My legal memo

MEMORANDUM OF LAW

TO:       eBay's general counsel               

FROM:     Kim Parrish

DATE:     February 23, 2008

RE:       Issues facing eBay France with regards to the Council of Sales' claim that eBay France is in violation of the Auctions laws in France. 

 

Question Presented

Does ebay fall under the restictions oF an online auctioneer house or should they be classified as an online auction broker? If they are cosidered an online auction broker, does the auction act of 2000 still apply?

 

Brief Answer

     Because eBay does not take possession of the items being sold on its website and makes no guarantee for those items they are only acting as an auction broker, not an "Auctioneer" or "Agent." EBay is, therefore, not in violation of the French Auction Act of 2000, which requires the company obtain permits, provide quality assurances, and arrange shipping services, among other guarantees to their French citizens (Sayer,2007).

 

Statement of Facts

     In December 2007, the French government, specifically the Council of Sales, pursued legal action against eBay, suggesting that eBay France was not in compliance with France's auction laws. They argued that eBay had not properly applied for auction permits and is not providing the proper customer safeguards, which are required by the Council's 2000 Auction Act.

 

 

Discussion

Does ebay fall under the restictions of an online auctioneer house or should they be classified as an online auction broker? If they are cosidered an online auction broker, does the auction act of 2000 still apply?

 

     In France, traditional auction houses and online auctions are strictly regulated by the Council of Sales and the Auction Act of July 10, 2000, which is a modernization of the Auction Act of 1841. The Act specifically regulates traditional auction Houses and online auctioneers, but does not regulate online auction brokers. The main subject for consideration then, is whether or not eBay falls under the title of online auction broker or online auctioneer. The main difference between to the two classifications is the level of involvement that the agent or broker plays in the transaction. According to Article 3 of the Auction Act of 2000, an auction regulated by an auctioneer is "the offer for sale of movable property over the internet by a person acting as the 'agent' of the owner of this property for adjudication to the highest bidder constitutes a public action sale," which can be regulated by the Council of Sales (Misse & Belin,2007). The Auction Act goes on to define an agent as someone who temporarily takes over the property of the seller and acts on their behalf to negotiate the highest bid from among the buyers. In France, the auctioneer is a "public official, registered under the regulatory authority of the Minister of Justice, and authorized to conduct auction sales, [and is]in charge of defending the seller with payment guaranty and of protecting the buyer with authenticity guaranty" (www.auction.fr, 2005).

     The French government believes that eBay is an auctioneer, and acting in that capacity eBay has not obtained the proper permits and is not providing the necessary guarantees to their customers, which violates the Auction Act of 2000. eBay's top management, in contrast, has been quoted saying that they are only "facilitators" or brokers of auctions, and that "eBay has invented a new way of buying and selling, which has been adopted by 10 million French people," where they are merely brokers of the transaction, not agents (qted in Out-Law.com). In other words, eBay's official position is that they are an online auction broker and not an online auctioneer.

     For the French government's claim to be true they would need to prove eBay is an auctioneer: according to French law, eBay would need to be an agent of the items being sold. To act as an "Agent" under the Auction Act eBay would need to take possession of the item being sold and sell them on behalf of their owner (auction.fr, 2005). EBay would also need to regulate the shipment and money transfer of the items being sold. EBay purposely does neither of these actions. They do not regulate shipping, because the items are all over the world and some do not need to be shipped, nor do they claim ownership over the items, because this would hinder the speed and openness of the transitions on their site. Their goal is to provide an online forum where online buyers and sellers can meet to exchange goods. EBay has a commitment to be a"venue to allow anyone to offer, sell, and buy just about anything, at anytime, from anywhere, in a variety of pricing formats" (eBay user agreement, 2008). This open policy allows for a much greater diversity of items being sold and gives a lot more flexibility to their customers. EBay's website does keep tract of bids, but that is the only service they provide, they never claim to act on behalf of the seller. Thus, eBay is best defined as an online auction broker, not auctioneer, and aims to give their buyers and sellers the most freedom possible.

     This does not mean that eBay does not want to protect its clients; in fact they take great measures to do so. One example is their use of seller ratings where buyers can rate the sellers, making sure any dishonest sellers are not used again. Furthermore, even though eBay does not regulate the payment of their goods they do suggest users use companies like paypal^TM which provide some liability protection that eBay does not. EBay takes these steps because they are committed to their customers, not because they are auctioneers or forced to do so by law.

 

Conclusion

     EBay has a commitment to its users to provide the greatest access to products available. They are committed to letting sellers commune directly with buyers, and therefore take on the role of broker, not agent, and are not bound by France's Auction Act of 2000 which regulates Auctioneers and Auction houses, but does not regulate brokers.

Bibliography

 

auction.fr. (2005). "auctioneer."   Retrieved February 22, 2008, from http://www.auction.fr/uk/divers/savoir.html.

Brigitte Misse, J.-L. B., Murielle Cahen. (2007). "ARE INTERNET AUCTION SALES LEGAL UNDER FRENCH LAW?"   Retrieved February 23, 2008, from http://www.ibls.com/members/docview.aspx?doc=755

ebay.com. (2008). "Your User Agreement."   Retrieved February 24, 2008, from http://pages.ebay.com/help/policies/user-agreement.html.

OUT-LAW.COM. (December 5, 2007). "Auction watchdog says eBay is illegal in France."   Retrieved February 24, 2008, from http://www.channelregister.co.uk/2007/12/05/france_says_non_to_ebay_broker_claims/.

Sayer, P. (2007). "French auction regulator sues to close down eBay France."   Retrieved February 23, 2008, from http://www.infoworld.com/article/07/12/03/French-auction-regulator-sues-to-close-down-eBay-France_1.html.

           

 

 

 

 

 

--
Kimberly Parrish
Global Partners MBA
Kimberly.Parrish@gmail.com
770-366-3936

Greer Law Paper

MEMORANDUM OF LAW

TO: Professor Benjamin Greer

FROM: Shawn Butler

DATE: February 24, 2008

RE: Regulatory Action of French Council of Sales vs. eBay Inc. France

STATEMENT OF FACTS

France's auction house regulatory Authority, Council of Sales, challenges the legality of eBay France, the France-based division of the California, USA online auction and shopping website company eBay Inc. The Authority asserts "that eBay's French site 'should be held to the same standards as other auction houses in France,' which are required to acquire a special permit from authorities that includes guarantees of consumer protection."1

The requirement of permits allows the Authority to impose regulations regarding auction houses aimed at preventing the inadvertent sale of stolen goods, counterfeits, and frauds.

eBay Inc. responds by stating that it "has 'invented another way of buying and selling' not covered by the law on auction houses."3 The company's claim is that they are not an auction house but a "facilitator"4 or a brokerage company for sellers and buyers.

The Authority said "that eBay's failure to abide by the rules governing auction houses leaves consumers open to exploitation by unscrupulous eBay users, and could make it easier for users to sell fakes or to evade tax."4

QUESTIONS PRESENTED

A. Is eBay correct in its allegation that it has invented something completely different from an auction house using its online auction and marketplace model?

B. Should eBay fall under the same rules regulating auction houses and be responsible for the validity of the goods traded through its service?

DISCUSSION

A. eBay defines itself on its website as "[t]he World's Online Marketplace®, enabling trade on a local, national and international basis. With a diverse and passionate community of individuals and small businesses, eBay offers an online platform where millions of items are traded each day."6 This careful avoidance of the term "auction" in their own description neither states that the company operates, by its own definition, as a brokerage or an auction house.

However, for the opposition, the semantics does not appear to be the key issue. "The Council said that it did not accept eBay's assertion that it was simply a broker and not an actual auctioneer. 'What is the difference?' [Council chairman Christian] Giacomotto said to The Times. 'They charge a commission to the seller and a commission to the buyer. These people cannot say they are responsible for nothing at all. If you rent your house to someone who sets up an illegal casino in it, then you share part of the responsibility.'"4

The logic presented by Chairman Giacomotto is verifiable; that the owner of a house bears partial responsibility for illegal activities that occur in the house on the part of the renter is well represented in precedent. Whether or not this scenario relates to the online auction sector is still a matter of deliberation.

B. The overt reason given by the Council to impose the requirement of licensing on eBay France is to protect the consumer, but they also are interested in protecting other auction houses. "This is unfair competition, because other auctioneers have to make sure they are transparent and that they provide guarantees," Council chairman Christian Giacomotto told The Times. 'Our ambition is not to regulate the world, but we want groups such as eBay to accept their responsibility.'"4

The responsibility mentioned here is the requirement to purchase insurance against fraud on the part of the auction house which puts the house itself responsible for authenticating that the goods bought and sold on the site are verifiable and legally obtained. Currently, eBay takes no responsibility for fraud committed via its website.

Which laws can be applied to the company is again dependent on the way that it is determined the company is doing business, whether as an auction house or as a brokerage. "[The July 2000] law makes a clear distinction between the activities of online auctioneers, which have a mandate from the owner of the goods to sell them to the highest bidder, and online auction brokerages, where no third party intervenes between the buyer and the seller to complete the sale. Online auctioneers must obey the same rules as physical auction houses, in particular taking responsibility for delivering the goods to the buyer, but auction brokers are almost exempt from regulation, except where the goods sold are "cultural products" such as books, CDs, or DVDs, according to the regulator." 3

Finally, other matters that should be considered are the cases cited parallel to this regulation by the council in France. "Last month, [November 2007,] the regulator filed suit against the online car auction site Carsat.fr seeking a similar court injunction to halt its activities, which it said were being conducted without due authorization, and warned that other online auctioneers faced similar action."3

"French regulation of internet businesses recently failed when the Government lost a case in which it tried to prevent an online gambling company from operating. A Maltese horserace betting site, Zeturf, had a ruling banning it from operating overturned in July by France's highest court, the Cour de Cassation. That court said that France's state monopoly on gambling broke EU competition rules."4

It could be construed that similar financial and monopolistic motivations could be spurring the regulatory Councils investigations into eBay France.

CONCLUSION

eBay has been a successful and fast-growing company since its inception in 1995 and currently operates in 30 countries. The reputation for fraud on the website is well documented. "It is estimated that about a quarter of all ancient coins and about two-thirds of all antiquities sold on eBay are modern forgeries."5

A. eBay defines itself as something new that falls outside of the scope of auction houses or brokers. By this definition, they are attempting to fall outside of the legal limits regarding both institutions. The best comparison, however for eBay would be to not claim to be something brand new, but rather to be something that is already understood by governmental agencies.

The action and model of eBay is much more similar to the current function of newspaper classified advertisement sections that have been posted online. In the case of online classifieds, zero fault or responsibility is assigned to the posting agent as it regards fraud. A simple disclaimer that buyers should be cautious and careful in their transactions via the media serves to prevent the allocation of guilt.

B. By finding eBay to be subject to the same requirements as an auction house and responsible for verifying its goods and services will leave the company financially responsible for fraud on its site. This additional monetary responsibility will quite possibly change the model of eBay from an online auction to an online marketplace, in order to avoid the impending financial burden. If France's Council determines the requirement of a permit, it is likely that other countries will impose the same restrictions.

Rather than having to follow the laws regarding auction houses, or even the more relaxed laws regarding brokerages, eBay should be held to the legal regulations that apply to other vehicles that simply connect buyers and sellers together, like classified advertising and public bulletin boards. The Council of Sales is misguided in its attempts to apply the July 2000 law to the French division of the eBay company.

RESOURCES

1. http://www.caltradereport.com/eWebPages/page-two-1198255692.html

2.http://www.reuters.com/news/video?videoId=72200&videoChannel=5

3. http://www.infoworld.com/article/07/12/03/French-auction-regulator-sues-to-close-down-eBay-France_1.html

4.http://www.channelregister.co.uk/2007/12/05/france_says_non_to_ebay_broker_claims/

5. http://rg.ancients.info/guide/counterfeits.html

6. http://pages.ebay.com/aboutebay.html?_trksid=m40

NEW GPMBA Partnership BLOG INSTRUCTIONS

Please remember to send in your blogs from Rio!
From now on please be sure to send your blogs to Jim Beach @ james.beach@att.net and Also CC Robin at gpmba@gsu.edu

Comparison: Poter vs. Porter

MEMORANDUM

Date: February 18, 2008

To: Professor Truex

From: Emily Tsang

Subject: Comparison of Competitive Advantage of Nations and Strategy and the Internet

Introduction:

This summary compares the affects of the internet in nations and further companies in obtaining sustainable competitive advantages illustrated by Porter in Harvard Case articles entitled 'Competitive Advantages of Nations' and 'Strategy and the Internet'.

While both articles were written by Porter, one is from the perspective of nations' actions to companies and the other being more company action specific, both speak to the influence of the internet and how to utilize the technology to go beyond operational effectiveness and obtain stainable strategic positioning.

In this write-up, we will link the underlying messages Michael Porter is trying to convey in both articles. We will focus on the significance the environment has on the utilization of the internet; some factors that cause one to innovate or upgrade; some common misperceptions of competition; and what happens when technology is used as a complement to and not a driver of obtaining strategic and competitive advantages.

Analysis:

While technology exists and is available, those nations that have the environment and leadership that permits and supports ongoing information and continuous upgrading are the companies that can gain a competitive advantage. Porter expresses in his 'Strategy and the Internet' article, that it is not so much the availability or the existence of the technology, but the environment such as the right leadership to employ those technologies that can avail a competitive advantage. "While each industry will evolve in unique ways, an examination of the forces influencing industry structure indicates that the deployment of Internet technology will likely continue to put pressure on the profitability of many industries" (2001, pg 12). Even further to his point, it is through the leaders that utilize technology as a part of their overall strategy and not as the plan for task oriented operational effectiveness is what can obtain sustainable advantages.

This still does not necessarily mean that those with more resources have a more ideal environment for the use of technologies such as the internet, but the environments that have the necessary catalysts such as good leadership or other insufficiencies that push the nation and companies to be more resourceful with the use of technology are the ideal environment for innovating most effectively. In Porter's 'Competitive Advantage for Nations', he states that "[f]inally, when the national environment pressures companies to innovate and invest, companies both gain a competitive advantage and upgrade those advantages over time" (1990, pg 9). Porter later clarifies that the disadvantaged are prodded to innovate and upgrade more in order to become advantaged in a more dynamic model of competition, away from the traditional static model of competition. Companies further overcome their deficiencies by innovating and upgrading in order to be competitive. Porter clarifies this argument by contrasting how companies that are the have lots become inefficient when their environment allows them to operate complacently, versus how the have not's are pushed to be innovative and more resourceful; thus utilizing technologies better in the following statement. "When there is an ample supply of cheap raw materials or abundant labor, companies can simply rest on these advantages and often deploy them inefficiently. But when companies face a selective disadvantage, like high land costs, labor shortages, or the lack of local raw materials, they must innovate and upgrade to compete" (1990, pg 9).

Technologies such as the internet return benefits only in the format that they are utilized. Most companies go wrong with the implementation of technologies in a narrowly focused deployment accompanied with expectations of outcomes that are too all-encompassing. Porter shares some common misperceptions on the nature of competition first in the 'Competitive Advantages of Nations' article and similarly again in the 'Strategy and the Internet' article. Even though the need for change and the environment must be conducive to upgrade and employ technologies such as the internet must exist, more so "the goal, for both nations and companies: [should be] not just surviving, but achieving international competiveness" (1990, pg 21). The problem is where companies focus too much on uses of the internet for operational effectiveness. Those are the tasks before them that are survival tasks. In 'Strategy and the Internet', Porter shares his views of how operational effectiveness is necessary for survival; and profitability is obtained through sustainable competitive advantages and strategic positioning. "The Internet affects operational effectiveness and strategic positioning in different ways. It makes it harder for companies to sustain operational advantages but it opens new opportunities for achieving or strengthening a distinct strategic positioning" (2001, pg 13). Operational effectiveness alone is not enough to gain or sustain a competitive advantage as one can only expect to gain speed and agility. "Without a distinctive strategy, speed and flexibility lead to nowhere" (2001, pg 14). With forward thinking leaders recognizing the company's ability to innovate in areas beyond operational tasks of gaining efficiencies and ancillary forms of value, competition becomes more of strategic positioning and other forms of customer value creation. In turn the companies can charge not only for their products or services at hand, but the value overall generated.

Repeatedly, Porter states the need for recognition and understanding of both the needs for innovation but innovation by itself is not the stand alone solution. The 'company agenda' as Porter refers to it encompasses the leadership roles and correct usage of innovation in order to "tap selectively into advantages"(1990, pg 20). That the environment must exist to support the introduction of innovation, but strategy must exist to utilize technologies in a format beyond operations in order to compete advantageously. The companies can then obtain sustainable competitive advantages in operational excellence and superb strategic positioning, which is harder to duplicate by using technology as a complement and not the sole factor for obtaining those advantages. The strategies that allow innovation and technologies such as the internet to better automate and link operations and functions will propel the company or nation further ahead and secure a competitive advantage and position.

Conclusion:

Ultimately, the common message that Michael Porter has tried to convey in both the 'Competitive Advantage of Nations' and 'Strategy and the Internet', is that the right environment must exist to have the optimal condition to incorporate innovation and upgrading. This environment is not necessarily only made-up of available resources and infrastructure or lack there-of, but the necessary forward-thinking leadership. When innovations such as the internet are integrated as a complement to a company's strategy, then true sustainable advantages can be obtained. It is not so much the technology itself that is the catalyst for a good strategy, but the capabilities that it has to further link and automate functions and parties throughout the value chain that create value. Value, which is created that becomes competition beyond products and later turned into profitability.

Criteria	Competitive Advantage of Nations	Strategy and the Internet
Significance of the environment and use of the Internet for strategy.	High	High
Why Innovate and upgrade?	Weak nations will look to innovate in order to get rid of deficiencies such as the Japanese who have no natural resources, in order to compete they were forced to develop JIT, and TQM strategies combined with their infrastructure advantages to maintain competitive advantages.	Internet influences industry structure and sustainable competitive advantage; while not maintaining operational effectiveness, but maintaining strategic positioning
Misperceptions of competition	Tasks vs. Forward Thinking leadership	Customer value vs. ancillary forms of value
When technology is used as a complement and not a Driver…	National environment pressures companies to innovate and invest; companies both gain a competitive advantage and upgrade those advantages over time… Company Agenda	Beyond operational excellence and more sustainable Strategic positioning and thus a competitive advantage

Bibliography

Michael Porter, (1990)"The Competitive Advantage of Nations" Harvard Business Review, pp. 73-91.

Michael. Porter, (2001­) "Strategy and the Internet" Harvard Business Review, pp 63-78.

General Electric

GE- Imagination at Work
"Why predict the future when you can create it?"

Overview: Been around for 125 years. Buzz words are innovation, company culture, imagination and eco friendly. Jeff Immelt is CEO, and it was his idea to make the company eco friendly. Operate all over the world. Focusing on cleaner power and nanotechnology. In the top 100 companies of "Best Companies for Working Mothers." Heavy focus on leadership, training and diversity.

Divided into 6 biz segs
- NBC Universal
- GE Infrastucture
- GE Healthcare
- GE Commercial Finance
- GE Money
- GE Industrial

Products
- appliances
- airplanes
- finances
- energy
- consumer electronics
- healthcare
- lighting
- oil and gas
- water

Career Fair Summaries

BMW Group

Bayerische Motoren Werke AG ( info) (BMW), is an independent German company and manufacturer of automobiles and motorcycles. BMW is the parent company of the MINI and Rolls-Royce car brands. It is also one of the leading car and motorcycle manufacturers in the world. BMW was officially founded as a public company in 1922, but traces its origins to the pioneering days of German aviation all the way back to 1913. Two of these pioneering men, Karl Rapp and Gustav Otto, are credited by BMW as the "founding fathers". However, BMW owes its actual founding by three men- Josef Popp, Max Friz, and Camillo Castiglioni.

First Continental Trading

FCT Group is a derivative trading company that deals mainly with fixed income futures, bonda and interest rate. There is no information on this company available on the web.

Catalyst Natural Gas

Based in Atlanta, Catalyst Energy is now Catalyst Natural Gas. "Our name change gives customers clearer communication about who we are and what we do," said Fernando de Agüero, CEO. "Catalyst's drive to be an advocate for customers is the underpinning of our corporate culture. Our new messaging and branding campaign including our name change to Catalyst Natural Gas with the tag line " Empowering You", emphasizes this commitment."

Catalyst's mission is to provide a portfolio of energy products and services in selected markets across the country. The company believes that in the Georgia market it needs to have a stronger emphasis on its current natural gas offering, as well as a clearer message for communication with customers about a product fraught with complexity.

Catalyst Natural Gas invested heavily in 2006 in market research in an attempt to study the brand image of natural gas marketers in general and Catalyst Natural Gas specifically to the general public. The idea for the name change started with a consumer in one of several focus groups conducted by the Company in the fall of 2006. Consumers observed that "energy" does not equal "natural gas" in their minds. They wanted clearer information and not to be confused by labels.

One of the consistent feedback messages in the consumer focus groups is the need for better information on rates and plans in easy-to-understand formats empowering them to make good choices for themselves. "Making it easier to select a marketer is critical to developing our new brand. Making it easier to do business with us is a major part of our business formula," said Mike Kirschner, Chief Marketing Officer.

Catalyst Energy d/b/a Catalyst Natural Gas is a privately owned, owner operated natural gas marketer certified by the Georgia Public Service Commission (GPSC) to operate in all of Atlanta Gas Light Company's distribution area. Catalyst Natural Gas is a Minority Business Enterprise (MBE) as certified by the Georgia Minority Supplier Development Council (GMSDC). Through a commitment to innovation, customer service and community outreach, Catalyst Natural Gas d/b/a Catalyst Natural Gas, harnesses the power of positive change to deliver the full potential of deregulation to the Georgia natural gas market.

Metro Atlanta Chamber of Commerce

Metro Atlanta Chamber of Commerce

• an independent, non-profit, member-funded organization that is not part of any government
• representing 4,000+ member companies employing 700,000+ workers in the 28-county region
• operated by a staff of more than 80, with more than 3,000 volunteers
• our Board of Directors and Board of Advisors are drawn from among
  Atlanta 's top leaders

What does the Chamber do?

• We bring the region's leaders together to tackle the big issues that matter most – quality jobs and quality of life.
• Quality Jobs: The Chamber markets Atlanta as a business location, attracting companies that create quality jobs. We are particularly focused on attracting headquarters, expanding global commerce and attracting jobs in the high-tech and logistics industry clusters.
• Quality of Life: We work with business and civic leaders to tackle quality-of-life issues such as traffic congestion, education, air and water quality and land use.

Economic Development
The Chamber is a powerful force in economic development. Areas of focus include

• headquarters recruitment & general marketing : Proactively marketing metro Atlanta as a business location, attracting company headquarters and creating quality jobs.
• logistics industry development: Positioning metro Atlanta as a global logistics center of innovation and growing and attracting logistics companies and jobs.
• technology cluster development: Shaping Atlanta as a center of technology and innovation by attracting and growing companies in the IT, software, biotech and telecom industries.
• international economic development: Developing metro Atlanta into an international business center and attracting foreign direct investment, companies and jobs – while assisting metro Atlanta companies who do business abroad.

Current events

On Monday, Dec. 10, the Chamber along with the Atlanta Regional Commission, the Metropolitan North Georgia Water Planning District and GE Water & Process Technologies will host an all-day forum to discuss the state's water crisis and look at some possible resolutions for the issue. Below is information about both events.

Title: Communications Internship Position

Metro Atlanta Chamber of Commerce -

The Chamber Communications team seeks interns on a semester basis to provide year-round support.

Responsibilities include media outreach, writing news releases, assembling weekly news clips,

photography, coordinating media interviews, editing Chamber publications, developing Web site

content, media list databases and other assigned communication duties.

Internship requires a regular schedule of at least 25 hours per week. Applicants must be of junior or senior status with major coursework toward a degree in Public Relations, Communications, Journalism or English. Intern benefits include exposure to high-profile national and international public relations campaign development and execution, meeting key Georgia business contacts and working closely with high level PR executives. Candidates must have strong writing and organizational skills, knowledge of AP style and ability to work independently on a variety of projects simultaneously. Internships can be performed for class credit. Interested candidates should submit a cover letter and resume to Chanta Waller at cwaller@macoc.com . For more information, please visit www.metroatlantachamber.com.

GADEcD

Georgia Department of Economic Development is a conduit for domestic and international trade in Georgia, its website describes the following:

Georgia is a place where hopes and dreams become reality. The state possesses a rare combination of assets, resources and people that come together to create a fertile environment where success comes faster. Want to be a part of our dynamic team? Visit our career opportunities page.

The Georgia Department of Economic Development (GDEcD) is your one-stop-shop for accessing these assets and amassing the right components for success. Through our staff of business development and industry experts, and partnerships with public and private sector resources, Georgia can meet your specific needs. Combine this business savvy with a rich landscape and world-renowned facilities that allow residents and vacationers alike to expand their horizons, and it's little wonder that growth and prosperity are so readily available.

Georgia works for your business. When you consider Georgia, GDEcD's professional and knowledgeable staff provides the right information and resources in order to help your company achieve its goals.

GDEcD's business specialists assist in business expansion and relocation, international trade, small business development, and technology and biotech development. Project managers in each of Georgia's regional economic development offices, as well as throughout the Americas, Europe, Africa and Asia, will provide you with access to the state's resources and assets, connect you to a vast network of skilled workers, and broker partnerships with other organizations and support systems.

Georgia also entertains you. Filmmakers and music producers access state-of-the-art production services and facilities, professional crews and talent, and countless, diverse locations in Georgia. Location and production experts in the Georgia Film, Video & Music Office build connections throughout the state, allowing film and music companies to make the most of Georgia's resources.

Last but not least, Georgia plays. Georgia's landscape lets you define your own experience and realize your own goals. From the Appalachian Trail to the Cumberland Plateau, Georgia's unparalleled diversity of vacation and meeting locations brings you rich possibilities. GDEcD's tourism professionals will help you tap into the state's many destinations and create the kind of experience you're seeking.

By providing a unified voice for Georgia, the GDEcD proactively promotes Georgia's resources, spirit and successes to a global audience – and to you.

Tim Devlin is the representative who will be here Friday from the GDEcD.

 

bottle notes

www.bottlenotes.com

Bottlenotes is a customized wine club service and wine retail website featuring wines from some of the best producers around the world.

a small online wine firm with a focus on wine clubs and a user friendly system of helping the customer select a wine.

Panama Canal Authority

The Panama Canal Authority (Spanish: Autoridad del Canal de Panamá, or ACP) is the agency of the government of Panama responsible for the operation and management of the Panama Canal. The ACP took over the administration of the Panama Canal from the Panama Canal Commission (the joint US-Panama agency that managed the Canal) on December 31, 1999, when the canal was handed over from the United States to Panama as the Torrijos-Carter Treaties stated.

Daniel--the guy from GPMBA 2007 worked mostly with shipping through the canal and logistics.

The Work of Leadership By Heifetz and Laurie

Leadership is like a doctor that tells a heart attack patient to change his lifestyle.

Companies face adaptive challenges that require overall change.

Leaders cannot just take responsibility and provide solutions, because these solutions must come from the collective intelligence of employees at all levels.

Adaptive change is distressing for the people going through it.

Six Principles for leading adaptive work:

 

Get on the Balcony

Magic Johnson and Bobby Orr in hockey play hard while keeping the whole game situation in mind, as if on a balcony above the field of play. See the larger patterns of play, make observations.

Leaders should see a context for change or create one. Give employees perspective of past and current market forces, identify struggles over values and power, and recognize patterns of work avoidance and dysfunctional reactions to change.

Prerequisite for the next five principles.

 

Identify the adaptive challenge

Chimpanzees know how to react to a predatory leopard, but not to a hunter or poacher.

British Airways changed from "Bloody Awful" to "the world's favorite airline" by reorienting on serving people, acting on trust, respecting the individual, and making teamwork happen across boundaries. Values had to change.

CEO Colin Marshall looked:

1) at the organization, meeting crews, employees, and passengers

2) at conflicts as symptoms of adaptive challenges – procedures, schedules and lines of authority

3) Mirror up to themselves – executive management would lead in adaptive work.

 

Regulate distress

Realize that people can learn only so much so fast. Strike delicate balance – people should feel the need to change without feeling overwhelmed.

1) Create Holding Environment – a "place" to frame and debate issues, clarify assumptions

2) Use Authority – responsible for direction, protection, orientation, managing conflict, and shaping norms.

3) Have presence and poise

Pressure Cooker Analogy – maintain pressure, but release steam

 

Maintain disciplined attention

Value diversity, invite competing perspectives, but maintain focus

Reign in work avoidance tactics. Encourage dialogue, prevent sterile conflict.

 

Giving the work back to people

Your people will recognize their own problems and often supply the solutions

Protecting voices of leadership from below 

COMPLETE EXXON PAPER FINAL!!

I've shared a document with you called "COMPLETE EXXON PAPER FINAL!!":
http://docs.google.com/Doc?id=dwhwk9n_1fzswn6&invite=cqtsw7

It's not an attachment -- it's stored online at Google Docs. To open this document, just click the link above.
---

don't update until thursday at 8pm

IB reading - End games in international alliances

End-Games in international Alliances

 

Most alliances will need to come to an end at some point, so it is important for the business person to consider an end plan from the beginning.

 

Why Alliances End

1 the alliance is not successful

2 differences between partners (i.e. people incompatibilities, different management styles, disagreement over objectives)

3 breach of agreement

4 the alliance no longer fits the goals/strategies of a parther

5 a partner needs to exit the alliance because of financial difficulties or to take advantage of financial opportunities

6 the alliance has met it's goals

 

Divorce Scenarios

1 unplanned / planned

2 friendly / unfriendly

3 Both agree / on partner refuses to agree

 

Outcomes

1 Termination by Acquisition

2 Termination by Dissolution

3 Termination by Reorganization / Restructuring of the alliance

 

Key issues to consider

An exit clause should be in the agreement

1 conditions of termination

2 disposition of assets

3 disposition of liabilities

4 dispute resolution mechanisms

5 Distributorship arrangements

6 Protection of proprietary information and property

7 Rights over sales of territories and obligations to customers

Non legal issues

8 the decision to exit

9 people-related issues

10 relations with host government

 

Do's and Don'ts for Managers

1. Know as much as possible about your partner
2. know as much as possible about the country in which you are going to do business
3. ask hard questions before entering the alliance (what are my key assumptions? Worst case scenario? What is most important to me? What am I prepared to lose?)
4. don't be afraid to walk away from a deal if it's not right.
5. Termination is not just a legal issue, get involved.
6. Terminology and phraseology are very important (language)
7. Build intelligent flexibility into the contract (what method will be used in valuing assets)
8. take time to develop a personal relationship
9. Think about the end before the beginning

only those who risk going too far find out how far they can go
-t.s. elliot

---

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Washington D.C. Photos- Picasa link

http://picasaweb.google.com/GPMBA2008/GPMBAWashingtonDCTrip2007?authkey=k4pIjGA8oI8

Link above is to google pics where we can create albums for all of our
photos! So far the ablum above is for our D.C. trip... ENJOY!

Secrets of Power Negotiating

The Myth of "Win-Win"

• The author argues that win-win occurs so rarely in
business that we should discount it altogether.

• "Power Negotiating" – Is a way in which one
negotiates so that their opponent believes he or she
has won.

• There are several "moves" or negotiating positions
we can use to create this appearance to the other
side.

Ask for More than You Expect to Get

• Henry Kissinger "Effectiveness at the negotiating
table depends upon overstating demands."

• Asking for more than one expects raises the
perceived value of what you are offering and prevents
deadlocking.

o (ex. Persian Gulf War: President Bush gave Saddam
Hussein a clear and precise opening position leaving
no room for movement – the goal was not to negotiate
but deadlock Hussein giving justification for attack)

• Avoid inadvertently creating deadlocks by not asking
for more than you expect to get (if the other side
expect you to move and you can't then there is no room
to negotiate).

• Start with your Maximum Plausible Position and imply
flexibility; MPP is the most one can ask for and still
seem credible. Opponent may think, "That's outrageous
but there does seem to be some room to move…"

Never Say Yes to the First Offer

• Weakens a position by suggesting two things:
o Opponent could have done better.
o Something must be wrong.

1. Flinch

? Always react with shock and surprise at the other
side's proposals.

? If one doesn't flinch it makes the other person a
tougher negotiator.

? With about 70% of people the visual overrides the
auditory.

2. Avoid Confrontation

? Get in the habit of agreeing initially, use the
"Feel, Felt, Found" formula:

• "I understand exactly how you feel about that. Many
people have felt exactly the same way. But you know
what we have always found? When we took a closer look
we found… [they changed their minds]"

Play the Reluctant Buyer or Seller

• "Wish number" (ideal highest price) and "walk away"
price, typically an offer will fall between these
prices on the second offering.

• Counter argument to above: "I don't think there's
any flexibility in our price, but if you tell me what
it would take to get your business, I'll take it to my
people (using a higher authority as a foil) and see
what I can do for you with them (setting up to play
good guy/bad guy)."

The Vice Technique

• Often just saying: "You'll have to do better than
that," can garner surprising results.

• However, skilled negotiators will retort, "Just how
much do I have to do?"

Don't Worry About Price

• Price is a bigger concern to the seller than the
buyer. Often if we can explain selling features
adequately, price is no object.
Set It Aside

• Place hot-button items on the back burner and
address them when rapport has been established.

• If a stalemate is reached, try to regain momentum
by: changing negotiating teams (esp. someone who may
have irritated the other side), or considering a
different venue (dinner or lunch). Also, explore:
extended credit, reduced deposit, restructured
payments, or specification changes, in addition to
packaging or alternate delivery methods. Discuss ways
of risk sharing.

The Art of Concession

• Don't set up a pattern in the way you make
concessions. Equal-sized concessions will accustom the
other side to expect more.

• Never make a large last concessions, it doesn't look
final if it's too big, and refusal to make further
small concessions aren't viewed well.

Make Time Your Ally

• 80% of concessions will occur in the last 20% of the
time remaining, so keep in mind the following:

• The longer you spend in negotiations with an
opponent, the more likely they will come around and
see your view bit-by-bit.

• Be cautious, the same can apply to your stance as
well – don't fall into the same trap.

• Deadlines are valuable pieces of information, use
them to your advantage, but disclose only with great
discretion your own.
The Most Dangerous Moment

• People are most vulnerable at the point when they
think the negotiations are over. Watch your emotions,
some tend to give in on items they would not
otherwise.

• Rationalizing, "If I give in on this one small
piece, I won't have to renegotiate or risk loosing the
sale," is very dangerous.

• Best rebuttal: "I don't have the authority to make
any concessions now." If other side persists, show
them the hard price in writing.
Your Most Powerful Weapon

• Learn to develop walk-away power, that is to say
never let the thought of loosing an
sale/item/house/price/etc. become so ingrained
as a must have that you loose the ability to walk away
from the table.

• If you can't do this at any time, the other side
knows it and will use it to their advantage.

• "There's no such thing as a sale you have to make at
any price, or the car or home for you, or a job or
employee you can't do without. The minute you think
there is, you've lost."

-Del

__________________________________________________
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IB

I was assigned to summarize "Sources of Joint Gains in Negotiation," but it is missing from the red book and Dr. Liu will bring us a copy tomorrow, sorry!

--
Maggie Mariscal

Preparatory Reading on Senator Chambliss

Hi everyone!

As BB contributed the IBW earlier, I would like to share Senator Chambliss' bio and voting record website with you in advance (and to the benefit) of our D.C. trip on Wednesday!

http://www.vote-smart.org/voting_category.php?can_id=22029

Highlights:

Gender: Male
Family: Wife: Julianne
2 Children: Lia, Bo.
Birth date: 11/10/1943
Birthplace: Warrenton, NC
Home City: Moultrie, GA
Religion: Episcopalian

Education:
JD, University of Tennessee College of Law, 1968
BA, Business Administration, University of Georgia, 1966
Attended, Louisiana Tech University, 1961-1962.

Professional Experience:
Attorney, Business Law and Agricultural Law
Partner, Moultrie Inn.

Political Experience:
Senator, United States Senate, 2002-present
Representative, United States House of Representatives, 1994-2002
Primary Candidate, United States House of Representatives, 1992.

Organizations:
Colquitt County Economic Development Authority
Georgia State Bar Disciplinary Review Panel
Leadership Georgia
Moultrie-Colquitt County Chamber of Commerce
Moultrie-Colquitt County Economic Development Authority
Youth Sports Coach, Young Men's Christian Association.

Caucuses/Non-Legislative Committees:
Congressional Fire Services Caucus
Congressional Sportsmen Foundation
Juvenile Diabetes Caucus
National Guard Caucus
Rural Health Caucus
Senate Caucus on Military Depots, Arsenals and Ammunition Plants
Co-Chair, Senate Reserve Caucus
Steering Committee.

Moreover, he's a Scorpio!!

One warning sign, though: Over the course of several weeks in 2002, this candidate repeatedly refused requests by citizens in the candidate's own state, leaders of both major political parties, major news organizations and Project Vote Smart staff to provide voters with essential issue information in the 2002 National Political Awareness Test.

This candidate would not provide this information to citizens in the candidate's own state - no matter who asked them, when they were asked or how they were asked.

Campaign Finances:
2001-2006 Total Receipts: $12,176,383
2001-2006 Total Spent: $10,098,821
Cash on Hand: $2,080,492
82% of his PAC contributions came from Businesses (vs. Labor and or Ideological/Single Issue)
85% of his PAC contributions have been fully disclosed

Recent Votes:
YES - Prohibiting Funds for Groups that Perform Abortions
(this is currently in contrast to GA Supreme Court, however)
YES - Passage of Legislation to Update Foreign Intelligence Surveillance
YES - Passage of Drought Mitigation Steps by Army Corps
NO - Amtrak Reauthorization

Enjoy!
--
Carol Sautter
404-610-6660
cj_sautter@yahoo.com

THE NEGOTIATION CHECKLIST
The article offers a tool for use in negotiating important issues. The
"Negotiation Checklist" helps to be prepared before walk into a negotiation. It
is based on proven principles of negotiations that are taught in several of
North America's top business schools.

NEGOTIATION CHECKLIST
A. About you
1. What is your overall goal? The big picture. Is what do you hope to
accomplish
2. What are the issues? Price, delivery schedules, duration of contract,
product or service upgrades, cancellation clauses, contingency plans,
transportation services, and many other options. In general, the more issues you
can put on the table (with reason), the better off you are.
3. How important is each issue to you? Picture their relative importance. On
which issues should you stand firm and on which issues can you afford to
concede?
Develop a scoring system for evaluating offers:
(a) List all the issues of importance from step 2.
(b) Rank order all the issues
(c) Assign points to all the issues (assign weighted values based on a
total of 100 points).
(d) List the range of possible settlements for each issue. Your
assessments of realistic, low, and high expectations should be grounded in
industry norms and your best-case expectation.
(e) Assign points to the possible outcomes that you identified for each
issue.
(f) Double check the accuracy of your scoring system.
(g) Use the scoring system to evaluate any offer that is on the table.
4. What is your "best alternative to negotiated agreement" (BATNA)? Backup
plan. Consider negotiating with the only supplier in town or having many
alternatives.
5. What is your resistance point (i.e., the worst agreement you are willing
to accept before ending negotiations)? If your BATNA is vague, consider
identifying the minimum terms you can possibly accept and beyond which you must
recess to gather more information. The worst agreement you are willing to accept
before ending negotiations.
B. About the Other Side. The final agreement will reflect not only your own
preferences, but the other party's as well. Thus, it is useful to ask the same
questions about the other party as you ask about yourself.
1. How important is each issue to them (plus any new issues they added)?
2. What is their best alternative to negotiated agreement?
3. What is their resistance point?
4. Based on questions B.1, B.2, and B.3, what is your target? Set target
based on what you know about the other side.
C. The situation. These are additional contextual factors to consider to help
you maximize your advantages and minimize your risk of making mistakes.
1. What deadlines exist? Who is more impatient? The negotiator who feels a
greater sense of urgency will often make rapid concessions in an effort to
secure a deal quickly.
2. What fairness norms or reference points apply? The abstract discussion may
be less threatening or emotionally charged than the negotiation details, and may
result in a more cooperative tone and outcome for the negotiation.
3. What topics or questions do you want to avoid? How will you respond if
they ask anyway? If there are things you do not want to discuss, prepare your
deflections in advance and polish them until they are seamless.
D. The Relationship between the Parties
1. Will negotiations be repetitive? If so, what are the future consequences
of each strategy, tactic, or action you are considering? Consider whether you
expect or want to continue a business relationship with the party across the
table.
2. (a) Can you trust the other party? What do you know about them?
Inquire how this company conducts negotiations. How much you trust the other
party will influence your negotiating style.
(b) Does the other party trusts you?
3. What do you know of the other party's styles and tactics? Different
negotiators have different personal or cultural preferences. You are likely to
secure the best deal and have the most positive interaction if you learn about
their style in advance and try to accommodate it.
4. What are the limits to the other party's authority? Most negotiators,
unless they are the CEOs of their companies, are authorized to negotiate only
certain specified issues and within certain ranges.
5. Consult in advance with the other party about the agenda. Consider calling
the other party beforehand to share what issues you plan to discuss and to ask
what issues the other party might raise.

--
Jaime A. Latorre