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case analysis a scandinavian scare

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DISCUSSION QUESTIONS

1. Why did Conquip send an RFQ with a 10 percent price- reduction requirement rather than calling de Winter in for a negotiation? Is there any downside to having run the negotiation this way?

2. At the first negotiation meeting, Conquip made a threat disguised within an offer. The offer was to retain FD as a companywide, primary supplier if FD could meet its price demands.

A. What was the threat embedded in this offer?

B. Why was this offer not credible to de Winter?

3. If FD could have reduced prices by the 10 percent requested by Conquip and still have a positive and reasonable margin, why negotiate? Why not just reduce the price to save the business?

4. How did Marc de Winter improve his bargaining position at meeting 2? What general negotiation principle did he employ? How well did it work?

CRITERION

  • Write one paragraph (at least 3 sentences in length and have original thoughts/ideas) for each of the questions.
  • Make sure to number each of the paragraphs so that I know which question you are answering.
  • Make sure to reference the terms and concepts learned from the book.
  • Make sure your responses contain original thoughts.

 
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