Report on Exchanges - INSEAD CALT

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TEAM 3Rose kicks-off the debate in Team 3 by suggesting to first clarify the decision criteria. Shesummarizes the dilemma situation and proposes a table to collect comments and evaluatethe criteria…De : rose.delannoy@gdfsuez.com [mailto:rose.delannoy@gdfsuez.com]Envoyé : lundi 10 juin 2013 10:48À : ANGEHRN Albert; isabelle.i.landrot@renault.com; steven.parewyck@bekaert.com;diederik_schouten@deltalloyd.nl; silvano.veglia@federalmogul.com; frederic.marijsse@ores.netObjet : RE: [GMP15] TEAM 3: Towards Episode2 of EagleRacingDear all,Nice to “meet” the team!Following Albert’s message (in history of this mail), I’ll take the risk of jump-starting the process.Please find below some “ideas to kill” on my side.Suggestion is to start by clarifying which criteria’s are important for this decision and keeping our twooptions alive as long as possible (in case new constraints are brought forward to us; i.e. none of theoffers on the table has been approved by the sponsor’s CEO).A preliminary list of criteria’s is provided below.If this approach seems convenient to you, we could mark up the various drafts with our comments andvaluation of the criteria’s.Comments are also helpful to reach better understanding of our views.To help reading quickly through modifications, using a specific color can be helpful.When too heavy, just copy the table in a word document and we can work with track changes.Recalling the constraints (to be modified if you do not see them as I): Timing for decision: 4 weeks; 2 races left to invite potential sponsor and sign at the race (nb.could be signed elsewhere) Eagle’s sponsorship requirement for next year amounts to 18M€ Goodwill “ready” to sponsor 10M€/year without exclusivity; negotiated with marketingdirector – “approved” by Eagle’s CEO. Details of sponsorship supposedly known (4 weeksnegotiation) Bauer “ready” to sponsor 22M€/year with exclusivity for 3 years + 10-15 VIP treatment;negotiated with marketing director – not yet approved by Eagle’s CEO, details of sponsorshipunknown, major uncertainty on ethics.CriteriaFinancial survival fornext yearWeight Goodwill Bauer Commentsof criteria1-2-3 From 0 : killerTo 10: must goFrom 0 : killerTo 10: must go3 51010M€/yearProvides for full yearProvides only for part financial requirementsof the year’s financialrequirements“close to reach”agreement (4 weeksnego) with marketingmanager (not yetDiscussion withmarketing directorDetails (exceptexclusivity and nbr ofVIPs) totally nondiscussed.Can we consider that10M€ out of 18 neededprovides sufficient startfor the next season (?AAA/INSEAD/062013 - 28
Financial security for3 yearsEthicsCan the companyaccept to receivemoney from apotential weapondealer with acountry under unembargoProtection of brandnameWhat will be thevalue of the brandfor futuresponsorship (orother existingsponsors) if thecompany is linkedwith an perceived oreffective arms dealerKnown partner(credibility andtrust): how seriouslycan we take the offerfrom the sponsor?Value of “our type”of partnerapproved by CEO ofgoodwill)2 2Not considered in thisdealUnknown if CEOapproved10Provides for 22M€/yfor 3 consecutiveyears but unknown if,through negotiation,clause to step out ofthe sponsorship couldbe required by BAUERDo you agree thatfinancial security isweighted below thefinancial security forthe coming year takinginto consideration thatfor subsequent years,hypothesis being thatother sponsors can befound?3 8 2 (could become 0) Do you agree that goingagainst UN embargo onweapons deals if a killeron ethics terms?3 8 2 (could become 0) Do you agree thathaving a sponsor with aperceived (no proof of)weapons’s deal againstUN embargo is a killerfor EAGLE’s brandname?What is the value ofEAGLE’s brand name forfuture sponsorshipagreement (or evenother possible existingfinancial sources)?2 5 3 Weight of criteria ratesonly 2 (could even by 1)as partners can changestrategy anytime (cf.former sponsor) andboth offers on the tableare negotiated at thelevel of marketingdirector (not yet fullapproval by CEO)1 Almost irrelevantcompared to othercriteria?Best regards,R de Lannoy+32 2 510 76 64+32 474 94 08 09AAA/INSEAD/062013 - 29
Page 1 and 2: EagleRacing Simulation ExchangesGMP
Page 3 and 4: Individual RepliesDiederik is the f
Page 5 and 6: Shahid announces that he did not re
Page 7 and 8: Sir Ralph takes time to see if he c
Page 9 and 10: Depending on the past nego with Goo
Page 11 and 12: me represents a risk to the image t
Page 13 and 14: …after finally receiving the emai
Page 15 and 16: …now Edson joins the discussion a
Page 17 and 18: …Edson would like to get some fee
Page 19 and 20: …allowing Frank to send the final
Page 21 and 22: Two Truths and a LieHi. Let me intr
Page 23 and 24: Peter agrees to sign with Bauer…D
Page 25 and 26: I am afraid I can’t join you in y
Page 27: …allowing Vincent to send the fin
Page 31 and 32: The practical organization of our w
Page 33 and 34: I have added my comments to Rose’
Page 35 and 36: - Does the contract with Eagle’s
Page 37 and 38: Kind regardsRoseCriteriao requiring
Page 39 and 40: Isabelle joins the team and explain
Page 41 and 42: oLeveraging : networking through pa
Page 43 and 44: What will be the value of the brand
Page 45 and 46: Current issues and subsequent risks
Page 47 and 48: …now she suggests a meeting agend
Page 49 and 50: If Frederic and Diederik do not add
Page 51 and 52: TEAM 4I try to activate the team by
Page 53 and 54: … Peter continues the game and su
Page 55 and 56: With regard to my opinion on the ca
Page 57 and 58: From above I would conclude that th
Page 59 and 60: Bernard too agrees to the Team Lead
Page 61 and 62: We are all in same boat reg Episode
Page 63 and 64: No matter what, we should probably
Page 65 and 66: …Thomas also joins the Goodbridge
Page 67: With the limited knowledge that we

Report on Exchanges - INSEAD CALT

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