Negotiation Planning 7.5 out of 10 PDF

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Mandatory Assignments...

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Dropbox Negotiation Plan

Negotiation Planning Guide- Seller Submitted by: Nayanamol Chacko (0947305)

1. What are the issues to be negotiated? 

Regarding the agreed price at the target point of $5.90 and tooling expenses of $40,000.

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Proper delivery time and measures to cover the risk.

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Discounts and other offers included in second purchase of the product.

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Promising long term strong relationship and trusted business deals.

2. What are the priorities among the issues in the bargaining mix? 

Most important issue is the price and not to go below the actual price.

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Secondly, the quality of the product, material, size and so on.

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Third, the service level and possible measures to overcome in cases of any risk.

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Offers included in the next purchase.

3. What are the primary underlying interests? 

Primary interest is to increase the share of business and attract more clients to the current price and quality of the product. So this would bring profit to the company.

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Build a strong relationship with the client and thereby increase the trust in our products.

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To get bulk orders from different clients in future, thus it will increase the growth of the business to a large extend.

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Dropbox Negotiation Plan

4. What are my limits on each issues – walkaway points and BATNAs? What are my target points and opening requests on each issues? Issue in order of Opening Priority Price Tooling

Target Point

Walkaway Point BATNA

Request

(Resistance

$6.20 $40,000

Point) $4.67 0

$5.90 $40,000

$4.68 $20,000

5. Who are the important constituencies to whom I am accountable? The purchase manager of the client will be involved in the negotiating process. I am going to be accountable to my area manager. The purchasing manager is responsible to the head of the department. The Head of the Department will be directly engaged in the process and must be committed in the negotiating process.

6. What do I know about the other negotiator’s interests, negotiating style, and personal reputation? The negotiator is an individual from cost-accounting field and will also be knowledgeable in the cost of the product. The negotiator is a positive and strong individual and loves his role as a negotiator and managing the purchasing options. The individual is well recognized for the clarity of mind, boldness, and insightful understanding of unclear facts.

7. What overall strategy do I want to pursue? 2

Dropbox Negotiation Plan

We would use the conscience of the negotiator. We'll clarify our actual reality and why we're not going to be able to lower the price. We will also concentrate on the costing side to earn his trust. We would also concentrate on special incentives like less delivery time and efficiency (buy back) and reflect the performance of the negotiator in making these improvements to the procurement process.

8. What do I need to assemble – research, documents, charts and graphs, and so on – to make the most effective presentation on what I want to achieve? What tactics will I use to present my arguments or defend against the other negotiator’s arguments? 

Cost details

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Trends in cost of raw materials

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Data of market competition

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What advantages do we offer to a customer that is more than what they expect from us?

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Price given to the customer over the last few requests.

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Details of trusted customers over the last years.

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Satisfied Customer reviews and feedbacks about the product as well its price.

From these results, we will try to decide whether it is so challenging for us to lower the prices and how we'll be negatively affected if the price is lowered.

9. What protocol is important for the negotiations: where we negotiate, when we negotiate, who is present for the negotiation, agenda to be followed, note taking? Also, what is our backup plan if this negotiation fails? 3

Dropbox Negotiation Plan

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Always prefer client’s selected place.

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After 5 pm in the evening, when the client gets free from the work.

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Two representative from our side and Purchasing manager of the client

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Agenda: Firstly explain the quality and performance, possible measures when there occurs a failure to deliver the products. Then, towards the price of the products and other discounts with that. Also, additional needs and points discussed in the negotiation is recorded clearly by us. Finally, signing the minutes of the meeting.

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Once the negotiation fails, we plan for another meeting with same representatives. Then, we try to convince them the reason and other expenses incurred from our side for the production and everything. Also, ensure them with best quality for the agreed price.

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Source: page 519 of Negotiations, Exercises and Cases 7 th Edition by Lewicki, Barry and Saunder

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