The Advertising Manager at Work
THIRTEEN
Risk of a Takeover
Hector Grant:
Ah, Peter.
We've got the biggest crisis in the history of the firm facing us.
Peter Wiles:
Good Lord!
That sounds pretty fearful.
Grant:
It is, I'm afraid.
Peter:
Something to do with Ambrose Harper's death, I suppose.
Grant:
Precisely.
Now you know how the shares of this company are distributed.
Your mother and I own twenty per cent of the capital each.
Ambrose Harper, of course, had the lion's share with fifty per cent, and the remaining ten per cent is in the hands of our friends the mattress-makers over the road, Wentworth and Company.
Well, Ambrose has left two thousand of his two thousand five hundred shares to form a trust.
The remaining five hundred he's left to his sister, Caroline.
Peter:
But she's a very wealthy woman.
Surely she won't sell the five hundred shares.
Grant:
My dear Peter, that's just the trouble.
I spoke to her after the solicitor had finished reading Ambrose's will, and she told me she'd had a very generous offer for the shares.
Peter:
But who from?
Who knew she'd inherit them?
Grant:
That wily old bird Wentworth.
He's wanted to get in here for a long time.
He knew she was Ambrose's only remaining relative.
Peter:
Well, that's easily prevented, isn't it?
We're a private company.
Caroline can't sell her shares without offering them first to the other shareholders.
We must make an offer, too.
We can't allow Wentworth to own so many shares.
If any of us had to sell at any time he could easily get a further interest in the company.
Grant:
Exactly!
But who in our family has got the money to buy them?
Peter:
I certainly can't.
I'm in the red as it is!
Grant:
The way you live that doesn't surprise me.
Peter:
Somehow we'll have to raise a loan and buy enough of the shares ourselves to keep the controlling interest.
Grant:
Well, let's see, the total share capital must have a market value now of about five hundred thousand pounds.
If we bought two hundred and fifty that would be... er... about twenty-five thousand pounds.
Peter:
The bank ought to be able to lend you that amount.
Grant:
That's what I think.
I'd better see the bank manager today.
(In the bank manager's office.)
Grant:
Good morning, Mr. Brewer.
Good of you to see me at such short notice.
Brewer:
Oh, never too busy to see an Important client like yourself, Mr. Grant.
Well, now, what can I do for you?
Grant:
I want a loan... or an overdraft... right away.
Twenty-five thousand.
Brewer:
Oh, I see.
Twenty-five thousand?
Well, now, that is quite a large sum.
Grant:
Not for me.
You know how well the firm is doing.
Brewer:
Yes, but of course the firm can't provide security, since the loan is, I understand, required by your good-self.
Grant:
Really, Mr. Brewer, this is rather unnecessary, isn't it?
You have our record, my record, of business as your guarantee.
You know me well enough to advance me an unsecured loan, surely.
Brewer:
As you know, I shall have to apply to our Head Office, but they will go very much by my recommendation, and I don't think I would be prepared to do so without some form of security.
Grant:
Oh?
Well, what are you going to do about it?
I can tell you one thing.
If there's any question of not getting a loan, I'll consider taking my account, and that of the company, elsewhere.
Brewer:
That could be an action you might have to consider, Mr. Grant.
But if I may say so, I think you would find any bank manager would take the same view.
Now, perhaps it might be more relevant to consider what forms of security you might be able to offer.
You have a large house.
Is it mortgaged?
Grant:
It is.
Brewer:
That's a pity.
The deeds of your house would have been perfectly adequate security.
The house is worth, what, twenty thousand?
Grant:
Thirty.
The mortgage is with the Albion Building Society.
Brewer:
Well, now, it may be possible to raise a second mortgage on your property.
Though I can tell you frankly that my Head Office doesn't like second mortgages...
However, I might be prepared to make a recommendation on this basis.
Grant:
How would you arrange the credit?
Brewer:
Well, if my Head Office agreed, you could have a straight loan and pay two per cent above the bank rate, so the rate of interest would be about nine per cent.
It'd be a short-term loan of, say, three years.
Grant:
Well, you work all that out.
I accept your advice.
All I want is the money, and I want it quickly.
(A week later in Hector Grant's Office.)
Grant:
What did I tell you, Peter!
After all that fuss about security I've got the loan.
The Bank Manager wasn't going to risk losing our account.
Well, we're saved.
Wentworth can't get a holding equal to mine or your mother's.
Aren't you pleased?
Peter:
Of course I'm pleased... but, you know, the other day Mr. Brewer was not at all in favour of the loan.
Grant:
How do you know?
Peter:
I went to see him about my overdraft.
He told me he was very upset by what he called "your threats".
Grant:
What did you say?
Peter:
Oh, I talked a bit about the vital part banks play in helping industry to expand.
How a firm like ours depended a great deal on their foresight and business sense - you know the sort of thing.
Grant:
I don't see what difference that would make.
Peter:
One of these days I'll give you a few tips on how to deal with bank managers.
It was one of the first things I learnt after I left school.
FOURTEEN
The Advertising Manager at Work
(In John Martin's office.)
John Martin:
Oh, hello, Joanna!
Can you find somewhere to sit?
Joanna Harvey:
Thanks.
Now there are two things I'd like to tell you.
Could we take the regular advertising programme first?
John:
O.K.
Joanna:
Well, I'm changing the style of our advertisements.
I think the old slogan 'H. & G. is your guarantee' is a bit out of date now.
John:
I agree it's old-fashioned, but it's been part of our publicity for so long now that it's almost a household expression .
Joanna:
I think we should change it.
We need to project a forward-looking image.
You know, modern efficiency plus elegance and old-time product reliability.
John:
I certainly think that applies to the new desk range, but I'm not so sure about... well, the old 'steadies' like the 'Windermere' range, for instance.
That's run for years, and its still selling well.
That style of desk is still far from the end of its product life cycle.
Joanna:
If you think that, I won't change the slogan for that range.
The advertising agency are all for keeping it, too.
John:
And we've got a lot of older customers who trust our reputation, so let's keep the new campaign for the new lines .
Joanna:
Right.
Now we come to the new desk range, the 'Standfirm'.
I'm very excited about this.
It's a most attractive range.
John:
I think so too.
We've got great hopes for it.
Joanna:
I've planned a teaser campaign.
We'll run it for two months before the official launching, and that, as you know, is to be at the International Office Equipment Exhibition.
Here are the suggested layouts.
What do you think of this one?
John:
The girl is marvellous.
But where are the desks?
Joanna:
That's the idea!
Here's the perfect secretary, the ideal office: all the boss needs now is one of our magnificent 'Standfirm' desks to complete the picture.
Details will be given later.
John:
Splendid!
Now what about the direct mail shot?
Joanna:
We'll despatch that to two thousand potential customers.
I think it should go out a few weeks before the exhibition.
John:
How's the exhibition stand coming along?
Joanna:
It's the first time we've taken a stand at this particular exhibition.
I got hold of an exhibition contractor to design and build it for us.
I've been down to the stand designers to see how they're getting on.
From the drawings it's going to look very nice indeed.
John:
Are we going to see it before the exhibition?
I think we should see it assembled first, before it's delivered in pieces to the exhibition site.
So many things can go wrong.
Joanna:
Well, I've already authorised expenditure for this quarter in excess of my budget, and the contractors charge an extra fee, so I'll take a chance on it.
John:
Right.
Joanna:
Now the next thing is... er... I think it's very important that we should have a launching ceremony here at the factory.
I suggest we invite all the representatives of the trade press, as well as a number of other journalists, anyone, in fact, who might give us a write-up in their paper.
John:
Why not ask H.G. to make a speech?
Joanna:
Good idea!
We'll have the blue executive-type 'Standfirm' desk draped in purple cloth at one end of the Board Room.
All H.G. will have to do is pull a cord, . .
John:
... exposing our beatiful new desk to an eager world!
Joanna:
Yes, that's it.
And another desk like it will be on display on our stand at the exhibition, complete with leather blotter, telephone, inter-office communication system, the lot.
Everything the ambitious executive dreams of sitting in front of.
John:
Just the job.
Don't forget the real live pretty secretary standing by to answer questions on prices, and so on.
Joanna:
Oh, I won't forget that.
I'll be interviewing some girls with exhibition experience tomorrow.
(On the site of the exhibition.)
Peter Wiles:
John!
Are you there?
Oh, hello, how's the stand going?
I thought I'd come along to see if I could give you a hand.
I heard from Sally that the contractors were behind schedule.
Good Lord, what a mess!
John:
Isn't it frightful!
Joanna telephoned me from this madhouse earlier this afternoon, and I came here at once.
Apparently the stand contractors have got two carpenters away ill.
Peter:
But it'll never be ready on time.
The show opens tomorrow morning.
John:
It's got to be ready somehow.
Peter:
Where are the men who're supposed to be assembling the stand?
John:
Well, we've got Fred somewhere - ah, here he is.
You've been working here since dawn, haven't you, Fred?
Fred:
What?
Oh, it's always like this with these exhibitions.
I've been doing them all my life.
There's always a last-minute panic.
Peter:
Look, give me a hammer.
Just let me take my coat off first.
I can knock those nails in, Fred, while you do some thing that requires skill.
Only don't go on strike because I'm not a union man, there's a good chap!
Fred:
Well, don't let the representative see you then.
Peter:
Where's Joanna?
John:
She's gone to try and get some new lampshades for the wall lights.
The ones she ordered haven't arrived.
Oh, here she is.
Joanna:
Hello.
I got my foot in the door just as the shop was closing and bought these.
I think they'll do.
How's it all going?
John:
Slowly.
Do you realise that in a remarkably few hours' time you and I, Joanna, will be back on this stand getting our big smiles ready for the opening crowd?
Joanna:
Oh, don't remind me!
At this moment I never want to hear the word exhibition ever again.
FIFTEEN