Universal Gadgets and Technology Inc. Case

Dale had just hung up on a phone call that he had hoped would have been better news. The courier company which had lost their shipment was not going to agree to any monetary settlement to assuage the feelings of a very important internal customer - the head of research for Dale's company, Universal Gadgets.

Tom Connors, the head of research, had sent off a research grant application which would have led to Universal receiving funding for some important work they were doing with a European client. However, the courier company had not routed the package containing the grant application correctly and it was late on arrival at the grant funding agency. The funding agency had a strict rule - late applications would not be considered.

The failed grant application caused some potential embarrassment for Tom and Universal. A Canadian government official had approached Tom at Universal's Burnaby facility and told him to apply for the grant. Their grant application would be approved on an expedited basis. This was important for Canadian relations with a European trade commission looking at alternative technical solutions. To have Universal represent the local business interests was quite prestigious for Tom and Universal. Other local business and governmental leaders were to meet at Universal's facility within a week to hear about the grant being approved and the role Universal would play. This would be followed up by a press conference and lead to subsequent Euro-Canadian trade missions promoting Universal's technology.

Tom had called Dale a few days ago and told him about the dilemma he was in. Tom had used the courier company, CGK Services, which Dale had advised him to use. Universal spent about $20,000 per month with CGK. With all of the dignitaries preparing to gather in a few days for the announcement what could Dale do to help?

Dale had quickly convened a meeting with CGK, along with Tom and Universal's logistics manager, to explain the seriousness of the situation. Tom had asked CGK to consider covering the cost of the research grant valued at $250K and Universal would see this as a strong commitment to the partnership and put CGK in good stead. The CGK representative explained that this request exceeded his authority and that he would need to get advice from the president of CGK. They implored him to do so as soon as possible.

The next day Dale received the call that CGK would write letters to the funding agency explaining the problem but would not cover the cost of the research. He called Tom who was extremely disappointed at the response. Tom said that Universal's research cost was estimated at $45,000 and that the grant would have provided a good cash injection. Tom reiterated the political sensitivity and expected a satisfactory resolution.

With less than 5-days until the scheduled conference what could Dale do?

This is a case study used in the Better Ways to Better Deals seminar.
What would you do if you were Dale?

Send your comments to: lberglund@prezplus.com