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Individual Tasks On Negotiations

Marcus, the Facilities Manager of WKS, has called an urgent meeting with Petrov, the Sales Manager of Global Carpets, to discuss a problem with the carpets being installed at WKS's new London headquarters. There has been a color mismatch between batches of carpet installed. Marcus needs the issue resolved by the end of the day to avoid delays. He is also over budget on the project and looking to save costs. WKS will be fitting out a new building in Edinburgh in 4 months and Marcus may use a different supplier if the current issue is not fixed satisfactorily.

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350 views

Individual Tasks On Negotiations

Marcus, the Facilities Manager of WKS, has called an urgent meeting with Petrov, the Sales Manager of Global Carpets, to discuss a problem with the carpets being installed at WKS's new London headquarters. There has been a color mismatch between batches of carpet installed. Marcus needs the issue resolved by the end of the day to avoid delays. He is also over budget on the project and looking to save costs. WKS will be fitting out a new building in Edinburgh in 4 months and Marcus may use a different supplier if the current issue is not fixed satisfactorily.

Uploaded by

Svetlana
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Name:

INDIVIDUAL CLASS WORK ON BUSINESS NEGOTIATIONS


Task 1

The Magic Carpet


WKS plc. Has been a customer of Global Carpets (GC) for 20 years. They have a global purchasing
agreement which is due for renewal next year. WKS regularly gives this Sales Manager of GC £2
million of business per annum for various UK projects. This particular project is worth £500,000.
The London office of WKS is moving to a new HQ building in the city in 6 weeks’ time and the
carpets are scheduled to be fully fitted by GC in 3 weeks’ time.
The Sales Manager of GC, Petrov, has been requested to attend an urgent meeting with Marcus, the
Facilities Manager of WKS, to discuss a problem which has occurred with the carpet currently
being installed.
Up to this point there has always been a good business relationship between the Sales Department
of GC and the Facilities Department of WKS.
Marcus is in charge of the new HQ project. In only six weeks’ time the entire office will move into
the new building. All aspects of the work have so far been completed on time, however, the latest
delivery from Global Carpets has colour mismatching from batch to batch.
To add to this, the new CEO from New York is due to move to the London office to take up his new
post on completion of the new HQ. Marcus fears any visible defects in the new office will draw
unwanted attention onto himself.
Although the project has run smoothly so far, it is slightly over budget, by around £15,000, so any
savings that can be made at this stage will reflect well on his performance with the new CEO.
The deadline given to GC to have the carpets fully fitted was for the end of week three. While
Marcus would like this to remain on schedule, some flexibility has arisen due to some early
completion of some aspects of the re-fit. Marcus reckons he could give them up to one more week
and still remain on schedule.
While this re-fit has been taking place a decision has been made by WKS to occupy a new building
in Edinburgh on the same scale as the new London HQ. This will require fitting out in around 4
months’ time. However, if the current problem is not resolved satisfactorily, Marcus may be forced
to look for an alternative supplier for that job.
It is 3pm on Friday and Marcus needs to have this resolved by the end of business today to ensure
the schedule does not suffer.

Questions

1. What are the interests of Marcus in this case?


2. What are the issues of Marcus in this case?
3. What would Marcus’s completed preparation planner look like?
4. How might constructive debate benefit Marcus in this case?
5. What proposal could Marcus suggest to Petrov to resolve this problem and why?
Task 2
Isobel needs to make a final sale today to take her over her sales quota for the quarter and earn her
the much needed bonus for her upcoming holiday. There is a ‘hot prospect’ customer in the shop
looking at buying a camcorder, and has indicated if there is a deal to be done, he might buy it today.
Unfortunately, the model which the customer, Mr. Morrice, is looking at has a very tight margin
and Isobel can’t afford to knock too much off the asking price without attracting the wrath of her
Store Manager. The camera price is £299, and she can go as low as £260, but no more for this
model. Mr. Morrice has made an offer of only £250. It is close to her exit, but Isobel just cannot sell
the camera for that price.
Describe the above negotiating problem with reference to Distributive Bargaining, and explain how
Isobel might improve her negotiation performance.

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