Report on Exchanges - INSEAD CALT

…after finally receiving the email too, and after analyzing both options, Shahid recommendsto continue discussions with Sir Ralph and to further investigate on Bauer…De : Shahid Abdullah [mailto:SHAB@FLSMIDTH.COM]Envoyé : mercredi 12 juin 2013 07:07Dear Albert,With some delay, please see hereinafter my intuitive opinion on what Gianluca should do:Goodbridge BauerBusiness ethics, apparently + -Demand of exclusivity/All eggs in oneNoYesbasketPassion for the Sport BusinessOne man versus group support - + but quality?I would apparently recommend Gianluca to incline towards Goodbridge. I would start negotiatingwith Sir Ralph and at the same time look further into the rumors on Bauer and other sponsors.Best regards,Shahid AbdullahGlobal Director O&M MP…and Stephane sends his clear decision in favor of Sir Ralph….De : DEBLAISE STEPHANE [mailto:stephane.deblaise@renault.com]Envoyé : vendredi 14 juin 2013 10:53AlbertSorry for answering late to your first e-mail.I would not choose the Bauer sponsor because it is too much risky and unconsistant with the first gentlemanagreement with goodbridge.I would choose goodbridge because of the gentleman agreement and because of the "respectability" of the CEOof goodbridgeStéphane… unlike Richard, who prefers to sign with Bauer…De : KELLEY Richard [mailto:Richard.KELLEY@sercel.com]Envoyé : samedi 15 juin 2013 08:15Albert,Based on the information presented in the video I would go with the Bauer offer. It solves the immediate needsof the business which is cash flow for the next 3 years. While there are risks to this choice due to the possiblenegative publicity for Bauer, Eagle Racing should be somewhat shielded from this. There are examples wheresponsor companies have had publicity problems and still sponsor racing/sports teams with very little impact onthose teams.This also gives Eagle 3 years to develop a longer term business plan without the constant need to find anddevelop partnerships. The exclusivity of the partnership could prove problematic if Bauer finds itself in difficultfinancial straits but the risk of that seems minimal.The other opportunity here are the VIP clients from Saudi. Saudi is a relatively new market for racing and withBauer's connections, Eagle Racing could be at the forefront in this developing market.Hope this answers your first query. I will join in on the team discussions as well.Look forward to meeting you in Fontainebleu.Regards, Rich KelleyAAA/INSEAD/062013 - 13