CHAPTER 12
GO BIG OR GO HOME
Tuesday morning, Jessica enters Beauty Boutique Clothing’s offices in San Francisco at nine o’clock sharp to find Nate and her senior staff eagerly waiting to hear about her trip. She begins briefing everyone on how well the two new designs she took with her were received. She explains all about her negotiations with Ricardo, Lidia, Juan, and Sean, and gives a blow-by-blow of testing the factory workers with the production of Carmen’s outfit and receiving rave reviews. She explains to her senior production staff the quality of the factory, its equipment, and the potential of available, well-trained local workers. Several production and quality control department heads appear concerned, and they question Jessica about their need to relocate to Brazil. She recognizes their concern and unspoken questions, which cause her to explain in further detail.
“First, let me assure all of you that no one will be required to relocate to Brazil, and that each of you is secure in your job here, in San Francisco. For some, it may be necessary to spend time, perhaps two or three months, at the new factory to ensure production is set up and moving along correctly. However, based on my observations of the displaced Nike factory workers’ production skills, my expectation is that all the difficulties can be resolved in less than a year, with our international operation being on its own within that time frame, should the Beauty Boutique choose to undertake this expansion.”
She fields multiple questions regarding quality control, distribution, political factors, and time commitment. Then, she surprises everyone in the room, including Nate, when she says, “The decision to expand our operations into Brazil and to open international markets at this time will not be undertaken unless the majority in this room votes to do so. I am fully aware I would not be where I am today had it not been for each of you, your dedication, and your hard work on behalf of the Beauty Boutique. In the next few weeks, Nate and I will be examining all the possible options for financing this type of expansion. I will negotiate the marketing contract with Sean Green Marketing, then bring back to this room the costs and benefits analysis so that everyone knows what we’re getting into. We’re either in agreement going forward, or we will not expand at this time. The success of this organization has always been because of the unity within the leadership team, and this company will never risk disunity, because when this team fractures, so does the organization. We either succeed or fail together.” Jessica finishes her speech to an appreciative round of applause. She briefly waits for anyone to comment while making a point to make eye contact with everyone present, and then finishes, “Thank you all for you time today. See you for our meeting next week.” She walks out of the board room.
Nate follows closely behind and into her office. “Darling, I don’t want to be a killjoy, and that was a marvelous speech, but how in the hell do you plan on pulling this type of expansion off?”
“What do you mean?” asks Jessica, distracted by the design modification lists on her desk.
“Really, you have to ask?” he sighs, “This is a two-million-dollar capitalization project, at least. Where are the funds coming from?”
She shrugs and says, “Between the equity I have in my home and savings, I believe I can raise one million, and my parents should be good for five hundred thousand. We can use half of our line of credit for the other five hundred thousand, which gets us to two million.”
Nate nods slowly. “Yes, it does, and it also straps us in completely with regard to carrying costs, production breakdowns, and any type of industry-wide slowdown or strike. If I was thinking of risking all of my personal assets, I’d examine investor or bank financing options first.”
Jess shakes her head. “You know I hate anything that interferes with our management decision-making processes in any way. Both of those options would come with management oversight and limitations, putting the Beauty Boutique’s ability to respond quickly to industry shifts at risk. Our flexibility and ability to react quickly have kept us at the forefront of our niche market. I simply don’t want to lose that type of competitive advantage, especially in the circumstances you just described.”
Nate huffs out a breath. “Okay, part of that is understandable, but Jess, you’re talking about risking everything you have worked so hard to achieve.”
“Well, perhaps it’s time to go big or go home.”
“Not when the other option is to go broke, even if we think we’re ready to go big,” Nate retorts.
Jessica rubs her temples. “Look, I understand that everything you say could be true. The worst could happen. But the fact remains that we have a competitive advantage that is going to require us to expand or risk a challenge from some unknown competitor. If we continue to strengthen our position within this niche market, we can become the dominating fish in a relatively small pond. I think we should take that opportunity.”
“That’s true, but by expanding our pond size, don’t we also reveal our niche and open ourselves up to the unknown competitive threat?”
“Perhaps, but let me pose a question. Why has no one recently entered the fashion shoe market?”
“Well,” Nate says, considering, “because any newcomer entering that field would be driven out by those who dominate the market by undercutting the competitors pricing…” He trails off, realization dawning on his face.
“Exactly. Beauty Boutique Clothing needs to be the company that dominates the career women’s fashion market. Currently we do, and by taking this expansion, I aim to keep it that way.”
Nate sighs and gives in. “Very well. Then let’s get to work and figure out how to make this feat happen.”
Just then, Jessica is paged through the office phone. “Bonnie Stevens is on line three, Ms. Silva,” says the secretary through the intercom.
Jess sighs and tells Nate, “Please contact Evelyn at Mr. Green’s office and see when the Beauty Boutique can expect a draft proposal from SGM.” Nate nods and leaves Jessica to her phone call.
She picks up the line and says, “Hi sweetie, I’ve been expecting a call from you for a while.”
“Well, why didn’t you call me last night then?” Bonnie replies tartly.
“Sean and I have had a pretty busy schedule. I was exhausted when we got in, so I went straight to bed,” Jess replies, soothing Bonnie’s distress.
“Alone?” Bonnie asks, and Jessica snorts.
“Yes, of course alone. Who was I supposed to go to bed with this time?” Jess asks sarcastically.
“Well, Sean. Duh.”
“No! I told you, our relationship is completely professional.”
Bonnie giggles. “Oh, you slut. I didn’t realize you would make him pay for it. How do you do that?”
Jess represses a groan with a surge of willpower. “Ack, do you ever stop?”
“Okay, okay,” Bonnie says, giving in. “Seriously though, how was Brazil?”
“Well, the villa is outrageous, and your chef is phenomenal.”
“I know!” Bonnie exclaims. “That’s why I insisted Mark hire him.”
“Oh, and you are absolutely right about Ricardo’s ass. Wow, what a fine piece,” Jess says.
“I know! Since Sean is out of the question for you, did you at least take a ride on Ricardo?”
“Bonnie…” Jess says warningly.
“Fine. Did he at least show you what Brazil has to offer?”
“No. His ass may be nice, but he definitely isn’t. Besides, I worked on Sunday, kissing up to Juan Zamora’s wife by getting her outfitted in a free, brand new Beauty Boutique outfit.”
“Goddamn it! Sean was supposed to leave Sunday open for you so you could have some fun before you came back to the states to work again.”
“Oh, don’t blame Sean. He did leave the day open. I was the one who decided to give Carmen that gift. I believe the Beauty Boutique will get more mileage in the right circles out of that simple gesture than any other type of advertising.”
Bonnie sighs. “Probably, but let me see if I’v
e got this straight. You worked, didn’t get laid, didn’t sightsee, and didn’t party.”
Jess nods ruefully, thinking that it sounds pretty bad when put in that light. “Pretty much.”
“God, you and I have to go out drinking sometime so I can remind you how to have a good time. You need to lighten up, and you definitely need to get laid soon.”
“I’m a little busy right now and somewhat stressed about this expansion, raising capital, and the new designs Sean demanded I have available.”
“Okay, but if you don’t start enjoying your life soon, you’re going to turn around one day and most of your life will have passed you by, my dear. Hey, I’ve got an idea. You and I should go to the villa for a weekend, just by ourselves. Sean is going to McCall shortly. Mark and I usually join him for the week, but we can let the two of them go be boys, and we can head to the villa for girl time! I won’t take no for an answer. You need some time to let your hair down and relax a bit.”
Jessica doesn’t bother trying to say no, knowing Bonnie will pester her until she gives in anyway. “That sounds great. When is all this happening?”
Bonnie replies, “It will be early next month. I’ll get the dates from Mark, and then we can figure out what we will need to take.”
Jessica considers for a moment. “Okay, but if we really do go, I don’t want any pressure to do anything. Just lying by the pool and catching up with you sounds perfect to me. Don’t even try to set me up with anyone, or I swear I’m not going. Promise?”
Bonnie sighs, then says dramatically, “Very well, as you wish. I’ll leave your deceased love life to you. But I’ve got to say it’s pathetic, and you need a seriously freaky guy to reignite some passion in your life.”
“Ugh. Whatever.”
“So we have a deal? When Sean goes to Idaho, I’ll send Mark with him, and you and I will head to Brazil?”
“Only on the conditions I specified,” Jess clarifies.
“Of course, sweetheart. Your dusty vagina is your issue, not mine.”
“Ugh!” Jess exclaims. “You’re disgusting. But I’ll look forward to our vacation. Get me the dates so I can schedule them into my calendar as soon as possible?”
“Absolutely, dear. I’ll call you in a couple of days with them,” Bonnie says, and then they end the call.
Sean begins his morning in much the same manner as Jessica. He arrives at his office at the usual time of eight o’clock, briefs Evelyn on the results in Brazil, and asks her to get the standard proposal for services ready for presentation to the Beauty Boutique, but to leave payment rates and schedules open for his adjustments.
Evelyn smirks at Sean, then says, sarcastically, “I thought this wasn’t a charity organization and you weren’t a very benevolent person?”
He sighs. “Well, I’ll inform you, just to protect my reputation, that I am not benevolent and I will make copious amounts of money off of the Beauty Boutique’s contract. It will just be structured very differently because of the special needs of this particular client, that’s all.”
Evelyn resists the urge to snort. “Of course, Mr. Green.”
Sean raises his eyebrows and asks, “What else needs addressing immediately?”
Evelyn picks up her notes, but she is interrupted by Sean’s private line ringing. “Just a minute,” Sean says, and picks up the phone. Mark is on the other line and sounds unsettled, something Sean hasn’t heard him sound like in years. Sean asks Mark to hang on for just a minute and then tells Evelyn he will be a little bit with the call and he will get back to her. Evelyn excuses herself from his office, and Sean returns to his conversation with Mark.
“I’m sorry for the interruption. Evelyn was in my office, and I wanted to excuse her before I returned to this conversation. What’s going on? You didn’t sound well a minute ago.”
Mark’s voice is tight when he speaks. “I just got off the phone with Hugo Montes. He is very angry because someone claiming to be associated with the environmentalist watchdog group in the United States just shot holes in five of his diesel pumps, to the tune of one hundred thousand dollars. He said he’s pissed for two reasons. First, Diablo Mining, Inc. is taking most of the political and environmental heat in Brazil, and second, now the money we gave him has to be used to replace his pumps.”
Sean rubs his eyes with one hand. “Well, we knew this was a possibility, and so did he.”
“Yes, but he is now demanding we get him another two hundred thousand dollars, off the books, for his grief. I told him no, our deal was set, and that’s when he threatened to go to Bonnie and show her our deal. Sean, you know how Bonnie will react. I don’t need any drama in our relationship. Things are going really well for us. On the other hand, if I pay his demands, then when will it end?”
“What if we agree to reimburse him for his loss in the amount of five hundred thousand dollars but tell him it has to come off of the two million in advertising you were paying me to represent Diablo Mining, Inc.? Then we won’t pay him any more in cash. All we need is another month and his contract with Global Metal Refining is concluded and you’ll be in the clear. If he talks to Bonnie after that, we can deny that’s what we meant with the contract and we were still willing to help him, but now that he is being personally and professionally immature, we have cut all ties with him and his eco-insensitive practices. I also think it is time we begin to get proactive here in the United States. Let’s release our first statement today explaining you understand there have been some concerns raised because of one of your suppliers’ practices in Brazil. Let’s say it’s your understanding that Diablo mining has and is complying with all national and environmental regulatory laws in Brazil, and Global Metal Refining is currently evaluating its associations. I had hoped to get another month before this hit, but we both knew this was coming.”
“I know. I just don’t want Bonnie involved in this, or things will get ugly at home. Right now, I like how everything is going at home. Go ahead and make the deal with Hugo, quickly. I’ll release the statement after your meeting is set,” Mark replies, sounding a little bit more at ease.
“Okay, let me make some arrangements, and I’ll get back to you later.”
After they hang up, Sean calls Hugo and explains the deal to him. Hugo agrees to meet Sean back in Brazil at the villa in two days. Sean calls Mark and tells him he needs the five hundred thousand tomorrow, because he will be heading to Brazil as soon as he gets the cash.
“Okay. I’ll stop by your office first thing in the morning.”
Sean tells Evelyn to schedule the jet for his trip, due to problems with Global Metal Refining’s vendors. He emphasizes the need to keep this trip confidential and then returns to his office to finish his work for the day.
The next morning, Mark arrives at Sean’s office early. He delivers the cash and leaves, virtually unseen. Sean boards the jet to Brazil with preset meetings he personally arranged. Upon his arrival, he passes through customs without incident, as usual, and arrives at the villa in time for a drink and a light snack, then heads to bed. He meets Hugo by the pool fairly early the next morning and confirms Mark’s offer, which delights Hugo.
Sean holds out the bag of cash, allowing Hugo to grasp one of the handles before saying, “Your threat to Mark’s home life and marriage was not appreciated. It will not be tolerated in the future. If you would like to continue these profitable business arrangements with us, please make sure it doesn’t happen again.”
Hugo, still holding onto his handle, asks Sean for clarification as to the specific issue.
Sean maintains a pleasant tone, but also infuses authority. “Mark takes the position that his business life and personal life are always separate, and should a vendor of his violate that provision, such as involving his wife in a deal, Mark wouldn’t be inclined to do business with them again. Ever.”
Hugo eyes Sean for a moment, then says, “Of course. Please extend my apologies to Mark. I assure you this will not be a problem again, given that the situation
has been handled fairly and honorably.”
Sean nods and releases the bag to Hugo’s possession. “Care to join me for breakfast?” Sean asks, and Hugo accepts. They enjoy breakfast, then each heads their separate directions. Sean briefly telephones Mark to assure him everything is once again under control and extends Hugo’s apologies with a touch of irony.
Mark laughs, saying, “If that bastard threatens me again, I will destroy his business and his life.”
Sean nods, expecting an answer like that. “I gave him the message loud and clear. I suspect he won’t be a problem again.”
After their conversation, Sean boards his jet once again and heads back to San Francisco, feeling content that another potential crisis has been avoided.
Hugo sees Mark’s press release the day after meeting with Sean and is furious. He calls SGM, demanding to speak with him immediately. Evelyn interrupts Sean’s meeting with Jessica, just after he had begun to ask her for suggestions about how to best structure his proposal for services so as not to interfere with any potential cash flow issues he isn’t aware of in the fashion industry.
“Evelyn, I’m in a meeting. It will have to wait,” Sean says, attempting to get back to Jessica.
Evelyn clears her throat. “I’m sorry, Mr. Green, but it’s regarding your meeting yesterday, and it seems very important.”
“I see.” Sean sighs and turns to Jessica. “Do you mind if I take this call in the conference room? This is a critical situation that is currently in the developmental stages.”
Jessica glances up from his proposal and says, “Not at all.”
He excuses himself and moves to the conference room to handle the telephone call. He picks up the phone, and even thousands of miles away the tension is palpable.
“I am very disappointed by the most recent press release of Global Metal Refining, and I must say, I feel I have been somewhat misled,” Hugo begins.
Uncontrolled Spin: The Power and Danger of Spin ( Un missable Series Book 1) Page 12