3. Aztec Component Supplies The senior management team at Aztec Component Supplies knew that they were facing a decision crucial to the future of the company. A plastic injection mouldings manufacturer, they had for the last twenty years specialised in providing industrial mouldings for domestic appliance manufacturers. They were especially adept at moulding relatively large components, such as the outer casing for carpet cleaners. Large components were difficult to make to the high levels of tolerance and finish which customers demanded. Because of this ability they had increasingly focused on the few large customers who were willing to pay their prices. Five years ago, twelve customers accounted for around 80 per cent of Aztec’s sales, …show more content…
We are not even preventing them from dealing with other companies. I would prefer that they didn’t of course. Just coping with our increased business will be a tough job for them. But they have to understand that unless they make up their minds soon, and fully commit to the deal, we will lose patience. They are not a particularly large supplier, accounting for less than 10 per cent of our purchased parts expenditure. The Desron Group are fifty times bigger than they are, can’t they see we are in a position to help them?” Ethan Condos was not so sure. ‘Sure it’s a great opportunity but the choice is just too stark for comfort: accept the deal, or reject it. Maybe we have to simply be courageous and make a decision one way or the other. If so, we need to fully understand the advantages, disadvantages and, above all, the risks of accepting the deal or not. However, I would also like to explore the possibility of some kind of deal which would involve a less radical move than committing ourselves so totally’. Case Questions Q1: Should Aztec take up the offer to become Desron’s sole supplier of injection moulded parts or should it turn down the offer?
Negotiations are a part of daily life whether we are aware of them occurring or not. In everything that we do there are preferred end results and the end results are likely to affect more than one person. The goal in this however, is to ensure that all parties are equally benefited from the actions and reactions that occur to create that end result. While some dealings are done in a more subtle manner without a great deal of negotiation per say there are other situations that would warrant more vocalized mutually acceptable compromises. The purpose of this paper will be to effectively explain a situation of which required negotiation on the part of both parties that almost all of us have endured and that would be the process of buying a
A good business will know to understand that their employees need understanding in a time like this and not to put too much pressure which will only make things worse.
Performance cycles can be improved through the use of the 25 percent and 15 percent suppliers. The new suppliers would need to be reliable and punctual. Small deviations create large problems therefore, a higher premium for consistency would be well worth the extra expense in the long term.
Wolf has to work with the distributor to identify and select only those brands or products that meet the quality standards which they have set. An objective would be to reduce the number of suppliers in the purchasing process by identifying a single source distributor for as many supply and product acquisitions as possible. The number of transactions could also be minimized so that it would be helpful in maintaining the desired inventory levels allowing the Wolf to realize the additional cost savings. Lubricants can be available at many places outside the company for the less cost but whereas the GM parts can be get only from the company and therefore the feasibility is less for GM parts where the lubricants can be got from various suppliers that to for a very less cost.
In Energetics meets Generex negotiation, I was acting as a Chief Operating Officer (COO) for Energetics Corporation and my opponent and my classmate Chace Eskam was acting as a COO of Generex Corporation. In this deal, as a COO I was supposed to sell the Wind energy division of the Energetics to Generex. Energetics Corporation was in desperate need of cash due to bankruptcy. Another hurdle was that I could not sell three different locations of Wind plants individually. My company needed cash within three months with no additional terms added to this deal. My another best alternative was to sell all the assets of Wind Energy division to generate some cash if deal with Generex fails in this negotiation. Our negotiation went on for 15-20 minutes during class time and deal was set in $247 millions. My opponent Chace was very tough in this negotiation to deal. He was very prepared with facts and numbers before he came to the table. My opponent asked me lot questions such as the depreciation of the property, equipment’s life, taxes etc. After having lot of discussion we ultimately came to the conclusion that Generex will pay Energetics $247 million right away in cash to purchase Wind Energy division from Energetics.
An agreement was reached on the negotiation for a job offer at Robust Routers, and assuming the role of the human resources manager, I was satisfied with the outcome of the negotiation. The final offer excepted by Joe Tech consisted of the following terms: $95,000 annual salary to be paid bi-weekly, 1,000 stock options plus another 1,000 stock options over the three year vesting period in addition to the 500 incentive options granted on each employment anniversary, $5,000 signing bonus, and $5,000 moving expenses. I am satisfied with this agreement because the agreed
have more to lose. It was not easy making this decision, especially when taking into the account
many of them put this approach aside when it comes to managing their customers . Once the product is sold,
The bargaining power of customers determines how much customers can impose pressure on margins and volumes.
In 2009 MARS Inc. has been faced with new challenges in their buying process of their diesel engine due to changes with their Columbus supplier. The D-342 diesel engine market is in jeopardy which is why the supplier dropped production and left MARS Inc. with only one option in suppliers. Having to now deal with only one supplier Tom Sosa, the purchasing manager, has had to figure out what this change means to MARS Inc. in terms of transportation cost, inventory and storage costs, and continue the enforcement of MARS INC.’s implementation of lean manufacturing.
filled with fear and uncertainty to ever actually do a deal. If you are just beginning –
Every company has their own theory and goals behind what they overall want to see or become. This paper is written with intent to help better understand a real life situation that took place at Guitarras Dominquez. When a company first opens their doors for business, they use high end material to show the essence of quality in their product which will allow for growth in their customer base. Do you ever wonder how a company gets far in doing so? Intention from the start of a business does not include cutting corners and saving money, but eventually with budget cuts and business plans they tend to become necessary.
no choice but to sign. This was as if they did not sign it would
assemble. Most of the people need new designs everyday and opt for the best. And people
How can Custom Fabricators, Inc. (CFI) prevent a possible business takeover of the Mexican suppliers and at the same time, ensure long-term profitability?