WaT Simulation Exchanges
Team Exchanges
1st Leadership Dilemma
Alcatel Lucent LeaP, June-July 2012
Collected by Albert A. Angehrn
http://www.insead.edu/facultyresearch/faculty/personal/aangehrn
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TEAM 1 – A
De : Keen, Berta B (Berta) [mailto:Berta.Keen@alcatel-lucent.com]
Envoyé : dimanche 10 juin 2012 17:35
À : ANGEHRN Albert; Braun, Norbert (Norbert); MORAND, LINDA (LINDA); Smith, Dawn Denise
(Dawn); DALLE, NOEL (NOEL); Binder, Victor (Victor)
Objet : RE: [LeaP Breakthrough 2012A] TEAM 1: Towards Episode2 of WhatATeam!
Team 1,
I selected Goodbridge and here is my rationale as to why:
1) I did not want to be engaged in potential ethics and exclusivity issues w/Bauer
2) We still have some time (even though the window is short) to select another Sponsor
3) The alignment w/Goodbridge and support of Sir Ralph who is well known in the
racing industry could be used as leverage to sign on another sponsor
I look forward to the engagement and other’s views!
BERTA KEEN
De : Binder, Victor (Victor) [mailto:Victor.Binder@alcatel-lucent.com]
Envoyé : lundi 11 juin 2012 09:30
Hello Team 1,
I’m looking forward to discuss with you our team decision to find a sponsor for EagleRacing.
Below you find the reasoning for my preference to select Goodbridge.
My spontaneous opinion on the dilemma1 was that EagleRacing shall go for the GoodBridge
offer. After thinking a second time about it, I’m even more convinced that this is the decision
to take.
For the short term Bauer looks like the better deal as it closes the budget gap in one shot.
However, for the longer term Bauer is a bad choice. Not only the rumors about illegal weapon
deals are an enormous risk, also the fact having a weapon manufacturer as exclusive main
sponsor for a racing team is too dangerous for the future of the whole company. After the 3
year contract with Bauer it will be extremely hard to find another sponsor. The offer from
GoodBridge in contrary looks for me more attractive. The image from Sir Ralph as racing fan
and Ferrari enthusiast is of big help for Eagle, and much more important, it opens up the
opportunity to gain additional sponsors over time. Taking into account the current
performance and success of EagleRacing, Joep should be able to find additional sponsors.
And in case Joep is doing a good job the additional sponsors could be worth much more than
the 12 million difference to the Bauer deal.
Victor
Victor Binder
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De : DALLE, NOEL (NOEL) [mailto:Noel.Dalle@alcatel-lucent.com]
Envoyé : lundi 11 juin 2012 11:23
Team,
I went quickly through ALU directory as I do not know all of you … Interesting we are all
coming from different organization / country etc.. then quite a great diversity and then
opportunity to deal with.
Let me share my decision : GO for Goodbridge - based of information the rationale of the
decision is :
- Goodbridge will secured at least half of the racing season;
- Not being and exclusivity sponsor agreement , EagleRacing will be able to find other
sponsors during the season
- I am convinced the budget risk is manageable based on current performance of
EagleRacing ( part of TOP 5 Team)
- Bauer proposal is attractive from pure financials consideration however :
o Image / value of Bauer are questionable and not necessary in line with Eagle
Race value
o Counterpart request still unclear ( Special VIP treatment for delegation of
Customers – not sure what it means and expectation …)
o Exclusivity over 3 years will put the sponsors in strong position to influence/
to Monitor EagleRacing leadership …
I am conscious of the risk taken but I am convinced it is manageable …
As we have to come back with a common team position , would be good to have your view
and we can know the starting point .
As for all of us time is precious , let try to exchange different view by the end of this weeks
and early next week come to a decision.
I will sent later a brief summary to introduce myself beyond what you can find in ALU
directory …
Best Regards
Noel Dalle
De : MORAND, LINDA (LINDA) [mailto:Linda.Morand@alcatel-lucent.com]
Envoyé : lundi 11 juin 2012 11:24
Hello Team 1,
Happy to team up with you for the next round of decisions!
I am in favor of a solution with Goodbridge because I believe that the image risks
associated to Bauer are too high and that it is much better to be associated with Sir
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Ralph who is a great racing enthousiast, personally involved with his Ferrari
collection.
In terms of tactics, I think that Gianluca can try to call Sir Ralph to see if the the
current proposal can be improved (Joop only discussed with Benjamin the details of
the deal), either through a higher fee or through a different yearly breakdown of
the overall deal value of 30 M€ (10 M€ per year over three years), to come closer to
the 18 M€ needed for Year 1 – that would then give Eagle Racing a little bit of time
to win other sponsors.
Kind regards,
Linda
Linda Morand
De : Braun, Norbert (Norbert) [mailto:Norbert.Braun@alcatel-lucent.com]
Envoyé : lundi 11 juin 2012 11:43
Hello Berta, Linda, Dawn, Noel & Victor,
Looking at your decisions, it seems to be that I am the only one who decided for
Bauer.
“I decided for Bauer with a contract, which allows Eagle Racing for termination in
case of non ethical business of Bauer Industries during the duration of the
sponsorship contract, like the one currently in the press, which is still not confirmed
by the way”.
Why did I decide for Bauer?
Well, in order to stay into the business there is for me no option given the time
pressure mentioned in this case.
Just to recap:

Goodbridge and Bauer are the last 2 choices for a main Sponsor if EagleRacing
wants to have a chance to still be “in business” next year (i.e. be able to
participate in the next racing season)  There is no third company who could
bridge the gap to Goodbridge.

The current season will end in just 4 weeks (there are still 2 races to go). By
then EagleRacing management should be able to decide if they can (have the
financial basis) to continue or not next year.  There is no time for seeking a
third company to bridge the gap to the Goodbridge offer.

EagleRacing can only invite one of the 2 possible Sponsors to the next race next
Sunday, and hope to close the day with a signed contract.  Sunday is the last
chance to stay in business, which is in 4 to 5 days from now.
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As there is no possibility for other sponsoring money beside Goodbridge to bridge the
gap to the financial funds needed for the business there is basically no other option
than to go for Bauer in order to stay in Business next year.
Therefore the only chance for me is: “Managing the situation with a appropriate
contract in place with Bauer”. I am sure that our lawyer is able to draft a contract
proposal until next Sunday for the race 
Looking forward for our team decision.
Regards
Norbert
… Norbert had been warned by me…
De : ANGEHRN Albert
Envoyé : dimanche 10 juin 2012 15:11
Dear Norbert
I write to you personally because I expect that you might have some difficulties in your Team
given your initial personal choice and preference concerning the partner for EagleRacing.
I would like to invite and stimulate you not to give up easily your initial arguments and
intuition, even if you will experience group pressure, as the other members of your team
seem to have taken a rather different decision than yours.
By the way, I would like to invite you to find and have a look at a very interesting movie: “12
Angry Men”. It is a good old movie directed back in 1957 by Sydney Lumet, with Henry
Fonda in the main role (http://en.wikipedia.org/wiki/12_Angry_Men). It is a movie which
shows pretty well, that even when we are in minority ... things can happen.
I wish you good luck, a good collaboration experience with your virtual team, and an
excellent decision !
-albert
LeaP Breakthough Coordinator
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De : MORAND, LINDA (LINDA) [mailto:Linda.Morand@alcatel-lucent.com]
Envoyé : lundi 11 juin 2012 11:55
Hi Norbert & all,
Let us see what Dawn has decided and we can then start to discuss and look for a
consensus within our team.
Kind regards,
Linda
De : Smith, Dawn Denise (Dawn) [mailto:Dawn.Smith@alcatel-lucent.com]
Envoyé : lundi 11 juin 2012 14:14!
Team
Here is my responseWhile the rumor of arms dealing is only a rumor, I agree with the Business Development
Director that this could create negative publicity for Eagle Racing in a time they are working
to regain a positive image. Although Bauer presents an attractive financial offer, there are
obviously concerns about exclusivity and that it is not a done deal as Walter makes the
statement that he can bring partners to the race and if they have a good time, then he would
sign a contract.
Unlike Walter, Sir Ralph has an obvious interest in racing, and rumors around his supposed
drinking problem are much different than violating UN resolutions on arms dealing. Another
plus with Goodbridge and Sir Ralph is that it is not an exclusive contract so Eagle good bring
in other sponsors and with their past successful history, it is certainly feasible that they could
secure additional smaller sponsorships to reach their financial goal. Sir Ralph is also
committed to attending the race and signing the contract without further outside inputs.
My recommendation would be to move forward with Goodbridge and seek additional smaller
sponsors to achieve their financial goals.
Regards
Dawn
Dawn Smith
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De : Braun, Norbert (Norbert) [mailto:Norbert.Braun@alcatel-lucent.com]
Envoyé : lundi 11 juin 2012 15:51
All,
to have a better overview about the different decisions and arguments, I copied all
our answers in one Mail.
What do you propose from a process point of view to reach a team agreement in
time? Obviously, I don’t like to vote in this case to come to a team decision 
Regards
Norbert
**************** our individual decisions and arguments *****************
MORAND, LINDA (LINDA)
I am in favor of a solution with Goodbridge because I believe that the image risks associated to Bauer are too
high and that it is much better to be associated with Sir Ralph who is a great racing enthousiast, personally
involved with his Ferrari collection.
In terms of tactics, I think that Gianluca can try to call Sir Ralph to see if the the current proposal can be
improved (Joop only discussed with Benjamin the details of the deal), either through a higher fee or through a
different yearly breakdown of the overall deal value of 30 M€ (10 M€ per year over three years), to come closer
to the 18 M€ needed for Year 1 – that would then give Eagle Racing a little bit of time to win other sponsors.
DALLE, NOEL (NOEL)
Let me share my decision : GO for Goodbridge - based of information the rationale of the decision is :
Goodbridge will secured at least half of the racing season;
Not being and exclusivity sponsor agreement , EagleRacing will be able to find other sponsors during the season
I am convinced the budget risk is manageable based on current performance of EagleRacing ( part of TOP 5 Team)
Bauer proposal is attractive from pure financials consideration however :
o Image / value of Bauer are questionable and not necessary in line with Eagle Race value
o Counterpart request still unclear ( Special VIP treatment for delegation of Customers – not sure what it
means and expectation …)
o Exclusivity over 3 years will put the sponsors in strong position to influence/ to Monitor EagleRacing
leadership …
I am conscious of the risk taken but I am convinced it is manageable …
Binder, Victor (Victor)
My spontaneous opinion on the dilemma1 was that EagleRacing shall go for the GoodBridge offer. After thinking a second
time about it, I’m even more convinced that this is the decision to take.
For the short term Bauer looks like the better deal as it closes the budget gap in one shot. However, for the longer term Bauer
is a bad choice. Not only the rumors about illegal weapon deals are an enormous risk, also the fact having a weapon
manufacturer as exclusive main sponsor for a racing team is too dangerous for the future of the whole company. After the 3
year contract with Bauer it will be extremely hard to find another sponsor. The offer from GoodBridge in contrary looks for
me more attractive. The image from Sir Ralph as racing fan and Ferrari enthusiast is of big help for Eagle, and much more
important, it opens up the opportunity to gain additional sponsors over time. Taking into account the current performance and
success of EagleRacing, Joep should be able to find additional sponsors. And in case Joep is doing a good job the additional
sponsors could be worth much more than the 12 million difference to the Bauer deal.
Keen, Berta B (Berta)
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I selected Goodbridge and here is my rationale as to why:
4) I did not want to be engaged in potential ethics and exclusivity issues w/Bauer
5) We still have some time (even though the window is short) to select another Sponsor
6) The alignment w/Goodbridge and support of Sir Ralph who is well known in the racing industry could be used as
leverage to sign on another sponsor
Braun, Norbert (Norbert)
“I decided for Bauer with a contract, which allows Eagle Racing for termination in case of non ethical business of
Bauer Industries during the duration of the sponsorship contract, like the one currently in the press, which is still
not confirmed by the way”.
Why did I decide for Bauer?
Well, in order to stay into the business there is for me no option given the time pressure mentioned in this case.
Just to recap:

Goodbridge and Bauer are the last 2 choices for a main Sponsor if EagleRacing wants to have a
chance to still be “in business” next year (i.e. be able to participate in the next racing season) 
There is no third company who could bridge the gap to Goodbridge.

The current season will end in just 4 weeks (there are still 2 races to go). By then EagleRacing
management should be able to decide if they can (have the financial basis) to continue or not next year.
 There is no time for seeking a third company to bridge the gap to the Goodbridge offer.

EagleRacing can only invite one of the 2 possible Sponsors to the next race next Sunday, and hope
to close the day with a signed contract.  Sunday is the last chance to stay in business, which is
in 4 to 5 days from now.
As there is no possibility for other sponsoring money beside Goodbridge to bridge the gap to the financial funds
needed for the business there is basically no other option than to go for Bauer in order to stay in Business next
year.
Therefore the only chance for me is: “Managing the situation with a appropriate contract in place with Bauer”. I
am sure that our lawyer is able to draft a contract proposal until next Sunday for the race 
Smith, Dawn Denise (Dawn)
While the rumor of arms dealing is only a rumor, I agree with the Business Development Director that this could create
negative publicity for Eagle Racing in a time they are working to regain a positive image. Although Bauer presents an
attractive financial offer, there are obviously concerns about exclusivity and that it is not a done deal as Walter makes the
statement that he can bring partners to the race and if they have a good time, then he would sign a contract.
Unlike Walter, Sir Ralph has an obvious interest in racing, and rumors around his supposed drinking problem are much
different than violating UN resolutions on arms dealing. Another plus with Goodbridge and Sir Ralph is that it is not an
exclusive contract so Eagle good bring in other sponsors and with their past successful history, it is certainly feasible that
they could secure additional smaller sponsorships to reach their financial goal. Sir Ralph is also committed to attending the
race and signing the contract without further outside inputs.
My recommendation would be to move forward with Goodbridge and seek additional smaller sponsors to achieve their
financial goals.
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From: Binder, Victor (Victor)
Sent: Monday, June 11, 2012 09:08 AM
Hello Norbert, all,
Thanks for this service ;-).
Yes, I agree. Voting is not the best method to achieve consensus, independent from the
currently unbalanced weights. I would prefer if we come up with a decision that all of us
agree to and go for that as a team.
To reach such a consensus, I suggest that all of us digest the arguments provided in the mail
below and rethink the own preference and/or add additional arguments and/or suggest
alternatives. Let’s go for a next round of arguments until Wednesday EOB. What do you
think?
Victor
De : Smith, Dawn Denise (Dawn) [mailto:Dawn.Smith@alcatel-lucent.com]
Envoyé : lundi 11 juin 2012 16:13
Victor
I agree. I think that gives us all time to consider the points that have been raised.
Regards
Dawn
Dawn Smith
De : Braun, Norbert (Norbert)
Envoyé : lundi 11 juin 2012 17:00
Victor,
Good idea, I think by Wednesday we should have a view of the pros and cons for
each decision and a kind of balanced view of the differed risks behind in order see if
the risks are manageable in the given environment.
What about clustering our arguments in a pro and con matrix to easily come to an
agreed team decision landscape afterwards based on facts in a second step until end
of the week?
Sponsoring by
Pros (advantage)
Goodbridge
-
Bauer
Cons
(disadvantage)
-
Risk
-
Norbert
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De : MORAND, LINDA (LINDA) [mailto:Linda.Morand@alcatel-lucent.com]
Envoyé : lundi 11 juin 2012 17:37
Hi Norbert & al,
I think it is a very good idea and I added a column with « Opportunities » so that
we can have the complete SWOT analysis 
Here is my take on it:
Sponsoring
Pros
Cons
Risks
Opportunities
by
(advantage)
(disadvantage)
Goodbridge
- Sir Ralph is
- 10 M€ per
- No other
- Gianluca can
passionate
year over three sponsor found call Sir Ralph
about racing
years vs. Eagle - Sir Ralph’s
immediately (i.e.
- Non exclusive Racing’s need
drinking
before Monday
deal leaving
for 18 M€ first
problem? (not noon) and try to
the possibility
year
necessarily a
test him on
to find other
point as it does either a higher
secondary
not involve
fee or a different
sponsors
Goodbridge)
breakdown of
- Deal can be
the 30 M€
finalized
contract value
without further
with a higher fee
conditions
on Year 1
Bauer
- 22 M€ over 3 - Exclusive deal - Scandal risk - If attempt to
years is
preventing
related to the sweeten the deal
financially
Eagle Racing
Octania arm
with Goodbridge
attractive i.e.
from getting
trade by Bauer: fails before
4M€ above the additional
can potentially Monday noon,
18M€ needed
sponsors over
damage
Gianluca can
by Eagle
3 years
significantly
always take the
Racing
- Negative
Eagle Racing’s Bauer solution as
image of arm
image
fallback option
dealer in
- Termination
general
- Negative
clause to be
- Condition
feedback from drafted in
precedent:
Saudi VIP
contract in
Bauer’s Saudi
clients
relation with the
VIP clients
scandal risk
need to be
satisfied at
next race for
deal to happen
Cheers,
Linda
Linda Morand
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De : Braun, Norbert (Norbert) [mailto:Norbert.Braun@alcatel-lucent.com]
Envoyé : lundi 11 juin 2012 21:15
This how I see the case:
Sponsoring by
Goodbridge
Bauer
Pros
(advantage)
- Sir Ralph is
passionate about
racing
- Non exclusive
deal  more
flexibility in
future (if any)
Cons
(disadvantage)
- further
sponsoring
necessary, for
which Eagle
doesn’t have an
opportunity.
Risks
Opportunities
- Financially
secured over 3
years
- Eagle will stay
in business
- No additional
sponsoring
necessary over 3
years
- Image might
be a issue, (but
in Racing I
would not
overestimate
that)
- Rumor about
- non
the Octania arm
can potentially
damage Eagle
image 
Contract clause
necessary
- Eagle will be
- non
out of business
within 4 weeks
- Sir Ralph might
not be able to
sign the contract
with the risk that
Eagle will not
stay in business
De : Keen, Berta B (Berta) [mailto:Berta.Keen@alcatel-lucent.com]
Envoyé : mardi 12 juin 2012 11:39
Norbert,
I agree with most of what you’ve added into the SWOT analysis below. However, I also
believe that the arms deal is a very high risk to the business and not one that can be factored
away by a “contract clause”. There are many examples where punitive actions from
association or perceived issues create a long term impact (negative) on a business. In
addition, I believe Sir Ralph’s passion about racing should be/could be exploited to find other
sponsors. Therefore, I disagree with the “con” on no other opportunities.
BERTA KEEN
De : Braun, Norbert (Norbert) [mailto:Norbert.Braun@alcatel-lucent.com]
Envoyé : mardi 12 juin 2012 13:31
Berta,
I see your point but there is no choice if we want to stay in business. Pls. look at the
information base provided by Albert under PS: (copy see below) in his first mail to us
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as a group. It is clearly stated, that Goodbridge and Bauer are the last 2 choices …
there is no hope for other sponsoring to close the gap within the given time period
and the article about the Octania deal is purely based on rumors. Would you factually
base your business decisions on rumors? The press release could have been
launched by an competitor, who wants to harm Bauer, etc.
I think we should better answer the question: “What needs to happen or to be
changed that we are able to sign with Bauer in your mind”? Because this is the only
way to stay in business next year, based on facts we have all on the table currently.
Norbert
***************Information from Albert****************
PS: Concerning the decision itself, please take into consideration that EagleRacing is really under time pressure,
as:



Goodbridge and Bauer are the last 2 choices for a main Sponsor if EagleRacing wants to have a chance
to still be “in business” next year (i.e. be able to participate in the next racing season)
The current season will end in just 4 weeks (there are still 2 races to go). By then EagleRacing
management should be able to decide if they can (have the financial basis) to continue or not next
year.
EagleRacing can only invite one of the 2 possible Sponsors to the next race next Sunday, and hope to
close the day with a signed contract.
De : MORAND, LINDA (LINDA) [mailto:Linda.Morand@alcatel-lucent.com]
Envoyé : mardi 12 juin 2012 14:25
Hi Norbert,
I do not think that Bauer is the only option and as suggested in my initial text and
restated in the opportunity column, we know what Benjamin from Goodbridge
proposed to Joop (10M€ per year over three years), which does not mean that Sir
Ralph is not open to a renegotiation, at least of the annual breakdown of the
budget envelope.
Believe me, in my previous experience with media, I have experienced a lot of
those negotiations for large sport rights deals and the human factor should not be
underestimated. If Sir Ralph is presented with an acceptable solution, he can
overrule what Benjamin proposed.
Other important point: it is true that Goodbridge and Bauer are the only two
remaining options for MAIN sponsor but if the deal with Goodbridge is non
exclusive, it gives the possibility to find complementary sponsors attracted by the
fact that Goodbridge signed with Eagle Racing.
If for example Eagle Racing proposes a deal where they get 15 M€ the first year, 10
M€ the second year and 5 M€ the third year (to stay within the 30 M€ envelope),
they need to find 3 M€ the first year to stay in business, which they can do either
through additional smaller sponsors or through a bank loan. Tough but doable.
Kind regards,
Linda
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De : Binder, Victor (Victor) [mailto:Victor.Binder@alcatel-lucent.com]
Envoyé : mardi 12 juin 2012 16:19
Hello Norbert,
I admit, you are alone and have a hard job to convince all of us but I have to tell you that I
agree with the statements from Linda and Berta and support their arguments.
A few comments on your statements in the SWOT table:
- First, I got the feeling that your statements in the table are colored …
- Goodbridge cons: why do you say that there is no opportunity for further sponsoring,
Eagle can add additional sponsors at any time with the Goodbridge contract. So, we
should list in the opportunity column that it provides the chance to acquire funding
above required budget
- Goodbridge risks: why should Eagle be out of business within 4 weeks? Yes, without a
contract, but this is true with Bauer as well. If they have a contract below budget,
they are not out of business but they have a gap that need to be closed as soon as
possible (see Linda’s proposal). I agree that is a risk but at the same time I’m
convinced that with the current performance and image of the team they are able to
make this risk an opportunity. You list that Sir Ralph may not be able to sign the
contract. Maybe, I have overseen this point in the video. Can you fill me in with the
facts here?
- Bauer cons: you recommend not to overestimate the image topic. Ok, I’m not a
marketing or press relation expert, but I would assume that it is one of the main
reasons to sponsor a racing team. Why would you spend money if you don’t like to
benefit from the image that is transported by the racing team.
- Bauer risks: how can you avoid the image problem by a contract clause? When the
rumors are confirmed, Eagles image is damaged whatever you do thereafter. Already
the rumors damage the image, independent if they are confirmed or not. At the
moment that the sponsorship get announced Eagle is affected.
Sorry for being so blunt
Victor
De : Smith, Dawn Denise (Dawn) [mailto:Dawn.Smith@alcatel-lucent.com]
Envoyé : mardi 12 juin 2012 16:51
Team
I am in agreement with the statements from Berta and Linda and would like to add that from the video
Sir Ralph is confirmed to be at the race and committed to signing the contract. While it was not for the
total value Joop had wanted, prior to the Bauer meeting it seemed the only option. Eagle would need
to make adjustments if they fell below budget, but Joop didn’t seem resigned that the company would
go under with Sir Ralph as the only sponsor. I agree with Victor that I did not get the impression Eagle
would go under in 4 weeks. With Sir Ralph being a racing enthusiast the opportunity to further
negotiate the final contract or bring in smaller sponsors should remain a valid opportunity.
On the Bauer side, while they plan to attend the race (with Eagle supplying all the needed luxury
extras) there is no guarantee Bauer will sign a contract. He states that he will see what his clients think
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before making a final decision. Obviously Joop would like to move forward with Bauer as they are
willing to sign up for a bigger contract, however at the time of the Eagle Race team meeting, there was
still not a verbal or written commitment from Bauer to sign. I believe the other team members have
pointed out many of the potential red flags that this partnership may entail. While speculation and
rumors can be unfounded, at a time when Eagle needs to reaffirm its legacy in racing, any negative
perception, real or manufactured could be detrimental to attracting future sponsors.
I think the team has made some good supporting statements and while we need to consider the
impact of not going with Bauer, I still believe Goodbridge remains the best alternative.
Regards
Dawn
De : Braun, Norbert (Norbert)
Envoyé : mardi 12 juin 2012 17:13
Victor,
Pls. see my comments 1:1 in red but I guess this will not help to reach a common team
decision. I think we should not enlarge the case by additional sponsoring opportunities or
funding sources, which are not there, we should stick to the facts we have on the table.
Norbert
Hello Norbert,
I admit, you are alone and have a hard job to convince all of us but I have to tell you that I
agree with the statements from Linda and Berta and support their arguments.
A few comments on your statements in the SWOT table:
- First, I got the feeling that your statements in the table are colored …
 no comments
 Goodbridge cons: why do you say that there is no opportunity for further sponsoring,
Eagle can add additional sponsors at any time with the Goodbridge contract. So, we
should list in the opportunity column that it provides the chance to acquire funding
above required budget
 it is clearly stated that: Goodbridge and Bauer are the last 2 choices for a main Sponsor
if EagleRacing wants to have a chance to still be “in business” next year (i.e. be able to
participate in the next racing season) and you all discuss about additional funding and
sponsoring.
-
Goodbridge risks: why should Eagle be out of business within 4 weeks? Yes, without a
contract, but this is true with Bauer as well. If they have a contract below budget,
they are not out of business but they have a gap that need to be closed as soon as
possible (see Linda’s proposal). I agree that is a risk but at the same time I’m
convinced that with the current performance and image of the team they are able to
make this risk an opportunity. You list that Sir Ralph may not be able to sign the
contract. Maybe, I have overseen this point in the video. Can you fill me in with the
facts here?
 From an ethical point of view Eagle need to communicate to Goodbridge that
Eagle still have financial problem and if they are not able to close the gap within 4
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weeks they would be out of business and cannot fulfill the contract with Goodbridge
and I am not sure if Sir Ralph will be able to sign a contract in this case.
Bauer cons: you recommend not to overestimate the image topic. Ok, I’m not a
marketing or press relation expert, but I would assume that it is one of the main
reasons to sponsor a racing team. Why would you spend money if you don’t like to
benefit from the image that is transported by the racing team.
Bauer risks: how can you avoid the image problem by a contract clause? When the
rumors are confirmed, Eagles image is damaged whatever you do thereafter. Already
the rumors damage the image, independent if they are confirmed or not. At the
moment that the sponsorship get announced Eagle is affected.
 Well by the right and appropriate communication strategy, e.g. through a press
Release like: “Bauer and Eagle signed an exclusive 3 years sponsoring agreement. The
agreement is valid only based on the confirmation that Bauer has not been involved
in the Octania deal as stated in the press, etc.” (communication people can do this
much better)
Sorry for being so blunt
Victor
De : MORAND, LINDA (LINDA) [mailto:Linda.Morand@alcatel-lucent.com]
Envoyé : mardi 12 juin 2012 17:33
Hi Norbert,
I think there is a lot of things you can do in a business negotiation and if you look at
my response below, I started with the hard facts but then tried to find a solution
which is agreeable to all parties – this is how it goes in real life.
From a communication point of view, it would be DISASTROUS to refer to the
Octania issue in a joint press release with Bauer and the negative impact on Eagle
Racing would be much greater than the need to find complementary revenue
sources in a deal with Goodbridge (which again is possible with a non exclusive deal
with a main sponsor).
I understand that you feel you need to defend your position but we now need to
come to a consensus on the business decision taking into account hard facts but
also the human factor and some key assumptions going forward (it is never a black
and white case).
Kind regards,
Linda
Linda Morand
AAA/INSEAD/062012 -
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De : Braun, Norbert (Norbert) [mailto:Norbert.Braun@alcatel-lucent.com]
Envoyé : mardi 12 juin 2012 18:35
Linda,
This is unfair, I defend my position because I am convinced that it would be the right one to
stay in business, as you do the same. It doesn’t mean that you are right, only because you are
in majority.
Your decision is based on rumors and you know how this is working in the press.
Norbert
De : DALLE, NOEL (NOEL) [mailto:Noel.Dalle@alcatel-lucent.com]
Envoyé : mardi 12 juin 2012 22:32
All,
After having spend some more time thinking about the decision, I still want to go
for GoodBridge as basically I do prefer to take a risk on budget but manageable till the
counter is running … and make a deal with partner who has sharing the same passion/ value
that racing team… Instead of signing 3 years exclusivity agreement which will solve
financials issue from a budget point of view but I see high exposure and feel uncomfortable
with the budget offer by Bauer which seems out of range vs Eagle Racing needs – There is no
free lunch in business ! and eagle racing will only depend to Bauer for the next 3 years …
Then Indeed as Main Sponsor I will go for Goodbridge and will look actively for other
smaller sponsor(s) .
How to move forward from here … ? few options:
1 - we are Executive Committee members with all the same power : then vote will apply .
2- we agree on role and responsibility including CEO ( final call ) for each of us then the
One with CEO will have to make the final decision considering all perspectives.
Going for 1 seems the easiest way to make team decision here … I have no issue with this
approach.
Should we go for 2 and assuming Norbert is designated CEO by us . Norbert let us know
how you will deal with the majority of your board of directors recommending to go for
Goodbridge what would be your decision .….
Team any other proposal to drive Team decision …
Best reagrds
Noel Dalle
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De : Keen, Berta B (Berta) [mailto:Berta.Keen@alcatel-lucent.com]
Envoyé : mardi 12 juin 2012 23:44
All,
Clearly after a 2 day email debate, no one has changed their initial position and even though
Norbert has been able to bring forward some compelling arguments, he has not been able to
persuade us to his viewpoint. Typically when faced with a “consensus” decision in business
some give and take must occur. So first question, Norbert what information would be
required for you to consider a different decision? Would you be willing to support the other
team members’ decision even if you didn’t agree it was the your preferred outcome?
It is rare in business that we always agree 100% and never do we have all the
information. We can then either be dissenters and non supportive or agree to disagree and
support the team however best we can.
If the remainder of the team wants to select one of the approaches Noel outlines below, I
would be best aligned with #1.
Thanks,
BERTA KEEN
De : Braun, Norbert (Norbert) [mailto:Norbert.Braun@alcatel-lucent.com]
Envoyé : mercredi 13 juin 2012 08:43
Noel,
Would you still go for Goodbridge if you would be the CFO of Eagle in your option #2
to reach an decision? Not having on the table additional opportunities to close the
financial gap? Supposing you do, you are the one who will be responsible that Eagle
will lose the license to stay in business.
Regards
Norbert
De : Braun, Norbert (Norbert) [mailto:Norbert.Braun@alcatel-lucent.com]
Envoyé : mercredi 13 juin 2012 08:57
To your questions Berta:
What information would be required for you to consider a different decision?
 That beside Goodbridge and Bauer there are a view other smaller sponsoring
opportunities on the table to secure the business.
Would you be willing to support the other team members’ decision even if you didn’t
agree it was the your preferred outcome?
 Well, not sure at this moment in time.
But what about you, Berta? What information would be required for you to change
your decision?
Norbert
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De : MORAND, LINDA (LINDA) [mailto:Linda.Morand@alcatel-lucent.com]
Envoyé : mercredi 13 juin 2012 11:10
Hi Norbert,
I think the main point of disagreement between you and the rest of us is that you
feel you can only use the information which were provided to all of us (and you
prefer “hard” elements like financials when we also take into account “soft”
elements like Sir Ralph’s passion) whereas we believe we can also take further
actions to close the loop and ensure the financial survival of Eagle Racing.
So there is one point we all agree on which is the main goal of financial survival for
Eagle Racing.
And there is another point of agreement which is that Bauer is not an ideal partner
because of their field of activity, even if we disregard the rumor/risk related to
Octania.
In that context, it is not further information we need here but an agreement on the
actions that we can drive e.g. :
- to renegotiate with Sir Ralph directly
- to get further secondary sponsors and convince them (if we have a deal with
Goodbridge, that will reinforce our position compared to now)
- to design a business plan that can be shared with banks and other financial
institutions to get extra funding
- to accept right away Bauer’s offer (what if he does not sign after the next
race?)
Obviously the timing is tight. I would propose an urgent Board meeting to decide on
the course of actions.
Kind regards,
Linda
De : Binder, Victor (Victor) [mailto:Victor.Binder@alcatel-lucent.com]
Envoyé : mercredi 13 juin 2012 11:14
Norbert, all,
We have exchanged many arguments over the last days and start now to repeat
the same arguments. I guess this is the point to start to get pragmatic and
target to come to a conclusion with the team. Remember, the objective of this
exercise is to reach consensus and come up with a team decision.
Norbert, of course we don’t have other sponsoring opportunities on the table.
This would be too simple J. But, we have the opportunity and excellent
conditions to achieve this during the running season. We have to think long
term and trust in the future.
To the second point (willing to support), if we realistically analyze the
discussion then we see that nobody from the GoodBridge camp did acknowledge
one of Norbert’s arguments. So, I don’t think it is realistic to assume that
we will end up with a team decision for Bauer. But, I don’t feel comfortable
AAA/INSEAD/062012 -
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to simply go for a vote and overrule Norbert. As I assume that after this
‘episode’ we have to continue in the overall game and manage EagleRacing as a
team in the coming exercises, I think it is very valuable to have a team
member with diverging opinions. I would expect Norbert to support the team
decision towards the outside but continue to challenge the team decisions
internally. Norbert, could you live with a setup in this form?
BR
Victor
De : Braun, Norbert (Norbert) [mailto:Norbert.Braun@alcatel-lucent.com]
Envoyé : mercredi 13 juin 2012 11:33
Linda,
You are saying that Bauer is not an ideal partner because of their field of activity …
does this mean that you would even not go for Bauer if the Octania case would not
be on the table?
What would happen to your decision, Linda and all if Sir Ralph tomorrow
would be in the press with illegal hunting activities in Africa importing
ivory from elephants and rhinos to Europe? Would you still go for
Goodbridge?
Norbert
PS: What do you mean by urgent board meeting? We are allowed to communicate
exclusively only via Mail, so we are basically since Monday in a board meeting. The
good thing is it will last until June, 22nd.
De : Binder, Victor (Victor) [mailto:Victor.Binder@alcatel-lucent.com]
Envoyé : mercredi 13 juin 2012 11:58
Norbert,
To give my feedback for your points below.
Yes, I would not go for Bauer even without the Octania case. As stated in my
original assessment the reason is the long term impact of an exclusive
partnership with a weapon manufacture in a business like racing.
In contrary the worst case scenario with Sir Ralph that you invented below
would be different because it would still be a personal issue of Sir Ralph and
not related to the business of GoodBridge.
Victor
AAA/INSEAD/062012 -
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De : MORAND, LINDA (LINDA) [mailto:Linda.Morand@alcatel-lucent.com]
Envoyé : mercredi 13 juin 2012 11:59
Hi Norbert & al,
What I meant was that we now have all arguments on the table and that we need
to decide. I agree with Victor that we start repeating ourselves. Of course email is
the only mean of communication and it is not my intention to change that.
I do not think it is going to take us closer to a consensual decision to speculate on
other hypothetical risks like the one you mention in your email on Sir Ralph. Eagle
Racing intends to associate its brand with either Goodbridge or Bauer as
corporations and brands. We as a group seem to have a preference for Goodbridge
but have identified a financial issue that involves taking further actions. How do
you propose we close the gap on that one? If you refuse this group decision in favor
of Goodbridge, what do you propose to move forward?
Kind regards,
Linda Morand
From: Braun, Norbert (Norbert)
Sent: Wednesday, June 13, 2012 5:03 AM
Well, Victor my questions was to Linda, but o.k.
It seems to be that you just believe what you see, I am sorry.
Pls. look at the entire press article and to the statement of the CIO of
Bauer in the article? Saying, that Bauer is for more than a year out of the
weapons industry … they sold all their holdings in this area and they are
focusing completely on development of machines and equipment for the
Building industry.
De : Smith, Dawn Denise (Dawn) [mailto:Dawn.Smith@alcatel-lucent.com]
Envoyé : mercredi 13 juin 2012 18:46
Team
As mentioned in some of today’s earlier e-mails, we seem to be circling around some of the same
issues and appear no closer to a decision. Perhaps we should consider an approach to make the two
offers more similar in nature financially, since getting to the target number needed for the budget is a
primary sticking point. As a next step, Joop could contact Goodbridge and let them know Eagle has
received an offer for a three year exclusive contract and see if Goodbridge would be willing to counter.
As a matter of good business, I would think Eagle would want to give Goodbridge a chance to
reconsider their offer.
While this doesn’t get us to the Goodbridge or Bauer decision immediately, I think it may be a needed
piece to add in to our recommendation.
Regards
Dawn
AAA/INSEAD/062012 -
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De : DALLE, NOEL (NOEL) [mailto:Noel.Dalle@alcatel-lucent.com]
Envoyé : mercredi 13 juin 2012 20:00
All
Sorry to come back late – My take from the different exchanges is :
- Bauer definitively allow Eagle racing to close the Budget challenge counterpart are :
o 3 years exclusivity
o Domain of activity not necessary in line with Eagle Racing willingness / value
o Potential reputation exposure
o Special treatment for VIP customer ( not sure what does it mean ?)
o Sponsor fee far above the budget required ( is it for free ? ) we are talking big
amount of money , I do not believe in free lunch.
- Goodbridge : Sponsor fee not enough to secure the full season
o No exclusivity
o Top management passionate of Racing – then fully supportive
o Negotiation on going for a certain time
Whatever the decision the decision we will take they will be next steps … then in my view
in which position I want to enter in next steps … I consider Eagle racing as well established
race team with reasonable performance ( within the Top 5) , then I trust on its ability to
manage a critical financials situation preserving its own value . I do confirm that ( even if I
was CFO) that I will go for Goodbridge.
For immediate decision, I believe we have all share view and perspective … Time for
decision :
- Voting will give Goodbridge – we are not in democraty but at certain point we
need to find a way to move forward.
o Statement could be that “our team has decided to go for Goodbridge
acknowledging the financial risk taken on budget but considering it could be
mitigated at later stage by other alternative ( either smaller , sponsor or
financing arrangement … ). It is worth to note that one member as opposite
view having a different understanding on Bauer situation and has fairly
defend his view.
- We can also agree to designate one of us at Gianlucca and let him take the decision
after having review all or inputs …. I do not see on which criteria and how . The not
necessary workable …
Then proposal is very simple : lets go for vote unless someone as a better idea or new
element to put on the table that could change the different view … and move together for the
next steps …
Noel
De : Braun, Norbert (Norbert) [mailto:Norbert.Braun@alcatel-lucent.com]
Envoyé : jeudi 14 juin 2012 12:54
Team,
AAA/INSEAD/062012 -
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Looking again at Albert’s initial Mail to us, he offered support if help is needed. What
do you think, should we asked for additional information to the case, like:
Did Goodbridge improve its sponsoring offer in the meantime?
World it be realistic to believe that beside the sponsoring from Goodbridge Eagle has
a chance to close the financial gap within the remaining 4 weeks?
Are their additional information available to the Octania case in the meantime? Did
the rumors materialize or was there a counterstatement in the press already?
What is the main interest for a sponsoring agreement in Racing from Bauer?
What do you think about the approach? Should we collect a number of questions
within the team and ask Albert? Time was running and perhaps there are additional
information available in the meantime.
Norbert
De : DALLE, NOEL (NOEL) [mailto:Noel.Dalle@alcatel-lucent.com]
Envoyé : jeudi 14 juin 2012 13:06
Norbert
I did not get or miss Albert Proposal. Of course should we can get additional information that
could help to make our mind it is fine .
I agree with the your question . I would like also to know if Eagle racing could have access to
financing ( bank) allowing to have time to find other sponsors .
I would be interested also to know more about Eagle Racing ownership and if any capacity to
fund them self the budget gap …
In any case we need to agree on process to come to a conclusion and decision. Best case
would be that complementary information will drive all us to the same conclusion . If
not voting seems to be the most effective unless someone see another approach …
Thank Norbert for highlighting potential help from Albert …
PS : all in case Albert send something , Norbert please forward to me as I am not sure I
receive email from Albert ( I do not why for the time being – and HR team are investigating
this point )
Noel Dalle
De : Binder, Victor (Victor) [mailto:Victor.Binder@alcatel-lucent.com]
Envoyé : jeudi 14 juin 2012 13:38
Norbert, Noel,
My interpretation of Albert’s offer is that he helps us with the process but I
don’t expect that he will influence our conclusion on the Eagle case. As I
AAA/INSEAD/062012 -
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understand the process, all these uncertainties are on purpose and our job is
to take a decision in exactly such environment.
So, I don’t think it is a good idea to ask Albert the questions listed below.
What do the others think about this approach?
Victor
De : Braun, Norbert (Norbert) [mailto:Norbert.Braun@alcatel-lucent.com]
Envoyé : jeudi 14 juin 2012 13:41
Noel, and for those of us, who has not received Albert’s initial Mail.
De : MORAND, LINDA (LINDA) [mailto:Linda.Morand@alcatel-lucent.com]
Envoyé : jeudi 14 juin 2012 13:42
I am in full agreement with your interpretation, Victor. Taking a management
decision in a context of crisis is always tough because you cannot be 100% sure
about the outcome. I do not believe that we will receive further information from
Albert and I would suggest that we build a plan based on both the info provided
and our proposed actions.
Kind regards,
Linda
De : Braun, Norbert (Norbert) [mailto:Norbert.Braun@alcatel-lucent.com]
Envoyé : jeudi 14 juin 2012 13:52
Victor, Linda,
It’s interesting, how you interpret „help“ in this contexts? What can you lose by
asking questions either to the case or to the process? You can only get additional
information. You believe that we don’t get further information, but you don’t know.
What’s your problem by asking questions?
Norbert
De : Keen, Berta B (Berta) [mailto:Berta.Keen@alcatel-lucent.com]
Envoyé : jeudi 14 juin 2012 16:34
All,
I believe that this process and team was set up to figure out how we work together as a “team”
and in the midst of a crisis we would need to make a decision. However, with that said, if it
helps in moving the process forward, I see no harm in sending a brief note to Albert asking
AAA/INSEAD/062012 -
23
some of the questions Norbert posed. Once we get the response, I then propose no more
stalling. Let’s figure out how best to move forward with a decision! Time is a critical factor.
BERTA KEEN
De : Braun, Norbert (Norbert) [mailto:Norbert.Braun@alcatel-lucent.com]
Envoyé : lundi 18 juin 2012 19:42
Hello Albert,
As you can see from the email conversation in our team, we are somehow arguing in
circles and did so far not convert to a real team decision. Due to the fact that you
were offering help in your mail to us I don’t want to miss the opportunity to find out,
if there are additional information available to the case.
Therefore, let me ask you the following questions to the case:
1. Did Goodbridge improve its sponsoring offer in the meantime?
2. World it be realistic to believe that Eagle has a chance to close the financial gap to
the sponsoring offer from Goodbridge within the remaining 4 weeks?
3. Are their additional information available to the Octania case in the meantime?
4. Did the rumors about the Octania case materialize or was there a counterstatement
by Bauer in the press already?
Is there anything else you could help us as a team to conclude with a consensus
decision until Friday?
Looking forward to your answers
Norbert
De : DALLE, NOEL (NOEL) [mailto:Noel.Dalle@alcatel-lucent.com]
Envoyé : lundi 18 juin 2012 20:23
Norbert ,
thank for the initiative to contact Albert.
Albert
On question 2 I would like to complete the question . Would it be possible for eagle racing to
start the season with more than half of budget. Then being at risk but having time to find other
sponsor even if the race season have already started . At risk but some time to mitigate the
risk .
Best regards
Noel
AAA/INSEAD/062012 -
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De : ANGEHRN Albert
Envoyé : mardi 19 juin 2012 05:47
Hi Norbert and Team 1
Your questions are very good and I see how they would help you in reaching a decision faster.
Unfortunately in this particular situation – like in many in real life – you will need to operate
with the information at hand, as nothing has really happened since the last meeting. The two
potential partners/sponsors are just waiting to hear from you if they are going to be invited to
join you at the races on Sunday.
If it can help, here are just a couple of remarks (see below).
Bye & good luck in identifying the best possible decision for EagleRacing on the basis of this
unfortunately limited information and facts. That’s exactly what makes management and
decision making so hard …
-albert
1. Did Goodbridge improve its sponsoring offer in the meantime?
No contact until now. Joep did not re-open the negotiation (which settled at 10 millions). It is
not clear why Sir Ralph should suddenly accept to put more money on the table, nor if he
could really do it.
2. World it be realistic to believe that Eagle has a chance to close the financial gap to
the sponsoring offer from Goodbridge within the remaining 4 weeks?
This is something you could try to assess looking at your current competences in the Team,
and would also depend on your choice of the Main Sponsor.
3. Are their additional information available to the Octania case in the meantime?
Not that we know.
4. Did the rumors about the Octania case materialize or was there a counterstatement
by Bauer in the press already?
The only counterstatement until now is the one published in the article itself.
De : ANGEHRN Albert
Envoyé : mardi 19 juin 2012 06:23
Hmmm. Another surely relevant question. My advice is that you try to assess the extent to
which your people might be willing to stay with you in case you cannot provide them with a
contract covering the full season. What would you do if you were the pilot or the chief
engineer?
AAA/INSEAD/062012 -
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De : Braun, Norbert (Norbert) [mailto:Norbert.Braun@alcatel-lucent.com]
Envoyé : mardi 19 juin 2012 07:54
Noel,
I think we need to assess possible scenarios about what could happen if we decide
for Bauer or Goodbridge after the decision, what do you think?
Norbert
De : Braun, Norbert (Norbert) [mailto:Norbert.Braun@alcatel-lucent.com]
Envoyé : mardi 19 juin 2012 07:55
Thank you very much, Albert!
Norbert
De : DALLE, NOEL (NOEL) [mailto:Noel.Dalle@alcatel-lucent.com]
Envoyé : mardi 19 juin 2012 09:34
Albert ,
I was more looking to confirm that even starting with partial funding season , we can be part
of the season , and have some time to find new sponsors or negotiate with Goodbridge …I am
confident solution would be found … To answer to your question as Chief engineer
or pilot I would probably go unless I get better offer - but here we are starting to elaborate
different scenario then let stick with information in hand…
Thank
Noel Dalle
De : DALLE, NOEL (NOEL) [mailto:Noel.Dalle@alcatel-lucent.com]
Envoyé : mardi 19 juin 2012 10:53
Norbert
I am not sure to which extend you will elaborate scenario , my approach is depending on our
choice we will need to mitigate risks potential exposure .. then the choice we have to make is
to agree on which one we believe we will be more comfortable to deal with...
-
-
Goodbridge : due to budget gap the risk is to not be able to complete the entire
season – Mitigation action is to find other source of funding what ever they are
: bank Loan , call for capital injection, new sponsor etc… but in real life lot of
options exist and many organization are running their activity even if budget are
not totally covered …
Bauer : Budget over covered - 3 years exclusivity - potential Risks : reputation /
compliancy , lack of independency --- > In my view this type of risk is extremely
AAA/INSEAD/062012 -
26
difficult to manage as it will require legal and communication effort on element
potentially beyond Eagle racing control … ie Eagle Racing could be directly impacted
by event totally outside its scope or direct environment they are dealing with ….
Relationship with Bauer will become really unbalanced beyond potential reputation
issue.
My position is still the same Team we are now running after time . We have all element in hand to make the decision
… despite few emails proposing a way to finalize our position we have not yet agreed on
next step;
Then I would like each of us to provide final position based on latest exchange / information
. I still propose to go for voting approach (knowing it is not the ideal) unless someone can
propose other approach that could fly …
Best Regards
Noel Dalle
De : Keen, Berta B (Berta) [mailto:Berta.Keen@alcatel-lucent.com]
Envoyé : mardi 19 juin 2012 11:25
Teammates,
After the endless emails, my decision remains the same. Goodbridge is my vote.
BERTA KEEN
De : MORAND, LINDA (LINDA) [mailto:Linda.Morand@alcatel-lucent.com]
Envoyé : mardi 19 juin 2012 12:12
Hi Team,
I also believe that Goodbridge is the best solution and I vote for it.
In order to move forward, I took the liberty of putting together a graphic
representation of a possible action plan (see attachment). Let me know what you
think.
Kind regards,
Linda
AAA/INSEAD/062012 -
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Linda Morand
De : Braun, Norbert (Norbert) [mailto:Norbert.Braun@alcatel-lucent.com]
Envoyé : mardi 19 juin 2012 13:09
Dear Team,
At the end of the day the decision is a trade-off between financial risk versus image.
I strongly believe that Bauer left the weapons industries as stated in the press article
more than one year ago, and I guess this should be easy to provide evidence for
Bauer (e.g. press articales, annual reports, etc.) therefore I do not overestimate the
image risk and I am still convinced that Bauer will be the less risky decision.
With the decision for Goodbridge the entire business is at risk, with Bauer only
image!
That might be a CFOs position but this would be my conclusion and recommendation
to the CEO of our team.
See you soon
Norbert
AAA/INSEAD/062012 -
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De : Binder, Victor (Victor) [mailto:Victor.Binder@alcatel-lucent.com]
Envoyé : mardi 19 juin 2012 14:04
Hello Team 1,
First I like to mention that I’m still convinced that Goodbridge is the option
that we shall go for.
Linda, thanks for your effort and the action plan. It’s a good approach that
we should use to further work with. There is one uncertainty for me in your
plan because the timeline is not fully reflected. I understood from the facts
provided to us that there is no probability to find additional sponsors in the
remaining time (2 weeks) to secure the next season. However, I strongly
believe that there is a way to start the new season even with the risk that
Eagle would run out of budget towards the end of the season. As I stated
before, I trust the good image and performance of the team and are confident
that new sponsors can be found before Eagle runs in trouble (maybe not before
the start of the season). To avoid that Eagle looses key performers like the
drivers or chief engineers due to the financial situation, I recommend that
the season will be secured by Bank funds (Action 6) in case Action 2 will not
be successful. The bank funds can then be withdrawn after additional sponsors
are on board. So Linda, I fully support your approach and the action plan but
suggest to add a timeline to it. What do you think?
Victor
De : Binder, Victor (Victor) [mailto:Victor.Binder@alcatel-lucent.com]
Envoyé : mardi 19 juin 2012 14:10
Team1,
To comment on Norbert’s statement. For me it is not only a trade-off between
financial risk vs. image but also a trade-off between short term financial
security and long term sustainability.
Victor
De : Braun, Norbert (Norbert) [mailto:Norbert.Braun@alcatel-lucent.com]
Envoyé : mardi 19 juin 2012 14:13
Quick answer from my side, as we are in a board meeting:
If you are out within 4 weeks…there will be no long term sustainability and
why do you think, Victor, Bauer cannot be a long term sustainable solution?
AAA/INSEAD/062012 -
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De : Binder, Victor (Victor) [mailto:Victor.Binder@alcatel-lucent.com]
Envoyé : mardi 19 juin 2012 14:32
“If you are out within 4 weeks…” this is exactly the limited short term view
that I mean and which does not reflect our situation. Please see the action
plan in Linda’s mail.
“ …why do you think, Victor, Bauer cannot be a long term sustainable
solution?”
Because of the special contract conditions requested by Bauer (exclusivity,
dependence from good will of VIP clients, purely business oriented, no
identification with racing, find successor for Bauer because of non-racing
affine image, …) , this deal bring unforeseeable risks for the time after the
Bauer contract.
Victor
De : Smith, Dawn Denise (Dawn) [mailto:Dawn.Smith@alcatel-lucent.com]
Envoyé : mardi 19 juin 2012 14:39
Team
After our exchanges on this dilemma, I still think Goodbridge is the best solution. One key
piece for me remains that Bauer hasn't even officially committed to the contract- waiting to
see what their clients think, while Goodbridge plans to attend the race to sign the contract.
I am returning to the office today and would like to review the materials Linda provided for
additional points- only viewing our discussion currently via mobile phone.
Regards
Dawn
Dawn Smith
“If you are out within 4 weeks…” this is exactly the limited short term view that I mean
and which does not reflect our situation. Please see the action plan in Linda’s mail.
“ …why do you think, Victor, Bauer cannot be a long term sustainable solution?”
Because of the special contract conditions requested by Bauer (exclusivity, dependence from
good will of VIP clients, purely business oriented, no identification with racing, find
successor for Bauer because of non-racing affine image, …) , this deal bring unforeseeable
risks for the time after the Bauer contract.
Victor
De : MORAND, LINDA (LINDA) [mailto:Linda.Morand@alcatel-lucent.com]
Envoyé : mardi 19 juin 2012 15:31
Hi Victor & al,
Thanks for your feedback. I agree that timing of actions is important. I added a
suggested timeframe in blue to the initial action plan (see below). Let me know if
that is suitable for you.
Kind regards,
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Linda
Linda Morand
De : Smith, Dawn Denise (Dawn) [mailto:Dawn.Smith@alcatel-lucent.com]
Envoyé : mardi 19 juin 2012 18:57
Linda
Thanks for creating this timeline. I think a combination of your timeline and the earlier chart where the
pros/cons/risks were identified will provide the support as to why we are recommending this position.
Regards
Dawn
De : Binder, Victor (Victor) [mailto:Victor.Binder@alcatel-lucent.com]
Envoyé : Thursday, June 21, 2012 2:42 PM
Dear all in Team1,
Our deadline is approaching and the mail discussion calms down. However, I don’t think we
achieved yet a conclusion where all of us agree. As Norbert still seems to be the only team
member who is in favor of Bauer where the others prefer Goodbridge, I would suggest to ask
Norbert to propose a way forward in order to reach a consensus in the team before the
deadline.
Best regards
Victor
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De : DALLE, NOEL (NOEL) [mailto:Noel.Dalle@alcatel-lucent.com]
Envoyé : Thursday, June 21, 2012 3:25 PM
Victor ,
Thank for reminding the deadline is tomorrow tonight …
I did propose a way forward and Linda propose a next steps path ( potential).
All ,
My position here, as it is time to make decision is the following :
Team 1 position Go to Goodbridge - the decision is taken after multiple emails by each all of
us have shared view perspective and in good faith make clear each individual
position. Unfortunately full alignment is not reach . Acknowledging that all views are
valuable and valid, in such uncertainty environment and information available, the team
1 is ready to face next challenges for Eagle Racing as one team.
Any other proposal to move forward is obviously welcome …
Please confirm by email you agree with the team1 position . If disagreement then please
provide a effective way to move forward .
Thank in advance for your understanding and decision here..
Best Regards
Noel Dalle
De : Keen, Berta B (Berta) [mailto:Berta.Keen@alcatel-lucent.com]
Envoyé : Thursday, June 21, 2012 3:29 PM
Agreed several emails ago! We need to quit stalling and make a decision and not wait until
the deadline. In a real world situation coming to a decision quicker would have given us more
time to work the next steps.
I would propose if there are no other debates or decision points to be considered that are new,
we forward Noel’s note below to Albert as the team decision by close of business today.
BERTA KEEN
De : Binder, Victor (Victor) [mailto:Victor.Binder@alcatel-lucent.com]
Envoyé : Thursday, June 21, 2012 3:40 PM
I agree to all of this. However, with my attempt below I tried to avoid that Norbert is simply
overruled close to the deadline and give him a chance to propose a statement to which he can
agree.
Victor
AAA/INSEAD/062012 -
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De : Keen, Berta B (Berta) [mailto:Berta.Keen@alcatel-lucent.com]
Envoyé : Thursday, June 21, 2012 3:58 PM
Thank you!
BERTA KEEN
De : MORAND, LINDA (LINDA) [mailto:Linda.Morand@alcatel-lucent.com]
Envoyé : Thursday, June 21, 2012 4:01 PM
Thank you. I agree with the proposed approach.
Kind regards,
Linda
Linda Morand
De : Smith, Dawn Denise (Dawn) [mailto:Dawn.Smith@alcatel-lucent.com]
Envoyé : Thursday, June 21, 2012 5:50 PM
Noel
Certainly.
TeamIf everyone is good with this, I will work on pulling the various data points we have discussed together
including the next steps chart from Linda. I know we had a few iterations of the chart, but if you could
send me the final version, I can make sure to use it.
I will plan to send out for us to review before making it our official position e-mail. Please look for it
later this evening or early morning.
Regards
Dawn
De : MORAND, LINDA (LINDA) [mailto:Linda.Morand@alcatel-lucent.com]
Envoyé : Thursday, June 21, 2012 7:36 PM
Thanks, Dawn. Here is the latest version of the next step chart.
KR
Linda
Linda Morand
AAA/INSEAD/062012 -
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De : Smith, Dawn Denise (Dawn) [mailto:Dawn.Smith@alcatel-lucent.com]
Envoyé : Thursday, June 21, 2012 8:01 PM
Thanks Linda.
Best
Dawn
De : Smith, Dawn Denise (Dawn) [mailto:Dawn.Smith@alcatel-lucent.com]
Envoyé : Friday, June 22, 2012 3:31 AM
DRAFT RESPONSE FOR TEAM REVIEW
All
See below. Let me know if I have missed any of the key elements. If we are good with this e-mail, I will
re-send as our proposed recommendation.
Regards
Dawn
Albert
Please find the recommended path attached, accompanied by Team 1’s rationale behind our decision.
In evaluating the two sponsors, Team 1 has decided to move forward with the non-exclusive
sponsorship offer from Goodbridge, despite falling short of their budget target.
Rationale:



Sir Ralph has committed to signing a non-exclusive contract - leaves opportunity for Eagle Racing
to explore smaller potential sponsors or renegotiate with Sir Ralph over the contract as Eagle
rebuilds a successful team.
Commitment to sign not at risk by any outside influences (potential clients)
Sir Ralph is passionate about racing, making his commitment more from a personal perspective
versus a side investment to entertain clients.
AAA/INSEAD/062012 -
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




While the financial commitment falls short, Eagle Racing may already have identified areas to
scale back operating expenses for the upcoming season (Given they are down to the wire for
funding).
Majority of the team was uncomfortable with the negative press Bauer has received regarding
weapons dealing with Octania. Whether true or false, public perception can be a powerful thing
and for Eagle Racing – a company looking to rebuild their “brand”- a misstep of this nature could
be detrimental to any current and future sponsorship opportunities.
The Bauer offer is financially attractive; however the exclusivity will prevent Eagle from having
additional sponsors, which could come into play if any weapons accusations come to fruition.
Bauer commitment predicated by favorable response of “clients”.
Bauer’s business only approach (client entertainment) could also potentially be jeopardized by
client changes/whims.
The attached chart details a suggested action plan for Eagle Racing based upon the above.
Regards
Team 1
De : MORAND, LINDA (LINDA) [mailto:Linda.Morand@alcatel-lucent.com]
Envoyé : Friday, June 22, 2012 10:37 AM
Hi Dawn,
Thanks a lot. This captures well the rationale for our decision in favor of
Goodbridge. I have nothing to add.
Kind regards,
Linda
AAA/INSEAD/062012 -
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De : Keen, Berta B (Berta) [mailto:Berta.Keen@alcatel-lucent.com]
Envoyé : Friday, June 22, 2012 12:03 PM
Dawn,
Looks great! Thank you.
BERTA KEEN
De : DALLE, NOEL (NOEL) [mailto:Noel.Dalle@alcatel-lucent.com]
Envoyé : Friday, June 22, 2012 1:09 PM
Dawn - fine for me. Great ...
Noel
Noel
De : Binder, Victor (Victor) [mailto:Victor.Binder@alcatel-lucent.com]
Envoyé : Friday, June 22, 2012 1:49 PM
Dawn,
Fine for me as well!
Victor
De : Braun, Norbert (Norbert) [mailto:Norbert.Braun@alcatel-lucent.com]
Envoyé : Friday, June 22, 2012 2:06 PM
Fine for me as well.
De : Smith, Dawn Denise (Dawn) [mailto:Dawn.Smith@alcatel-lucent.com]
Envoyé : Friday, June 22, 2012 4:39 PM
Albert
Please find the recommended path attached, accompanied by Team 1’s rationale behind our decision.
In evaluating the two sponsors, Team 1 has decided to move forward with the non-exclusive
sponsorship offer from Goodbridge, despite falling short of their budget target.
Rationale:




Sir Ralph has committed to signing a non-exclusive contract - leaves opportunity for Eagle Racing
to explore smaller potential sponsors or renegotiate with Sir Ralph over the contract as Eagle
rebuilds a successful team.
Commitment to sign not at risk by any outside influences (potential clients)
Sir Ralph is passionate about racing, making his commitment more from a personal perspective
versus a side investment to entertain clients.
While the financial commitment falls short, Eagle Racing may already have identified areas to
scale back operating expenses for the upcoming season (Given they are down to the wire for
funding).
AAA/INSEAD/062012 -
36




Majority of the team was uncomfortable with the negative press Bauer has received regarding
weapons dealing with Octania. Whether true or false, public perception can be a powerful thing
and for Eagle Racing – a company looking to rebuild their “brand”- a misstep of this nature could
be detrimental to any current and future sponsorship opportunities.
The Bauer offer is financially attractive; however the exclusivity will prevent Eagle from having
additional sponsors, which could come into play if any weapons accusations come to fruition.
Bauer commitment predicated by favorable response of “clients”.
Bauer’s business only approach (client entertainment) could also potentially be jeopardized by
client changes/whims.
The attached chart details a suggested action plan for Eagle Racing based upon the above.
Regards
Team 1
De : ANGEHRN Albert
Envoyé : Monday, June 25, 2012 5:54 AM
Thank you very much, Team 1. Congratulation for the decision and see you soon at our First
Online meeting
-albert
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