Contract Creation and Management Simulation

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“Contract Creation and Management Simulation” Bus Law 531 August 30, 2011 Contract Creation and Management SimulationThe simulation shows a confutation between two software-developing companies, Span Systems, and its customer Citizen-Schwartz AG (C-S), a largeGerman bank. The two companies are in difference of opinion over the quality and timeliness of deliverables. There have been major bugs found by C-S during testing and are worried about Span not fulfilling the one-year contract, which is worth $6 million. Span main apprehension is obtaining a larger contract with e-CRM, which is in line with result of the current contract. C-S has requested all code and…show more content…
If Span and C-S plan to resolve their issues, they will use interest-based negotiating.Contract EnforcementDuring interest-based negotiating, Span will express its intent to revitalize the current contract. To secure future contracts, this project needs to be put back on track so both companies can achieve mutual profitability. Achieve GoalsSpan must recognize its role in the negotiations process. It has a short- and long-term goal. The short-term goal is to achieve an amicable conclusion to the current contract. The long-term goal is securing future contracts. Control Customer ExpectationThe best way to achieve the long-term goal is to control customer expectation. Span could focus on the short-term goal and successfully negotiate the current contract by giving in on all concessions. But if it does that, over time there will be a drop in the perceived service quality and C-S high expectations will result in a widening service gap. Span needs to enforce some of the contract. If it doesn't stand firm on a few of the important issues, C-S expectations and perceptions of service quality will be drastically inaccurate. The next contract will be very difficult to enforce. C-S will get the indication it can demand whatever it wants and Span will concede.Current ContractSpan needs

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