Seller (Riggs Engineering) manufactures and services equipment for processing computer industry. Buyer (Vericomp) uses solvents in the production of chips. Although located in the technology industry, this exercise illustrates the main aspects of negotiation analysis that would apply in every situation - in particular, the potential sources of revenue and joint tension between creating and claiming value. Although it may be possible to reach an agreement on price alone, it's hard to do. Students can expand the zone of possible agreement if they creatively trade on other issues, including the scope of services Riggs will provide a payment schedule, the duration of the contract, as well as possible safeguards. Even when they jointly extend the cake, of course, they should remember that they will be cut. All agreements can be expressed in current prices, so it is easy to determine which pairs generated the most gain, and that people get the best deal for their specific company. It's two games, multi-issue negotiation exercises. Students should read either (A) or (B), but not both, and then paired up negotiations. Results are presented with a simple form, which is (C) case. "Hide
by Michael A. Wheeler Source: Exercise 3 pages. Publication Date: July 19, 2000. Prod. #: 801096-PDF-ENG
Related Case Solutions & Analyses:
Trade Liberalisation: The Case of the Rice Market in Hong Kong
Rabobank Group: Leadership Role in Global Agribusiness
Linda Fay Harris
Stat Work (Part A)
General Instrument: The Making of Strategy
Challenge the Boss or Stand Down
Canyon Johnson Urban Fund
Fund Development and Financial Management for Non-profit organizations
Bran capital: outback steak house
BANK OF ENGLAND
