Global Negotiation between FD and Conquip Conquip’s Solicitation Of The 10% RFQ Conquip sent the RFQ possibly attempting to anchor the negotiation and to prove its strong position towards the negotiation. This strategy is risky and could be harmful if the other party doesn't have this value between its reservation and target price (Chang, Chung, & Van de Vyver, 2014). During meeting 2, FD walked into the negotiation with a poor BATNA: no agreement meant FD risked losing all its Conquip business to FF. Conquip seemed to have a strong BATNA: the company could easily switch to FF filters. However, de Winter convinces Conquip of the value of LEIF’s innovative technology, and Conquip knew they wouldn’t have suppliers …show more content…
Conquip also offered to keep FD as a companywide supplier if FD could meet the pricing demands made by Conquip, but de Winter was suspicious of the offer mainly because of the extremely close relationship between Conquip and FF. De Winter’s suspicions were also fuelled by the fact that FD’s high-volume products were missing from the RFQ and de Winter was almost certain that Conquip only wanted quotes from FD to reduce FF’s prices. FD was now determined that Conquip was planning to replace FD by FF throughout the company unless FD could meet the demands and convince the buyer the FD would be a better choice (Chang, N.D.). Meeting number two was all about discussing pricing, product type, and volume of sales. FD’s main priority was to maintain positive margins and long-term sales relationship with Conquip. The meeting’s focus was almost exclusively on the price and Conquip seemed to not want to move forward before agreeing on the 10 percent price cuts. De Winter could have accepted the offer and not negotiate, but it would not have secured a sales relationship with Conquip, especially because Conquip was supposedly trying to cut FD’s prices in order to further reduce FF’s prices. De Winter took a risk, but thought that Conquip would be ready to accept a smaller price cut if it meant that aftermarket sales would increase. Unknown
At this point, with the mediator leading the way, both parties tried to go to the balcony. They stopped discussing conflicts in their perspectives and started talking about their business ideas and growth opportunities. Brown especially discussed the possibilities of the service idea Rapid sought to implement. She saw areas for growth within their niche market as well as an opportunity to expand into other printing markets. She also realized that because Scott was a much larger company, there were lessons to be shared by Scott that could inform Rapid’s growth. Brown suggested that Scott and his company become more involved in Rapid. This could mean investing in Rapid (which would give Brown much
Identify the strengths and weaknesses of Fontaine's and Gaudin's negotiating strategy in their deliberations with Reliant Chemical Company. How effectively did Fontaine and Gaudin approach the negotiation?
In Energetics meets Generex negotiation, I was acting as a Chief Operating Officer (COO) for Energetics Corporation and my opponent and my classmate Chace Eskam was acting as a COO of Generex Corporation. In this deal, as a COO I was supposed to sell the Wind energy division of the Energetics to Generex. Energetics Corporation was in desperate need of cash due to bankruptcy. Another hurdle was that I could not sell three different locations of Wind plants individually. My company needed cash within three months with no additional terms added to this deal. My another best alternative was to sell all the assets of Wind Energy division to generate some cash if deal with Generex fails in this negotiation. Our negotiation went on for 15-20 minutes during class time and deal was set in $247 millions. My opponent Chace was very tough in this negotiation to deal. He was very prepared with facts and numbers before he came to the table. My opponent asked me lot questions such as the depreciation of the property, equipment’s life, taxes etc. After having lot of discussion we ultimately came to the conclusion that Generex will pay Energetics $247 million right away in cash to purchase Wind Energy division from Energetics.
1. How did you plan for the negotiation? Explain how you decided on a strategy?
During pre-negotiation, the goals at the Lambert team was to aim high and be aggressive, thus providing room to negotiation towards target goals: 1) stock ownership of 60/40 ≤ goal of 50/50; 2) provide one seat on the board ≤ goal to agree to
If Wyoff wants to avoid a repetition of the failed negotiations on the Caxtalene JV, Kwang and the other members of Wyoff’s negotiating team must find a way to reach mutually acceptable solutions on the product slate, product marketing, management structure, and staffing issues.
We adjusted focus to our niche market, sold off capacity in the low end and traditional markets, and proceeded to decrease our production going into the next round. While selling capacity was the correct financial decision to combat our emergency loan, we were then left with stock outs in all of our product lines. As a result, we continued to struggle with overproduction and avoiding stock outs, but made improvements resulting in less drastic inventory swings in the later
In early May 2008, talk began between president of Flinder Valves, Bill Flinder and Tom Eliot, chairman and CEO of RSE about a possible acquisition of Flinder Valves by RSE. The industrial manufacturing industry had taken a hit due to rough economic times and the acquisition made sense. Both leaders were very concerned about the challenges and risks of the deal. Flinder was a company that engineered and manufactured specialty valves and heat exchangers. These products required extensive research and development and they were one of very few firms working in these types of applications. A bullk to FVC’s sales came from defense and aerospace applications. They were known for their
Flinder expected the merger to generate significant cost gains. RSE’s greater purchasing power would lower the cost of materials and components for FVC. RSE’s new resource-management system could be expected to reduce FVC’s in-process costs. Estimates from FVC’s accounting group had identified pretax constant-dollar cost savings of $2 million in the first year of operation and $4 million thereafter. He also recognized other synergy gains that arose from RSE’s stronger marketing clout, cross-selling with other RSE products, and its deep financial pockets. He believed that the widening-gyre project could have a broad application in nautical, aerospace, and automotive products. Based on the investment required to bring such technology to market, he estimated the economic
a) Profits. From profit angle, the scenario is straightforward, at any given volume, based on the estimation from the financial director, the profit would be higher by keeping the price at FF20. In fact, as per presented projection, FF15 will never reach BEP and won’t make profit at all (in fact it makes loss), while FF20 will always produce profit, even at the suggested very low volume (which
I assumed this was because Jamie disclosed the details of the offer I made her to Jack. Therefore, Jack was willing to accept less, in order to remain competitive with my offer. Because of the concept of scarcity caused by many people wanting the same thing (Bargaining for Advantage, pg. 179), I foresaw this happening, so when I reentered the negotiation, I asked to speak privately with Jack. Knowing that Jack felt pressured to drop his portion with Jamie because of me previous offer, I again tried to mention to him how I thought a three-way deal where funding was split equally and I conceded $10,000 of my share was a fair deal. I was hoping he would side with me when we reentered the negotiation because he would now understand the spiral effect that exists in this negotiation. However, because I knew I couldn’t rely on this I also mentioned the possibility that we could come to an agreement and I could better Jamie’s offer. I believe we reached a tentative agreement where I would receive $70,000 and he would receive $230,000. Again, I wish I could have persuade him to agree right then and there, but it seemed that he wanted to rejoin Jamie to further discuss the options. When all three of us we involved yet again, Jack had mentioned openly how it would be more beneficial to have an agreement with me, and this really caused an unexpected, but
Looking at the parties involved in the negotiation, it was clear that each party would have agendas that would be in conflict with each other. For instance, the other ports in the region would like the highest compensation possible while Harborco would like the lowest compensation. Additionally, each party would also have a minimum threshold score that they would need from each outcome before they would support the project. Therefore, it is clear that this is an integrative negotiation which requires joint problem solving to achieve
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).
The TexasAgs oil company case study gave us insights on different aspects of a negotiation that can happen in real world scenarios. It elegantly portrayed the importance of having a BATNA, setting target and restriction points, impact of the fluctuating markets on the ongoing negotiations, downside of the emotional behavior, importance of having a third party member or mediator in the negotiation. The case illustrates that the negotiations should be based assumptions as they may or may not be right. Having facts and understanding the other parties true objectives and goals are truly essential in negotiation. It is a typical example of how the current power on one side can dominate and take complete advantage of their position.
1. It is a fact that item 345 has lost market share and as the product manager I would be concerned about it. By retaining FF20 price I can gain market share only if competition increases their price to FF20. At the outset this seems unlikely because competition has