Question: Patel Suits Case Study ( Relationship - Building in Negotiation ) . Mavji Patel owns a tailoring business in St Lucia in the Caribbean. His
Patel Suits Case Study RelationshipBuilding in Negotiation Mavji Patel owns a tailoring business in St Lucia in the Caribbean. His main product line is in mailorder of madetomeasure jackets and trousers. Mavji had taken the business to the current mix of products, marketed under his fathers slogan: Patel Suits You. Recently, Mavji had designed a new lightweight suit Patel Specials which doubled as formal wear for business or smart casual, and this was currently growing towards twenty per cent of total profit. The owner of Maraj Mens Clothes in Jamaica and clearly a talented salesman, who had bought a few of the Patel Specials and had been impressed with his customers responses, some of whom also bought other madetomeasure items. He told Mavji Patel that he believed he could sell all the Patel Suits he could import into Jamaica more if they were manufactured locally and that he wanted to set up a deal from which they would both make mighty profits. Patel pondered his options before responding to Marajs proposition. He wanted to expand his business, but he also wanted to retain control of his branded products. He saw the Patel Specials as the first of several designs he had in mind, and he thought there was a lot of room for growth in developing the mailorder madetomeasure business. Growing through local distributors, such as Wilson Maraj who had passed an initial scrutiny of his business and personal affairs could become a model for the future of Patel Suits in the Caribbean; hence, Mavji Patel was not keen on granting him exclusivity or a license to manufacture locally until he had at least proven himself and Mavji Patel had more knowledge of the prospects for his suits in the Caribbean. On the other hand, depending on the pricing issue, he could use the profits from Jamaica to fund his direct expansion elsewhere via the internet, Why might it be better for Mavji and Wilson to develop a business relationship before negotiating these issues?
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