Case Jaudel France - 1223 Words

I. The Summary. jaudel France is one of the fastest-growing companies in the French cosmetics industry. It has built a reputation on a complete range of skin care products, toiletries and beauty aids. Major subsidiaries are located in Germany, the UK, Japan and Argentina. The group sells its skin care products in the USA through an exclusive distributor, Virtue Rubens Inc. But there are some problems in Virtue Rubens Inc. Almost immediately the company’s share price fell sharply on the stock market. The new marketing strategy was repackage certain lines and take them down-market, using mass merchandising channels. Sales at the top end of the market fell off in reaction to the change. A major promotional campaign was required and†¦show more content†¦| |otherwise jaudel France will have to cancel our agreement. | |If Jaudel decided to break off the agreement, they should be | |If Jaudel were to refuse such compensation, Virtue Rubens would then| |reminded that Virtue Rubens would then be entitled to fair and | |threaten to take out an injunction against them. | |reasonable compensation about $2m. | | | |The possibility of a takeover bid from Jaudel isn`t considered | |Virtue Rubens is worth less than $20 million. This would not be | |by Virtue Rubens. | |difficult for jaudel to raise this sum of money. | VI. The Options. |Canceling the agreement | |Advantages |Disadvantages | |jaudel France won`t risk its business in North America. |In this case Jaudel decided will have to pay compensation about $2m. | | |If Jaudel refuses to do that, Virtue Rubens can make an injunction |