Business Addresses Negotiation Discussion

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Business Finance

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After a negotiation with other party I need to prepare issues and negotiating tactics I used in attempt to make the sale. I am on the seller team and I contacted two students from the buying team and agreed on a deal and there are notes in the attachment and it has to be written detailed. (more instructions about the deal in the attachment).  

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Seller’s Scenario Your team has been assigned to negotiate a new contract for next year’s food concessions at the ASU football games. There are six games on the schedule, and based on this year’s attendance the games should all be sold out (31,000 fans/game). ASU does all of its own food preparation and ASU employees also serve the customers. On average during each game day the following food items are sold, plus or minus 10%: 15,000 hamburgers 12,000 hotdogs 6,000 polish sausages 18,000 bags of chips 27,000 12 ounce soft drinks 14,000 12 ounce bottles of water The university buys all of the food from one source: Arkansas Foods of Little Rock (AFLR). AFLR delivers the food the day before the game and stocks the ASU stadium kitchen for the university at no extra charge. The university prepares for a 10% oversell of each of the items just in case there is more than average demand (for example, 16,500 hamburgers are cooked on a game day). Sometimes there is not as much demand as normal, as much as 10%. Therefore there can be as much as 20% of the food that is prepared that does not get sold. All food items that have been prepared that are left over are thrown out. The drinks do not go bad and therefore are kept until the next game. Your boss has found out that ASU is looking for a new supplier for game day food and she sees this as a good opportunity to get the company’s foot in the door at ASU. She also heard that they are looking at outsourcing the food preparation and sales at the stadium. She knows that ASU has talked to three other suppliers, but she has not knowledge of the prices they quoted to ASU. She would like you to get the ASU business as long as it is profitable. She would also like some of the other events at ASU as well, and would be willing to take less of a profit to capture that business. She is willing to make as little as 25% profit or maybe slightly lower if ASU is willing to commit to a long term contract (2-5 years) that includes at least the men’s and women’s basketball games. One advantage that your company has is a portable storage unit, where the hamburgers, hotdogs, and sausages are stored until they are needed. The company does not have to cook the food far in advance, any left overs never leave the storage unit, and therefore not much waste is generated. Here are your costs for food, including buns and condiments: Hamburgers: $1.50 each Hotdogs: $1.10 each Polish Sausages: $2.00 each Chips: $0.40 each Soda: $0.80 each Bottled Water: $0.65 each Your 4 cooks make $17.25/hour and your 28 servers make $10.75/hr. You estimate that this is the number of employees you will need per game. Assume 8 hours a game for each employee. You will need to cold call the head of the purchasing department at ASU and set up an appointment to discuss your company’s offer. Negotiation Preparation and Execution Assignment Write a paper (8-10 pages) that addresses the following: Preparation: (50 points) 1) Explain your negotiation framework regarding price; i.e., what were your minimumtarget-maximum prices and how did you arrive at those numbers? Minimum 10%= $8560 per game and $51360 in 6 games Maximum 20%= $17120 per game and $102720 in 6 games 2) What are your assumed bargaining strengths? Weaknesses? Strength: The buyer did not need neither our chefs or servers Weakness: 3) What were the important negotiation issues for your team? Why were they important? Determining if they want to go with the 10% offer or 20% offer 4) What did your team decide on for negotiation goals? What concessions were you prepared to make? We made a deal of $67500 5) What negotiating tactics did you plan to use, and why did you choose them? High bowl Execution: (50 points) 1) How did you apply your minimum-target-maximum price framework to the actual negotiation? How did your analysis of price assist or hinder your team in its negotiations? We added 25% to our target, then, we increased our target price based on the profit goal 2) How did your assumed bargaining strengths actually work out in the negotiation? What points of leverage did you end up actually using, and why? How did your assumed bargaining weaknesses actually work out in the negotiation? How did your actual weaknesses compare to your assumed ones? Using the high bowl technique added pressure on the other team to ensure that we are winning 3) Discuss how you approached the important negotiation issues for your team. What concessions did you make, and why? What did you hold firm on, and why? we asked more questions so that we know what type of deal the team were welling to take 4) What negotiating tactics did you plan to use, and why did you choose them? What tactics did you end up using? Why did you use those tactics? How were they helpful or not helpful to you? We used high bowl 5) What tactics did the other team use? How did you react to those tactics? How were they helpful or not helpful to the seller? Honesty and openness 6) Discuss what you think you did well on in the negotiation. Then discuss what you think you could have done better on, and what you would do differently if you had a chance to do it over. The price exceeded our expectation We would’ve offered a higher offer so it would make it safer for a good deal Demand Hamburgers Hotdogs Polish sausages Bags of chips Soft drinks (12 ounce) Bottles of water (12 ounce) plus or minus oversell 15000 12000 6000 18000 27000 14000 10% 10% 20% Prices Hamburgers Hotdogs Polish sausages Bags of chips Soft drinks Bottles of water Total $ $ $ $ $ $ $ Wages Chefs Servers Total 1.50 1.10 2.00 0.40 0.80 0.65 6.45 per hour 4 $17.25 28 $10.75 $28.00 Each game $ 552.00 $ 2,408.00 $ 2,960.00 6 Games $ 3,312.00 $ 14,448.00 $ 17,760.00 Goal Profit 6 Games 25% 8 hours 31,000 fans/game 1 Game Schedule Hamburgers Hotdogs Polish sausages Bags of chips Soft drinks (12 ounce) Bottles of water (12 ounce) Total With wages Minimum 10% $ 2,250.00 $ 1,320.00 $ 1,200.00 $ 720.00 $ 2,160.00 $ 910.00 $ 8,560.00 $ 11,520.00 Maximum 20% $ 4,500.00 $ 2,640.00 $ 2,400.00 $ 1,440.00 $ 4,320.00 $ 1,820.00 $ 17,120.00 $ 20,080.00 6 Game Schedule Hamburgers Hotdogs Polish sausages Bags of chips Soft drinks (12 ounce) Bottles of water (12 ounce) Total With wages Minimum $ 13,500.00 $ 7,920.00 $ 7,200.00 $ 4,320.00 $ 12,960.00 $ 5,460.00 $ 51,360.00 $ 69,120.00 Maximum $ 27,000.00 $ 15,840.00 $ 14,400.00 $ 8,640.00 $ 25,920.00 $ 10,920.00 $ 102,720.00 $ 120,480.00 Sale price Profit margin
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Explanation & Answer

Hello there buddy here is the file if there are any corrections you want done kindly let me know i am ready to work on themThank you!

Running Head: Negotiation Tactics and Techniques

NAME OF STUDENT
NAME OF TUTOR
COURSE
DATE

Negotiation Tactics and Techniques

1

Negotiation Tactics and Techniques

Negotiation Tactics and Techniques
Closing a deal requires a strong foundation to reduce it chance of failure or
cancelation of the negotiation. Strategic planning sets an elaborate negotiating framework
that allows adequate definition of the situation as well as expected obligators from the
opposing negotiating team. Lack of adequate preparation is likely to lead to concession that
hinder profitable dealing and probably the growth of the business.
Proper planning and effective listening is a key precursor of a successful
negotiations (Lewicki, et al., 2011, P. 85). The negotiation technique employed in this case
sought to elicit business acumen to secure a win-win situation. This essay will discuss the
High bowl negotiation tactical approach and technique employed by the team within the
concise deal proposal. It ensured the deal was closed on a common ground and agreement
having resolved any foreseeable issues and concern.
The team was determined to employ ethical negotiation tactics as research indicated
that establishing collaboration and honest grounds during negotiation helps in achieving
mutual outcomes (Gerdeman, 2018). Establishing beforehand the strengths, limitation and
boundaries is key in strengthening the negotiation’s foundation as well as establish
negotiator presence in the negotiation room (Hames, 2011). The negotiation process
inculcated legal and ethical approach without neglecting and part of the negotiation.
Effective adoption of cooperative factors was necessary during the negotiation. It
promoted willingness and good faith among the team as we grew into the deal. The parties
were forthcoming and willing to avoid standoff. They embraced transparency and honest
dealing to orchestrate the deal effectively.

2

Negotiation Tactics and Techniques

3

Arriving at the negotiation table we were ready to stretch the negotiation to several days
until the right conditions and terms were discussed and agreement by the parties. It's unlikely to
close the deal within the initial point of contact due to the uniqueness of each individual and
willingness to concede and payoff certain value and cost/gains.
When it became clear the deal ...


Anonymous
Really helpful material, saved me a great deal of time.

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