What Are the Issues to Be Negotiated?

Report:

1. What are the issues to be negotiated?

• There are three main issues that should be negotiated. First would be the cost factor. It is clear that we need to buy that “class A” piston within $600.
• Second will be the quality factor. As our company is dealing with government and we did not want to lose this or any future contracts.
• last important point will be delivery schedule. As we have to deliver the engines within 60 days than we need the piston within 2 weeks.

1. What are the priorities among the issues in the bargaining mix?

• The major concern in this bargaining will be the cost. As our company haven’t purchased “class A” piston before and we need the piston within 2 weeks. The piston rate that we are planning to give is not more than $600.
• The other concern will be the quality of piston as we haven’t done any deal with Excalibur Engine parts company before.

1. What are the primary underlying interests?

• The primary interest would be cost factor. Because we won’t be able to buy the piston if the price of the piston is more than $600. Also, we need the pistons to be delivered in 2 weeks.

1. What are the limits on each issue – walkaway points and BATNAs?

• There are three main issues.

1. Cost: the first and very main issue will be the cost. We can go up to $600 to purchase “Class A” piston.
2. Quality of piston: The Quality of piston should not be compromised as we are dealing with government and as a reputed company.
3. Delivery: As the government wants the engine in 2 months, we only got two weeks for piston purchase. If the delivery gets late then we won’t be able to fulfill the requirements.

• Our BATNA will be to get “Class A” pistons delivered within 2 weeks and the price should be below $600.
• If we doesn’t get the rates below $600 as we wanted than it will be our walk away point.

e. What are my target points and opening requests on these issues? Show how you arrived at these points.

 Our target point is to persuade the seller and send the product within 2 weeks. In first delivery we need 8,000 products atleast. We recorded some kind of quality discrepancies so that we can make a provision of 3% to 4% defects to send the final products to the end buyer. We have created a relationship with the suppliers to successfully achieve the deal.

 f. Who are the important constituencies to whom I accountable?

As a purchasing director I am accountable for the following:

• By keeping  the budget in the mind I have to achieve my requirement also
• We have to achieve our target and deliver the products to the military and complete the deal on time.
• Quality plays an important role in the military and I have to see the company’s image also.
• Moreover, we need to buy the products in future so I have to maintain a relationship with the suppliers so that we can utilize them.

 g. What do I know about the other negotiator’s interests, negotiating style and personal reputation?

The Excalibur ‘s Mordred technologies Inc. is the company which manufacture the class A piston for V162 engine which is small company but they want to take the huge order because they know about their strengths and capabilities. They want to be a part of any kind of government project. They believe on Quality and their quantity that they deliver and we also know them that they provide good services to their customers. Moreover, they agreed to all the terms and condition set by our firm. Ready to deliver good quality products which is our first condition.