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External Memorandum Date: October 25, 2011 To: Ms.

Dewi Ojar, Chief Human Capital Officer From: Ms. Savitrii Rizki, University of Washingtons Business Administration Undergraduate Subject: Job Description for President of North American Subsidiary This memo is about a job description created to hire a new President of IPTNs North American subsidiary if the opportunity so calls for. It explains the methods of job analysis used to create the job description, exemption status under the United States Fair Labor Standards Acts, the potential labor market for a replacement President, and a recommendation for the positions appropriate salary. Job Analysis Methods: I have chosen to create a job description for the subsidiary president because this position is business of IPTNs North American operations itself the President is the sole generator of profit. The future existence of the North American subsidiary is wholly dependent on a proper replacement once the current incumbent decides to retire or, less likely, terminated. This job description was derived through: I. Personal interviews with the President, which is checked by II. Personal interviews with subordinates including the Accountant and Purchasing Clerk , III. Research from similar positions at similar companies provided an outline, including Avio Support, Honeywell, and Boeing, which are all located in the Greater Seattle Area. IV. Research on O*Net that confirmed the incumbents current job title with titles determined by a national HRM resource. Job and Exemption Status: This job is exempt from the US Fair Labor Standards Acts regardless of its inter-state commerce. I determined the exemption status of the job using the University of Washingtons human resource page under FLSA Executive Exemption. This position is exempted by having met the following tests: I. The employee is compensated on a salary basis at a rate of more than $455 per week II. The employees primary duty is managing a subdivision of the larger IPTN enterprise III. The employee customarily directs at least two full-time employees IV. The company has full authority to hire, fire, and promote other employees in the subdivision Potential Labor market: The ideal candidate must have international business experience and knowledge of markets in the Middle East and Asia. It is recommended to recruit an English-Indonesian speaking, experienced sales associate or buyer within the sales or procurement division in Indonesias headquarters. This labor market would be already demonstrate a good person-organization fit. Recruiting from the smaller labor pool of experienced aviation sales/buyers in the Seattle Area to find a bi-lingual candidate in Indonesian and English is also preferable for doing business in the United States, although the language barrier might impinge a short supply. This would be done on a national level. Last, potentially promoting directly from the Purchasing Clerk position in this division itself if he or she has met the 10-14 years-worth of experience, as well as sales and leadership acumen, and bi-lingual capability isnt impossible. Potential Salary: The recommended annual salary is $124,100 if the maintaining the same profit level and company size is the goal determined by headquarters. This figure may be negotiated to a $20,000-$30,000 reduction if promoting a candidate from headquarters in Indonesia. Again, the Presidents position in the North American subsidiary is the survival of IPTNs presence in the United States. The value of this position, which could be filled by this job description, is on average $160,000 USD per year, $1.6 million in 10 years, worth of supplemental profit for IPTN. The cost of a poor Presidential candidate is currently $110,000 per year, which the company has experienced more than five years ago when an incompetent President for more than ten years led the company to layoffs and downsizing after the Asian economic crisis. Hiring a new candidate should be based on merit instead and processes to evaluate that instead of the old ways of corporate nepotism.

Position Description 1. Identification Job Title: President Alternative Title: Executive Director Department: North American Operations DOT Job Code: 11-1011.00 2. Job Summary Under the direction of IPTN executives and shareholders in Bandung, Indonesia, oversees operation of the North American subsidiary. Maintain or grow profit levels by securing customers and procuring new product offerings. Delegates tasks supporting sales function to employees. Approves cost-of-goods sold spending, as well as overhead costs with cost reduction in mind. Oversees preparation and delivers state of operations reports to conglomerate executives and shareholders. Oversees preparation of annual budget, and proposes it to executives for approval. Serves as domestic and international spokesperson for the sales operations based out of North America. Appoints and supervises supporting staff. Must have a minimum of 14 years of experience in the aviation industry in procurement or sales roles and a Bachelors degree in a related field, or 10 years of experience with an MBA. Must be bi-lingual in English and Indonesian. Capable of working under stress, and travel 30% of time annually in diverse settings. Good leader with shrewd business acumen to balance costs with business results. 3. Supervision A. Supervision Received Directions Only. Worker is permitted to do work without any type of direction instruction and with little work inspection. Reports directly to the Board of Directors in Bandung, Indonesia. Grievance procedures are administered by the Board of Directors through PTDIs formal process. _____________________________________________________________ B. Supervision Given Provides direct supervision to personnel of more than two full-time employees including accountant, and purchasing clerks. Included in oversight are also as-needed contract workers including, but not limited to auditors, information technology (IT) professionals, real estate agents. Also ensures proper performance of suppliers and business partners locally and internationally. Has hiring and firing authority for all supporting business roles within North American subsidiary, including full-time, part-time, and contract workers. Coordinates Operations. Coordinates an organization or phase of operations within an organization. Gives general directions. Supervises Work Group. Supervises individuals in a work group. Individuals who fall in this category usually have supervision as a primary job task or duty. They typically have authority to hire and fire employees. Supervises Assistants. Supervision is an incidental part of other primary duties. Date: October 25, 2011 Analyst: Savitrii Rizki, Human Resource Department

4. Critical Functions and Tasks 1. (90% weekly) Conduct all aspects of sales in all product divisions: aircraft spare parts, aircraft engineering services, and weather modification products and services, as well as new product ventures a. Plan annual sales goal with board of directors and parent company management in Indonesia b. Generate civilian and military sales prospects through tradeshows and Partsbase online database


Plan travel arrangements with accounting department by identifying industry events, booking flights and hotels d. Develop strong customer relationships through formal and casual networking such as dinners and hosting clients as guests e. Prepare price quotations for customers f. Evaluate customers requirements and assess whether IPTN NA is capable financially for lines of credit, and if the deal would be profitable and worth the time commitment g. Control costs and obtain savings with target pricing and leveraging discounts for customers in return for timely payments h. Ensure payments of accounts receivables by calling clients, and delegate to purchasing and sales clerk i. Drive customer satisfaction, by providing the right product, at the right price, and give timely responses to customers j. Coordinate shipping with FedEx and ensure on-time delivery k. Provide post-sale support to customers with thank you gifts, calling and travel nationally and internationally to visit clients to ensure satisfaction, take returns and delegate processing of returns to purchasing/sales clerk (5% weekly) Procure Aviation equipment, engineering and weather modification products and services, and seek new product ventures a. Stay current on products and the Aerospace industry to remain relevant to customers by attending trade shows b. Identify possible suppliers through tradeshows and Partsbase online database c. Obtain pricing and product information from suppliers d. Conduct price/cost analysis to determine profit margins e. Evaluate supplier proposals to ensure compliance f. Negotiate and approve agreements with suppliers, government agencies, and other entities g. Analyze competitive bids between multiple suppliers and make purchase decision h. Obtain savings by using target pricing, reverse auctions, and negotiations i. Prepare purchase orders for suppliers, and delegate drafting POs to purchasing/sales clerk j. Maintain information received from suppliers on Microsoft Excel and in filing cabinets k. Ensure timely shipping of inventory from supplier to headquarters or customers directly (N, <5% weekly) Manage human resources a. Work in an internal cross-functional team with accounting and purchasing/sales clerk b. Delegate responsibilities to other department heads Administer lay-offs and terminations according to company procedures and facilitate with unemployment benefits d. Hire full-time, part-time, and contract workers as necessary, including auditors, information technology (IT) professionals, web designers, and data entry assistants (N, <5% monthly) Manage finances a. Direct accountant to obtain lines of credit from banks for orders to suppliers b. Determine areas of potential cost reduction, program improvement, and policy change c. Approve and monitor spending for employee benefits company car, gasoline reimbursements and cellphone (N, <5% annually) Report to management and shareholders in Indonesia a. Travel to Indonesia annually to report profits and costs to top management and shareholders b. Prepare budgets for approval by top management in Indonesia c. Complete annual audit using contract CPAs and delegate the creation of a paper report and digital presentation using templates to accountant (N, <5% annually) Manage facility a. Hire a realtor to find tenants for vacant office space c.






5. Training and Experience A. Previous Job Experience desired and/or necessary: 1. Minimum 10 years of experience in aviation procurement or sales 2. Knowledge of company Advancement from within 3. Indonesian 4. International business 5. Deep knowledge and relationships within the industry, with suppliers, and customers B. Schooling and Training: 1. General Schooling: MBA preferred, or additional four years of experience plus a Bachelors Degree in Business, Economics or Engineering 2. Special Training: Must have basic knowledge of managerial accounting and project financing, and knowledge of productivity improvement strategies (i.e. Six Sigma) is an asset C. On-The-Job Training: Knowledge of business, production, and supply chain processes 6. Supervision A. Know How 1. How to operate a computer, Internet, email, Microsoft office and Peach Tree accounting software 2. How to prepare a spread sheet 3. Public speaking and interpersonal communication ability 4. Negotiation skills 5. Multilingual at least in English and Indonesian 6. Ability to listen to customer demands 7. Basic business management skills 8. In-depth understanding of the aviation industry 9. Basic understanding of the supply chain process 10. Good visual acuity to read reports, e-mails, purchase orders, and supplier bids B. Adaptability 1. Adaptable to changes in situations such as price changes because of economic situations, policy changes by parent company, etc. by working intuitively 2. Focus mainly on a deep set of sales responsibilities 3. Interface with 90% of operations responsibilities and delegate responsibilities indirectly related to sales C. Creativity Moderate degree of creativity is required to generate new customer sources and business offerings. Job functions on a typical day at the office, are structured and routine, but vary greatly while on business travels.

7. Working Conditions (specify % of time exposed to conditions) % of time exposed 0%_____ Vibrations 0%____Odors 0%_____ Fumes 3%____Noise 0%_____ Poor Ventilation 2%____Heights 10%_____Deadlines 0%____Radiation 10%_____On Call Status 5%____Varied Shifts

90% Inside 5%___High Temp 0%__ Low Temp 0%___Bodily Fluids 30%__ Overnight Travel

0%____High Voltage <1%___Moving Objects 0%____Slippery Floors 0%____Crammed Work Area

Remarks: Working condition variables are due to travel to hot-climate countries, and noise at air shows.

8. Physical Demands (Specify Percentage of Time) <1%____ Lifting 0%_____ Pushing 0%_____ Pulling 0%_____ Carrying <1%_____ Standing 90%_____ Sitting <1%_____ Bending 70%_____ Repetitive Motion 20%_____ Close, Detail Work

Remarks: Minimal physical labor required. This is mainly a desk job with substantial time on the computer and phone. 9. Relation to other jobs A. Promotion From: Vice President of Procurement B. Promotion To: CEO at international headquarters in Bandung, Indonesia