Question: Create a pre negotiation plan for the following:Your goal in the upcoming negotiation is to pay the lowest possible price per unit for theGT7 processors

Create a pre negotiation plan for the following:Your goal in the upcoming negotiation is to pay the lowest possible price per unit for theGT7 processors that you buy from GTechnica. The MaxProc processor that you have beenusing (and which is technically comparable to the GT7) has been supplied for $21 per unit.Perhaps you can do better (lower) than that in the purchase of GT7s considering that the GT7 isa new and therefore less "market tested" component. On the other hand, the MaxProc pricewas negotiated in the context of a longer-term relationship between the two firms, which is notthe case here with GTechnica.In any case, your firm needs this interim supply of processors very badly in order toavoid interrupting the production of AMPro 50 accelerators. Also, there are no processormakers other than GTechnica that appear ready to offer a supply of this magnitude on suchshort notice. As a result, GTechnica looks like your best option, even though you may have topay more for this interim supply than for the processors you had been buying. According to thenumbers worked up by your marketing analysts, projected profits on the AMPro 50 will not beseriously affected as long as you can keep the purchase price for the GT7s under about $30 perunit. In fact, because of the damage to AccellMedia's reputation that could occur if production ofyour accelerators is interrupted, your boss thinks you really ought to consider any deal that getsyou the GT7s for less than $35 per unit. She has made it clear, however, that this is a worst-case outcome, and that you will be judged by how much better than this you can do.Another issue is the volume of a contract: The number of processors you would like tohave runs as high as 18,000, but you will take what you can get as long as it's at least 10,000.Your existing contract with MaxProc will bring a full resumption of supply in about nine months,and even optimistic demand forecasts for your accelerator do not indicate a need to expandproduction beyond what has already been planned for in the foreseeable future. Thus, thenegotiation you are about to conduct is really a one-shot opportunity to do business withGTechnica.As you wait for the meeting with GTechnica's representative, you are thinking throughthe approach you will take.

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