Maria and Ellie are neighbors. Both are entrepreneurs and they want to do business with each other. Maria manufactures and sells HotChip ice hockey practice pucks in a variety of colors. Ellie wants to buy some for her Internet mail-order business, Stock Hockey Quick (www.stockhockquick.com). which is targeted at female, 20-something, professional ice hockey players who need quick turnaround on supplies. Maria's HotChip practice pucks come in three colors - cranberry, kiwi, and melon. She sells them all for the same price, although the cranberry pucks cost about 10% less than the others to manufacture. (Her margins are about 30 %). Cash up front matters to Maria a lot, because her inventory is high right now and is tying up more cash than she likes. Shipping date is completely flexible for her because warehouse space is not a problem. She's anxious to do business with Ellie to get into the female professional hockey player market segment. Until now, she has sold primarily to retailers who cater to an older, male, recreational segment (for whom she labels the colors red, green, and orange). This is a great opportunity for Maria. Her list price is $10 for a four-pack, but for Ellie, she is willing to go as low as $7.63. Ellie is indifferent between buying and stocking one, two, or three colors. She's most interested in being able to say that she is the only outlet for female professional hockey players that sells the HotChip. Cash flow is good right now, so she can afford to pay pretty quickly, but storage space is tight. It would be better if she did not have to take delivery right away. She thinks that she can sell HotChip four-packs for $25 and aims for a sales margin of no less than 50%. Still, she's hoping is to buy the packs for $8 apiece. Listed are five potential issues in the negotiation between Maria and Ellie. Identify which type of issue each is: integrative, distributive, or compatible. Price Color of Pucks Payment upfront Shipping Date Storage [Choose ] [Choose] compatiable integrative distributive [Choose ] [Choose ] [Choose]
Maria and Ellie are neighbors. Both are entrepreneurs and they want to do business with each other. Maria manufactures and sells HotChip ice hockey practice pucks in a variety of colors. Ellie wants to buy some for her Internet mail-order business, Stock Hockey Quick (www.stockhockquick.com). which is targeted at female, 20-something, professional ice hockey players who need quick turnaround on supplies. Maria's HotChip practice pucks come in three colors - cranberry, kiwi, and melon. She sells them all for the same price, although the cranberry pucks cost about 10% less than the others to manufacture. (Her margins are about 30 %). Cash up front matters to Maria a lot, because her inventory is high right now and is tying up more cash than she likes. Shipping date is completely flexible for her because warehouse space is not a problem. She's anxious to do business with Ellie to get into the female professional hockey player market segment. Until now, she has sold primarily to retailers who cater to an older, male, recreational segment (for whom she labels the colors red, green, and orange). This is a great opportunity for Maria. Her list price is $10 for a four-pack, but for Ellie, she is willing to go as low as $7.63. Ellie is indifferent between buying and stocking one, two, or three colors. She's most interested in being able to say that she is the only outlet for female professional hockey players that sells the HotChip. Cash flow is good right now, so she can afford to pay pretty quickly, but storage space is tight. It would be better if she did not have to take delivery right away. She thinks that she can sell HotChip four-packs for $25 and aims for a sales margin of no less than 50%. Still, she's hoping is to buy the packs for $8 apiece. Listed are five potential issues in the negotiation between Maria and Ellie. Identify which type of issue each is: integrative, distributive, or compatible. Price Color of Pucks Payment upfront Shipping Date Storage [Choose ] [Choose] compatiable integrative distributive [Choose ] [Choose ] [Choose]
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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