Good morning dear colleagues, I declare the meeting open

I am glad to see all directors of Agrichem International here. I would like to introduce the participants of our meeting.

We all work in Agrichem industry, so, I think we are successful in it. Our company was founded in 1976, and still our aim to promote products which protect plants, crops from insects. We have a lot of agents and distributors abroad, and our network in selling herbicides and pesticides is quite well.

But last week I get a complaint about one of our distributor in Quito.

I would like to mention briefly our agenda: discuss the problem: current situation of distributor in Quito;define criteria for choosing distributor;presentation of candidates;;concluding the contract.

Part 1. В первой части мы будем обсуждать только проблему, пара слов оттом, что да, нам действительно надо менять дистрибьютора. Никакой информации о критериях.

The first problem we have to consider is the causes of complaints. Would you like to open the discussion, Anna? What is happening with our distributor in Quito?(предоставляешьаудио, аргументируешьсвоюпозицию)

Аня: Few days ago I talked with the Vice-Prezident,South Amerika for Fruitas Internacionales,Mr.Sanchez. As you know they are one of the largest banana growers in South Amerika and they use our product in most of their location .The problem is that they cannot get Martox in Ecuador.

I would like to turn on a record with my conversation with Mr. Sanchez.

(…..аудио)

So, in your opinion Mr.Nunez doesn’t cope with his responsibilities?

Аня:Yes of course. The problem now is to replace him with an aggressive, effective distributor who would realise the full potential of Martox Y and all product in future.

I would tend to agree with you on that, but we should listen to all opinions.

What do you think about this, Lilya? Do you agree with Ann?

What about you, Kate?

-I’m of exactly the same opinion

So, having discussed the first point of agenda, it’s obvious that we have to replace our distributor.

Part 2.Во второй части приступаем к определению критериев, именно здесь будут ваши основные слайды, с графиками, итд. Т.е. каждый приводит свои аргументы, настаивая на определенном качестве, который бы хотел видеть в кандидате. В скобках указаны те критерии ,которые вы выдвигаете, аргументировать их четко

Now, I’d like to turn to item 2 in our agenda. We should define basic criteria for distributor. Before we start I would like to ask our secretary to make a table with the criteria during our discussion.

What are your views on this, Lilya? (Experience, turnover)

So, you consider that experience and turnover is the basic requirements for distributor? I’m fully in favour of you point of view.

I think that besides the criteria of turnover and experience we should find other reasons, Kate K, I think you know something about it? (Education ,Personal qualities)

I would like to begin with the fact that You always think of the turover and other economic indicators. And now you can see what is happening in Quito Not only the head office receives complaints about late delivery. The number of complaints is growing! Let’s look on the slide – there are some examples of complaints!

In my opinion, we must concentrate on the personal characteristics of our distributor.

First of all, a good distributor must be reliable and known for his honest. He deserved the trust of the people who are work with them. He must act in an ethical and professional principles that contribute to the consolidation of the Company's reputation and distributors themselves. The behavior of distributors should not harm the prestige of the Company and affect the activity of other distributors.

Could you be a little more precise?

There is no doubt in my mind that our candidate must be :

1. Honesty

2. Ambition.

3. Fairness

4. Determination.

5. Enthusiasm.

6.. Confidence.

7. Creativity.

Do you have another requirements?

Further more,besides personal qualities, A good distributor must be successful and well-educated person with high degree .

I totally agree with you, Kate, I think that you have a good idea, education and personal qualities it’s also very important for work.

What are your feelings on this Anna?

Аня:Kate I respect your opinion, however I suppose you do not realize that our problem is quite serious.

I am absolutely convinced that candidate should have excellent connection in this industry and should be a respected person with political links for example

I wonder if you could repeat for us your basic criteria?

Аня: I propose network

Now we should to summarize our discussion and fill in the gap in our chart.

Kate, could you show us the chart?

In the process of our discussion all of you insist on some of these criteria: experience, turnover, education, network, personal qualities.

Kate B: everything ok?

Yes

We also should complete the table by our contenders, Anna I know that you find somebody?

Аня: Yes, I have found. I know a lot of people out there. None of them are ideal. I have, however, come up

with a short list. I think we should look through it together very carefully.

The first candidate is company Mectator. Mercator are one the major banana growers in Ecaudor.

The second is Grunwald. Grunwald is a real contender, they knows agrichemical market very good.

And the last one is Royce matrinez. They have a well developed distribution system for our products.

Thank you colleagues, you made a good work.

Part 3.Presentation of candidates.

The next issue I would like to focus on is the presentation of contenders.

Kate(secretary)will give all of us the list of contenders with this criteria. I want you to make some notes for you, that at the end of our presentation to define a winner.

	Experience	Turnover	Network	Education	Personalqualities
1.Mercator
2.Grunwald
3.Royce-Martinez

Turning now to the next item of our agenda – we are ready to look at the presentation of contenders, Kate, are everybody here?

Kate B: Unfortunately arrived just two of them and the third is ready to contact with us on Skype.

Could you invite those who arrive while we are looking for Mr.Royce presentation?

Kate B: Sure, I’d like to call on Mr Royce to present his company, I will invite representatives from Mercator and Grunwald.

Ann, could you help us with the slides?

Аня:Yes with a great pleasure

Смотрим видео. Возмущения о безответственности кандидата.

KATE K -I think it is impossible to choose his! He can’t arrive in our meeting. It reflects his irresponsibility. I’m absolutely convinced that we cannot include his in our list candidates!

Заходят претенденты.

Hello dear guests, we are happy to see you in our office. I would like to introduce you for our board of directors. Adriano Lopez, general Manager of Mercator and Josephine Grunwald general manager .

I think, it is the high time to look at your presentations.

Ann, present us the table, please.

Аня:Let’s look on the slaid, here you can see information concerning our first contendor.

Каждый из директоров задает вопросы претендентам!!!можно уточнять информацию по поводу своих критериев.

Mr.Lopez, you can start your speech.

Лена Лопез: Good morning, ladies and gentlemen. Let me introduce myself. My name is adriano lopez.im general manager of mercator.

I would like to tell you some words about our company. It was created in 1970. We have huge number of workers. And also we have impressive turnover! More than 8 million! Mercator is one of the major banana growers in Ecuador.

Достаю бананы,всем показываю!

Ответ Лиле:as I said turnover is more than 8 million!

I might add that, that I’m a great political figure, and I have has excellent connections in banana industry. It services your purpose.

And now let’s speak about advantages and disadvantages of Mercator. We have a good financial possibilities, Management is very good. And not least, we have our own distribution network is from plantations to ports.

good question!yes we have branches in Kongo and Egypt!

But how you know, every medal has two sides. We also have disadvantages. We have no experience in selling chemicals. I suppose it is not big problem.

We are very interested in diversifying

out of bananas and sees distributorship as a major opportunity for achieving this. Let me conclude by saying that our company is really attractive for you.

Ответ Кате К: Never. I have not heard about it in our company

Аня: Mr.Lopez, Sorry but I did not catch the information about your branches.Could you repeat it again?

Лена Лопез: good question!yes we have branches in Kongo and Egypt!

Ann, can you reflect the chart?

Аня: on this slaid you can see the basic information about Mercator.

Ms. Grunwald, we are ready to hear your presentation.

J: Thank you. Good morning dear ladies! I’d like to present you Grunwald company. Grunwald is the standard of excellence in the chemical distribution. Our company was founded in 1954 by my father and dynamically develops to this day.

I’d like to make a few remarks concerning with our position on market.

Firstly, we have two offices, one of them is located in the capital of Ecuador – Quito, and another is located in Guayaquil that is approximately 250 kilometers southwest of Quito.

Secondly, I’d like to draw your attention at our turnover which is 25 mln, this is the highest rate among all participants in the industry.

Thirdly we have rich experience in the agrichemical market. Our main products – weed killers, herbicides, insecticides. But I’d like to warn you that we are not prepared to give up any of existing distributorships, but we really interested in Martox.

Finally, Grunwald cooperates with the largest companies in the world. Grunwald also distributes for a major Swiss concern, German company.

Аня: Could you be more precise? As I understand that is that world wide concern? It is quite clear that you have excellent network.

J: yes, you are absolutely right

Moreover We Are Committed To:

· Conducting business with honesty and respect.

· Understanding and conforming to our customers' requirements by providing zero-defect products and on-time deliveries.

Лиля: How do you ensure timely delivery?

J: I’m glad you asked this question. Could I answer it a little bit later?

L: sure

J: thank you. The next point we are try to committee is

· Providing a safe work environment and safety training programs for our employees.

J: Well, Lilya back to your question, I’d want to say that we have our own delivery service, which is work very well.

We have modern vehicles; qualified operators; 24 hours a day service.

Well, at this stage I feel I should summarise the matter as it stands

Grunwald is

a great experience; high turnover; stable network; excellent connections.

Moreover Grunwald entered the top ten out of a hundred chemical distributors. Thank you for attention, I hope you make right choose.

Is anybody has questions to our contenders?

Kate K: - Do you have a science degree?

J: yes, I’m Associate Professor of Chemistry

Ann, do you finished our table?

Аня:you can see the results of the presentation of contenders.

Thank you for your information, it was very important for us. Now we have to make a decision, we would like to ask you wait the results in our café on the third floor. Our lawyer will call the winner.

Let me introduce our lawyer one more time, Elena Gladysheva.

Лена, извиняется за опоздание, объясняет тем, что самолет задержали.

Лена-юрист: Good morning colleagues! sorry I am late, Because of terrible traffic jam. I am Agrichem’s lawer. I have experience in jurisprudence, more than 10 years. Today I will help you to conclude the contract.

Let’s look at the results of our presentation. So, all information reflects the performance of each distributor, and it’s obvious, that we have a lider.

Well, we can see that our second pretender wins. It seems that we have a consensus.

Part 4.Contracting the contract.

Now we are turning to the last item in our agenda, we have to conclude the contract.

Elena, could you present us the contract.

Лена-юрист: Look at the slide, here the main clauses of contract are presented, as you can see it consists from 9 clauses.

It concluded in today’s date, between two sides Agrichem International and Grunwald SA.

On this slide you can see the main 9 clauses (перечисляю). And now let’s discuss it more precise.

1. Contract period.

2. Ability to sell up

3. Selling price\buyng price

4. Discounts

5. Exclusive distributorship

6. Personal

7. Credit period

8. F.O.B

9. Insurance

Lena -First of all we should discuss the contract period. As you know, the distributorship agreement is signed for longer periods, and we agree to 7 years, but if we have good results of work, we will prolong the contract.

Josephine- I agree entirely with your offer.

I would now like to turn briefly to the amount of litres, Lilya, what amount you think would be preferable for us?

Lilya – So, if you consider that you are effective distributor in Ecuador, you should be able to sell up to 170,000 litres of Matrox Y.

J- I totally disagree, it’s impossible! Look, present sales of a Matrox are 64,800 litres per year. I think we have to find the consensus in that paragraph. I think we can set a middle amount e.g. 120,000 litres per year. In the first year of our cooperation is impossible to achieve such results, but we’ll try to achieve such indicators in 2-3 year. I think we need to determine the approximate volume of sales in the first three years. первый год 75тыс. в год, второй 110тыс. в год, третий- 140.

Lilya - agree

What about price, J.?

J- probable sales price is 5$ per litre.

I disagree entirely, in this case we won’t have any profit, we offer 6$ per litre.

J- Ok, could we expect discounts?

Yes, if you agree with our price, we will give you 5-7% discount. But we have some conditions, It will happen in case we don’t break the contract near 6 month, and if you increase the amount of buying litres.

J- I think it’s a good suggestion.

Аня: I think it is a logical to require exclusive distributorship.

J- It’s impossible! we have a large customer base. But you shouldn’t worry about competition! They have goods absolutely different from your products.

Let’s turn to the personnel structure, Kate, what do you think about it?

Kate- As a Personell Director, I would like to draw your attention to the structure of sales unit. The sales unit should consist of:
1 general manager
1 accountant
1graduate technician for product registration
4 indigenous technical salesmen
3 office staff
J-I’m of exactly the same opinion.
Kate- We also can offer one of our top people as G.M. for 3 years and will pay 50% of his salary and relocation expenses for a period of 1 year.
J- I totally disagree with you, we have formed staff and we don’t need in your person.

- So, If you want to choose your Genaral Manager , you may. But I strongly recommend you to choose a person with good experience.

Lena, could you help us with the defining the credit terms?

Lena- From my point of view, the credit period in our business is 120 days.

J- I don’t agree at all. Typical payment period in Ecuador is 160-240 days. Typical payment period in Ecuador is 160–240 days. In addition to this, there will be a 60-day period of goods in transit. If Agrichem invoice us 60 days before we receive stock, we would have considerable cash-flow difficulties. I think the best credit period is about 180 days.

What about delivery, Lilya?

Lilya- Our price F.O.B. …

J-I can offer you 1$ per litter, because we have our own delivery service.

I think that we have a consensus in our contract. Has anybody questions to our new distributor?

Аня:I suppose that 6-monthly rewiew periods should be built into the contract and both sides should have the rights to cancel the contract with 6 month notice.

J: I think we are in agreement on that.

На слайд выводится таблица со стр 194, юрист заполняет.

Our congratulations Ms.Grunwald, we hope that we will have good and strong relationship in our business.

I think that’s everything

Ladies and Gentlemen, I declare the meeting closed.

Thank you all for coming.