Academically, we tend to think that the best negotiation strategies aim for a win-win scenario. But practically thinking, that is not always the case. For example, few people buying used cars want to pay a higher price so that dealers can increase profitability. Both used car buyers and used car sellers almost always employ win-lose strategies. As the deal is negotiated, the more one wins, the more the other loses.
For each of the following scenarios, state whether you (as the buyer) would employ a win-win or win-lose strategy and why.
1) The capital purchase of a new
warehouse
2) As a distributor, the purchase of automotive
parts
3) As an airframe manufacturer, the purchase of
engines
4) The MRO purchase of office supplies
1.) Capital purchase of a warehouse.
Capital purchase here would practically mean one has to lock their funds in this warehouse untill it pays positive returns.
( either storing goods of businesses or government on contract basis or renting it to others at a price which would cover annual maintenance and security cost of the warehouse also cover our capital invested in the long run plus profitability exists) Therefore it would be best to apply Win -loss strategy as the lesser it would cost us to get hold of this warehouse the better off we are.Further since capital funds have opportunity cost( can be used to invest in some interest bearing intrument for example fixed deposits) bargaining or negotiating could work in our favour.
2.)As a distributor we could work out (agree to common terms that benefits both) profitability with the wholesalers or manufacturers of automotive parts so win win strategy should be applied.Could build long term relationship between distributor and wholesalers.
3.) As a manufacturer of airframes we would want the total cost of the airplane to be optimally minimised.we could use a low cost low quality engine or good quality engine that is relatively expensive.So we have to trade off between quality with cost.Here we could negotiate for an engine that would cost us further if the engine expectations match our airframe requirements we could build long term relationship.Win win strategy.
4.) Purchase for MRO(Maintenance, Repair and Overhaul) of office supplies is necessary for smooth running of general administration.So we could enter into contract with a local supplier to provide these things at reduced costs.(We have scope for bargaining.)Alternatively we can purchase it to meet immediate requirements. Both can be applied given the situation.
Academically, we tend to think that the best negotiation strategies aim for a win-win scenario. But...
Academically, we tend to think that the best negotiation strategies aim for a win-win scenario. But practically thinking, that is not always the case. For example, few people buying used cars want to pay a higher price so that dealers can increase profitability. Both used car buyers and used car sellers almost always employ win-lose strategies. As the deal is negotiated, the more one wins, the more the other loses. For each of the following scenarios, state whether you (as...
Please read the article and answer about questions. You and the Law Business and law are inseparable. For B-Money, the two predictably merged when he was negotiat- ing a deal for his tracks. At other times, the merger is unpredictable, like when your business faces an unexpected auto accident, product recall, or government regulation change. In either type of situation, when business owners know the law, they can better protect themselves and sometimes even avoid the problems completely. This chapter...