Reference no: EM133256965
Case: The Jones Construction Company builds high end custom homes in California. Most of the construction staff are highly trained and considered true craftsmen. Currently Jones is building 25 custom homes. Construction staff are furnished the necessary tools and machinery onsite to do their jobs. During the past 12 months, there has been a 200% increase in tool and small machinery thefts which have been reimbursed by their insurance company, Gordon Insurance. It is now time for their policy renewal. Gordon has informed Jones's agent, Bill, that their theft deductible will increase to $5,000 per claim and the premium will increase 25%. Bob Jones, Jones Construction owner, is upset at the number of claims and premium increase.
Definition:
Risk Manager - an individual responsible for managing an organization's risks and minimizing the adverse impact of losses on the achievement of the organization's objectives. The risk manager is charged with identifying risks, evaluating risks, selecting the best techniques for treating identified risks, implementing the chosen risk management techniques, and regularly evaluating and monitoring the program.
Your Task: You are the Risk Manager and Bob has tasked you with coming up with a solution to stop the thefts so he can negotiate a lower deductible and little or no premium increase. a memo to Bob giving him two options for reducing the theft. Pick what you think is your best option and state why you feel it is the best.
Put your name in the from section of the memo.
Expected Student Outcomes: 1) clearly and concisely state the business problem along with any assumptions as needed; 2) analyze the advantages and disadvantages of two possible solutions to the problem; and 3) recommend the solution that will best meet the organization's business objectives. Demonstrate understanding of case analysis and the elements of persuasive communication
Your instructor will grade your memo on (CLASS) - Content, Literacy, Audience, Strategy and Style. Remember to spell-check, proofread, and revise exhaustively. The best paper from each BUAD 301 section will be selected by your instructor and submitted to the coordinator for the SRMI Writing Contest by the deadline. Judges from the SRMI will judge papers based on industry standards which will closely parallel the CLASS evaluation rubric. Winners of the contest will be announced by week 14 of the semester. If your paper is selected as the best in your class - remember to add this achievement to your résumé, whether you place in the top three in the Business Writing Department Contest or not! Prizes will be awarded to the top three papers out of all BUAD 301 sections at the end of the semester. Students who place in first, second, or third place will be eligible for the School of Risk Management and Insurance Scholarship given in May. In order to qualify for the $1000 scholarship, students must be a full time "business" major, and have at least a 3.0 GPA.