Questions:1. If you were a part of the GEII team, which approach of negotiation would you use in this negotiation and why? 2. Imagine you are in the preparation stage of your negotiation. List down your priorities, potential trade-offs, BATNA, Reservation point, your understanding of ZOPA, Potential barriers to the agreement 3. Develop a plan for managing the process of negotiation for the manager. 2 GE International Contract - Confidential Instructions for the GEII Senior Manager (SECURED) - Adobe Acrobat ProFile Edit View Window HelpA Create -Customize1/ 266.7%ToolsSign CommentGE International ContractConfidential Instructions for the GEII Senior ManagerYou are a senior manager in the GE International, Inc. (GEII) Information ManagementOperations (IMO). Your boss, the IMO general manager, has just given you a very difficult andchallenging assignment.You have been asked to get GEII's expensive, technologically advanced, and utterly ineffectivecomputer system to work as a tool for all departments. You and your team aren't expected todo the job yourselves; rather, your job is to find an expert who can customize and install newsoftware and negotiate a contract with that expert. You have located an expert consultant whocan perform the work, but the negotiations with the consultant are now deadlocked.BackgroundSeveral years ago, GEII purchased a networked computer system intended to link all of itsoperating departments. It was hoped that with only one system, important information couldbe shared and analyzed more efficiently. Administrative and support staff could also move fromone department to another without learning a new system in each department.Unfortunately, this networked computer system as it was originally designed no longer worksfor GEII. Most of the departments within GEII have developed special needs that require morespecialized software; also, it has been very difficult for individual operating departments toadminister the shared database. The GEII Executive Committee has agreed, finally, to purchasenew customized software that will allow each department to adapt its programming to its ownneeds, and to manage its own information. The only good news in the entire situation is that,with some updates, the new software can run on the existing hardware.The general manager has asked you to find someone who can customize and install newsoftware that will manage the production scheduling, engineering record keeping, orderentry/shipping/invoicing, and warranty data tracking so essential to the business. In fact, youquickly identified a consultant who has earned an excellent reputation for custom computerprogramming; the same consultant can also do a fine job of creating user manuals and trainingthe staff so that they can use the new system.This exercise was adapted by Duncan Maclaren from the Tendley Contract, copyrighted by the Program on Negotiation at Harvard Law SchoolCopies are available from the Teaching Negotiation Resource Center (TNRC), online at www.pon.or, by emait: tnrcelaw.harverd.edu, or by10:47WO G 4) ENG9+2825-05-2021 2 GE International Contract - Confidential Instructions for the GEII Senior Manager (SECURED) - Adobe Acrobat ProFile Edit View Window HelpA Create -Customize2/ 266.7%ToolsSign CommentYour conversations with the computer consulting company team have been both friendly andproductive. They clearly know information management systems and have listened carefully asyou have described each department's particular needs. Together, you have put together a planthat would accomplish the customized programming, software installation, user manualpreparation, and user training over the next four months.However, a serious problem now threatens the entire contract with the computer consultant.You were extremely surprised by the consultant's bid of $240,000 for this work. Perhapsanother part of GEII could bear such costs, but these are times of intense cost-reductionpressure. By transferring funds from many of the operating departments within GEII, you havebeen able to budget only $120,000 for this project. In fact, you had hoped to get the work donefor less than $120,000.You have had no luck in getting the consultant to reduce his/her $240,000 bid. In fact, you haverecently discovered that this price does seem to be about 15 percent less than what it wouldnormally charge for this work. You are not nearly as impressed with the four other consultingcompanies that your team has interviewed (and it seems as though they would all bid about thesame for this work).Thus, you have agreed that it is worth one more meeting with your preferred consultant to seeif you can save this project. In the end, you may have to tell both the IMO general manager andthe GEII Executive Committee that the problem cannot be solved within your budget but makeyour best effort to see if you can negotiate an agreement that would be acceptable to bothsides. You can still try to get the consultant to reduce his/her S240,000 bid, but it seems to beas genuine as your $120,000 limit. This does not seem like a case in which dividing thedifference would work (in other words: 240,000 - 120,000 = 120,000/ 2 = 60,000; 120,000 +60,000 = 180,000). $180,000 is more than you can pay and less than they are willing to accept.Try to negotiate a best agreement on specific terms. However, because you do not have muchdetailed information, it is all right if you negotiate a contingent agreement, subject toconfirming data or securing approval of the GEII Executive Committee. At least, see if you canbrainstorm a list of realistic ways to break this deadlock. On the other hand, if the discussionsmake you feel that the computer consultant is being unreasonable, or that an agreement justcannot be negotiated, you can decide to break off negotiations and not waste further time.10:47Wm O G 4) ENG2925-05-2021

Name: Questions:1. If you were a part of the GEII team, which approach of ne
Uploaded: 2024-03-20T06:57:05.000Z
Channel: Bartleby
Description: Questions:1. If you were a part of the GEII team, which approach of negotiation would you use in this negotiation and why? 2. Imagine you are in the preparation stage of your negotiation. List down your priorities, potential trade-offs, BATNA, Reserv