Excalibur Plan

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Negotiation Plan – Excalibur Engine Parts As the VP of Sales for Excalibur I am required to negotiate with Knight Engines Inc to come to an agreement for a rush order of 8000 pistons within two weeks. It is in my personal interests to deliver a substantial profit to Excalibur for the benefit of shareholders. However, negotiating a deal with Knight may be the only chance for Excalibur to avoid a major loss in this quarter. Consequently, I aim to secure a profitable contract but am willing to trade current profit for future gain. For this negotiation I have three types of goals in place. My substantive goals are to negotiate a contract that will bring in $5.8m (target point 3) and to also secure future contracts with Knight. With…show more content…
In order to achieve my goals it is necessary to get Knight to also see Excalibur as being crucial to the success of their business. With positive interdependence, parties are more willing to make concessions and promote the interests of the other party as opposed to negative interdependence which fosters competitiveness (Johnson & Johnson, 2003). To foster a positive interdependence relationship, I will adopt a pleasant manner and present a fair, cooperative and understanding nature. The tactics that will be employed during the negotiation will be integrative in nature and with a weak BATNA there is little incentive for Excalibur to act aggressively, only strategically. Logrolling involves trading off issues to reach a solution. With multiple issues at hand logrolling will be most effective when both parties are honest, however considering all my interests I will be open as to which issues are most important to me (eg. price)but will hide specific details (my BATNA). I will also attempt to create positive interdependence between Knight and Excalibur by expanding the pie and offering non specific compensation. Currently, the negotiation pie is limited to the pistons and Excalibur will need to offer more resources to make a business relationship desirable for Knight. To expand the pie I will be offering free marketing on Excalibur’s website, exclusive rights to pistons and long term contracts offering
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