One Acre Fund

2485 WordsApr 2, 201310 Pages
ONE ACRE FUND: CASE STUDY The scene is Bungoma, Kenya; Moises Postigo is a buyer interested in purchasing fertilizer on a large scale for his not-for-profit organization the One Acre Fund (OAF). OAF’s mission is to provide fertilizer to farmers “who have nothing” on a credit like system and when the farmers produce their crops a percentage of their supplus would be returned to OAF. Eventually the farmers would no longer need a “free hand out” and will be able to support themselves and their families without putting further strain on the government and the economy. When first looking at Kenya, Postigo had five different suppliers that all met certain criteria he had for doing business. He narrowed down the suppliers by contacting them…show more content…
Postigo contacted five vendors, four of which came back with bids. The first scenario where the cost outweighed the benefit: had he traveled to the fifth vendor, it would have been a complete waste of time and money. Secondly, as soon as Postigo informed the potential vendors of their expected delivery date, a second vendor dropped out of the running, stating that they would not be able to make the delivery date. By sacrificing the face-to-face meetings, Postigo saved a large amount of time and money while still attracting 3 potential vendors; eventually leading to a deal that, from his standpoint, was very successful. a. Followup question: Did Postigo pay particular attention to the other party’s needs in the phone calls with Dehiv Medji? Postigo did a very good job of paying attention to Dehiv Medji’s needs throughout the negotiations. They spoke about the affect the Kenyan government might have on both parties, understanding the government subsidies could cripple both parties. He brought up Medji’s opportunity to grow and wanted to be involved in their growth, “he asked about growth prospects…indicated that the two organizations might grow together” (Negotiating, pg 7). Postigo negotiated in a fair and cooperative manner, providing flexibility on delivery dates and transportation costs. “One of the biggest appeals of Dehvi Medji to OAF was its willingness to fix a price in November for a January delivery” (Negotiating, pg 7).
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