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    Ib PPT Vipul

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    vipzz1995
    1. Do not agree to further concessions without getting something substantial in return. 2. Be more assertive in negotiations and challenge Reliant's assumptions rather than easily giving in. 3. Emphasize POC's strong position as the incumbent supplier and the time it would take competitors to replace them in order to gain leverage.

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    Ib PPT Vipul

    Uploaded by

    vipzz1995
    37 views5 pages
    1. Do not agree to further concessions without getting something substantial in return. 2. Be more assertive in negotiations and challenge Reliant's assumptions rather than easily giving in. 3. Emphasize POC's strong position as the incumbent supplier and the time it would take competitors to replace them in order to gain leverage.

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    global negotitations ppt

    Original Title

    IB PPT VIPUL

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    1. Do not agree to further concessions without getting something substantial in return. 2. Be more assertive in negotiations and challenge Reliant's assumptions rather than easily giving in. 3. Emphasize POC's strong position as the incumbent supplier and the time it would take competitors to replace them in order to gain leverage.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    37 views5 pages

    Ib PPT Vipul

    Uploaded by

    vipzz1995
    1. Do not agree to further concessions without getting something substantial in return. 2. Be more assertive in negotiations and challenge Reliant's assumptions rather than easily giving in. 3. Emphasize POC's strong position as the incumbent supplier and the time it would take competitors to replace them in order to gain leverage.

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    You are on page 1of 5

    Problems faced by pacific oil company

    • They insisted on a new deal at an unnecessary time.

    • They agreed upon concession after concession, putting them in an uncompromising


    position.

    • They were already in a good position, then they started to think too far into the future
    in a contract that wasnt close to ending for them.

    • They put themselves out there that they might sign contracts with other purchasers
    for lower formula prices than were currently being awarded to Reliant.
    Styles and effectiveness of different
    negotiators
    Fontaine (Marketing VP Europe POC) & Gaudin (VCM Marketing Manager POC)

    - Indirectly convey fear of losing an important customer (Reliant) by over-emphasizing the


    importance of a long-term business relationship during negotiations

    - Easily give in to arguments of the counterparty without seriously challenging underlying


    assumptions

    - Don`t take advantage of switching costs, etc. to put pressure on counterparty, too

    - Fail to address the 24-30 months’ time horizon it takes until competitors can supply their products
    to Reliant

    - Fail to achieve a compromise regarding the pipeline metering issue (no cost sharing
    Hauptmann (Senior Purchasing Manager Reliant
    Europe) & Zinnser (Regional VP Operations Reliant
    Europe)

    - Starts to ask for adjustment of main contract terms (price, minimum quantity, duration) and
    achieves compromise regarding all three aspects

    - Skillfully turns to most important points by stating that “only a few minor issues need to be
    discussed” → pipeline metering , favoured nations clause, meet competition clause, contractual
    right to re-sell

    - Starts to ask for adjustment of main contract terms (price, minimum quantity, duration) and
    achieves compromise regarding all three aspects

    -Hauptmann and Zinnser dominate the negotiations (determine order of points discussed and
    set corresponding pace); achieve their goals step by step
    Negotiation tactics used

    - Mandate: Hauptmann mentions that Zinnser wants a few minor aspects changed

    - Limited authority: necessity to obtain consent from corporate HQ, used by both
    parties

    - Salami: Hauptmann and Zinnser achieve their goals step by step

    - Hauptmann questions the willingness of POC to engage in long-term business


    relationship
    What should Frank Kelsey recommend to Jean
    Fontaine at the end of the case? Why?

     Don`t give consent to re-sell provision


      if Reliant insists on re-sell provision suggest to
    include additional provision that prohibits Reliant
    to re-sell below or above contract price

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