The strategy used by Conquip was driven by the need to exert pressure on FD. Sending the Request for Quote (RFQ) to FD to gain knowledge about the pricing of the LEIF filter, which was not in wide usage by Conquip, would have enabled price reduction. This pressure played a role as an external constraint for FD. In essence, the constraint eliminated the attractive options available to FD to continue in its negotiations towards improving the terms of agreement. The lack of an option resulted in FD’s dilemma to either agree to or decline the agreement proposed by Conquip. Furthermore, it is evident that this seems to be an excellent strategy for Conquip despite minimal differences with other competitors resulting in possible time pressure from FD. The two entities are seemingly under pressure to meet similar deadlines. Conquip has time advantage whereas FD is constrained by the deadline, which demands that it adheres to the demands by FD for a timely RFQ. This could be an opportunity for FD to renegotiate the engagement to its favor with Conquip.
De Winter was initially suspicious of the offer made because of the intimate relationship enjoyed between FF and Conquip. Additionally, he also took notice that Conquip had delivered a RFQ with a majority of FD’s high volume products being absent from the list. This incident made De Winter doubtful given that he held the belief that Conquip was in need of an RFQ from FD on products that were in direct competition to FFs to reduce the prices of products at FF.
De Winter made the realization the RFQ was made to inform decision making with respect to FDs products. Framing is a technique that is applied for evaluation of choices so as to make sensible decisions that are devoid of negative repercussions. Conquip sought to deliver a solution by defining it in terms that were appropriate and relative to FD’s interests. On the other hand, De Winter realized that Conquip was framing the organization, which is effective in providing him with an upper hand in control of the framing process.
This is because FILTECH and FD’s priorities were to ensure that they maintained positive long-term sales relationships and margins. Addition, the knowledge that Conquip was using FD to its advantage resulted in dismay at FD. Furthermore, there was uncertainty given that Conquip has not stated the number of products it intended to purchase over the identified period. FD has a poor BATNA, with De winter being reluctant towards making concessions with ease, which would illustrate weakness. As a negotiator, there is a need to accept a proposed agreement if it is better than the BATNA or withdraw from the negations to pursue other alternatives. This was effective in countering the framing undertaken by Conquip.
The improvements in the second marketing meeting was a result of De winter’s expression of the positive outcomes if the two entities came together to achieve a common strategy. De Winter was able to shift from the initial position based negotiation towards interest based negotiating. Conquip’s primary interest was to reduce supplier costs whereas FD sought to maintain long-term sales and margins attributed to its engagement with Conquip. FD consistency in delivering of products at a fair price alleviated Conquip’s concerns in looking for an alternative and enabled FD to achieve its expected margins.
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