Description
One of the most important aspects of negotiating with someone or a business that you have a long-term and on-going relationship with is maintaining that relationship post-negotiation. Consider the following negotiation:
You are the project manager for a manufacturing company. You have a long-term relationship with a supplier that provides your company with computer chips for your product. There have never been any previous issues, and you and the supplier have had a great relationship. However, with the last shipment, there were defects in 25% of the chips. You need to discuss this issue with the supplier and determine the best solution. Your main concern is not ruining the relationship, but the defects are costly for your organization.
Based on this scenario, brainstorm your answers for the following areas:
- Goals
- Trades
- Alternatives
- Relationship
- Expected outcome
- Consequences of winning or losing
- Power
- Possible solutions
After completing the eight areas, prepare a letter to the supplier’s president. Consider the elements above in the letter. Your letter should contain the following:
- Current issue
- Your suggestion for solving this issue
- The outcome you would like to see
- Time frame
- Suggest your alternatives and solutions
Your answers to the eight elements can be written in a numbered list; however, your letter should be written in complete sentences and appropriate business letter format. The letter should be 1-2 pages in length and should be structured
Explanation & Answer
Attached.
Running head: NEGOTIATION
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Negotiation
Name
Institution
Date
NEGOTIATION
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Case analysis
The issues that are discussed in this case are based on effective understanding on the need to have
a healthy negotiation regarding the wellbeing of the business as well as maintaining positive
relation with the supplier who has been highly engaged within the company while putting
consideration the fact that the 25% defect computer chips are taken into consideration.
Goals: The goals of the negotiation include maintaining a positive relationship with the supplier.
This objective will be based on critical understanding of the underlying interaction with the
supplier when handling the issues raised. Another objective, in this case, would be to get a discount
based on the 25% of the computer chips that were defect. A discount, in this case, will ensure that
there is a win-win situation between management and supplier considering the defect computer
chips had a detrimental influence on the company performance, and thus compensation would be
necessary to maintain the existing positive relationship between the company and the supplier.
Trades: The trade that is considered in this negotiation situation is a continued business within the
management on the part of the supplier considering the fact that the 25% defect computer chips
supplied previously are enough to cancel the existin...
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