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. Here capitalpurchasing will mean that you have to lock your funds in this warehouse until it pays positive returns. (Either storing goods under contract or leasing them to others at a price that would cover the annual maintenance and security costs of the warehouse also requires our long-term investment plus profitability). 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 we are. Furthermore, since capital funds have opportunity costs (can be used to invest in some interest-bearing tool such as fixed deposits) negotiation or negotiation could work in our favor.
2. As a dealer we should work out (agree with common terms that favor both) competitiveness with the automotive parts wholesalers or manufacturers and win strategy should be applied.
3. As an airframe manufacturer, we would like to optimally reduce the total cost of the aircraft. We could use a low-cost low-quality engine or a good-quality engine that is relatively expensive. .We could bargain here for an engine that would further cost us if the engine specifications suited our airframe requirements we could establish long term relationship. (Win-Win strategy)
4. Buying office supplies for MRO(Maintenance, Repair and Overhaul) is necessary for the smooth running of general administration. So we could contract with a local supplier to provide these things at reduced costs.(We have scope for negotiation.)Alternatively we can buy it to meet immediate requirements. Because of the case, both can be implemented.
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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...