Military Logistics & International Interactions: A Case Study of Army Officers and Steel E, Study notes of Introduction to Business Management

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Exam 2 Face Time

Facetime: Major Jason M. Kahne, U.S Army  International Interaction to Support Military Operations  Experience (in army for 11 years) o Platoon Leader/ Executive Officer (98-00)  Line- haul transportation company, (in Europe) o Theater Movement Control Center (00-02)  Oversight of all military surface cargo, (in Germany) o 1 st^ Cavalry Division Transportation (03-05) (in US)  Movement of 1st^ Cavalry Division to/from Iraq o Forward Support Company Commander (05-07)  Logistics Support for a Infantry/ Armor Task Force o Brigade Logistics Office (07-08)  Logistics Support for a Brigade Combat Team  Considerations for International Interaction o History o Diplomatic Clearance Processes  Permission “granted” by a country for the movement of passengers, cargo and/or equipment through it for a specific mission and during a specific time period.  Major Players include: US Embassy/DAO, Ministry of Interior, Ministry of Defense, Ministry of Transport, and local traffic and customs authorities  Time periods vary from 2-35 days o Political Constraints

 Political Climate  Ex: Serbia and Belarus  Theater Engagement  Infrastructure Investments  Sovereignty Issues  Transport of weapons systems with ammo o Switzerland Neutrality- No weapons systems o Austrian Neutrality- Polizei escorts o Italian Coordination- Carabiniere Escorts o Infrastructure Constraints  Surface vs. Air  90% by surface, 10% by air  Rail Gauges  U.S.- 4’8 ½ “  Russian- 5’  Iberian- 5’5 2/3”  Rail Infrastructure  Seaport Infrastructure  Deep Water Ports> 36’ Facetime: Tim Bourceir, Gerdau Ameristeel  Bus 1301- Business, Economy and World Affairs  Introduction o Tim Bourceir- Vice President, Regional Manager

 Operational responsibility for four mills located in TN, FL and TX  Totally 2.5 million tons production  $1.468 billion in revenues  1286 employees o Married with three sons o Oldest son Jared is a sophomore at Baylor o BS Metallurgical Engineering from Michigan Technological University- o Inland Steel Company- 1983 to 1987- Project Engineer and various frontline Supervision roles, Integrated Steel Production o North Star Steel Company- 1987 to 2001- Frontline Supervision, Department Superintendent and Plant Manager- Mini Mill o Chaparral Steel Company- 2001 to 2007- Vice President of Operations o Gerdau Ameristeel- 2007 to present- Vice President, Regional Manager- Acquired  Gerdau Ameristeel Snapshot (NYSE-GNA) o Leading mini mill steel producer and second largest recycler in North America o Finished steel capacity of approximately 12 million tons o One of the strongest 5- year revenue growth in the industry:32% CAGR o EBITDA margin in top quartile of peers o Broad geographic reach and product diversification o Diverse product mix, serving the attractive infrastructure segment o 432 million shares outstanding /66% owned by Gerdau S.A.  Driving North America growth within the Gerdau Group o Contribution of 100+ years of global steel experience

o Largest long steel products producer in the Americas with 26 million tons of crude steel capacity  Efficient Vertical Integration o Scrap/ Recycling  3.5M tons  23 scrap operations  40% captive supply o Mini Mills  12M tons  19 Mills  Broad Product Range  Variable Cost Advantage o Downstream  2.2M tons  66 locations  Less Capital Intensive  Stable Margins  Defined Strategic Priorities to Drive Future Growth o Business growth:  Extend end use markets and product range  Downstream value added  Upsteam raw material supply o Costumer Orientation:

 Be the supplier of choice  Improve customer relationship  Develop brand recognition o Sustainability  Safety and environmental commitment  Operational efficiency/cost competitiveness  People development/community  GNA Diverse Product Mix o Merchant: 26% o Rebar: 19% o Fabricated Rebar: 13% o Structural: 28% o Flat rolled: 8% o Wire Rod: 7%  Customer Orientation- Supplier of Choice o Broad product range and geographic reach o “One Stop Shop” o Costumer intimacy and knowledge o Vertically integrated- full service o Innovation  Highlights o Sound Industry Fundamentals:

 Consolidating industry  Long-term growth story o Leading Market Position:  #2 largest long steel product producer in North America  Broad product range and geographic reach o Vertically Integrated Operations  Large, cost efficient mini mill network  Strategic, value-added scrap and downstream segments o Operational Improvement Potential  Best practices GAP improvement  Acquisition synergy realization o Successful Acquisition Growth Strategy o Excellent track record of integrating past acquisitions o Corporate Goverance Best Practices  Independent Board Committees  Chairman and CEO offices not held by same person  Sustainability- Highlights of Our Progress o Environmental impacts eliminated  Steel recycles more by weight than all other recycling activities combined  Repeatedly recyclable  Nature resources are conserved  60% less energy than integrated steelmaking process  Greenhouse gas emissions are minimized

Facetime: Ryan O’Donnell and Matthew Jennings, E&Y Fraud Investigation (Ernst and Young)  Fraud Investigation and Dispute Services  E&Y’s Core Forensic Technology Services o Forensic collection of source data o Deleted file recovery o Processing and deduplication o Flexible key word and meta data searching o Hosting of responsive documents for review o Export of selected documents  Some of the things we do in FIDS o Internal investigations  FCPA  Asset Misappropriation  Management Fraud  Interviewing o Shadow Investigations/ Audits Facetime: Carl Grelle, Manager; Joseph A. Banks Facetime: Ed Fikse, BBA ’74; Accenture (High performance. Delivered.) Facetime: Kevin J. Koch, CFO; McLane Company  Why we play the game!! o Free Cash Flow!! o Warren Buffet Loves Free Cash Flow!

 Financial Magicians (Cheaters) o Jeffrey K. Skilling (CEO) o Richard Causey (CAO) o Andrew S. Fastow (CFO) o Daniel Boyle (VP Global Finance) o Scott D. Sullivan (CFO) o Buford Yates (Accounting Director) o Bernard Ebbers (CEO) o Richard Scrusay (CEO)  Offending Companies o Enron o Worldcom o HealthSouth Corporation o Tyco  Financial Ratios & Computations o IRR; NPV; PV; ROS; ROA; ROE; Current Ratio; Quick Ratio  Free Cash Flow Formula o Cash From Operating Activities - Dividends - Capital Expenditures = Free Cash Flow  Alternative Formula o Operating Activities – Capital Expenditures = Free Cash Flow  Cash Flow Notes of Caution o Stretching out payables

o Financing accounts payables o Securitizing accounts receivables o One time gains o Tax benefit of stock options (APB25) Facetime: Bob Pruitt, BBA ’87; CalTex (protective coatings inc.)  CalTex Protective Coatings Inc. o National Manufacturer of Automotive Products since 1983 o Distribute Sealant & Detail Products to Auto Dealers o Private Label Provider to Several Large Concerns o 87% Employee Owned  Our Core Purpose  Dedicated to create & promote emotional, professional and spiritual growth within our people and customers. To experience life free of insecurities and limitations in order to discover our individual and collective life purpose. o Our Core Values  Our Core Value Statements express the ideals, spirit and nature of our company, guiding us in our mission.  We expect every member of CalTex to pursue, practice and strengthen each ideology.  These ideologies should be considered equally, practiced consistently, and never in conflict with one another o Compassion  Respecting the thoughts, feelings and experiences of others and responding in relationship. o Humility

 Approaching life knowing you don’t have all the answers; realizing you need to be in relationship with others. o Integrity  Being in relationship through honest intentions, thoughts and conduct. o Teamwork  Working in Relationship - To get it done.  CalTex Protective Coatings Inc. o Received from the “National Gathering of Games” The Greatest Games of Business, 2008 All-Star Finalist Award o Compliance Commitment Partnership C^2 Since 2005  We care about our environment  Customized Marketing Material o Customized Brochures o Customized Placemats o Customized Posters o Reasons to Protect