Introduction: Before beginning this assignment, students should consider what they have learned throughout the course regarding negotiation in general and, more recently to negotiation in different cultural settings. Students are expected to apply and demonstrate their understanding in an active role play" negotiation situation of what they have learned to-date. Each party to the negotiation situation will have common information on which to base their bargaining and each will have separate information that is known only to them. While negotiations often take place over protracted periods of time, students are to assume that they must try to complete the deal within the time frame allotted for the negotiation. Although this is an accelerated time-line, students will be graded on how well they have understood and apply the concepts learned in class and covered in their readings as well as how well they "play the role" of their negotiator The Situation: This was a dream opportunity for the Canadian firm - Libcor Manufacturing. Libcor had developed a specialty in bending steel for a variety of applications such as in unique furniture designs, assistive devices for the disabled and recently for automotive applications. Steel is a very hard metal but, with the right combination of alloys (very small amounts of different metals) steel can be quite malleable and with the right tools, allows it to be bent into different shapes. Libcor's success with bending steel attracted the interest of a small company in Dubai that had found a niche in modifying luxury automobiles to have unique features for wealthy customers across the wait and Saudi Arabia, Luxury cars with unique features - and which cost a lot of money - are considered status symbols in many Arabic countries and the money these customers are prepared to pay for customized and different automobiles seemed almost unlimited. Dubai Automotive Creations (DAC) contacted Libcor for a customization project that involved bending several steel components for a fleet of 20 Jaguar F-Type Coups, a sleek luxury sports car that is popular among your Arabs. The cars would be purchased by a young, oil rich Saudi man (Abdullah Bakir) for a personal automobile club that included several of his close friends. These cars, before modification, typically sold for $70,000.00 - $100,000.00. After the extensive customization which included all new interiors as well as exterior changes, the cars would be priced at $400,000.00 US; a price only a wealthy Saudi car collector could afford. Libcor had provided DAC with a quotation of $1,500 for the component package for each car (shipping would be extra) amounting to a total contract price of $30,000.00 US. Dubai Automotive Creations awarded the contract to Libcor with the specific condition of delivering the components to their facility in Dubai in 180 days. This would be a very good sale for Libcor and provide an opportunity for more business in the future with DAC. An initial visit by Fred Libby to Dubai to meet the owner of DAC (Rashid bin Saeed Al Maktoum) and then a return visit from Rashid to Libcor's facility in Tecumseh, Ontario allowed both parties to get to know each other and their respective business capabilities. The company representatives developed a quick and solid business relationship - and a very friendly demeanour toward each other. Since the shape of the parts requested by DAC required a small specialized machine that would bend the components, Libcor contacted a machine design and fabricator in Windsor - Tandor Machine Works (TMW) owned and operated by Gurpal Singh - to build the specialized tool for Libcor to use in the production of the parts. TMW was recommended Fred's business partner and brother Walt Libby, who said he had heard from one of his golfing partners that TMW built reliable, unique machines. After some discussion with Mr. Singh about his company's past projects Libcor provided TMW with a purchase order to deliver the machine, ready to produce the specified parts, in 90 days. Fred wanted to start the project as soon as possible and TMW, who needed the work, agreed to the terms and conditions. With the drawings and specifications in hand TMW started the design and development of the machine. After 30 days Fred called TMW to check on the progress of the machine. Gurpal said that everything was going well, and they would start building the tooling in a few days' time. Fred asked if he could visit to see the progress in two weeks and TMW agreed. After two weeks Fred called Mr. Singh to arrange a time for the visit. Grupal seemed somewhat agitated and asked to delay the meeting for a week, indicating he was waiting for the delivery of the motor to power the machine. Although Fred was disappointed he agreed to the delay. After two subsequent attempts to meet with TMW, Fred became worried. They were now close to 30 days from the expected delivery date from TMW and Libcor needed to start the process to produce parts. Inevitably there are small "problems" to work out with new machines and time was needed to undertake the necessary tests and still meet the delivery date imposed by DAC. Fred decided to make a visit to TMW unannounced. Upon arrival he saw a very worried and stressed Gurpal looking at several machine parts spread all over the floor. The machine was clearly nowhere near completion. A tense conversation followed but since it was too late for Libcor to find another ill Fred could do was insist the machine be delivered as soon as possible and remain cooperative with TMW. Mr. Singh and Fred agreed on a new timeline, with Gurpal's commitment that he would have the machine assembled and running in two weeks. Over the following weeks Fred visited Gurpal many times as the machine was gradually assembled 45 days later than the revised delivery date! As per the contract with Libcor TMW began to test the machine in its facility with steel which Fred delivered personally to watch the progress of the testing. After 30 days of testing and many frustrating conversations, TMW started to send sample parts to Libcor for checking in the testing fixture Libcor had made to ensure the parts would fit DAC's specifications. Libcor was now only 45 days from its contracted delivery date to Dubai. Only 20% of the parts that TMW sent to Libcor for checking were acceptable, the rest were flawed and not within specification. Fred continued to make visits to TMW to try to solve the problems but now it was clear that he faced the prospect of missing his deadline to DAC. To alert his customers at DAC Fred called Rashid to warn him that he was having difficulty with his machine supplier and may be a little late" on the delivery of parts to Dubai. Rashid was not happy. Although respectful and restrained in his reply he told Fred that DAC had commitments to his customer in Saudi Arabia who expected the delivery of his automobiles 90 days after the Libcor parts were to arrive at Dubai Automotive Creations. Moreover, the Saudis were good customers, and if DAC did not deliver the finished automobiles in time there would be "serious financial consequences", a loss of respect for DAC and the certain loss of future business. Fred faced a huge problem. TMW was not yet producing acceptable parts and the delivery date to his customer was fast approaching and he had to act fast to save the deal and his own company's reputation. He arranged for a conference call next week between himself, Rashid, Gurpal and negotiate a compromise to allow him time to eventually deliver parts to DAC and the cars to the Saudi customer. Everyone's reputation hangs in the balance. Libcor (Fred): As the owner of your well-established family business you have made a significant effort over the past several years to bring Libcor up to modern manufacturing standards in your unique line of business. You have made several investments amounting to thousands of dollars in new equipment and plant improvements. You have obtained ISO 9002-2015 quality certification, which has allowed you a global credulity with prospective customers who now come to your business to meet their unique steel bending requirements. Over the time that you have become involved in this family business you have faced many challenges with family members who insisted on the "old way of doing things, but now have relented on your continuous efforts of improvement. This deal with DAC was initially not supported by your brother and business partner because of his very colloquial and narrow views about "foreigners". You believe that your business relationship with Rashid will allow you to convince him to allow you more time to deliver the parts. That is one important consideration. However, you now have lost all your confidence in TMW's ability to deliver the machine to you to operate and make acceptable parts for DAC. Moreover, you do not want to pay for a machine that is having difficulty meeting your and DAC's specifications. You think that TMW will ask for more time to perfect the machine, but you are not prepared for any further extensions based upon what you have been through with Mr. Singh never meeting his commitments. As you prepare yourself for the conference call next week you are committed to delivery of the parts to DAC and to save your reputation with Rashid, but you do not want to put your company at risk with a machine that is evidently unreliable