Role: Wheeler

Setting: 1985

You are Wheeler, an engineering manager working for LambdaTech, Inc. Your company is one of the most important in the United States and Europe. It is involved in very high technology, which has made it one of the leaders in the storage device business, which are essential components of computers and other electronics.

You have had a successful career in engineering with the Storage Device Division. Your goal is to be promoted.

You have learned that there are some openings in your division. Any of these positions would be a promotion for you. You know that one of the positions requires a marketing background but not an engineering background. You regret that you do not have experience in marketing because there is some urgency to fill the position. It will go to the first marketing manager at your level in LambdaTech who applies for it.

You are coordinating the development of the new SX-3.5, a storage device that will be able to store data on a 3.5 disk. You have promised 1,000 SX-3.5 units to your customers. Each SX-3.5 requires three integrated circuits, the IC-8090, IC-6090, and IC-2230. Your division will have to buy 1,000 of each of these units no more and no less from the Integrated Circuits Division of LambdaTech, which is located about 2,000 miles from your plant. The purchase of these three ICs is extremely important for your division. You are responsible for purchasing these components from the Integrated Circuits Division.

You hope that the revenue associated with the SX-3.5 will enable you to reach your goal of $210,000 profit for your division. If you reach this goal, your division VP will waive the marketing-experience requirement for the promotion you want, and will ensure that you get that promotion. If your profit is less than $210,000, the VP will not waive the marketing-experience requirement.

The accounting department developed a table that forecasts the profit per unit that your division will make if you buy the integrated circuits at the specified prices. You may only buy one letter for each IC.

You are going to negotiate the prices of the integrated circuits with Henderson, a manager in the Integrated Circuits Division of LambdaTech. Henderson is at the same organizational level in LambdaTech as you are. You have learned from your experiences during the past two years that you cannot trust Henderson, personally. There has been a high level of mutual fear and suspicion between the two of you.

Please help with negotiation questions and how to negotiate the scenario with a plan

Your issues

List and prioritize what you want, as well as your target and reservation points for each issue

Your interests

List why you want these issues

Other party

List what may be the other partys issues and interests

Notes

Write anything here that may help you in this negotiation

(e.g., questions to ask, possible bundles or packaging of multiple issues)

Prices & Profits Table IC-8090 IC-6090 IC-2230 Price option Profit per unit unit Price option Profit per unit Price option Profit per unit A 150 A 90 A 60 B 125 B 75 B 50 C 100 60 40 D 75 D 45 D 30 E 50 E 30 E 20 F 25 F 15 F 10 G 0 G 0 G 0