To prepare for the negotiation with AllTech, let's address the assignment steps methodically:

$1.$ Review the case and exhibits to familiarize with AllTech$$s situation.

Key aspects to consider:

AllTech's history with Rover Industries

The importance of the Z$7$ controller to Rover's new line of drones

Market conditions and the availability of suppliers

The quality and delivery standards required by the aerospace industry

$2.$ Prepare to negotiate with Alltech.

a$)$ Key points and issues to discuss:

Quality Control: Assurance of adherence to aerospace industry standards.

Delivery Schedule: Ability to meet the $12-$month schedule and potential for follow$-$up orders.

Costs: Examine costs beyond the unit price, such as transportation and tooling.

Payment Terms: Agree on payment schedules and milestones.

Incoterms: Clarify responsibilities for shipping, insurance, and tariffs.

Capacity: Confirm AllTech's ability to scale production if needed.

Intellectual Property: Discuss the handling of proprietary designs.

b$)$ BATNA as a buyer:

The Best Alternative to a Negotiated Agreement $($BATNA$)$ for Rover might be to choose one of the other two lower bidding suppliers with a good reputation. Alternately, they could consider in$-$house production, despite the capacity constraints.

c$)$ Alltech$$s BATNA:

AllTech's BATNA could involve supplying similar components to other drone manufacturers or diversifying their product offerings to different industries.

d$)$ Costs other than the unit price:

Tooling Costs: Initial setup costs for production.

Quality Control: Costs associated with ensuring product meets industry standards.

Transportation: Shipping costs and risks.

Inventory Management: Storage and handling costs due to the delivery schedule.

After$-$Sales Support: Warranty and maintenance commitments.

e$)$ ZOPA $($Zone of Possible Agreement$)$:

The ZOPA might be identified between Rover's "should" cost estimate $($$$4\mathrm{.}11/$unit$)$ and the lowest bid received, considering the total cost of ownership and not just the unit price.

f$)$ Most important issue$($s$)$ to the seller:

Volume Commitment: Assurance of large orders.

Price Stability: Predictable revenue stream.

Long$-$Term Relationship: Continuation of the existing partnership.

$3.$ List of concessions willing to offer:

Volume Guarantees: Offer a larger initial order or a longer$-$term contract.

Flexible Delivery: If AllTech has overcapacity, Rover might accommodate a more spread out delivery schedule.

Payment Terms: Offer favorable payment terms or upfront payments.

Collaboration: Propose a joint development effort for future improvements or new products.

$4.$ Tactics for negotiations:

Anchoring: Start with a lower offer than you're willing to pay to anchor the negotiation favorably.

Bracketing: Negotiate a range of acceptable outcomes early in the discussion.

Silence: Use silence strategically after making an offer or point to compel a response.

Bundling: Combine multiple issues into a package deal instead of negotiating point by point.

$5.$ Organization for the negotiation:

A structured approach with one designated speaker leading the negotiation, supported by subject matter experts who can step in when specific technical or contractual details are discussed, ensures clarity and authority.

$6.$ Role of the executive assistant:

The executive assistant will:

Keep detailed notes on what is being discussed.

Track concessions made by both parties.

Monitor changes in positions and ensure follow$-$up on action items.

By following these structured steps, Ron will be well$-$prepared to enter into negotiations with AllTech. The goal is to reach an agreement that meets Rover's needs for the Z$7$ controller while maintaining a strong and mutually beneficial relationship with AllTech. ouestion $1-$can you change the vocabulary for the this or edit the document?