Homework Help is Here – Start Your Trial Now!
Business
Business Law
Analysis of Strategy or Tactics Employed: My initial strategy was to explain to my counter- party the situation that I was in and why I was looking to potentially change my coffee supplier, namely focusing on the fact that my current supplier satisfies my needs, but I'm considering Anderson's product because I believe their product to be of higher quality. I chose not to disclose the prior issues I had with my current supplier regarding the attempted price increase. I also did not disclose my knowledge of Colonial Williamsburg's price of $5.95 per pound. My initial negotiation tactic was to explain that my preference was to switch coffee suppliers to Anderson, but that the price was way too high; however, it would be advantageous for Anderson to lower their pricing due to the brand recognition and perceived quality that could result from Anderson being affiliated with my Hotel. Using the knowledge that Anderson is willing to sell at $5.95 for bulk pricing, I initially asked for a price of $6. My tactic was to provide the first anchor in the negotiation at a price at which I know they would sell, but would not necessarily sell to me, with the assumption that a low anchor would give me a larger negotiating rage. After the initial two offers were released, I revealed that I had conducted taste tests and the results indicated that their coffee would be positively received. We eventually settled on $6.90 per pound. Although the worst deal acceptable was at $7.40 per pound, my personal reservation price was $7.00. I learned after the exercise that our initial bargaining range was $6.50 to $7.40. My BATNA was to simply stay with my current supplier at $4.70 and not receive the perceived benefits of better coffee. Identifiable Learning Points and Objectives from Exercise: This was an exercise in distributive negotiating, where each party was incentivized by a bonus structure to save or make the most money possible on the deal at the expense of the other party. I believe this exercise was a good introduction to the concepts of reservation prices, bargaining ranges, and negotiating tactics. I learned that there are some details that a negotiator will withhold initially, and some details that the negotiator may never reveal, which can make it difficult to anticipate the counter-party's negotiating position.

Analysis of Strategy or Tactics Employed: My initial strategy was to explain to my counter- party the situation that I was in and why I was looking to potentially change my coffee supplier, namely focusing on the fact that my current supplier satisfies my needs, but I'm considering Anderson's product because I believe their product to be of higher quality. I chose not to disclose the prior issues I had with my current supplier regarding the attempted price increase. I also did not disclose my knowledge of Colonial Williamsburg's price of $5.95 per pound. My initial negotiation tactic was to explain that my preference was to switch coffee suppliers to Anderson, but that the price was way too high; however, it would be advantageous for Anderson to lower their pricing due to the brand recognition and perceived quality that could result from Anderson being affiliated with my Hotel. Using the knowledge that Anderson is willing to sell at $5.95 for bulk pricing, I initially asked for a price of $6. My tactic was to provide the first anchor in the negotiation at a price at which I know they would sell, but would not necessarily sell to me, with the assumption that a low anchor would give me a larger negotiating rage. After the initial two offers were released, I revealed that I had conducted taste tests and the results indicated that their coffee would be positively received. We eventually settled on $6.90 per pound. Although the worst deal acceptable was at $7.40 per pound, my personal reservation price was $7.00. I learned after the exercise that our initial bargaining range was $6.50 to $7.40. My BATNA was to simply stay with my current supplier at $4.70 and not receive the perceived benefits of better coffee. Identifiable Learning Points and Objectives from Exercise: This was an exercise in distributive negotiating, where each party was incentivized by a bonus structure to save or make the most money possible on the deal at the expense of the other party. I believe this exercise was a good introduction to the concepts of reservation prices, bargaining ranges, and negotiating tactics. I learned that there are some details that a negotiator will withhold initially, and some details that the negotiator may never reveal, which can make it difficult to anticipate the counter-party's negotiating position.

icon
Related questions
Question
100%
Please rephrase it
Analysis of Strategy or Tactics Employed: My initial strategy was to explain to my counter- party the situation that I was in and why I was looking to potentially change my coffee supplier, namely focusing on the fact that my current supplier satisfies my needs, but I'm considering Anderson's product because I believe their product to be of higher quality. I chose not to disclose the prior issues I had with my current supplier regarding the attempted price increase. I also did not disclose my knowledge of Colonial Williamsburg's price of $5.95 per pound. My initial negotiation tactic was to explain that my preference was to switch coffee suppliers to Anderson, but that the price was way too high; however, it would be advantageous for Anderson to lower their pricing due to the brand recognition and perceived quality that could result from Anderson being affiliated with my Hotel. Using the knowledge that Anderson is willing to sell at $5.95 for bulk pricing, I initially asked for a price of $6. My tactic was to provide the first anchor in the negotiation at a price at which I know they would sell, but would not necessarily sell to me, with the assumption that a low anchor would give me a larger negotiating rage. After the initial two offers were released, I revealed that I had conducted taste tests and the results indicated that their coffee would be positively received. We eventually settled on $6.90 per pound. Although the worst deal acceptable was at $7.40 per pound, my personal reservation price was $7.00. I learned after the exercise that our initial bargaining range was $6.50 to $7.40. My BATNA was to simply stay with my current supplier at $4.70 and not receive the perceived benefits of better coffee. Identifiable Learning Points and Objectives from Exercise: This was an exercise in distributive negotiating, where each party was incentivized by a bonus structure to save or make the most money possible on the deal at the expense of the other party. I believe this exercise was a good introduction to the concepts of reservation prices, bargaining ranges, and negotiating tactics. I learned that there are some details that a negotiator will withhold initially, and some details that the negotiator may never reveal, which can make it difficult to anticipate the counter-party's negotiating position.
Transcribed Image Text:Analysis of Strategy or Tactics Employed: My initial strategy was to explain to my counter- party the situation that I was in and why I was looking to potentially change my coffee supplier, namely focusing on the fact that my current supplier satisfies my needs, but I'm considering Anderson's product because I believe their product to be of higher quality. I chose not to disclose the prior issues I had with my current supplier regarding the attempted price increase. I also did not disclose my knowledge of Colonial Williamsburg's price of $5.95 per pound. My initial negotiation tactic was to explain that my preference was to switch coffee suppliers to Anderson, but that the price was way too high; however, it would be advantageous for Anderson to lower their pricing due to the brand recognition and perceived quality that could result from Anderson being affiliated with my Hotel. Using the knowledge that Anderson is willing to sell at $5.95 for bulk pricing, I initially asked for a price of $6. My tactic was to provide the first anchor in the negotiation at a price at which I know they would sell, but would not necessarily sell to me, with the assumption that a low anchor would give me a larger negotiating rage. After the initial two offers were released, I revealed that I had conducted taste tests and the results indicated that their coffee would be positively received. We eventually settled on $6.90 per pound. Although the worst deal acceptable was at $7.40 per pound, my personal reservation price was $7.00. I learned after the exercise that our initial bargaining range was $6.50 to $7.40. My BATNA was to simply stay with my current supplier at $4.70 and not receive the perceived benefits of better coffee. Identifiable Learning Points and Objectives from Exercise: This was an exercise in distributive negotiating, where each party was incentivized by a bonus structure to save or make the most money possible on the deal at the expense of the other party. I believe this exercise was a good introduction to the concepts of reservation prices, bargaining ranges, and negotiating tactics. I learned that there are some details that a negotiator will withhold initially, and some details that the negotiator may never reveal, which can make it difficult to anticipate the counter-party's negotiating position.
Expert Solution
Step 1: Define business strategy

A company's specific plan for achieving its primary objectives in a competitive setting is known as its business strategy. It is a creative process of determining the direction for resource allocation, market positioning, and customer value generation. It involves defining not just what an organization will do but also what it may not do. This tactical guide directs decision-making in the areas of operations, marketing, finance, and product development.

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer