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Saint-Petersburg State University

Graduate School of Management

International operations The Final Project

“Consignment agreement”

St. Petersburg

2008

Оглавление

Part I - The Business Situation 3

Development of the company 3

The range of products offered 3

Indigenous market’s constraints 4

Target country 4

International activity mode selection 5

Part II – Scientific Research on consignment operations 6

Specific features of signing consignment agreement: 8

Consignee reward 8

Russian Civil Code Regulations 9

Part III – Sample of the International Operation on artwork 11

Sample Consignment Agreement 12

1. Period of Consignment 12

2. Pricing Structure 12

3. Storage 13

4. Agency 13

5. The Gallery’s Responsibility 13

6. Expenses 14

7. The Artist’s Responsibility 14

7. Copyright 15

8. Contract Alteration 15

Part IV – Consignment agreement. Transaction Scheme 16

Part V - Project - Network Analysis 18

Part VI - Offer, Counter-offer and Contract 21

Offer 21

Counter- offer 22

Part VII - Contract 23

International consignment agreement 23

BETWEEN: “Coffee House Corretora de Mercadorias” (the "Owner"), a corporation organized and existing under the laws of the Brazil, with its head office located at: Av Rio Branco 45 Centro, Rio de Janeiro, 20090908, Brazil 23

Part VIII - Dossier for Negotiation 28

List of references 30

Part I - The Business Situation Development of the company

Coffee House Corretora de Mercadorias is a partly family owned company. At first the family had owned 100% of the company. Nowadays 51% of the shares (majority holding) belongs to the family and the rest is owned by foreign investors.

The company was founded in 1887 with a headquarters situated in Rio-de-Janeiro, Brazil. Historically it was oriented on the European market, but after the First and Second World Wars and the following serious economic crunch, our company needed additional investment and support from partners abroad. So, the owners decided to sell part of the shares to several French, English and German investors, who represented the most perspective markets for the nearest future.

The trend of growing popularity of coffee culture was very helpful to our company and predetermined our strong position on the European market. After 1980 the company had become one of the leaders in the coffee export from Latin America.

Coffee House Corretora de Mercadorias trades the production of a selected group of coffee growers located in the micro region of Serra do Pau D'Alho. During the critical phases of the harvest and processing, our technical staff advises these producers on the quality control procof special quality lots with lower quality coffee so as to guarantee the consistency of our predures recommended by the Brazil Specialty Coffee Association to obtain the desired quality characteristics that will match the preferences of each of our special clients. This quality control at the farm is most important during the processing that follows the picking of the coffee, to avoid the mixing product. From this phase until the final selection for shipment, each individual lot is tasted many times by our cuppers, in a repeated selection that guarantees the quality desired by each market, allowing for a customized production of high quality specialty coffees.