Mapletech-Yazawa, Mapletech Perspective Essay

704 Words Feb 7th, 2013 3 Pages
Mapletech-Yazawa Case
Mapletech Perspective

Features and general aspects of the Negotiation
Issues Get the contract Set the price per unit for the headlamps
Parties 1. Mapletech (primary) 2. Yazawa (primary)
Nature of relationships: One time relationship between Mapletech and Wasuzu One time deal between Mapletech and Yazawa
All the relationships are in the same level of hierarchy given that they are all (or will be) business partners.

BATNA’s, Reservation Values and Aspiration Values
 MapleTech  BATNA: Waste the extra capacity and continue to earn CAN$4.8 million. This BATNA also excludes the extra spending to modify the production line.
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 Are the parties monolithic?  Yes
 Are negotiations private or public?  Private

Strategy

Given that the negotiation had to be done in a couple of hour or less, there wasn’t going to be a lot of time to bargain the price or other issues of the deal. I would go on my own because I do not need advice or to counterbalance the negotiation with additional experts or partners like in the Elmtree House negotiation. However, I would use as arguments to bargain the information given by my Chief Production Engineer on how “costly” would be to do the necessary modifications to my production line in order to fulfill Wasuzu’s requirements.

I would strongly object to say the first offer given that I have a very vague idea of Yazawa’s reservation value (like in Elmtree House deal and as recommended by Molhotra & Bezerman in Negotiation Genius, pg. 30 where it is stated: “If you suspect that you may not have enough information about the ZOPA, you’d be wise to defer an opening offer until you have collected more information. If I can’t avoid it, I would state a price that would be also a counteroffer to any opening suggestion from Mr. Mori. That would be $70 per unit. With that anchor, if the negotiation falls somewhere in the middle as stated in the Elmtree House case, it would be around my aspiration value of $30 per unit.

The lack of time could also work on Mapletech’s