Topic 5

Conflict
PARTICIPANTS
1. Mr. Tran Gia Trai as Chief Executive
2. Ms. Ngo Kha Nhi as Shareholder A
3. Mr. Nguyen Thai Toan as Shareholder B
4. Ms. Nguyen Anh Thy as Staff Representative
5. Ms. Do Huynh Nhat Uyen as Senior Manager
Background
Company Situation
• Was established since 1888
• Importing and packaging tea
in EU, the US and Australia
Difficulties
• No impression in profits
• Limited ranges in supplies
• Low quality of executives
Background
UCC’s Offer

UCC recently made an offer to buy

Herman & Corrie Teas. The
management must decide whether
to recommend the shareholders to
accept the offer.
 To: Simon Marsh
Subject: UCC offer
We’ll be deciding whether to recommend UCC’s offer at our Board of Directors’ meeting
next Tuesday. I intend to invite our two major shareholders to attend, as well as a staff
representative and a senior manager from within the company.

I want to hear all the arguments for and against the offer before we make a decision.

I haven’t made up mind yet, nor have my colleagues on the Board. We accept that profits
have not been impressive in the last three years. We also know that we have a limited
range of suppliers and products, which has attracted criticism in the financial press.
Finally, it’s true that we’ve had problems recently attracting top class executives to fill
management positions.

I hope we will have a good discussion, which will enable us to make the right decision.
Shareholder A

Strongly believe that Board of

Directors should recommend
acceptance of the offer because
Shareholder A
Firstly
UCC will provide money
to finance to expand the
market
Shareholder A
Secondly
Herman & Corrie Teas can
have access to technology
and efficient sales teams of
UCC
Shareholder A
Thirdly
Herman & Corrie Teas can
become more competitive
with UCC's support
Shareholder A
The last
The importance is the profit
of company will be strongly
raised up
 Staff
Representative

Strongly object the offer of UCC

 Four reasons

01
Cut down job will be happened

02
To reduce costs, UCC will
probably close one of the
company's packaging
 Four reasons

03
UCC will in charge of every part of
our company, the present Chief
Executive will have no power

04
The connection in company will
be lost
Shareholder B
Shareholder B
doesn't accept UCC offer
because of consequences it
will bring to company
 Four reasons

01
Herman & Corrie Teas will lose
its identity and principles if UCC
buys it
 Four reasons

02
UCC will change the whole
management
 Four reasons

03 Many customer will no longer buy

Herman & Corrie’s products when
they find out that a large
multinational now owns and
manages the company
 Four reasons

04
A small, privately owned tea
company, FTC, would like to
cooperate with our company
 Senior
Manager
Believe that the offer from UCC is
very attractive and it can help our
business overcome crisis and step
further
 Senior
Manager
01
More opportunities for
promotion if UCC buys the
company
 Senior
Manager
02
With UCC's fund, Herman &
Corrie Teas can have more
investments to enter many big
markets
 Senior
Manager
03
The company needs to be
more innovative to compete
with rival firms
 Senior
Manager
04
The company needs new
management, new ideas
more energy and to be more
risk- taking
 Two opposing opinions
Positive Negative
UCC is gonna invest in HC to grow
HC will lose its family atmosphere.
and enter new markets.
Benefit from UCC’s advanced The CE is popular with all the staff.
Production techniques and efficient
UCC will only be interested in making money
sales teams.
HC can become more competitive with
There will be job losses
UCC’s assistance
Whoa !
Question 1
 Which year was HC founded?

A. 1989 C. 1981
B. 1972 D. 1988
Question 2
 How many people in the meeting
accept UCC's offer?

A. 1 C. 3

B. 2 D. 4
Question 3
 Who accepted UC's offer?

A. Shareholder A & Staff Representative

B. Shareholder B & Senior Manager
C. Shareholder A & Shareholder B

D. Shareholder A & Senior Manager

Question 4
 Why is the Staff Representative
strongly opposed to UCC's proposal?

A. Because cut down job C. Because the

will be happened connection in company
will be lost
B. Because UCC will
change the whole D. A&C
management
Thank for
listening!!