MGMT 6086 – Negotiation and Dispute Resolution
Negotiation Plan (BUYER)
Submitted By:
AVINASH VAGJANI ()
SWAPNIL RAJ (0964466)
Submitted To:
Jeffrey Van Geel
Negotiation Plan
1. What are the issues to be negotiated?
The issues which should be haggled upon, are as per the following:
The organization is settling on a more popularity of bundling units. Prior the cost was
quote for 3,000 units. Yet, presently as the interest has expanded, there should be sure
value amendment in the per unit bundling.
The timetable of request supply should be talked about upon.
The quality contemplations of bundling which should be engaged upon.
The payback period should be amended from two years to 14-17 months time span.
2. What are the priorities among the issues in bargaining mix?
The need will be on getting the compensation time frame for payback from two years to 14-
17 months. This will make the partners keen on this arrangement. The issue which should be
focused on next is the price update issue. As the organization is considering putting in a
higher amount request, the organization might need to break a superior arrangement with the
bundling organization. TMA Inc. These focuses should be pushed upon in the dealing blend.
3. What are the primary underlying interest?
The essential hidden interest of Norman Inc. is to improve homegrown supplier for specific
packaging. The organization isn't exceptionally satisfied with the easygoing and monopolistic
mentality of the French provider and is searching for better choices. The essential interest of
TMA Inc. is to recuperate its capital which the proprietor had spent to purchase the
organization/TMA Inc. additionally needs to qualify as a dominant part provider for set up
organizations like Norman Inc.
So best service with on time deliveries along with the low cost agreement will be the
underlying interest.
4. and 5. What are my limits on each issue – walkaway points and BATNAs? How did
we arrive at this point? What are my target points and opening requests on these
issues? How did we arrive at this point?
The company is opting for a higher demand of packaging units. Earlier the price was quote
for 3000 units. But now as the demand has increased, there must be certain price revision in
the per unit packaging: The supplier wants a per unit price of $0.27. The team can try
negotiating to get the price lower, but the limit will be the price offered by the French supplier.
The company will not opt for a higher price than that opted by the current supplier.
The schedule of order supply needs to be discussed upon: The company is thinking about
roping 2 of its products to be packaged by this specialized packaging. The schedule of order
supply needs to be negotiated in a way that production cycle of the 2 products must not get
hampered.
The quality considerations of packaging which need to be focused upon: Quality adherence
of the packaging needs to be decent so that the overall performance of the product is not
hampered.
The payback period needs to be revised from 24 months to 12-15 months period: Currently
the supplier is demanding a 24-month payback period while the company desires a shorter
period. The negotiation limit in this case will be 15 months as beyond that the deal’s value
will decrease for Norman’s stakeholders.
6. Who are the important constituencies to whom I am accountable?
7. What do I know about the other negotiator’s interest, negotiating style, and personal
reputation?
TMA Inc. has their own tools and manufacturing operations and having their own molding
shop. It depended heavily on automotive contracts. The TMA Inc. is looking for the long-
term business to expand their market and to stay long in the business. For that they want
someone with long-term contract with their supplies. TMA Inc. is bold when it comes to price
per unit negotiation and about the discount offering for the long-term business.
8. What overall strategy do I want to pursue?
The main strategy would be defined as:
Negotiating till the party would not agree with the 12-15 month payback period or with
reduced price for 14-16 month payback period.
We will ask them to add up some share in the investment to bring the payback period as
per our limit.
Negotiate for the early delivery as possible.
Extending the payment completion days for our organization.
9. What do I need to assemble – research, documents, charts, and graphs to make the
most effective presentation I want to achieve? What tactics would I use to present my
arguments or defend against the other negotiator’s arguments?
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