Question Description
Preparation
Write a paper (4-5 pages) that addresses the following:
1) Explain your negotiation framework regarding price; i.e., what were your minimum-target-maximum prices and how did you arrive at those numbers?
2) What are your assumed bargaining strengths?Weaknesses?
3) What were the important negotiation issues for your team?Why were they important?
4) What did your team decide on for negotiation goals?What concessions were you prepared to make?
5) What negotiating tactics did you plan to use, and why did you choose them?
Arkansas Best Foods of Jonesboro has agreed to the following terms:
-They have agreed to cover on-site storage of food products with no additional charge
-They have agreed to outsource the labor as well (4 cooks and 28 servers) for an additional $3,000 flat fee for the two-year contract that covers 4 sports seasons (2 football and 2 basketball). In this fee, their employees are responsible for stocking the kitchen the day before the scheduled game as well as cleaning the facility afterward.
-This means we only pay $3,000 in labor over the two years. (They want it paid upfront.)
After the two years are over we have agreed to sit down and renegotiate prices and services.
Our only costs include the price of the food items and the $3,000 labor fee.
See the attached excel
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