Contract Creation and Management Simulation

Our team approached this negotiation case in a very efficient way. Each of us had a very clearly job assignment. Two people took care of the calculation while the other two people were responsible for the negotiation. Thus we quickly built up a model and provided several options to our counterparts with different terms but same net value of the final bargaining agreement to our team.

There were three primary changes that I would make if given the opportunity to redo this negotiation. First, I would more immediately suggest that a contingent contract be used to address the quality of product vs. long-term contract debate. In hindsight, it could have been very efficient to propose an agreement that allowed for Rawmat’s longer term deal while also recognizing Myti-Pet’s desire for higher quality. By not initially considering a contingency contract, our group fell into the trap discussed in Bazerman and Gillespie (1999). We simply did not allow ourselves to consider a contingency contract, and when the idea was first proposed we initially felt uncomfortable with the concept. In hindsight, this reaction was highly unproductive.

In the simulation involving a negotiation over a job offer at Robust Routers, I played the role of the human resource director; Leigh Bultema, and my partner played the role of Joe Tech; the recent MBA graduate seeking permanent employment with the technology company. Joe is not in agreement with the terms of the original offer and would like to negotiate the terms of certain issues within the bargaining mix. One key issue Joe is negotiating is the relocation to Robust Routers headquarters in Silicon Valley, California. He would rather remain in Nashville, Tennessee and become a telecommuter. Other issues within the bargaining mix include the annual salary, signing bonus, and stock options. In this negotiation, a variety of

In this simulation negotiation I assumed the role of Jane Tech, a college student seeking employment at a high tech internet firm. After completing a summer internship at Robust Routers, Leigh Bultema, a manager at RR expresses interest in hiring me as a full-time employee. I received a letter with the terms of the job offer, however I do not agree with some of the conditions and terms of the offer. As a result, Ms. Leigh and I agreed to discuss the offer via the telephone.

Answer 2. There should have successful partnership with long term commitment and it encourages in investing improvements in supply chain to mutual advantages. Thus, it will build and improve long term commitment with the form of collaborative framework partnership with the involvement of business to business relationship and it will meet the expectations in terms of goals and objectives.

In any negotiation, preparation is crucial; and having a set, outlined process to follow when preparing helps mitigate a potential oversight of any significant issues within the negotiation. Following a set process also helps one stay on task and in-line with what the important issues and factors are in a negotiation. In Bargaining for Advantage, G. Richard Shell provides a well-structured framework to follow in planning for a negotiation. For this reason, I used Shell’s negotiation preparation framework to plan for the negotiation between Rapid Printing Company (Rapid) and Scott Computers, Inc (Scott).

To comprehensively evaluate the success of the negotiations, there has to be a panoramic range of measures to ensure favourable and/or fair outcomes on all fronts. ACME Engineering crafted measures to expand the definition of success, some of which I used to discover successes and failures in different aspects of the negotiations (Ertel 1999, pp. 60-62).

Both our approaches were directed towards addressing the issues with a collaborative spirit for the greatest benefit to both sides. We agreed that both sides wanted to establish a long term a relationship with each other and were willing to give genuine consideration to each other’s particular needs and interests. This experience has enabled me to reflect on my personal approach towards negotiation, as well as analyze my strengths and potential areas for improvement as a negotiator.

Financial risks include the short payback period. A 3-year payback period would not allow Hansson the opportunity to breakeven. With a negative NPV in the first 3 years Hansson’s decision to invest in the project would be based on his ability to negotiate a longer contract time. The Net Present Value (NPV) would have to be examined in tandem with the other non-financial variables.

Based on the analysis of the issues present between Flatrock and Tower, the action plan must resolve the following root causes: the lack of clarity in the contract, which led to Flatrock believing they were entitled to services they were not paying for, and the lack of transparency which caused Flatrock to overestimate Tower’s profit margins. Additionally, the disparity between what the two branches of Flatrock aim to achieve, and Clyne’s emotionally-driven leadership style are main sources of problems within the negotiation. If these issues can be sorted out during negotiations, Tower will be able to maintain Flatrock as a principle client.

3. What are the interests of the key stakeholders in the terms of the Vacutainer-APG negotiations?

The value of being prepared cannot be overstated when it comes to negotiations. Failure to understand one 's best alternative to a negotiated agreement (BATNA) options is one example of poor planning that can leave a party at the mercy of another. Such is the case of the Pacific Oil Company (POC) case study where POC and Reliant Corporation worked together to negotiate a business contract for the supply and purchase of a vinyl chloride monomer (VCM) product. The negotiation process did not go as planned, and the following will explain the case overview, provide insight to the various negotiation styles and tactics utilized in the negotiation process, and explore the anticipated outcome of the contract negotiations.

Your firm, Supreme Financial Solutions, have just won a £3 million contract from Deep Blue Seaways that will require you – the Project Manager – to execute. You are pretty certain from your experience with Deep Blue Seaways that this project is seriously underfunded by possibly as much as £1 million. You are to replace their outdated finance systems with your company’s renowned Finance Wizard product, a system that processes all financial information, and produces an infinite array of management information reports that have been proved to improve strategic decision making in

Commercial business provides two-thirds of the company’s projects as well as 80% of its sales. Due to the higher volume in demand, the commercial sales force is larger than the residential sales team, which relies heavily on CMR’s showroom. The market for commercial business is larger than residential market with projections of its value at upwards of $5 billion. Commercial contracts are also harder to secure than their residential counterparts. They must be

– Target points (realistic targets) are positively correlated with final outcomes (Galinsky, Mussweiter, and Medvec, 2002)