Summary of Negotiation 1. The participants in the negotiation are Pat Hammer, East Coast Vice President of Sales for Anderson Coffee and Sandy Grant, Food & Beverage Director for the Statler Hotel in Ithaca, New York. 2. I am Pat Hammer, currently in the role as the East Coast Vice President of Sales for Anderson Coffee, and have been invited to meet with Sandy Grant, the Food and Beverage Director for the Statler Hotel in Ithaca, New York. Sandy Grant had called and shown a keen interest in our product and asked for bids for a year contract from July to June. We returned the request with a bid and promotional packet. Grant proceeded with the invitation to meet for a negotiation. Due to various reasons, such as unpredictable weather conditions …show more content…
The Best Alternative to the Negotiated Agreement in this negotiation is to walk away from this deal and sell to our current customers at $2.75/lb or $4.20/lb. We have other customers and can sell to most restaurants at $4.20/lb. Our bid price shows a reasonable discount. 2. The target price for the negotiation is $3.76/lb. This price is set between the bid/asking price of $3.94/lb that included the delivery cost of $.60/lb and our reservation price of $3.15/lb. This is the price at which we hope to conclude our negotiation. 3. The reservation price is $3.15/lb, this is the lowest price that we will sell to Statler for the deal. This price represents a loss of about $0.20/lb, but this loss is approximately an $1,100 investment in publicity. This is the price that the CEO of Anderson Coffee, had set as the lowest amount we would accept an offer for from Statler Hotel. Problems, Conflict Strategies & Planning 1. A potential problem, in this case, is if Statler is not willing to budge on our reservation point of $3.15/lb. Statler's reservation point may be below our reservation point, and we will be in a negative bargaining range. This negative bargaining range may lead to an impasse in the negotiation. Further, we also need to sell 5,400 lbs and we included the price of shipping in the price, however, if there is a possibility of this quantity decreasing we will lose some of our profit that we had projected when calculating the price of the …show more content…
I believe that the other party will try to compete for the best price using the competing strategy on the Dual Concerns Model. They will want to get the product as quickly as possible and make it appear that they have several BATNAs. Statler may be focused on winning the negotiation and not necessarily the long-term relationship involved compared to the collaborative strategy used by Anderson. This will lead to conflict as they will be less willing to concede in the negotiation process and follow a more distributive bargaining approach. Their target point and resistance points will be set and may not be willing to go beyond or shift
e. In general, products that are expensive to produce tend to have higher selling prices than those that are cheaper to produce. By calculating $ 8 - ($4,000 / 1,500) = $ 5.33, it is clear that to keep the same price for all units, there will be a need to reduce the selection of the 15 types currently available to a reduced number which would include only those with an average variable cost less than $5.33.
This point was very far from my expectations as I was thinking that we were going to negotiate in an ethic way, in respect of ethical behaviors. By asking me this question, I experienced a great fear about my counterpart honesty and then don't really feel comfortable to negotiate with him as his objective was very different from mine. We finally reached an agreement but I may have leave this negotiation.
Lewicki, R. J., Saunders, D. M., & Barry, B. (2011). Essentials of Negotiation (5th ed.). New York, NY, US: McGraw-Hill.
Kolb, D. & Williams, J. (2007). Breakthrough Bargaining. Negotiation: Readings, Exercises, and Cases. 5, In Lewicki, R. et. al. New York: McGraw-Hill, Irwin. 206-214.
PART A Current business environment: Coffeeville is a small experienced and hard working team and have good reputation in the market for their vision for clients, reliability and low cost service. Coffeeville is the company using these strengths to move forward and trying to expand their company but want to keep these values of company and make progress. Organisational structure • Management team (Owners) • Managing Director • Logistics Manager
Josh Novak owns a company commonly known as the Glow Foods and has been see who owns a small company called Glow Foods, and has been selected to be a member of the team of International Food Groups. A lot of differences are noted considering the two organizations; the Glow Foods and the International Foods Group(McKeen, 2011). Members that Josh Nova will be required to work with in ensuring a more innovative marketing approach are; Johan Ahem the chief of information officer and Tonya who is the manager of information technology and marketing in the organization. These are the main people with whom Josh is expected to liaise with and ensure desired
When the 1980’s rolled around, it was a thriving company, in the Seattle area. However, the co-founders began to have other interests and were involved in other careers simultaneously. Despite that, the company was about to undergo a major turnaround. A man by the name of Howard Schultz started to pursue an interest in the company. He noticed that the coffee shop had a wonderful environment.
Lewicki, J. R., Barry, B., & Saunders, M. D. (2006). Negotiation: Readings, Exercises and Cases (5th ed.). New York: McGraw Hill.
The more effort in support of collaboration, cooperation, and communication during the pre-negotiation phase, the easier it will be to reach an agreement at the table. Bazerman (1999) identifies five obstacles or “deviations” that impact this process and provides potential solutions. Obstacles not identified and addressed during pre-negotiation will almost certainly interfere with the negotiation at the table and may be significantly more difficult to overcome at this stage.
If you’re negotiating make sure your negotiating with the right person. Does this person have the authority to negotiate and make...
competition in the target market and the cost of the whole marketing mix (Perreault, 2002). A manager must also try to estimate customer reaction to possible prices. If customers won’t accept the price, all of the planning effort is wasted.
In 1954, Roy Kroc, milkshake machine salesman, visited a restaurant in San Bernardino that run by two brothers, Dick and Mac McDonald. The restaurant offered very limited menu but operated with great efficiency, focusing on quality and speed (Our History, 2016). He was so impressed by their operation that he seized the opportunity to become their agent. In 1955,
iii. Bargaining Power of Buyers The bargaining power of buyers is high due to the low switching costs and the availability of substitute products. iv. Threat of Substitutes
Hence, I do not have the full picture like in the other negotiations where I had all the information. As part of the process, I have to extract information from my team in order to negotiate effectively as a team. We had an open discussion as a team and each member shared their aspirations from the deal and we created a joint strategy which ensured we met each other’s targets. Also, we reconciled all the information each team member had so that we have an idea of what the overall deal we are negotiating. Additionally, we decided on the role each person would play including agreeing on the chief negotiator.
The once small coffee house in Seattle, Washington has now turned into the most prominent coffee company in the world. Some people would say a trip to Starbucks is a treat, others it has become a daily ritual. It was able to grow into such a successful company because of the experience they made for each customer that walked through their doors. Offering a variety of high quality coffees to people all over the world and giving them the home away from home atmosphere. By staying true to their company mission statement, “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time”, they were able to stand out more then any other company, and ultimately reach success.