What's the current situation? "Extreme rain fall" events inBrazil have been on the rise since the 1980s. In Guarujá a coastaltown 25 miles from Soa Paulo, 18 people were killed in a singlemonsoon rain. The rise of global temperatures worldwide is likelyto produce more extreme events for the area. Pirelli Tires awell-known performance tire manufacturer has been hit especiallyhard. In 2003, Pirelli built a 345,000 square foot manufacturingplant in region with an output of 2,500 tires per day. The plantemploys 300 people with the option to expand its employment with anadditional 350. Pirelli's operation in Bauru sustained heavy damageand will have to undergo substantial repair and additional costs tocontinue to produce there. The plant helped stabilize the economyof the city, increased property value, and attracted numerous localbusinesses. In order for the company to protect its $120 milliondollar investment it must repair its facility and roadways foremployees to travel in safety as well as additional insurance costsThe estimated cost for facility repairs due to heavy rain events is$30M, and the insurance policy will only cover $10M. The insurancepayout of $10M will not be used if the Tire manufacturer elects notto repair the current facility. Pirelli Tires is now faced with thedifficult task of deciding whether to repair its existing facilityin Bauru or move its operation permanently to an abandonedmanufacturing space located in Campinas. Campinas is beingconsidered as a potential option for the following reasons: 1)Facilities and infrastructure are already available from a previoustire operation making the environment ideal. 2) Adequate parking isavailable for over 900 employees. 3) Pirelli's brand partnershipwith local business make the area more attractive 4) The area hassignificantly better work talent. The abandoned manufacturingspace, however, must undergo major renovation to bring it up tocurrent operational standards. Existing areas must be reconfigured,and additional square footage must be added to increase the spacefor tire production. The tire curing press space of 20,000 squarefeet must be increased to 30,000 square feet to adequately matchthe output of Bauru. Other required construction will includemanagement office areas overlooking the production floor (1,600square feet), human resource office areas (2,400 square feet), andan expanded dining and break space for employees (2,410 squarefeet). Two functional features of the current Bauru facility mustalso be included in the renovation: an 800 square foot securitygate entrance and guard office. A local contractor estimated thatthe latter would cost $30,000 to install. And finally, therestrooms will be remodeled, and an additional hourly wage clockpunch station will be installed at a cost of $36,000 and $4,500,respectively. The average cost of construction and finishing(including all fixtures and fittings) is currently estimated at7,520 Brazilian Reals per square foot. The US based architecturalfirm retained for the project will charge a standard fee of$550,000 regardless of which option is selected. What are yousupposed to do? You are required to evaluate the feasibility ofboth options (i.e. stay or move) and provide a recommendation, viaemail, to Dana Helms, COO, of Pirelli Tire. You may assume thatboth projects will take the same amount of time to complete. Applythe appropriate business writing standards for content, style, andorganization in your email. Currency Conversion Rate: 1 USD = 5.71BRL
1. Determine the bottomline message 2. Provide a suitablesubject line 3. Ensure that your content is concise 4. Employ asuitable visual representation to display quantitative information5. Employ parallel form Grading Rubric A suitable subject line 2 Anappropriate bottomline 2 A list of supporting qualitative data inparallel form 4 An appropriate visual representation of comparativequantitative data 5 A call to action 1 Introduction to data 2Suitable wrap-up statement 1 Overall organization, form, andgrammar 3 TOTAL POINTS 20
Write an email to Dana Helms, COO, of Pirelli Tire and Have aTable showing Data of the Figures for both projects.
