23
Exercise 2. Thomas Willhite then dictates an extra paragraph. Listen to the recording and write down the paragraph.
Note: comma =, full stop =. capital letter = A (not a)
ΘWhen Colin Nash receives the letter from Can-Am cancelling the agreement, he telephones Thomas Willhite immediately.
ΘRead the text and then listen to the recorded conversation.
Canadian operator: Good Morning, Can-Am Sports. Can I help you? UK Operator: Hello, Can-Am, I have a call for Mr. Willhite. Canadian Operator: Hold the line, please. I’m putting you through.
Secretary: Hello, I’m afraid Mr. Willhite is in a meeting at present. Who’s calling, please?
UK Operator: Mr. Colin Nash of Touchline Trading.
Secretary: Hold the line, please. Mr. Nash, I’m putting you through.
Willhite: Hello?
Nash: Hello? Is that Thomas Willhite? Willhite: Hello, Colin. What can I do for you?
Nash: I got your letter, Thomas. What’s all this about cancelling our agreement?
Willhite: Colin, we can’t discuss this over the phone.
Nash: You know perfectly well our agreement runs for another two years! Why didn’t you consult us first?
Willhite: Colin, we’ve been trying to consult with you for five months! We didn’t get much response.
Nash: You know very well that cancellation is not the solution.
Willhite: Look, Colin, I can’t talk now. I’m in the middle of a meeting.
Nash: OK, Thomas, but I feel you should know that Touchline is going to take legal advice. Willhite: I understand. We obviously have to meet.
Nash: We certainly do! I expect to hear from you soon!
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What does Can-Am’s Board decide to do after 5 months of unsuccessful negotiations with Touchline?
The companies have the following options at this point
THE OPTIONS |
Advantages (+) and |
Advantages (+) and |
||
|
Disadvantages (-) for |
disadvantages (-) for |
||
|
Can-Am |
Touchline |
||
1. Negotiate a new |
A Would be free to find |
B + Would keep Can -Am’s |
||
agreement: Touchline |
+ a better distributor for |
|
profitable UK business |
|
could become the UK |
|
continental Europe. |
|
|
distributor. Can-Am could |
C |
Difficult to find a good |
D |
Would lose a potentially |
find a new distributor for |
- |
distributor. The new |
- profitable part of the |
|
Europe. |
|
distributor might also be |
|
European market. |
|
|
ineffective. |
|
|
2. Terminate the |
E |
Would be free to find a |
F |
Would receive com- |
agreement: The |
+ |
better distributor. |
|
pensation. |
companies could |
|
|
+ Could be as much as |
|
terminate the agreement |
G The market would be |
|
$600 000. |
|
and negotiate a financial |
|
disturbed. |
|
|
settlement |
- |
Sales would fall/suffer. |
H |
Would lose the future |
|
|
|
- profits on Can-Am’s |
|
|
I Would be expensive. |
|
products. |
|
|
- Compensation to |
|
|
|
|
Touchline could be as |
J Market image would |
||
|
much as one year’s profits. |
- |
suffer considerably |
|
3. Continue with the |
K |
Possible legal conflict |
L Would keep Can- |
|
present situation. |
|
with Touchline would be |
|
Am’s profitable |
|
+ |
avoided. |
+ UK business and the |
|
|
|
|
|
possibility of the |
|
M |
The present situation |
|
European market in the |
|
- |
would continue. |
|
future. |
|
|
|
- |
N The problems with |
|
|
|
Can-Am would continue. |
|
Exercise 3. Read through the options. Study the advantages and disadvantages of each option.
-What options does Can-Am have to solve the problem with Touchline?
-What are the advantages and disadvantages of these options?
Which option would you recommend?