1. V I V I E N B R U N E L
F R A N Ç O I S C O R D I E R
G A L A H A D J E G O
Case study n°4
Leclerc Machines de Cuisine

2. Overview
 General Situation :
 3 companies :
-Leclerc Machines
-Creative Cuisines
-Reliable Restaurant and Home Kitchen Supplies
 5 characters :
-Bill Lewis
-François Jost
-Marie Dominic
-Albert Rose
-Jane Watson

3. Overview
 The dialogue :
 Between Mr. Lewis and Marie Dominic
 Goal : find every legal action possible
 The main issue is to know if Reliable products are genuine or not
• Legal action is possible only if there are not.

4. Overview
 Exhibits :
 1 : Warning letter of Leclerc to all distributors
 2 : Warning letter from Ms. Dominic to Mr. Rose
 3 : Memo from Jane Watson to Bill Lewis
 4 : Memo from Jane Watson to Creative Cuisines
 5 : Reliable’s Ad
 6: Letter from Sandra Jordan to Bill Lewis

5. Timeline of major events
 Between January and July : LeClerc begins exporting its product
 July :, Reliable Restaurant and Home Kitchen Supplies, is also
selling LeClerc Machines
 Mid-July : Mr. Lewis and Ms Dominic, are meeting in order to
discuss possible legal action.
 31st July : a letter has been sent to Albert Rose, President of
Reliable Restaurant and Home Kitchen Supplies
 4th August : Confirmation about how genuine LeClerc products are.
 5th August : Creative Cuisines strikes back.

6. Existing situation
Strengths Weaknesses
Fast and honest communication
between LeClerc and Creative
Cuisines
There is no response from Reliable
Restaurant about the actual problem
Quick reaction from LeClerc
towards his distributors
There is no response from LeClerc
distributors
Ms Dominic, the attorney, seems
really involved and competent
Communication

7. Strengths Weaknesses
Two westernized countries with
a capitalist system
(LeClerc seemed, at first sight, not
really enjoyed having an exclusive
contract with an American firm)
Free countries with no
interference of religion in
business (or with a minor impact
that we are not aware of)
Everyone in Creative Cuisines is
American
Existing situation
Intercultural differences

8. Existing situation
Strengths Weaknesses
LeClerc seems to be trustable,
and want to honor the contract
Reliable Restaurant may have been
aware of the contract between LeClerc
and Creative Cuisines and is practicing
unfair competition
Creative Cuisines want to settle
one’s differences in an honorable
way and respect for the law
There could be a parallel market
involving clients
The warranty printed cards of Reliable
Restaurant may be false and/or
redirect customers to Creative
Cuisines in order to let them handle
defective products
Ethics

9. Existing situation
Strengths Weaknesses
Quick response and good
teamwork in Creative
Cuisine
We haven’t any information
about LeClerc’s distributors
Management

10. Existing situation
Processors Professional model Standard model
Creative Cuisine
(January)
$399 $279
Reliable
Restaurant (July)
$319 $189
Creative Cuisine
(August)
$310 $189
Marketing
Prices evolution:
Finance
Sales are off 30% in July, which is not unusual. Forecast calls
for a steady increase in sales, but we can’t be sure with the new
competition.

11. Statement of Problem
 Violation of the exclusive agreement
 Who is guilty ?
 Reliable
 Leclerc
 Distributors
 Creative Cuisines loss of money due to the illegal
competition and also to lower prices to head off.

12. Options
 1: Status Quo
 2: Extend the agreement
 3: Make a whole new deal
 4: Sue Reliable
 5: Search for the employee in charge of the unwanted
sell