Monday, March 26, 2012

Jordan Electronics Company


A. About you

1. What is your overall goal?
Having the committee reach a consensus that will produce the lowest financial burden possible

2. What are the issues?
A. Reaching a consensus
B. Whether to produce a revised / new  model
C. Selling price
D. How up-to-date it will be

3. How important is each issue to you?

Committee Consensus
4000
Issue A:

No Committee Consensus
0
Produce Revised Model
3000
Issue B:

Don't Produce Revised Model
0
$20,000
2000

$19,000
1600

Issue C:
$18,000
1000

$17,000
400

$16,000
0
New microprocessor, Voice-Activated & Optical
1000

Voice-Activated & Optical
800
Issue D:

Voice-Activated or Optical
200

No Improvements
0

4. What is your best alternative to negotiated agreement?
Not manufacturing the revised model

5. What is your negotiation point?
Reach Consensus (4000), Produce Revised Model (3000), $17,000 selling price (400), Voice-Activated or Optical Improvements (200) = 7,600 points out of 10,000 points possible
B. About the Other Side:

I. Director of R&D

1. How important is each issue to them?

Committee Consensus
500
Issue A:

No Committee Consensus
0
Produce Revised Model
500
Issue B:

Don't Produce Revised Model
0
20,000
1000

19,000
800

Issue C:
18,000
500

17,000
200

16,000
0
New microprocessor, Voice-Activated & Optical
4000

Voice-Activated & Optical
800
Issue D:

Voice-Activated or Optical
400

No Improvements
0
Produce a Portable Model
4000
Issue E:

Don't Produce a Portable Model
0

2. What is their BATNA?
Manufacturing the revised model

3. What is their resistance point?
Produce a Portable Model (4000), New microprocessor, voice-activated & optical (4000), $16,000 (0), Don’t Produce Revised Model (0), No Committee Consensus (0) = 8000 points out of 10000 possible points

4. Based on prior questions, what is your target?
Not producing a portable model

II. VP of Sales

1. How important is each issue to them?

Committee Consensus
500
Issue A:

No Committee Consensus
0
Produce Revised Model
500
Issue B:

Don't Produce Revised Model
0
20,000
0

19,000
400

Issue C:
18,000
1000

17,000
1600

16,000
2000
New microprocessor, Voice-Activated & Optical
2000

Voice-Activated & Optical
400
Issue D:

Voice-Activated or Optical
200

No Improvements
0
Produce a Portable Model
2000
Issue E:

Don't Produce a Portable Model
0

2. What is their BATNA?
Producing the revised model

3. What is their resistance point?
Not producing a portable model (0), Voice-activated & optical (400), $20,000 (0), Produce a revised model (500), No committee consensus (0) = 900 points out of 7000 points possible

4. Based on prior questions, what is your target?
Not producing a portable model


III. VP of Production

1. How important is each issue to them?

Committee Consensus
500
Issue A:

No Committee Consensus
0
Produce Revised Model
500
Issue B:

Don't Produce Revised Model
0
23,000
8000

22,000
6400

Issue C:
21,000
4000

20,000
2400

19,000
0
New microprocessor, Voice-Activated & Optical
500

Voice-Activated & Optical
400
Issue D:

Voice-Activated or Optical
250

No Improvements
0
Produce a Portable Model
0
Issue E:

Don't Produce a Portable Model
500

2. What is their BATNA?
Producing a portable model

3. What is their negotiation point?
Don’t produce a portable model (500), voice-activated & optical (400), $22,000 (6400), Produce a revised model (500), no committee consensus (500) = 8300 points out of 10000 possible points

4. Based on the prior questions, what is your target?
$22,000 or below for selling price

IV. Senior Electrical Engineer

1. How important is each issue to them?

Committee Consensus
500
Issue A:

No Committee Consensus
0
Produce Revised Model
500
Issue B:

Don't Produce Revised Model
0
20,000
1500

19,000
1200

Issue C:
18,000
750

17,000
450

16,000
0
New microprocessor, Voice-Activated & Optical
900

Voice-Activated & Optical
3000
Issue D:

Voice-Activated or Optical
1500

No Improvements
0
Produce a Portable Model
0
Issue E:

Don't Produce a Portable Model
300

2. What is their BATNA?
Produce portable model

3. What is their resistance point?
Produce portable model (0), voice-activated or optical (1500), $17,000 (450), don’t produce revised model (0), no committee consensus (0) = 1950 points out of 4300 possible points

4. Based on prior questions, what is your target?
No portable model

C. The situation
1. What deadlines exist?
We must reach a consensus by 6:15PM

2. What fairness norms or reference points apply?
I think that each committee member should get something that they want out of the consensus

3. What topics or questions do you want to avoid? How will you respond if they ask anyway?
Discussing each other’s salary should be avoided. If it is brought up, I will say that we have a deadline and we need to focus on determining what we are going to do.

D. The relationship between the parties
1. Will negotiations be repetitive? If so, what are the future consequences of each strategy, tactic, or action you are considering?
Negotiations will probably be repetitive. Therefore, any strategy utilized needs to focus on interests. Also, negotiations need to be integrative. Since all parties are employed by the same company, we should all be able to trust each other and decide what is best for the company overall.

2. What do you know about the other parties’ styles and tactics?
Nothing

3. What are the limits of the other parties’ authority. 
I have authority over the other parties because I can taking the place of the president in this negotiation.

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