Cambridge College - Master of Management
MMG 535 Communication Strategies for Organizational Effectiveness
Instructor: Bruce Cohen
Assignment #03
The case : PTI and Congoil
In your role as PTI’s vice president of operations, write two letters responding to the situation described in the case:
1. To Syanga Rugeiro requesting payment of the & 2.5 million owed PTI.
2. To Carl Mouton asking for his assistance in persuading Syanga to pay.
3. Congoil Explanation
1. To Syanga Rugeiro requesting payment of the & 2.5 million owed PTI.
Dear Syanga Rugeiro
General Manager, Congoli P&P
26 – 30 Avenida Presidente dos Santos, Dist.
Norte 4, Kinuanda, Congola. You have my regards to you and your family. I trust that your son, Syanga, is growing in his academic pursuits here in the great state of Texas. I would be more than happy to assist him if he needs any aid or support. Indeed, it would be my honor to welcome him into our house. Please congratulate him on his acceptance into SamHouston State, on my behalf. Hopefully the younger siblings are doing as well. Regarding our business affairs, we need to discuss several matters. It is PTI’s intention and desire to remain in contract with Congoil. In fact, we would like to extend our commitment to your company. These concerns are at the forefront of PTI’s regional agenda. In order to continue business with Congoil, we desire to build a foundation of trust and mutual respect. In our previous contract, it was agreed upon, that if a gas lift compression system were installed, Congoil would
reimburse PTI within 45 days for all documented costs. The compression system was installed eighteen months ago, and payment has not been received. We expect the contractual terms to be met. With concern to Congoil, its leadership, and its employees, we are willing to recover payment over the long-term at 8% annual interest. This is average market interest on a loan of this amount. It has come to my attention that Congoil is not pleased with the day rate which was charged to your company during the Ocean Reliable’s repairs, four years ago. It is our intention to reimburse Congoil for the 57 days the OR was not in operation. Given the current operating expense of $43,000 per day, the reimbursement will total $2,451,000. This is evidence of our mutual concern for Congoil and its entities. Given the significance of these issues, we desire to meet with you and your operating partners in Congola. We envision an extended relationship between Congoil and PTI, which will result in the mutual well-being of our organizations. Thank you for your time Syanga. We welcome your concerns please feel free to let us know how we can serve you more effectively. Regarding a future meeting, please make arrangements with my secretary. PTI will fund the meetings.
Your business is very important to us.
Sincerely,
Kelly Patricia Rehbain
Vice President of Operations
Production Takers, Inc. (PTI)
2. To Carl Mouton asking for his assistance in persuading Syanga to pay.
Dear Carl Monton
Amproco’s Assistant Counry Manager,
Good day to you sir, I hope things are well with you and your family. Given our past conversations, I was confident that we’d meet again relatively soon. It is truly an honor to have made your acquaintance. Indeed, we seem to be in a quagmire with our business partners in the Congo. Our current contract specifies that if our vessel, the Ocean Reliable, was equipped with a gas compression system, our associates (Congoil) would reimburse us for all expenses within 45 days. Our contractual terms have not been honored, and have been questioned, post script, by our associates at Congoil.
Eighteen months have past since the installation of the system, and the situation has not been agreed upon. Apparently, our friends at Congoil are