GBC CIMA 2014: Merbatty Boat Case

Team Name :

Tessellate

Report Title :

Merbatty Boat Case

University

BITS Pilani, K.K. Birla Goa

Campus
Team

Sanath Shetty
Ayush Raizada
Apoorva Savant
Rahil Parikh

Tessellate

GBC CIMA 2014: Merbatty Boat Case

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TABLE OF CONTENTS

1. Executive Summary .......................................3

2. Introduction ................................................................4
3. Strategic Analysis..............................................................5
3.1. Company Analysis
3.2. Industry Analysis
3.3. SWOT analysis
4. Financial Analysis.........................................8
4.1. Financial Ratios
5. Issues Analysis and Recommendations..........................................10
5.1. New design supplier for Surania
5.2. Accident at work
5.3. Racing boat
5.4. Sales staff
5.5. JKL
5.6. Late delivery of a hull from Topcrest
6. Summary of Issues and Recommendations ..........................................23
7. Appendices.......................................24

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1. Executive Summary
The main focus of this report is to prioritise, analyse and evaluate the issues
facing the board of Merbatty. The report has been structured in a systematic way
wherein, the strategic analysis i.e. Company Analysis, Industry Analysis, SWOT
Analysis of the company has been conducted.
Further the various problems that are being faced by Merbatty have been considered
keeping in mind the five year plans of the company.
The first problem, Designers for the Suranian state, has been analysed
keeping in mind the future prospects of the company. It has been suggested that it
would be a wise decision to choose Arabian Designers, as this company is willing to
provide them a wide customer base and is providing them with cheaper services.
The next problem that Merbatty faces is, the problem with worker who comes
for work in an inebriated state. Tessellate provides a feasible solution so as not to
harm the interest of the company and also the worker. It keeps in mind the safety
standard of the workers and has also laid down certain rules and guidelines that
should be followed by Merbatty to maintain a healthy work atmosphere.
The other few problems that Merbatty face are regarding taking part in a race
boat competition. Tessellate Consultancy have chalked out the numbers for Merbatty
and has provided relevant suggestions to the company for its participation in the
event.
The problem regarding sales staff has been discussed in the report and it can
be seen from the report that sometimes sticking to traditional systems is usually
more beneficial.
The report also tackles the problems regarding the stake holders and the
suppliers (TopCrest). Feasible and economically viable solutions have been provided
for these hurdles as well.

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2. INTRODUCTION

Merbatty, founded in, is a boatbuilding company specializing in luxury boats.

Merbatty was formed 33 years ago by its current Chairman and is based in a
northern European country. Merbatty has enjoyed rapid growth in sales and
profitability in recent years. Despite the recession of the period Merbatty became
listed on a European stock exchange in November 2012.
It currently has two boat building facilities, one at its head office base in Europe
and a second on the West Coast of the USA. Merbatty has a range of 15 boats
varying in price from between 0.4m for a 5 metre boat to over 4m for a 35 metre
boat.
Recently, Merbatty has been facing a handful of challenges such as accident at
the workplace, late delivery by a supplier and excessive charity work threaten to
disrupt the smooth functioning of the business. They pose significant long-term
implications to Merbattys relations and image as also, short-term financial threats. In
addition, there are also a few new ventures that Merbatty intends to leap into such as
enter a speed-boat race competition, establish their own sales staff and development
of the new boat building facility in the Middle East.
In this report, Tessellate will analyze the challenges faced by Merbatty as also
the opportunities that knock on its door and provide and provide strategic
recommendations to ensure sustainable and profitable growth as a leader in the boat
building industry.
The most critical challenge is the Topcrest dilemma where there is a clash of
opinions about whether to accept Topcrests apology in form of the compensation
they are offering or to let go of a partnership of 20 years due to a breach in contract.
It involves Merbattys image as a partner in business and the stand Merbatty takes
on the situation will say a lot about it. The second-most crucial challenge faced by
Merbatty is the participation in the speed-boat racing competition. It is a trade-off that
could sway either way to work wonders or fail miserably and hence, needs a detailed
analysis.

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3. Strategic Analysis

3.1. Company Analysis

Merbatty was formed 33 years ago by its current Chairman and is based in a
northern European country. Merbatty has enjoyed rapid growth in sales and
profitability in recent years. Despite the recession of the period Merbatty became
listed on a European stock exchange in November 2012.It currently has two boat
building facilities, one at its head office base in Europe and a second on the West
Coast of the United States of America. Merbatty currently has a range of 15 boats
varying in price from between 0 4m for a 5 metre boat to over 4m for a 35 metre
boat.
Merbatty has several customers who regularly replace their boats every few
years. It also has other customers who have bought two or three boats to keep in
different locations around the world. It appears that the wealthy have remained so
during the tough economic times of recent years.

3.2. Industry Analysis

Threat of new entrants
Due to high profit margins, this is a very lucrative market with a number of
advantages but there is huge capital investment needed that could deter new
entrants.

Threat of substitute
Being part of the luxury market, there are multiple other products that can behave as
a substitute to the purchase of a boat.

Bargaining power of customers

High because of number of competitors, with Chinese manufacturers as some,
customer bargaining power is high but on higher end boats, quality matters so

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Merbatty being a renown brand has an edge here. There a very low threat once a
customer has entered into a contract is part of the total payment is done in advance
once the contract is signed

Supplier Power
With very few suppliers for the hull and engine manufacturers, and switching
between suppliers is not easy due to lag in delivery time, suppliers have a upper
hand.

Intensity of competitive rivalry

Intensity of competition is very high with Merbatty commanding only 8% of the total
market share in boat manufacturing.

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3.3. SWOT Analysis

The following SWOT analysis highlights key attributes and opportunities
Merbatty should leverage threats to be mitigated and weaknesses to overcome.

Internal

Leverage

Mitigate

Strengths

Weaknesses

Multiple manufacturing

facilities in different parts of

the world so easier delivery

Very reliant on some main

suppliers that supply to all rivals

Merbatty has only been selling

Good relations with

boats which are at the lower

vendors

spectrum of the range

Catering as a luxury brand

Family members running the

so high margins

company. Probable influence of

Presently high cash

emotions while taking important

reserves

decisions

Use of latest technology in

designing and production

External Opportunities

Brand Value

Large untapped market in

Middle East of Upper class

Threats

by Chinese manufacturers

customers

Global market share of 8%

Lower segment might be fulfilled

High taxes in the country from

where Merbatty operates

No major venture or expansion

so lot of ground to be

in the last 33 years shows

covered

apprehension about taking risks

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4. Financial Analysis

Profitability and Operating Margin

Ratios

2011

2012

Operating Return of Assets (ROA)

0.779 0.581

Return of Equity

2.405 0.808

NOPAT Margin

0.078 0.079

These numbers give us an idea that Merbatty has high profitability in its
operations. These high ratios may probably be because of the luxury segment with
high operating margins. There is a marginal drop in ROA but that is nothing of too
much concerned.
Investment Management
Ratios

2011

2012

Net working capital

-55

293

Net working capital turnover

6.26

1.71

As of 2012 Merbatty is in very good position financially due infusion of long

term funds in form of cash due to the issuing of stock. It has recovered itself from
2011 and is in a stable position financially.

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Financial Management

Ratios

2011

2012

Current Ratio

0.791

3.15

Quick Ratio

0.314

1.941

Cash Ratio

0.026

1.257

Interest Coverage

6.77

3.8

With these ratios being the litmus test of the company to be able to meet its
short term financial commitments, It is again in very good position in these terms
based on the numbers of the year 2012 due to the infusion of fresh funds from
investors. The high cash ratio will help with Merbattys expansion plans.

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5. Issues Analysis and Recommendations

5.1. New design supplier for Surania

Cooper designs are a multinational boat interior designer which has an office
located very close to the Suranian state. The company is a well-established
company and has a good track record of providing its services punctually and of very
good quality. This favours Merbatty as the company works neck to neck with all the
procedures involved and delay of one event delays all the other events like a chain
reaction. Cooper also has state of the art facilities one of them being that the
customers can view a model of the design on an CAD extra net service. This
enables customers to access this facility from anywhere and also increases
interaction between the company and customer.
On account of providing state of the art services Cooper Designs is charging
Merbatty accordingly. Another drawback of Cooper Designs is that their designs are
not very specific to the people of the Suranian state. In the beginning this shouldnt
be much of a problem for Merbatty as most of the boats are going to be for
customers from other countries. Five years down the line when its main customers
will be Arabian it could affect the company. But looking ahead by then it is also
possible for Cooper Designs to bring about changes and accustom their designs for
the Arabic people.
Arabian designers on the other hand are a relatively new company. But they
are backed by wealthy Sheikh owners who have unlimited funds and can get the
best technology possible for the company. The company employs only local people.
This is good for the company in a way and bad in another. It is good because the
company can produce better designs which are the liking if the Arabic people. It is
bad for the company as the boats that they will be making for the people outside the
Middle Eastern states will not be very content with the work. The major plus point of
the Arabian designers is that they charge E10k lesser in comparison to Cooper
Designs. The other advantage of the Arabian designer is that the owners being
influential people are willing to lend a hand to Merbatty and provide them customers
for their new facility.

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2015

Number

Best

Worst

of boats (best

case

case

180
1.8 mn

2016

2017

Best Worst Best Worst Best

Worst

20

180

65

180

115

250

180

0.2

1.8

0.65

1.8

1.15

2.5

1.8

case)

Operating
Cost
Profit

93

% change in profit

1.93

0.215

108

120

1.69

0.188 1.5

137

0.166 1.313 0.145

On looking at the situation with Suranian Boat facility on the verge of its completion
there is a necessity to get a interior designer for the boats that are going to be
manufactured in the Suranian state.

There are two options that the company has

1. Cooper Designs
2. Arabian Interiors

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The drawback that Merbatty faces are they do not have any interactive software for
their customers and hence customers cannot make changes to the already ready
designs. But since we know that the owners have more than enough capital it is very
easily possible to get them to inculcate this facility in their company by charging
Merbatty a little extra amount.

After reviewing the two companies it would be better for Merbatty to go with
the Arabian Interior company as the save a lot of money (close to 1.5% of their
profits). Also their designs are more appealing to the local people which is going to
be their major base in the coming years. The company owner being a very influential
person in the state can help increase the sales of boats for Merbatty.

Another alternative that Merbatty could resort to is, they use the services of
Cooper Designs for the first 5 years till their major customer base is people from
other parts of the world. As it is expected after 5 years that more than 50% of their
customers will be from the middle eastern states they can switch over to Arabian
designs then with an added advantage being that by then the company will be a little
more experienced in this field and come with more technological changes.

5.2 Accident at work

Merbattys policy on drugs and substance abuse:
Merbatty, like any other company of its value, must have a strong commitment
to the health, safety and welfare of its employees and their families. With the overall
increase in recreational drug consumption that is indicated by various statistics, the
safety of Merbattys employees and the general public could be endangered. The
companys commitment to maintaining a safe and secure workplace, by eliminating
the hazards to health and job safety created by alcohol and other drug abuse
requires a clear policy and supportive programs relating to the detection, treatment
and prevention of substance abuse by employees.

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Although Merbatty should refrain from intruding into the private lives of its
employees, Tessellate Consultancy recognizes that involvement with drugs off the
job, eventually takes its toll on work performance. Our concern is to ensure that
employees report to work in a condition to perform their duties safely and efficiently
in the interest of their fellow workers as well as themselves.
Merbattys Responsibility:
As a responsible employer Merbatty may:
1. Create awareness among employees and their families of the impact of substance
abuse.
2. Support the establishment of programs to assist employees with alcohol and other
drug abuse or dependency problems.
3. Utilize all channels and resources available to it to educate and increase the
awareness of employees and the general public.
4. Support local and national efforts to combat alcohol and other drug abuse and its
effects.
Procedure Suggested to Merbatty:
To provide a safe drug-free and alcohol-free working environment, Merbatty may:
1. Establish definitive rules and regulations.
2. Merbatty may also randomly conduct drug tests, subjected to all its employees.
3. Provide increased awareness through training, education and communication on
the subject of drug
4. Recognize that there may be employees who have a drug problem and stand
willing to assist in the resolution of that problem by encouraging employees to seek
help through employee assistance programs and rehabilitation, if necessary.

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5.3 Racing boat

1.

Background

Merbatty has been sponsoring a global speedboat race at the cost of 5m per
annum. Being a sponsor of a higher rank, it is implied that their major marketing
goals are reached through this sponsorship. However, Jesper wants to build and
race a speedboat in the competition.
2.

Factors proposal intends to achieve

Increased visibility

Merbattys own range of speed-boats

Increased sales of Merbattys performance motorboats, especially P-3000.

3. Factors affecting proposal

Design, development and building costs

No guarantee of success

No guarantee of increase in P-3000 sales

Accident prone

4. Cost of implementing proposal

4.1 Time for break-even
The initial investment (first year) will be 20m according to Alberto and
8m the following year. While going by Jespers calculations, it is 4m (inclusive of
designing).
Hence to break even,
No. of boats (P-3000) to be sold in year 1 = 20/0.8= 25
No. of boats to be sold in year 2 = 8/0.8= 10
Total= 35 in 2 years
4.2. Worst case scenario

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Even if Merbatty does not perform as expected in the race, the worst case scenario
doesnt stand to look very harsh. Presently they are selling 10 P-3000s per year and
additional publicity is assured no matter what, even if we assume the sale of only 10
boats (P-3000) in the two years i.e. losing out on 15 boats, there is a loss of 12m in
the 2 year period, during which the net profit will be (76+84) = 160m, i.e. 12/177=
6.78% profit margin.

5.

Supporting factors

5.1. Thirty-three years of expertise in boat-building

Merbatty has been in the boat-building business for over 33 years now and their
expertise is unquestionable. If they take a leap into manufacturing and racing a
speed-boat, the quality of the same will definitely not be compromised upon. Hence,
Merbatty stands a good chance of winning the speed-boat race competition. The
huge cash prize might also help the company break even with their initial investment
way before they had calculated it to.
5.2. Termination as a sponsor
If Merbatty manages to place itself decently the first time and improve the next year,
it will definitely catch not a few, but many eyeballs. This might do them a lot of good
on the grounds of publicity and marketing. If the results are extra-ordinary, it might
even give them a chance to terminate their sponsorship and wholesomely focus on
the competition hence saving 5m per annum.
5.3.Increased P-3000 sales
The sale of P-3000 stands as a crucial motive behind the involvement in the speedboat race. A decent show at the same ensures increased attention towards the
speed motor-boats already manufactured by Merbatty, especially P-3000.
5.4.Wider customer base
Irrelevant of Merbattys performance at the race, it will establish itself in the race-boat
business. Merbatty already being a big fish in the boat-building business, this new

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venture will help them expand their customer base. It will prove to be a useful
investment as they have all the resources to handle a widened clientele.
5.5.Sponsorship for Merbattys race-boat
Merbatty can also take a step further and look for interested sponsors for their
speed-boat. Merbatty is well-established in the boat-building industry and it is
unlikely that sponsors will not take the opportunity to associate with a big name like
Merbatty.
6.

Risk factors

6.1.New investment eats into available funds

The new investment of 12m and 8m into the race-boat will mean eating into the
secured funds for growth for the coming 5 years. This will keep the scheduled growth
drills on halt while a part of the money will be used for this new venture. It will not
only affect the routine work like maintenance costs and labour wages but also put
the on-going business on the back seat for a while.
6.2. A good percentage of the outcome based on luck
Going purely by business point of view, a new investment that depends majorly on
luck is never advisable. Even after keeping a buffer cost and calculating a breakeven time for the worst case available, the tables might turn for Merbatty resulting in
losses that might be very difficult to cover. Moreover, we cannot neglect the
chances of a mishap or accident.
6.3.Loss in revenue
The profit margin due to expensive interiors is 18% for Merbatty which, undeniably,
is a huge one. Moving on to selling speed-boats in the near future will mean a loss of
revenue as far as interiors as concerned.
8.

Recommendation

Even though the trade-off might seem shaky on the whole, Merbatty must go ahead
with the proposed idea. Being in the business of boat-building for over 33 years and
having a satisfied clientele, Merbatty will do good in building a new product of high

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standards and selling it. Their proficiency also leans towards Merbatty standing a
good chance of winning at the speed-boat racing competition. If the deal goes well
even half-way through as planned, Merbatty can issue shares and raise funds.

5.4. Sales staff

Presently Merbatty has 17 members as staff as part of its sale force. With total
expenditure of 87m in 2012 and total employ workforce of 2,167, sales staff forms a
very small fraction of the total payroll expenditure.
We will consider both cases of hiring their own sales force or continuing with the old
method of outsourcing.
Financial Impact
Considering all the revenue coming from boats sold by external sales agents, the
total cost works out to 20.08m in the year 2012. That contributes to a sizable chunk
of the total revenue and based on what is said by Mary Loop they will be a lot of
savings in the case of hiring sales agent of your own.
Ties with present network
If Merbatty decides to completely let go of the external sales agents, then they will be
forced to move to other boat manufacturers with all their contacts. In Surania if
Merbatty selects the Arabian Designers then they will have some help in getting
orders but in other places they will have to start from scratch. A large part of the
present clientele and network that has already been set up will be lost to rivals.

Management Issues
The whole infrastructure will have to be set up in all the 4 continents that may prove
to be a humongous task. Organising them together and having HR representatives
for training in all the places will be very tedious and may not work out to Merbattys
advantage since there is a lot of ambiguity on the results.

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With a large commission the external sales agents are highly motivated to make
sales.

Commission for sales agents

Present Revenue

small boats

0.045

256

large boats

0.1375

196

Based on the numbers given, the profit margin for Merbatty too is less in smaller
boats (13.8% on smaller boats and 16.8% in larger boats) and if the aim is to sell
affordable small boats, it is a very price sensitive market(Thus missing out on
interiors which has a high margin of 18%), it could end up in a price war and
Merbatty would not be able to compete with its Chinese competitors in this segment.
Recommendation would be to continue with the present external sales agents and
hire a few agents just to reach maximum output of all the boat manufacturing
facilities.

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5.5 JKL
JKL have been happy with their current performance of their investment
mainly because of the primary fact that Merbatty has been performing consistently
well and are working hard towards achieving their five year plans. On the other hand
there may be slight ambiguity about their primary interest. This is mainly because the
current board of Merbatty has owned the business for the past 30 years and hence
has always had a feeling in them that it is their business and hence the attitude that
Simone talks about.
Also on the other hand Merbatty have always lived upto their commitments
and not let down any of their stake holders. Also the instance where Jesper tells
Simone that he will get his way with his dad for the race boat is just talk as of now.
And Alberto has always taken decisions wisely and has seen to it that the expansion
plans and new ideas that they come up with are profitable for the company.
Overall the feeling that Simone gets that Alberto views Merbatty as his
personal profit is right in a way. Since they have sold our shares of the company
Alberto should keep in mind the interests of the stakeholders as well.

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5.6 Late delivery of a hull from Topcrest

Merbatty has the following options available to itself:

1)

Merbatty could accept the compensation and the settlements offered by

Topcrest, and not take any legal action against the same. It could continue using
Topcrests hulls.
2)

Merbatty could refuse the settlement and take legal action against Topcrest,

but continue using Topcrests hulls for this boat and for the future.
3)

Merbatty could take legal action against Topcrest, approach another hull

manufacturer for the hull of this boat only, but continue using Topcrests hulls in the
future.
4)

Merbatty could accept the settlement and not take legal action against

Topcrest. However, it could approach another hull manufacturer for the hull of this
boat only, but continue using Topcrests hulls in the future.
5)

Merbatty could take legal action against Topcrest and use its hulls for

Merbattys future boats, and approach a new hull manufacturer for the boat
concerned.
6)

Merbatty could take legal action against Topcrest and discontinue buying hulls

from the same, completely.

Suggestion:
Tessellate Consultancy suggests that Merbatty should accept the
compensation offered by Topcrest, for the late delivery of the hull, and
continue using Topcrests hulls for this boat concerned, and in the future.

Financial Benefits:
Topcrest has offered to pay E30 per idle hour created due to the 2 month delay,
which is 1.67 times the average wage rate.

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By paying 30/hour, for 5% of the 1940 boat building technicians remaining idle for
10% of 304 hours (152 working hours/month*2 months), Topcrest will be paying
Merbatty 88,464. Since Merbatty pays its employees 18/hour, it would have
totalled to an expenditure of 53,078 (0.05*0.10*152*2*1940*18) to keep its workers
idle. Not only is this expenditure compensated by Topcrests offer, but Merbatty also
makes a profit of 35,386 (88,464-53,078).
It would be unwise to approach another hull manufacturer, since Merbatty will
receive the hull only 15 days before Topcrest date of delivery, at the expense of
50,000 along with 39808 (0.05*0.10*152*1.5*1940*18) for the idle time created till
15th January, 2014.

Seriousness on behalf of Topcrest about its relations with Merbatty:

Merbatty is one of Topcrests key customer, and Topcrest recognizes the importance
of working closely with the same, even in the future.
Since Topcrest is paying 143,464 to Merbatty as compensation, it is evident that
they still value Merbatty as a customer and will make sure to meet its deadlines in
the future. They understand the gravity of the embarrassment faced by Merbatty
and are hence willing to refund a 25,000 discount offered to the boats customer, in
order to appease the customer.

Avoidance of Legal Action:

A lawsuit issued by Merbatty would have direct repercussions on its treasury. The
process would be expensive and the results, ambiguous and unpredictable. Further,
it will heavily affect the healthy relationship enjoyed by Merbatty and Topcrest, and
may eliminate the chances of the two firms to work together in the future.

Apprehension about the new hull provider:

Topcrest is globally recognized among the top three hull manufacturers. The new

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hull manufacturer may lack the technological skills and experience enjoyed by
Topcrest. Merbatty may also find it inconvenient to work with a new firm all of a
sudden.

A Beneficial Relationship in the Past:

Topcrest and Merbatty have enjoyed a twenty year old, mutually beneficial
relationship, which has led to rapid and steady growth of both the firms. Merbatty
and Topcrest also have their headquarters situated in the same country, and an
effort must prevent the relationship from souring.
6. SUMMARY OF ISSUES AND RECOMMENDATIONS

Priority
number

Problem

Decision

Late delivery of
hull by TopCrest

Accept proposal from Topcrest to avoiding souring a

strong relationship with an old supplier

JKL

Keep shareholders interests in mind while taking

decisions

Accident at work

Establish rules with respect to drug abuse with random

drug testing. Assist employees in resolution of their drug
problems

Priority
number

Proposal

Decision

Racing Boat

Accept and move ahead with proposal

New Design
Supplier for
Surania

Accept proposal of Arabian designers

Sales

Continue with present network but employ some sales

staff to reach the maximum output of manufacturing
facilities

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7. APPENDICES

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Appendix 3
Merbattys key personnel
Alberto Blanc - Chairman
Alberto Blanc, now 62, had an interest in boats from an early age, when he used to spend
his summer holidays at his uncles boat building facility. Having a keen eye for design and
a love of the ocean, he went to marine college in 1971 and became a marine engineer in
1974. He started Merbatty after his uncle gave up his business in 1980 and passed the
boat building facility onto Alberto. He plays an active role in the business and is often
seen in the European boat building facility, talking to and advising design and technical
staff. He believes in a hands on management style and that the best way to learn what is
happening in the business is to see the boats actually being built. He is also a strong
believer in the importance of charity work.
Henri Gaston - Chief Executive
Henri Gaston is a 35 year old MBA graduate who joined Merbatty in September 2011. He
has previously worked for one of Merbattys major overseas rivals and has a number of
contacts throughout the industry.
Stefan Gil - Sales Director
Stefan Gil, who is 52, has worked for Merbatty for 14 years and was previously a sales
director of one of the main engine suppliers, where he worked for ten years. He has a
very strong technical knowledge and previously spent five years in the Middle East as an
engineer. He is a keen sailor and has recently sailed single-handed across the Atlantic for
charity. His main challenge since joining Merbatty has been to create a strong brand
image for Merbatty in order to appeal to the wealthy European and American customer
base. He is a great asset to Merbatty.
Andreas Acosta - Finance Director
Andreas Acosta, aged 45, joined Merbatty in 2006. He previously worked as a
management consultant for a large international firm of auditors. It was during this time he
developed a keen interest in the boat building industry after being in charge of an
international investigation of the industry. His main concern is the management of cash
and the potential costs involved in overseas developments. Andreas leads a team of ten
accountants in the European office and a further eight in the USA office.
Jesper Blanc - Marketing Director
Jesper Blanc is the 30 year old son of the Chairman. He graduated from university six
years ago with a degree in Media Studies and has worked in the company since then. He
has worked within the engineering department and in the systems and IT department for
short periods but did not feel that his talents were in either area. His father initially
appointed him as a marketing assistant, which he enjoyed immensely. His father later
promoted him to the role of marketing director 12 months ago. Since his appointment he
has visited many different countries, talking to customers and agents and establishing
contacts.
Tobias Houllier - Operations Director
Tobias Houllier, now aged 50, started as a junior carpenter and has now worked for
Merbatty for the last 30 years. During his time he has worked in the engineering
department, the design department and he has been the European boat building facility
manager. He has held the role of operations director for the last ten years and is probably
the most experienced person in the whole company. He is very keen on training and
encourages all of the designers and engineers to become qualified.
Alain Mina - Technical Director - Systems and IT
Alain Mina, aged 35, has worked for Merbatty for the last eight months. Previous to this
he was a senior IT project manager for an organisation specialising in building and
distributing military radar equipment. This is his first role at director level and he is finding
it difficult to take a less hands on role than he has previously been used to.

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September & November 2007 13 P10

Lukas Dian - Technical Director - Design

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Lukas Dian aged 36, has worked for Merbatty for five years. He started as the chief
designer, but due to his leadership and his personnel management skills he was
promoted to director level within one year of joining. He leads a team of over 20 designers
who meet on a regular basis and he encourages an open door policy in order to create a
feeling of freedom of thought and creativity.
Marie Lopp - HR Director
Marie Lopp, now aged 40, has worked for Merbatty for three years. She is the first HR
director as previously Alberto Blanc did not believe in human resource departments.
However, as the organisation expanded and staff issues and legislation became more
complex, he finally agreed to appoint a HR director. Marie Lopp has a difficult job
persuading Alberto Blanc of the importance of human resource issues and in particular,
she struggles to get him to invest in training for staff other than the engineers and
designers.
Paul Lavie - Procurement Director
Paul Lavie, aged 38, joined Merbatty in March 2013. He has many years of experience
working for a large supplier of components to the automotive industry. He is also
concerned that the procurement department had not established a close relationship with
some of its major suppliers.
Bernie Ritzol - Global Market Development Director
Bernie Ritzol, now aged 46, joined Merbatty 12 years ago and has been responsible for a
number of strategic developments including the acquisition of land in the USA and the
opening of Merbattys second boat building facility. He has also worked closely with
Tobias Houllier in the development of new boat models and also with the technical
director - design, since Lukas Dian was appointed to this new position four years ago.
Bernie Ritzol was one of the driving forces behind Merbattys listing, to enable the
company to raise additional finance in order to fund expansion of the company. Bernie
Ritzol was also instrumental in the selection of the site in Surania for Merbattys third boat
building facility.
Simone Lellet - Investment Director, JKL
Simone Lellet, aged 42, is JKLs Investment Director and she was appointed to the Board
of Merbatty in November 2012, when Merbatty became listed and JKL bought 50 4 million
shares, resulting in a holding of 28% of Merbattys issued shares. Simone Lellet is very
enthusiastic about Merbattys five-year plan and wants to participate in the decision
making process to help Merbatty achieve the goals set out when the company became
listed. She has attended every Board meeting and has also been involved in some
operational planning meetings, with the Boards permission.
Non-executive directors
Merbatty has six non-executive directors. The six non-executive directors hold various
other directorships, in a variety of industries. Four of the non-executive directors are
based in Europe and two hold directorships of USA listed companies and are based in the
USA.

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