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Coffee Contract:

                In this exercise we were negotiated as one to one, so it is not group effort, actually it was a good idea to have an individual work exercise, it was leading me to do best I can in the negotiation. At the same time it made me more confidence to negotiate the other side of the conversation. 

 In this negotiation, every party needs to earn the target point, that’s mean I have to  make contract with the best deal

I have taken the place of Mr. Pat Hammer, the east coast vice president of sales for Anderson coffee. I have set my goals to achieve the best offer of the contract, which I will provide to my customer, Ms. Sandy Grant, food and beverage director for the Statler hotel in order to obtain the best bounce as possible. Ms. Grant and I started negotiating the coffee price that the company I work with sells. First, I have given her our standard price, which is $7.94/lb., but she rejected my offer. We spent 15 minutes of negotiation. Each party was trying to get the best price that he/she can get. Everyone has offered different prices.

At the end of the negotiation, we accepted the contract for $6.80/lb. under specific terms. One of the terms was that the buyer handles the cost of the shipping. So by having the buyer handling the cost of the shipping, I still reach my goal price and save the shipping and handling time. Another term we both agreed on was that I ship the coffee to the buyer every two weeks and when the buyer receives the shipment, she will pay the cost of the product every ten days. So by following this term, the company keeps receiving money every short period of time. In addition, I accepted the buyer deal, which is selling the coffee for a low price because Statler hotel is the only customer I have in the central New York area, which is a real good for our company. The expected result is that deal might open another business doors for our company in the same area. In another words, spreading my product in different regions will give our company the opportunity to increase the number of the customers in the future. Also, having a customer in an area, where I have had no customer in before, will work as a free advertising for my product, especially because the product I am selling is a very high quality coffee and is not available in the same area.

There are several important steps that I did not practice in this exercise, which the author addressed in the textbook. If I had the chance to do the exercise again or if I were going trough a similar situation I would be very careful in working on it with the following preparations: (1) Setting up my self-assessment. In other words, I should evaluate my product. For example; the coffee that my company own meats the high quality coffee standards that the other party need, that means I have the power to control the price (Thompson, 13, 36). (2) Setting up the assessment of the other party. I should try to know more about the other party as much as possible, such as; what he/she wants? What is his/her aspiration? What is the estimated budget for the other party to purchase my product? What are the possible alternatives that the other party has if we did not reach to an agreement and he/she did not buy my product? (Thompson, 20, 27). (3) Setting up the assessment of the situation. Like what the author addressed in the textbook, we can figure that out by asking the following questions; “Is the negotiation one shot, long term, or repetitive?” “Is the negotiation a transaction or dispute situation?” “Is the negotiations one of necessity or opportunity?” So in the future I need to evaluate the situation and know its importance, and the benefits that I will obtain. Etc (Thompson, 28, 29, 30).




Journal 4: The Thomas-Kilmann Con?ict Mode Instrument (TKI):

The importance of process in managing conflict in various organizations, the experts and researchers such as Thomas and Kilmann, who achieved great effectiveness for their organization by designing multiple modes that can help interpersonal and groups to handle and manage conflict. Thomas and Kilmann created different strategies depending on the level of conflict that occurred, which they called “The Thomas-Kilmann Conflict Mode Instrument (TKI).”

TKI is a test that has five different modes (styles) of conflict, which assess how to handle the conflict that affect the interpersonal and group and determines their behavior. These conflicts are classified into five modes: collaborating, competing, compromising, accommodating, and avoiding. In this test, there are no right or wrong answers. Whatever your scores are, high or low in one or more modes, all of the five modes are useful in different situations.

In this test, I responded to thirty conflict questions. The results of my answers show my ability in handling the five styles of conflicts. My highest score was in the collaborative conflict. Also, I got average scores in the following conflicts: competitive, compromise, and accommodative. My lowest score was in the avoidant conflict.

I believe that this test related to what I have learned in class in chapter five of the textbook. The responding of the test questions were showing the ability of how the person deals with different situations, which known as emotional intelligence. Emotional intelligence is defined as “the ability of people and negotiators to understand emotions in themselves and others and to use emotional knowledge to effect positive outcomes.” (Thompson, 119).

In addition, Thompson clarified that both positive and negative emotion of people leads to positive outcome. Such as when Thompson explained that positive moods can promote creative thinking and lead to innovative problem solving. In other hand, negative emotion is also positive, because people who display angry feelings in negotiation, often gain more concessions because of the feeling of the opponent that the person who feels angry is close to his/her reservation point. (Thompson, 118, 120).

Journal 5: Eazy’s Garage:

                For this negotiation exercise, I was playing the role of Mr. Jim Eazer, the owner of a gas station. The issue started when Jack, the mechanic guy who works with me at the station, gave Ms. Litchfield an estimated price for the maintenance of her car. Then, after checking the car, it showed that the maintenance of the car would cost more than what Jack thought due to the need of changing more spare parts for the car and it needed more time for maintenance. However, this was not satisfying Ms. Litchfield. The issue had become bigger when Ms. Litchfield withdrew her car without paying the amount of residual. This is why I contacted my lawyer and consulted him about the issue that occurred. Later, the lawyer determined a meeting between Ms. Litchfield and me in order to reach an ideal solution that was satisfactory for each party. So in this exercise, my goal was obtaining a satisfactory solution for all with the lowest cost as possible and without losing my customer.

Yet, when Ms. Litchfield and I started to negotiate about the cost of maintenance that we made in her car. I tried to convince her that the examination carried out by Jack was an initial examination and sometimes does not show all the problems from the first examination. Also, I tried to persuade her that I am giving her a special discounted price that usually I do not offer to my customers. Also, I didn’t give her the standard price based on the cost of the job as estimated by the standard manual, which used industry-wide to set the price of parts and estimate the time a job will take. Ms. Litchfield was not convinced of what I said and she thought it was a mistake that she is not responsible for.

However, for the importance of the reputation of my business and for the reason that I am keen to keep my customers dealing with me and not to lose them, it was necessary to offer some concessions. At the end of the negotiation, we agreed that Ms. Litchfield would pay $515.00, which is a compromise solution between us. I made a discount of $45.00, although this discount would not provide me any profits from repairing Ms. Litchfield’s car, but at the end I was able to satisfy my permanent customer and at the same time ensure that she will deal with me for long time.

Through my experience at workplace, employer must make some concessions sometimes to please his/her customers, even if that leads to a loss or no benefits. In return, it will ensure the customers’ continuity of dealing with him/her and that will offset the loss. Also, the importance of satisfying the customer is one of the most important factors of keeping the reputation of the company at a high level.

From the exercise above, I learned several important lessons. (1) Reputation is very important because bad reputation or broken the trust would affect your business negatively especially in the small towns or areas (Thompson, 139, 142, 148). (2) It is important to make some concessions sometimes to keep your relationship good and to re-build the trust with your costumers because good relationship will provide long-term benefits (Thompson, 132, 133)


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