Executive Summary This case analysis explores the possibility of Breezy, a leading supplier of carburators and air filters in North America, the possibility of developing offshore busines in countries where car manufacturing is growing. The report is structured as follows: First, there are five important questions that Breezy must consider and ask itself before developing a relationship with a new customer. After Breezy decides to go offshore, it will have to go through the negotiating process, which involves five steps. Breezy then, must have capabilities of how an offshore business is organized, consider the many different costs and risks involved in the implementation and decide how it will finance the project. The report also talks …show more content…
e) Will Breezy be able to gain competitive advantage over local suppliers? Breezy could choose between cost leadership strategy or product differentiation strategy. 2. How should it approach the issue of negotiating with them? The negotiation process involves 5 steps: 1. Define objectives for the partnership: Breezy should have benchmarks in which to compare their objectives with the manufacturer's objectives. These will define whether they can meet common grounds when doing business together. Examples of benchmarks include nature of agreement, duration of alliance, expectations, key aspects to protect, etc 2. Assemble a negotiating team: Breezy will have a team that represents all areas of the company affected by this relationship. In addition, the team will be composed of a chief negotiator, an experienced interpreter, and senior management personnel and personnel with knowledge of technical, operational, and legal details. The roles of the team will be to choose a negotiating technique and conduct due dilligence on the parties involved, understand the business and social customs of the country. 3. Establish trust: Breezy's negotiating team should first build rapport with the manufacturers before presenting their proposals. 4. Establish the business framework: After rapport has been established, the team should be able to draw an agreement where all parties reach consensus, then outline the alliance in general
Our team approached this negotiation case in a very efficient way. Each of us had a very clearly job assignment. Two people took care of the calculation while the other two people were responsible for the negotiation. Thus we quickly built up a model and provided several options to our counterparts with different terms but same net value of the final bargaining agreement to our team.
Negotiations are a part of daily life whether we are aware of them occurring or not. In everything that we do there are preferred end results and the end results are likely to affect more than one person. The goal in this however, is to ensure that all parties are equally benefited from the actions and reactions that occur to create that end result. While some dealings are done in a more subtle manner without a great deal of negotiation per say there are other situations that would warrant more vocalized mutually acceptable compromises. The purpose of this paper will be to effectively explain a situation of which required negotiation on the part of both parties that almost all of us have endured and that would be the process of buying a
1. How did you plan for the negotiation? Explain how you decided on a strategy?
Consistent with our bargaining strategy, we would also like to work on building a trusting relationship with management in order to get the most out of integrative bargaining. We can do this over the course of the next several months by holding meetings with them to gauge where their interests lay. Through attitudinal bargaining we can lay the ground work for open and transparent dialogue about our objectives. These bonds increase the likelihood that integrative bargaining will succeed and reduce the likelihood of an
• use strategies for promoting collaborative decision making and problem solving, facilitating team building, and developing consensus.
The two should come together to create mutual understanding of the goals required to achieve success.
The company we are exploring faces a significant challenge. Currently 95% of this firm’s supplier are in North America and Europe. However, due to a ten percent decrease in demand in both North America and Europe and a 200% increase in demand in Middle East/Asia, the firm has to reassess their options. The problem confronting this firm is that one third of customers are located in Middle East/Asia but only five percent of suppliers are located in the same area. This will put the firm at a competitive disadvantage with lead time, cost and shipping cost. In addition, there are other incipient competitors located in Middle East/Asia who would be happy to take business away from this company by offering better pricing and delivery times.
In any negotiation, preparation is crucial; and having a set, outlined process to follow when preparing helps mitigate a potential oversight of any significant issues within the negotiation. Following a set process also helps one stay on task and in-line with what the important issues and factors are in a negotiation. In Bargaining for Advantage, G. Richard Shell provides a well-structured framework to follow in planning for a negotiation. For this reason, I used Shell’s negotiation preparation framework to plan for the negotiation between Rapid Printing Company (Rapid) and Scott Computers, Inc (Scott).
Partnering is the first step in a sequential process that fosters collaborative teamwork. Teams not only work well together, but they encourage individual growth and achievement. Define the goals of the partnership clearly at the outset, set and fill the agreed upon roles, and adhere to group norms, mission, and vision. Employees will commit to growth and achievement, especially when they see initial success.
3. Describe the competitive strategies used by each of Williams-Sonoma’s competitors. Which of these are most effective?
Global business environment has become more unstable, supplier negotiations have taken important new role on helping improve corporate competitiveness. The goal of most supplier negotiations today is no longer just to get the lowest price. It is also to find new and innovative ways to meet a wide variety of business challenges, often by tapping into the knowledge and expertise of the supplier community and a good relationship.
Just like the other industries such as apparel, electronics, and consumer goods, the automobile industry has accelerated its foreign direct investment, cross border trade and global production. The automobile industry has increased outsourcing and bundled value chain activities in major supplier chains. As a result, more developed countries that serve as suppliers have increased their involvement in trade and FDI. With these increased supplier capabilities, large national suppliers have become global suppliers and are now controlling multinational operations. This is because of their increased capability of providing good and services to various lead firms all over the world. The automotive industry has a distinct firm structure. This
This strategic report of ANZ’s offshoring strategy examines the effectiveness and drivers of ANZ’s decision to move towards outsourcing internationally, analyses the impact of ANZ’s offshore programs on stakeholders, explores key risks and opportunities and evaluates the success of ANZ’s offshore system.
6. What general lessons regarding the management of joint ventures in entrepreneurial settings can you draw from this case?
❖ To make sure of availability of parts and other stuff critical and necessary to maintain services that will ensure the customers needs and demands, a good relationship with the suppliers and developers has to be achieved.