatever happens, I'm by your side. If you leave, your skill set will get you another job.
Reece returns a few days later. Julie has taken over his seat at his desk and he has a temporary desk by the door. He wants to tell Julie it's not on, but she’s not there and Reece’s secretary Millie tells him he has to go to the boardroom immediately. He enters, says nothing and sits at the end he’s supposed to. The same three are there but with a Diana Turner also.
Julie: Reece, tell us about what your take is on Penta Cars and what you've done since you arrived six months ago to turn things around?
Reece: Our small car range was losing money badly. Foreign imports have been taking a greater share. We can't compete on price and it's not a segment you can go upmarket on. We decided to halt all development on small cars and phase them out, replaced at the factory by a medium SUV.
Julie: Diana?
Diana: I've been brought in to head up product. We have looked at the small car range and I feel Reece that while this may be necessary eventually, if we share costs in development with DMC, small cars should become viable.
Reece: That's an option we never had of sharing costs. Hopefully, it pays off in a tricky segment to make money from.
Julie: Diana's idea has merit, so we will try it. Now what else, Reece?
Reece: SUVs are selling well and Penta isn't even there. My first task was to get Penta's design team to come up with a mid-sized one, and it's progressing well. The problem is, if we keep making a small car, where to build the new SUV?
Julie: I've seen the initial plans and run it past Doug and DMC already has a medium SUV. We can give Penta that car, made at our plant. It will get some cosmetic work to make it look different.
Reece: Well, that was six months of work and cost wasted.
Julie: We are scrapping it and Doug will oversee Penta's overall design direction, in future borrowing heavily from DMC.
Reece: Our mid range P10 passenger car is doing well. Will that be continued with?
Julie: While sales are good, the Riverside plant where it is made isn't required anymore. We have decided to move P10 production to our underutilised DMC plant at Lewisville and shut the Penta factory at Riverside. By increasing the retail price of the P10, the reduced volume means it can be accommodated at Lewisville.
Doug: Penta will also get a new small SUV, developed by DMC and which is due for launch.
Reece: Wow, you move fast.
Julie: We are losing money at Penta Reece, so we have to move fast. Come to dinner with me tonight and we can get to understand where things are going. Oh, I've commandeered your desk. I hope you don't mind? Slight smirk.
Reece: No, that’s fine, Julie.
They sit at dinner and after some small talk, the corporate stuff makes an appearance.
Julie: Reece, I can't help but think you don't like the changes. You're a Penta guy.
Reece: Julie, it's not that. I get the cost savings. I just feel Penta will lose its identity. Rebadged DMCs? That's the price of a speedy turn around in profits. I just hope it works long term.
Reece returns a few days later. Julie has taken over his seat at his desk and he has a temporary desk by the door. He wants to tell Julie it's not on, but she’s not there and Reece’s secretary Millie tells him he has to go to the boardroom immediately. He enters, says nothing and sits at the end he’s supposed to. The same three are there but with a Diana Turner also.
Julie: Reece, tell us about what your take is on Penta Cars and what you've done since you arrived six months ago to turn things around?
Reece: Our small car range was losing money badly. Foreign imports have been taking a greater share. We can't compete on price and it's not a segment you can go upmarket on. We decided to halt all development on small cars and phase them out, replaced at the factory by a medium SUV.
Julie: Diana?
Diana: I've been brought in to head up product. We have looked at the small car range and I feel Reece that while this may be necessary eventually, if we share costs in development with DMC, small cars should become viable.
Reece: That's an option we never had of sharing costs. Hopefully, it pays off in a tricky segment to make money from.
Julie: Diana's idea has merit, so we will try it. Now what else, Reece?
Reece: SUVs are selling well and Penta isn't even there. My first task was to get Penta's design team to come up with a mid-sized one, and it's progressing well. The problem is, if we keep making a small car, where to build the new SUV?
Julie: I've seen the initial plans and run it past Doug and DMC already has a medium SUV. We can give Penta that car, made at our plant. It will get some cosmetic work to make it look different.
Reece: Well, that was six months of work and cost wasted.
Julie: We are scrapping it and Doug will oversee Penta's overall design direction, in future borrowing heavily from DMC.
Reece: Our mid range P10 passenger car is doing well. Will that be continued with?
Julie: While sales are good, the Riverside plant where it is made isn't required anymore. We have decided to move P10 production to our underutilised DMC plant at Lewisville and shut the Penta factory at Riverside. By increasing the retail price of the P10, the reduced volume means it can be accommodated at Lewisville.
Doug: Penta will also get a new small SUV, developed by DMC and which is due for launch.
Reece: Wow, you move fast.
Julie: We are losing money at Penta Reece, so we have to move fast. Come to dinner with me tonight and we can get to understand where things are going. Oh, I've commandeered your desk. I hope you don't mind? Slight smirk.
Reece: No, that’s fine, Julie.
They sit at dinner and after some small talk, the corporate stuff makes an appearance.
Julie: Reece, I can't help but think you don't like the changes. You're a Penta guy.
Reece: Julie, it's not that. I get the cost savings. I just feel Penta will lose its identity. Rebadged DMCs? That's the price of a speedy turn around in profits. I just hope it works long term.
Julie: Reece, you are a smart guy. But Penta Cars is just a brand now.
Reece: My expertise is revitalising ailing companies. DMC has taken that role over. What is my role now?
Julie: We had to do this to make sure we turn Penta Cars around quickly. We can't afford years of loss making while that was slowly achieved. If Penta doesn't break even in two years and profitable thereafter, the brand will cease. We would then take over Penta's plants for DMC production, absorb some of the better engineers and use this to drive DMC forward. As it is, some Penta engineers and admin staff will have to go over the next few months. That's the business reality. We'll discuss your role tomorrow.
Reece shrugs, they say good bye and he heads home.
Reece: My expertise is revitalising ailing companies. DMC has taken that role over. What is my role now?
Julie: We had to do this to make sure we turn Penta Cars around quickly. We can't afford years of loss making while that was slowly achieved. If Penta doesn't break even in two years and profitable thereafter, the brand will cease. We would then take over Penta's plants for DMC production, absorb some of the better engineers and use this to drive DMC forward. As it is, some Penta engineers and admin staff will have to go over the next few months. That's the business reality. We'll discuss your role tomorrow.
Reece shrugs, they say good bye and he heads home.
Julie: This is Wanda Smith. She will become the new CEO of Penta Cars. Reece, you are so committed to saving the company, I feel we need someone more objective. Someone to make the hard decisions.
Reece: So where does that leave me?
Julie: The Rhodes family businesses has a small company back east that is struggling. I can offer you the job of taking charge of that operation. It will require a relocation and it pays somewhat less but it’s the sort of challenge you're made for.
Reece: I can do better than that, but thank you for the offer. I guess I'm done here.
Julie: I'd like to thank you for your excellent work here over the six months and your severance pay will be generous. It will give you time to find something else.
Reece: So where does that leave me?
Julie: The Rhodes family businesses has a small company back east that is struggling. I can offer you the job of taking charge of that operation. It will require a relocation and it pays somewhat less but it’s the sort of challenge you're made for.
Reece: I can do better than that, but thank you for the offer. I guess I'm done here.
Julie: I'd like to thank you for your excellent work here over the six months and your severance pay will be generous. It will give you time to find something else.
Reece packs up and gets home. He tells Sylvia what transpired and that at least a generous severance would pay the bills for a while.
Reece: Another job will come my way, hopefully not requiring a move. I'd take a pay cut to stay here.
Sylvia: Me too. Money isn't everything. Contentment is and we’re content here.
Reece: Another job will come my way, hopefully not requiring a move. I'd take a pay cut to stay here.
Sylvia: Me too. Money isn't everything. Contentment is and we’re content here.
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