Assume that you own and operate a business. Your production this year was based on prior years' experience. You have been left, however, with 100,000 unsold units on hand. You have been selling your product at $5 each and expected the same price for these 100,000 units. You have exhausted all avenues you can think of for disposing of your excess product. You do not have the storage capacity for keeping these units in inventory while you continue production. This morning a giant retail organization contacted you urgently seeking the type of product you produce to fill deficits in their supply. They offer to pay you $3 per unit. 1. How would you assess whether or not you should negotiate? lIdentify the factors you would consider and give reason for their consideration. [YOU MUST GIVE THE REASON FOR CONSIDERATION OF EACH FACTOR SEPARATELY OTHERWISE YOUR ANSWER WILL NOT BE ACCEPTABLE] 2. What factors can you readily identify that will affect your negotiation options and outcomes? And why? [IT IS COMPULSORY FOR YOU TO EXPLAIN THE REASON OF EACH FACTOR OTHERWISE YOUR ANSWER WILL NOT BE ACCEPTABLE]

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Question 1:
Assume that you own and operate a business. Your production this year was based on prior
years' experience. You have been left, however, with 100,000 unsold units on hand. You have
been selling your product at $5 each and expected the same price for these 100,000 units. You
have exhausted all avenues you can think of for disposing of your excess product. You do not
have the storage capacity for keeping these units in inventory while you continue production.
This morning a giant retail organization contacted you urgently seeking the type of product you
produce to fill deficits in their supply. They offer to pay you $3 per unit.
1. How would you assess whether or not you should negotiate? Identify the factors you
would consider and give reason for their consideration.
[YOU MUST GIVE THE REASON FOR CONSIDERATION OF EACH FACTOR
SEPARATELY OTHERWISE YOUR ANSWER WILL NOT BE ACCEPTABLE]
2. What factors can you readily identify that will affect your negotiation options and
outcomes? And why?
[IT IS COMPULSORY FOR YOU TO EXPLAIN THE REASON OF EACH FACTOR
OTHERWISE YOUR ANSWER WILL NOT BE ACCEPTABLE]
Transcribed Image Text:Question 1: Assume that you own and operate a business. Your production this year was based on prior years' experience. You have been left, however, with 100,000 unsold units on hand. You have been selling your product at $5 each and expected the same price for these 100,000 units. You have exhausted all avenues you can think of for disposing of your excess product. You do not have the storage capacity for keeping these units in inventory while you continue production. This morning a giant retail organization contacted you urgently seeking the type of product you produce to fill deficits in their supply. They offer to pay you $3 per unit. 1. How would you assess whether or not you should negotiate? Identify the factors you would consider and give reason for their consideration. [YOU MUST GIVE THE REASON FOR CONSIDERATION OF EACH FACTOR SEPARATELY OTHERWISE YOUR ANSWER WILL NOT BE ACCEPTABLE] 2. What factors can you readily identify that will affect your negotiation options and outcomes? And why? [IT IS COMPULSORY FOR YOU TO EXPLAIN THE REASON OF EACH FACTOR OTHERWISE YOUR ANSWER WILL NOT BE ACCEPTABLE]
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