The type of management, whether hierarchical or a decentralized philosophy of control, at Range Resources. Case summary: Range Resources started drilling a vertical test in 2004 on the rocky area’s experts called Marcellus. In 2008, Range’s technical teams extracted 30 million cubic feet of natural gas per day and their production jumped to 400 million cubic feet of natural gas per day. Their future projection is to capture 1 billion cubic feet of natural gas per day. Discovery of Marcellus led company to adopt 10-year growth outlook, based on high production. Range’s finance departments use various tools to monitor performance. Range uses simple balance sheet containing senior bank debt, 10-year subordinated notes and common equity as their finance strategy. Range’s strategy to keep lid on the expenses involve every employee’s skin in the game. It provides equity to all its employees to keep check on the cost performance of the company. Characters in the case: Jeffrey Ventura, President and CEO of Range Resource. Roger Manny, Range’s chief financial officer.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter P6, Problem 1IC

Summary Introduction

To determine:

The type of management, whether hierarchical or a decentralized philosophy of control, at Range Resources.

Case summary:

Range Resources started drilling a vertical test in 2004 on the rocky area’s experts called Marcellus. In 2008, Range’s technical teams extracted 30 million cubic feet of natural gas per day and their production jumped to 400 million cubic feet of natural gas per day. Their future projection is to capture 1 billion cubic feet of natural gas per day.

Discovery of Marcellus led company to adopt 10-year growth outlook, based on high production. Range’s finance departments use various tools to monitor performance. Range uses simple balance sheet containing senior bank debt, 10-year subordinated notes and common equity as their finance strategy.

Range’s strategy to keep lid on the expenses involve every employee’s skin in the game. It provides equity to all its employees to keep check on the cost performance of the company.

Characters in the case:

Jeffrey Ventura, President and CEO of Range Resource.

Roger Manny, Range’s chief financial officer.

Expert Solution & Answer

Explanation of Solution

Given Information:

Managers at Range resources say that maintaining a low-cost structure is the job of every employee, and they make cost control part of the company culture.

Low-cost structure and cost control are job of every employee and part of company culture. It is indicative of a decentralized philosophy of control. As Range Resources rewards their employees with equity ownership for performing best in their respective field by cutting cost. Providing equity ownership to employees creates unique bond with company, it helps employee perform better when everyone has skip in the game.

The whole cost cutting mechanism at Range Resources involves every employee creates an environment in which every employee is vigilant of the cost performance of the company.

Conclusion

Low-cost structure and cost control are job of every employee and part of company culture. It is indicative of a decentralized philosophy of control at Range Resources.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

When choosing an organizational type, what important factors should you consider? Your business's location. O Supplier capabilities and retail outlets Starting capital and hours you have available to work Control versus responsibility, and risk tolerance

Explain using appropriate examples the characteristics of a good Management Control System.

Read the situation below and identify if it is: Coordination of effort Common goal or purpose Division of labor Hierarchy of authority Integration of work units Integration Coordination Structural Mechanisms 4. In an advertising agency, to have an effective campaign like TV commercials, the account department, creative department, arts department are collaboration in planning and in the process of creating strategies and outputs for the campaign. 5. Store X is experiencing difficulty in customer service. The organization decided to conduct trainings for sales people on how to engage effectively and build rapport to audience. In this way, the sales people can have coordination and makes customer service easier for them. 6. In an advertising agency, account department is responsible in transacting and building relationship to clients, creative department accommodates the requests of the clients through planning a good campaign effectively, while the arts department is the one responsible…

Answer 2

Question

Chapter P6, Problem 1IC

Summary Introduction

To determine:

The type of management, whether hierarchical or a decentralized philosophy of control, at Range Resources.

Case summary:

Range Resources started drilling a vertical test in 2004 on the rocky area’s experts called Marcellus. In 2008, Range’s technical teams extracted 30 million cubic feet of natural gas per day and their production jumped to 400 million cubic feet of natural gas per day. Their future projection is to capture 1 billion cubic feet of natural gas per day.

Discovery of Marcellus led company to adopt 10-year growth outlook, based on high production. Range’s finance departments use various tools to monitor performance. Range uses simple balance sheet containing senior bank debt, 10-year subordinated notes and common equity as their finance strategy.

Range’s strategy to keep lid on the expenses involve every employee’s skin in the game. It provides equity to all its employees to keep check on the cost performance of the company.

Characters in the case:

Jeffrey Ventura, President and CEO of Range Resource.

Roger Manny, Range’s chief financial officer.

Expert Solution & Answer

Explanation of Solution

Given Information:

Managers at Range resources say that maintaining a low-cost structure is the job of every employee, and they make cost control part of the company culture.

Low-cost structure and cost control are job of every employee and part of company culture. It is indicative of a decentralized philosophy of control. As Range Resources rewards their employees with equity ownership for performing best in their respective field by cutting cost. Providing equity ownership to employees creates unique bond with company, it helps employee perform better when everyone has skip in the game.

The whole cost cutting mechanism at Range Resources involves every employee creates an environment in which every employee is vigilant of the cost performance of the company.

Conclusion

Low-cost structure and cost control are job of every employee and part of company culture. It is indicative of a decentralized philosophy of control at Range Resources.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter P6, Problem 1IC

Summary Introduction

To determine:

The type of management, whether hierarchical or a decentralized philosophy of control, at Range Resources.

Case summary:

Range Resources started drilling a vertical test in 2004 on the rocky area’s experts called Marcellus. In 2008, Range’s technical teams extracted 30 million cubic feet of natural gas per day and their production jumped to 400 million cubic feet of natural gas per day. Their future projection is to capture 1 billion cubic feet of natural gas per day.

Discovery of Marcellus led company to adopt 10-year growth outlook, based on high production. Range’s finance departments use various tools to monitor performance. Range uses simple balance sheet containing senior bank debt, 10-year subordinated notes and common equity as their finance strategy.

Range’s strategy to keep lid on the expenses involve every employee’s skin in the game. It provides equity to all its employees to keep check on the cost performance of the company.

Characters in the case:

Jeffrey Ventura, President and CEO of Range Resource.

Roger Manny, Range’s chief financial officer.

Expert Solution & Answer

Explanation of Solution

Given Information:

Managers at Range resources say that maintaining a low-cost structure is the job of every employee, and they make cost control part of the company culture.

Low-cost structure and cost control are job of every employee and part of company culture. It is indicative of a decentralized philosophy of control. As Range Resources rewards their employees with equity ownership for performing best in their respective field by cutting cost. Providing equity ownership to employees creates unique bond with company, it helps employee perform better when everyone has skip in the game.

The whole cost cutting mechanism at Range Resources involves every employee creates an environment in which every employee is vigilant of the cost performance of the company.

Conclusion

Low-cost structure and cost control are job of every employee and part of company culture. It is indicative of a decentralized philosophy of control at Range Resources.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter P6, Problem 1IC

Summary Introduction

To determine:

The type of management, whether hierarchical or a decentralized philosophy of control, at Range Resources.

Case summary:

Range Resources started drilling a vertical test in 2004 on the rocky area’s experts called Marcellus. In 2008, Range’s technical teams extracted 30 million cubic feet of natural gas per day and their production jumped to 400 million cubic feet of natural gas per day. Their future projection is to capture 1 billion cubic feet of natural gas per day.

Discovery of Marcellus led company to adopt 10-year growth outlook, based on high production. Range’s finance departments use various tools to monitor performance. Range uses simple balance sheet containing senior bank debt, 10-year subordinated notes and common equity as their finance strategy.

Range’s strategy to keep lid on the expenses involve every employee’s skin in the game. It provides equity to all its employees to keep check on the cost performance of the company.

Characters in the case:

Jeffrey Ventura, President and CEO of Range Resource.

Roger Manny, Range’s chief financial officer.

Expert Solution & Answer

Explanation of Solution

Given Information:

Managers at Range resources say that maintaining a low-cost structure is the job of every employee, and they make cost control part of the company culture.

Low-cost structure and cost control are job of every employee and part of company culture. It is indicative of a decentralized philosophy of control. As Range Resources rewards their employees with equity ownership for performing best in their respective field by cutting cost. Providing equity ownership to employees creates unique bond with company, it helps employee perform better when everyone has skip in the game.

The whole cost cutting mechanism at Range Resources involves every employee creates an environment in which every employee is vigilant of the cost performance of the company.

Conclusion

Low-cost structure and cost control are job of every employee and part of company culture. It is indicative of a decentralized philosophy of control at Range Resources.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter P6, Problem 1IC

Summary Introduction

To determine:

The type of management, whether hierarchical or a decentralized philosophy of control, at Range Resources.

Case summary:

Range Resources started drilling a vertical test in 2004 on the rocky area’s experts called Marcellus. In 2008, Range’s technical teams extracted 30 million cubic feet of natural gas per day and their production jumped to 400 million cubic feet of natural gas per day. Their future projection is to capture 1 billion cubic feet of natural gas per day.

Discovery of Marcellus led company to adopt 10-year growth outlook, based on high production. Range’s finance departments use various tools to monitor performance. Range uses simple balance sheet containing senior bank debt, 10-year subordinated notes and common equity as their finance strategy.

Range’s strategy to keep lid on the expenses involve every employee’s skin in the game. It provides equity to all its employees to keep check on the cost performance of the company.

Characters in the case:

Jeffrey Ventura, President and CEO of Range Resource.

Roger Manny, Range’s chief financial officer.

Expert Solution & Answer

Explanation of Solution

Given Information:

Managers at Range resources say that maintaining a low-cost structure is the job of every employee, and they make cost control part of the company culture.

Low-cost structure and cost control are job of every employee and part of company culture. It is indicative of a decentralized philosophy of control. As Range Resources rewards their employees with equity ownership for performing best in their respective field by cutting cost. Providing equity ownership to employees creates unique bond with company, it helps employee perform better when everyone has skip in the game.

The whole cost cutting mechanism at Range Resources involves every employee creates an environment in which every employee is vigilant of the cost performance of the company.

Conclusion

Low-cost structure and cost control are job of every employee and part of company culture. It is indicative of a decentralized philosophy of control at Range Resources.

Answer 6

Chapter P6, Problem 1IC

Summary Introduction

To determine:

The type of management, whether hierarchical or a decentralized philosophy of control, at Range Resources.

Case summary:

Range Resources started drilling a vertical test in 2004 on the rocky area’s experts called Marcellus. In 2008, Range’s technical teams extracted 30 million cubic feet of natural gas per day and their production jumped to 400 million cubic feet of natural gas per day. Their future projection is to capture 1 billion cubic feet of natural gas per day.

Discovery of Marcellus led company to adopt 10-year growth outlook, based on high production. Range’s finance departments use various tools to monitor performance. Range uses simple balance sheet containing senior bank debt, 10-year subordinated notes and common equity as their finance strategy.

Range’s strategy to keep lid on the expenses involve every employee’s skin in the game. It provides equity to all its employees to keep check on the cost performance of the company.

Characters in the case:

Jeffrey Ventura, President and CEO of Range Resource.

Roger Manny, Range’s chief financial officer.

Expert Solution & Answer

Explanation of Solution

Given Information:

Managers at Range resources say that maintaining a low-cost structure is the job of every employee, and they make cost control part of the company culture.

Low-cost structure and cost control are job of every employee and part of company culture. It is indicative of a decentralized philosophy of control. As Range Resources rewards their employees with equity ownership for performing best in their respective field by cutting cost. Providing equity ownership to employees creates unique bond with company, it helps employee perform better when everyone has skip in the game.

The whole cost cutting mechanism at Range Resources involves every employee creates an environment in which every employee is vigilant of the cost performance of the company.

Conclusion

Low-cost structure and cost control are job of every employee and part of company culture. It is indicative of a decentralized philosophy of control at Range Resources.

Answer 7

Chapter P6, Problem 1IC

Summary Introduction

To determine:

The type of management, whether hierarchical or a decentralized philosophy of control, at Range Resources.

Case summary:

Range Resources started drilling a vertical test in 2004 on the rocky area’s experts called Marcellus. In 2008, Range’s technical teams extracted 30 million cubic feet of natural gas per day and their production jumped to 400 million cubic feet of natural gas per day. Their future projection is to capture 1 billion cubic feet of natural gas per day.

Discovery of Marcellus led company to adopt 10-year growth outlook, based on high production. Range’s finance departments use various tools to monitor performance. Range uses simple balance sheet containing senior bank debt, 10-year subordinated notes and common equity as their finance strategy.

Range’s strategy to keep lid on the expenses involve every employee’s skin in the game. It provides equity to all its employees to keep check on the cost performance of the company.

Characters in the case:

Jeffrey Ventura, President and CEO of Range Resource.

Roger Manny, Range’s chief financial officer.

Answer 8

Expert Solution & Answer

Explanation of Solution

Given Information:

Managers at Range resources say that maintaining a low-cost structure is the job of every employee, and they make cost control part of the company culture.

Low-cost structure and cost control are job of every employee and part of company culture. It is indicative of a decentralized philosophy of control. As Range Resources rewards their employees with equity ownership for performing best in their respective field by cutting cost. Providing equity ownership to employees creates unique bond with company, it helps employee perform better when everyone has skip in the game.

The whole cost cutting mechanism at Range Resources involves every employee creates an environment in which every employee is vigilant of the cost performance of the company.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Conclusion

Low-cost structure and cost control are job of every employee and part of company culture. It is indicative of a decentralized philosophy of control at Range Resources.

Answer 12

Ch. P6 - Prob. 1IC Ch. P6 - Prob. 2IC Ch. P6 - Prob. 3IC

Explanation of Solution

Want to see more full solutions like this?

Chapter P6 Solutions