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Final Exam Mm5009 - Negotiation

The document is a final exam paper for a negotiation course. It summarizes a negotiation between the author, who owns a food truck business, and the organizer of a Ramadan food festival in Malang, Indonesia over renting space at the festival. Initially, the organizer quoted a price of Rp 5 million per month, which the author successfully negotiated down to Rp 2.5 million by emphasizing their status as a new small business. Later, the author learned other vendors only paid Rp 500,000 and received facilities, regretting accepting the higher price without further research. The author proposes doing better preparation, knowing alternatives, and having confidence for future negotiations.

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287 views

Final Exam Mm5009 - Negotiation

The document is a final exam paper for a negotiation course. It summarizes a negotiation between the author, who owns a food truck business, and the organizer of a Ramadan food festival in Malang, Indonesia over renting space at the festival. Initially, the organizer quoted a price of Rp 5 million per month, which the author successfully negotiated down to Rp 2.5 million by emphasizing their status as a new small business. Later, the author learned other vendors only paid Rp 500,000 and received facilities, regretting accepting the higher price without further research. The author proposes doing better preparation, knowing alternatives, and having confidence for future negotiations.

Uploaded by

farhan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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FINAL EXAM

MM5009 - NEGOTIATION

KHALISHAH PUTRI HAKIM


2911568

LECTURER:
Prof. Utomo Sarjono Putro

MASTER OF BUSINESS ADMINISTRATION


SCHOOL OF BUSINESS AND MANAGEMENT
INSTITUT TEKNOLOGI BANDUNG
2016
1. Issue Negotiated
Negotiation about rental price to open a booth in a event

2. Players
 Me as an owner of Bueno Foodtruck
 Mr. Arif from Event Organizer of Pasar Takjil Malang

3. Position of Each Player


 Me as a Tenant
 Mr. Arif as Tenant Coordinator of Pasar Takjil Malang

4. Negotiation Process

 Chronology
It was July 2015 when I was the first time for opening my Foodtruck, named Bueno
Bueno in Malang. Bueno Bueno was my first business with 3 of my friends. At that
time, we were thinking about how to launching our products to the public. In July
2015 coincided with Ramadhan. We thought that Ramadhan was the perfect moment
to launch our product because usually people are more interested to buy a food when
fasting. The second problem is how to launch our product so the consumer can met
us personally.
A friend of mine told me that we can rent a space in Pasar Takjil in Malang. Pasar
Takjil was the biggest food festival held on Ramadhan every year in malang. Located
in a main street of Malang and more than approximately 500 food and beverages
stands. This would be the perfect place to promote our product. After that, I contact
one of the pasar takjil representative to asked about the rent price of Pasar Takjil. He
asked me where I was from and what kind of my business. And I told him that my
business is a foodtruck. He told me that for the rent price is Rp. 5,000,000 for a
month. From 3pm until 7pm. I asked the facility that we will get and he told me that
the event organizer cannot provide any facility for foodtruck other than a great space
for selling our product. And then I told him to lowering the price because we don’t
get any facility from him. But he told me that it was the great deal for us because other
trucks agree with the price. It turns out that the other truck was the truck of Bank
BRI and Telkomsel. Then I told him, that it was the different kind of trucks, they’re
more like commercial trucks and coming from bigger company, and told him that
we’re just a new player in culinary business and for that price is too high for us. And
the representative told me that it was because we need bigger space than any other
tenant. At that time, we didn’t reach a price agreement so I told him to contact me
again if there is any better deal for us.
A few days later, Mr. Arif as the representative called me that we can rent a space for
Rp. 2,500,000,-. We’re going to placed in a great place because they think that we can
attract the customer that passing by the street. At first, I was still objection about the
price they offer. And he told me that if we don’t agree they will give that place to other
foodtruc. And than we decided to take the deal because we don’t want to lose the
opportunity to be placed in the great space. I thought that it was a pretty good deal
because if we can rent in that price, we can approximately get a gross profit about
15,000,000 for a month, at the first time we launched our product and we will get a
good publicity. After that, I was agree in that price without any other complains or
question. A few days later, the event organizer fulfil they promise to put us in a great
place.
A few days later, when I was in the middle conversation with other tenant, they told
me that they were only pay for Rp. 500,000 for the rent for a month plus cleaning fee
Rp. 100,000 and also they got several facility such as electricity. Knowing that fact, I
was a little bit regret the deal that we made because actually we can get lower price.

 Strategy and Counter Part Strategy


Strategy : Good Guy and Nibble
Counter part strategy : Bogey and Highball

 Result
We still get a profit from our sale in Pasar Takjil. But it was not a really good deal
when we considering that we pay much more than any other tenant. The other tenant
only have to pay Rp. 500,000 for a month plus accesss to electricity. Indeed the price
that they give is same with other truck but our truck is different with those BRI and
Telkomsel which is more commercial and coming from bigger company while we’re
just like other tenant that are small and medium enterprises.
5. Traps or Weakness

Based on case the indentified trap is winner’s curse.

6. Area of Improvements

I think, the most important think to improve based on my story above is back on basic
negotiation rule that people want to negotiate unless they believe that we can hurt or
help them. In the story above, I should convince him that our business really can help
them to attract the customer because we’re the only one and the first food truck in Malang
it will be good to their publicity of the event. And also think that the major failure in the
case that I do not do some proper research before dealing with the event organizer. Other
improvement that I should do is knowing my Batna. Because if our batna is strong, than
we can negotiate more. Batna is often the best source of bargaining power. By cultivating
a strong outside alternative, we gain the power we need to walk away from an
unappealing deal.

7. Proposal of Improvements

If there is other negotiations, the first thing to do is preparation. Preparation means that
I have to know well my opponent, what is their necessity, their strategy and looking for
their batna from other source. I will learn about several possibility that could happen if
they’re doing the strategy. The next thing I would do is to know my BATNA., by knowing
our BATNA, I will set the minimum value that I willing to pay to my opponent, if the
negotiation stuck, I know when I have to leave the deal so that I didn’t get any
disadvantage. After several preparation, I have to set my strategy based on my needs and
my opponent, I know who is my opponent and it will determine which strategy I should
use. The more personal thing I have to prepare is to be brave. Sometimes I was scared to
negotiate because I don’t have any power to negotiate. I have to practice how to
intimidate opponent and lead them to fulfil my needs if that’s necessary.

Me as A Tenant
ZOPA EO Representative

AP : 1mil AR : 1,5

AP: 2,5 AR : 5
8. Conclusion

By realizing my power and weaknesses it become my experience and lesson learn how I
can have good negotiation in the future. I will practicing about how to negotiate in every
situation because negotiating is not only about the money. There is situation that we
cannot handle and uncertain condition so the best thing to di is how to get the biggest
pie with win – win solution so nobody get hurt and it’s as anticipation if in the future.
And I will also make sure that the decision we made is not only for short term victory
but also long term victory the best for our necessity.

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