By Crochet Thibault

and Salla Minfoungo Louis-Gérard

Creative CuisineAnalysis of your

quandary with Reliable Restaurant

Taking Initiatives

Overview :

Owens, Garfield and Sueton, Inc.

Ms Marie Dominic

[Attorney]

Creative Cuisine

Mr Bill Lewis[President]

Ms Jane Watson[Sales

Manager]

Feingold Advertising

Ms Sandra Jordan

[Account Executive]

Protagonists :

Leclerc Machine de

Cuisine

Mr François Jost

[Overseas Sales Manager]

Reliable Restaurant and Home Kitchen

Supplies

Mr Albert Rose[President]

January Launch of Leclerc (exclusive) products on the American market

JulyDiscovery of the products of Reliable in

conflict with the exclusivity contract between Leclerc and Creative

31 JulyLetter to the president of Reliable,

ordering the stop of any sell of Leclerc products by Reliable

4 August

Positive analysis of Reliable products, certifying that they are produced by

Leclerc

5 August

Response of Creative Cuisine : price reduction of 30% (for 2 months) and

agressive advertising

Events of recent months :

Reliable's Ad in a Number of Consumer Food Magazines and Professional Journals

SAVE 30%off

List Price!!

Get The Best. Get A LeClerc Food Processor. Professional Model ONLY $319 (1 Gal. Capacity, 6 blades) Standard Model ONLY $189 (1/2 Gal. Capacity, 4 blades)That's a savings of 30% off the List Price. Better yet, you don't even have to leave your kitchen. Just clip the coupon below or call our toll free number today:

     

FullFactory

Warranty!!

  1-800-555-5342

MC, VISA, AMEX, DINERS CLUB accepted

 

       YES, I want a LeClerc Food Processor

  Name  

  Address  

  Model Standard $189 QTY

  Model Professional $319 QTY

  Amount Enclosed:(please add an additional $18for postage and handling)

  Charge Credit Card:Card Type:Card number:

Positive• Good communication in

Creative and with Leclerc headquarter ;

• Quick communication ;• Personal attorney really

involved.

Negative• No response from Reliable

;• No response from

Leclerc’s distributors.

Existing Situation :1 - Communication

Positive• Everyone in

Creative is american.

Negative• Leclerc did not

really want this contract.

Existing Situation :2 – Intercultural Differences :

Positive• Leclerc headquarter

seems trustable and involved.

Negative• Buyers may be

involved ;• Maybe Reliable

already knew about the contract.

Existing Situation :3 – Ethics :

Positive• Good teamwork in

Creative ;• Quick reponse to

counter Reliable.

Negative• Leclerc headquarter

has no idea about contracts signed by his distributors.

Existing Situation :4 – Managment :

Marketing• Even more aggressive (pricing,

advertising and charging Reliable) ;

• Quick.

Finance :(N.B : forecasts are not bad for now so these are only expectations)• Marketing costs ;• Fallout of price reduction ;• Put at stake a market.

Existing Situation :5 – Other points :

LMC Food Processor

Professional

Standard

Creative (January) 399 $ 279 $

Reliable (July) 319 $ 189 $

Creative (September) 310 $ 189 $

With the arriving of same warranted products at a lower price, you will face a juridical and also a financial issue (especially if Reliable is in his rights).

Statement of the problem

Positive• No more costs ;• Leclerc’s own case (if it is

distributors’ fault) ;• Bad image for Reliable ;• You have better price.

Negative• Endless competition (if it is

not distributors’ fault) ;• Leclerc could stop all

contracts.

Option 1 : Leave the case to Leclerc

Positive• Earn money as

indemnification.

Negative• No more products

from them ;• Loss of market.

Option 2 : Complaints against Leclerc

Positive• May stop a parallel market ;• Earn money with legal

proceedings ;• Retrieve the market.

Negative• Loss of trust from buyers ;• Loss of image because of

charging Reliable.

Option 3 : Check customers

Positive(only in case of illegality)• Quick retrieving of market

;• Earn money in

indemnification.

Negative(in case of legality)• Loss of money ;• Bad image.

Option 4 : Complaints against Reliable

1 – Leave the case to Leclerc ;

2 – Complaints against Leclerc ;

3 – Check customers ;

4 – Complaints against Reliable.

Sum up of the options :

Thank you for your attention.

We stay at your disposal for any question about the topic

discussed today.

Option 4

Our recommendation :