Report on Exchanges - INSEAD CALT

If Frederic and Diederik do not add anything, it logically becomes our final answer.Team 3 suggests to manage the decision process as follows:Establish 3 task forces with the following tasks:‣ Task force A: works on improving/securing Goodbridge sponsorship. Objectives:1. Secure the sponsorship for 10M€2. Engage in exploring ways to manage the remaining 8M€ need by1. By considering if they can have ideas of sponsors2. By highlighting which type of budget cuts might be necessary(including number of race to take part in)‣ Task force B: works on clarifying Bauer’s intention and press issues, strengtheningour confidence in the deal in order to sign sponsorship. Objectives:1. Investigate on Bauer (including request to UN)2. Without waiting for investigation results, require Bauer to clarify the extentof truth of information found in the press and indicate that should theinformation be correct, EagleRace is not willing to enter into a sponsorshipagreement with them3. Based on hypothesis that Bauer denies press allegation, start negotiating a stepwise sponsorship agreement:1. For short term decision : sponsorship for next year without exclusivity2. For medium term: multiyear sponsorship under a range of possibilities(amount vs exclusivity and guarantees’ against default) to be decided in6 month’s time3. Involve from beginning legal department in order to haveincluded elements of language in the contract that allow EagleRace toprotect itself (e.g. by stopping the sponsorship) should the pressallegation be confirmed.‣ Task force C: Coordinate and define global strategy1. In parallel with task force A and B negotiation :1. Establish budget planning for next 3 years2. Investigate means to manage the risks arising from and sponsorrequiring exclusivity3. Investigate potential budget cuts in case of Goodbrige sponsorship2. Organise the final decision about the sponsorship.Process wise: Start a joint meeting clarifying the context, issues and risks. Set a timing for work and deliverables Set interim sharing sessions to adapt possible negotiation with Goodbridge andBauer based on (interim) results from the teams.Inform top management of Eagle Racing to secure their buying of the plan of Action andoverall targets, testing suggestions for new contact for sponsorship.AAA/INSEAD/062013 - 49