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The Issues: What are the key issues that I want an agreement on? Rank the issues in order of importance for you

Category: Accounting & Finance Paper Type: Assignment Writing Reference: N/A Words: 1120

 

Issues

1

The substance that the company needs is only produced in Pakistan, and the production is not enough.

2

The demand for Prune is very high that it is difficult for the company to win the bid for the substance.

3

The competitors of our company are very strong that it is hard for the company to win the bid.

4

Climate conditions and weather is not suitable for the trees in other regions that are constraints for the production of Prune.

 Issue-By-Issue Planning.  For each of my issues, what is my (a) opening point, (b) target point, and (c) resistance point? (1 mark)

 

Issue

Opening Point

Target Point

Resistance Point

 

1

Prices of Prune

$ 37000 for one batch of Prune

$ 45000 for one batch of Prune

$ 50000 for one batch of Prune

2

Production conditions

  The company would make the long term contract with the agriculture ministry to purchase the prune.

  The company would make the short term contract with the agriculture ministry to purchase the prune.

  The contract of the company would be applicable just for one year.

3

The competitors of the company are willing to pay a huge amount for the substance.

Insist the competitor let us make the first move in the market

Make a contract with the competitors to get prune one by one every year.

Agree with the competitors to make a share in the Prune they get from the agriculture ministry


4. My Interests.  What I really care about.  My wants, needs, concerns, hopes and fears.  Note: this is not the same as “issues”. (1 mark)

I really want to make a deal with the competitors because our company want to win the bid because it is an important project for the company.

 I also want to find the best process that can allow the prune tree to grow in other regions.

I really want to accomplish our goals because the company have invested a lot in this project.

I don’t want any conflicts with the competitors, so it is good for me to find common ground for us to move on.


Their interests. * What I think the other party really cares about.  Their wants, needs, concerns, etc.  (1 mark)

To win the bid with the ministry of agriculture, and they are willing to put a lot of only in the project.

They probably don’t want any other competitors to make the first move in the market.

They want to make the blood cholesterol control substance for the customers because the market is huge.

The competitors want to make the first move in the market by getting the Prune.

 * Identify which of their interests are similar (S), different but not conflicting (D), and conflicting (C) by noting this above. (.5  marks) 

Options.  List possible agreements or bits of an agreement that we might reach to satisfy both parties. Note: This should not just be a list of your target points.  (1 mark)

1.      The company would make the long term contract with the agriculture ministry to purchase the prune

2.      The company would make the short term contract with the agriculture ministry to purchase the prune.

3.      The contract of the company would be applicable just for one year.

4.      Insist the competitor let us make the first move in the market

5.      Make a contract with the competitors to get prune one by one every year.

Objective/ Independent Standards (Legitimacy): External standards or precedents that might convince one or both of us that a proposed agreement is fair when our interests conflict.  Indicate the most appropriate or relevant standard with an asterisk (*). (1 mark)

1.              The main goal of the company to make a deal with the competitors because our company want to win the bid because it is an important project of the company.

2.      To find the best process that can allow the prune tree to grow in other regions

3.      To accomplish our goals about making the blood cholesterol control substance because the company have invested a lot in this project.

My BATNA (walk-away alternative).  What can I do if I walk away without an agreement?  What is my best alternative (indicate with a *)? (1 mark)

1.      I will search for the other alternatives available in the market to make the substances and try to find the possibility of trees to grow in other regions.

2.      I will go for other suppliers to help me make contact with the agriculture ministry of Pakistan. 

Their BATNA.  What do I think their BATNA is? (1 mark)

1.      They will go to the agriculture ministry of Pakistan and offer their high price bid to the authorities.

2.      They will make sure that there are no other competitors in the market and if there is, then they will bid with them.

3.      They will increase their overall budget 6to to make their bid more appealing for the contractor. 

People Problems.  What “people problems” (e.g. biases, attitudes, emotions) are likely to arise in the negotiation that I should be prepared for, and how might I deal with these problems? Note: be specific; focus on the issues in the current negotiation scenario. (.5 marks)

As it is known that the other competitors in the market are very ruthless and really wants to win the bid do it will try to calm so that there would not be any conflicts. I also try to make my attitude more accepting so that I will convince him to be on the common ground and have an agreement.

 Overall strategy.  What is the main strategy that I will use for the negotiation? Why?  If there is more than one, which strategy will I use for which issues? (1 mark)

To get a good deal, I will do the following:

1.      In the overall negotiations, I will try to be flexible and make my attitude calmer so that it would be easier to make an agreement with the competitors.

2.      Insist the competitor let us make the first move in the market

3.      Make a contract with competitors to get prune one by one every year.

4.      in the last stage, I will agree with the competitors to make a share in Prune they get from the agriculture ministry.

 

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