Mgmt3721 Negotiation Skill

1686 Words7 Pages
Introduction This essay explains the negotiation rationale behind the role of Excalibur Engine Parts Company. Several important issues of the negotiation were chosen to be explained in more details here. They included the goals, strategies, tactics chosen, resistance point, target point, opening offer, concession plan, why certain questions would be asked and answered and an analysis of the other party. Excalibur Engine’s goals According to Zetik & Stuhlmacher (2002), each negotiator has unique goals which exist at abstract levels, such as values, and at more concrete levels, such as task goals. Also, the symmetry of the other party’s goals could influence the outcome of negotiation as well (Zetik & Stuhlmacher 2002). As a result,…show more content…
Instead of negotiating each issue one by one, we should negotiate issues as a package and compromise on less important thing using logroll. Also, more options should be explored to get the deal. For instance, we can use non-specific compensation tactics by providing discount for Knight’s subsequent purchase or purchasing additional units for replacement if they indicate on the chassis that their engines were fitted with quality Excalibur parts. This can maintain long-term relationship at the same time while maintaining a good long-term relationship with customers is particularly imperative here because the demand for pistons is small and there are not many alternatives to choose from. As a result, each customer becomes very valuable. However, an integrative negotiation does not mean that one cannot use distributive tactics. Since Excalibur produces higher quality of pistons compared to some of the competitors, we have the bargaining power to justify the higher price requested based on the fact that Knight wants to provide high quality engines to the Government. For instance, we can use the nibble by providing additional units for free in order to close the deal. Excalibur Engine’s target point, resistance point and opening offer The opening offers of both sellers and buyers often served as two reference points for the whole negotiation (Poucke & Buelens 2002). Therefore, as the seller in this case, the opening offer should be higher than the

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