Report on Exchanges - INSEAD CALT

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DATE :Environment and Context:What we know : actually not much (Business model, value chain, competitors, supply/demand forsponsorship, etc..)Current issues and subsequent risks :Eagle’s main sponsor cancelled its participation.The company needs to find 18M€ for next season (actual treasury forecast not known)If the company do not provide for the money, it risks going out of the businessTiming not precisely known : When does the problem arise if Eagle does nothing / or put itanother way How long does Eagle have before risk transforms into actual crisis ?Decision criteria and weight :Weight : 0 = killer / 10 = must go1. Financial survival for next year2. Financial security for 3 years3. Exclusivity requirement from sponsor4. Ethics5. Brand / reputation / media positioning6. Concrete commitment of the offer7. Balanced partnershipObjectives :1. Short Term : Get the funding for next season2. Long Term : Gain access to a portfolio of stable and reliable investors/sponsors within a wellbalanced relationship.Alternatives :Can we buy Eagle some time ?1. Is it advisable/possible to think of a temporary cost reduction ? Yes / No / Need more intel2. Can Eagle obtain a payment break/credit from its suppliers ? Yes / No / Need more intel3. Can contractual dispositions with former main sponsor bring some kind of salvation (penaltiesetc..) ? Yes / No / Need more intel4. Can Credit or treasury facilities be found (loan, bond, share issue to public) ? Yes / No / Needmore intel5. Ask sponsors to pre-finance (faster or more than 1 season funding) to overcome cash shortageand buy time to find other sponsors ? Yes / No / Need more intelIs mutation of the company an option ?o Sell the company? Yes / No / Need more intelo Joint with other racing team? Yes / No / Need more intelCan we overcome the problem and to which extend ?1. Ask suppliers to joint as partners (if not already the case) ? Yes / No / Need more intel2. Ask current sponsors to raise their contribution ? Yes / No / Need more intel3. Find other sponsors ? Yes / No / Need more intelAAA/INSEAD/062013 - 40
oLeveraging : networking through partners/prospects : Approach competitors andpartners of sponsors & prospects in order to get them to become sponsors• Current sponsors ? Yes / No / Need more intel• Goodbridge ? Yes / No / Need more intel• Bauer? Yes / No / Need more intelo The Goodbridge – Bauer alternative :• Goodbridge? Pro’s / Con’s• Prospect Bauer? Pro’s / Con’sIntel needed on the Goodbridge – Bauer alternative1. Is Goodbridge willing to pay for exclusivity or raise its share ?2. What is the level of preparation and knowledge of the Bauer offer (is it actual, virtual ?)3. What is Bauer going to do about the “Ethical” issue ?Just to remind that Nike has had some issues about “child-workers” and Oil companies also faced‘human rights” debates at some point… But It didn’t dramatically affect their partnerships ininternational sports competition (they worked on it of course )4. Is Bauer willing to ease the terms and conditions5. Is Bauer willing to enter in a shorter term sponsoring6. …Decision proposal…a couple of days later, Frederic inform his team that he will be going abroad and thereforestarts sharing his point of view on both possible sponsors….De : frederic.marijsse@ores.net [mailto:frederic.marijsse@ores.net]Envoyé : samedi 15 juin 2013 21:53Hi everyone ,I’m going abroad with the kids, It is highly probable that won’t be able to reach civilization (internet orphone) in time to debate and have a live conversation with you. I’ll do my best though.If I can’t, I hope I can still read from you (I’ll keep in touch … somehow)Question to the professor : are going to receive info later on in the process…meaning before Friday…ornot ? …without any further elements we could be beating around the bush rather rapidlyShouldn’t we get more intel, we’d have to make some assumptions and take a position;Should I be unable to reach you in time, here’s my point of view … it’s is rather difficult to sense the thingor have a guess about probabilities..soIf we assume there’s reasonable probability and time (there are a lot of alternatives that can beconsidered), we could go for the easy ethical and apparently less demanding Goodbrigde offer to startwith..AAA/INSEAD/062013 - 41
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 and 28: …allowing Vincent to send the fin
Page 29 and 30: Financial security for3 yearsEthics
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: Isabelle joins the team and explain
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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