Week 2 assignment Case Study

Jan 11th, 2015
HelloWorld
Category:
Business & Finance
Price: $25 USD

Question description

The following is a classic distributive bargaining scenario, wherein each party is attempting to maximize their gains at the expense of the other. In this situation, Michelle is interested in purchasing a Toyota Highlander. Michelle has two dealerships to choose from (Toyota of Louisville and Green Tree Toyota). Although she has no desire to travel a long distance, there are dealerships in Cincinnati, Ohio and Indianapolis, Indiana that she could represent as alternatives as well. Michelle decides to visit Toyota of Louisville first and finds the vehicle she wants – a 2013 Toyota Highlander.

The Manufacturer’s Suggested Retail Price (MSRP) for the vehicle is $29,865, while the factory invoice (the price paid by the dealership for the car) is $27,929. While Michelle only knows the MSRP for the vehicle, the dealer knows both the MSRP and the factory invoice price. Michelle has a trade-in, but she is unsure of whether or not to let the dealer know this, as she is unsure of what impact this will have on the dealer’s initial offering price.

Consider the following questions and answer each, employing concepts and terms from the text, in a three to five page paper:

1. What should Michelle’s negotiation strategy be (e.g., how much information should she share concerning where she is in the buying process, that there is a vehicle trade-in, that she is looking at other dealerships as well, that she knows the MSRP, whether and how much deception is ethical/allowable, etc.)

2. What do you expect the behavior of the salespeople to be when Michelle visits the Toyota dealership?

3. Develop a negotiation plan, including the characteristics of the opening offer, reservation price, tactics, tradeoffs, they should make, how to react if the seller bring up issues before you are ready to discuss them (such as whether you have a trade in vehicle). Do you have a Plan B if your original plan becomes untenable?

(Case study adapted from Luthy, M. R., Ryan, M. H., Desselle, B. R., & Byrd, J. T. (2007). Developing a strategic negotiation plan: Toyota Highlander. Journal of the International Academy for Case Studies, 13(4), 51-59.)

Must be in APA format. Please cite any outside sources used.

Tutor Answer

(Top Tutor) Daniel C.
(997)
School: UIUC
PREMIUM TUTOR

Studypool has helped 1,244,100 students

8 Reviews


Summary
Quality
Communication
On Time
Value
Five Star Tutor
Dec 7th, 2016
" Outstanding Job!!!! "
kpcutie
Nov 24th, 2016
" Excellent job "
Joemoe
Nov 15th, 2016
" <3 it, thanks for saving me time. "
Hemapathy
Nov 10th, 2016
" all I can say is wow very fast work, great work thanks "
pmallory
Nov 1st, 2016
" Totally impressed with results!! :-) "
kevin12622
Oct 19th, 2016
" Goes above and beyond expectations ! "
kiln82
Oct 10th, 2016
" awesome work thanks "
likeplum4
Sep 26th, 2016
" Excellent work as usual "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1825 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors