ben_3001 0 Report post Posted August 16, 2006 An Open Letter to Renault Stakeholders The last two years have seen a substantial increase in the Renault share price and thus an increase in the stakeholders net worth. This increase has corresponded to Renault's success in Formula One automobile racing (World Constructors Champion and World Drivers Champion in 2005 and leading in both categories in 2006). Assuming therefore that there is a direct correlation between success in Formula One and an increase in stakeholders net worth (and if there is no correlation then why are stakeholders assets being used to pursue the Formula One adventure) then the corollary that a lack of success in racing would result in a decrease in stakeholders value must also be true. Spearheading this success has been the superb driving and team leadership talents of Fernando Alonso who, unfortunately, will not be competing for the Renault team next year. His team mate, who will be driving for Renault in 2007, has proven to be a very competent yeoman of the sport but has not yet demonstrated championship level driving ability nor leadership qualities necessary to galvanize the team around its most high profile member. To fill this gap the current proposal is to engage a very young man of undoubted potential but with no track record in Formula One racing and who has not yet had the opportunity to demonstrate any leadership qualities he may have. Are Renault stakeholders ready to confer the preservation of their worth on someone who, to use analytical jargon, has a double digit beta? Were this young man the only option then the risk would have to be taken. As it happens he is not the only option and a much more risk free possibility is available in the person of another currently active Formula One driver, Jacques Villeneuve. Mr. Villeneuve has impeccable championship credentials, particularly with Renault, having won the 1996 and 1997 World Constructors championship for the Renault engined Williams team and the 1997 World Drivers championship with the same team. Subsequently he has piloted the startup BAR team to its successful buyout by Honda. On track performance is the only measure of success in Formula One racing and Mr. Villeneuve has amply demonstrated that he is capable of winning at the highest level. Given that the goal of any enterprise is to protect its stakeholder net worth, the course for Renault management to take seems clear. Roy Hodgson Corporate Investment Strategist and Renault Stakeholder. --------------------------------- Found this on another board, feel free to spread and discuss Share this post Link to post Share on other sites
