In: Operations Management
Case 1 - Team Negotiation
Background:
Adel works for a major airplane manufacturer in the Midwest. He must travel to Washington, D.C., to negotiate revisions to a contract with the U.S. military. The key issues presented are cost overruns due to complex engineering changes. He has two weeks to prepare for the meetings, which will run over a period of three days in Washington. His department is currently spread pretty thin working on several projects simultaneously. Adel’s staff is a fairly homogeneous group, most with engineering backgrounds. His two senior people typically disagree on everything.
Case Questions:
Question 1: What factors should Adel consider in deciding whether or not to use a team for the negotiation?
Question 2: What additional information would you desire before making your final decision on whether to take a team to Washington?
Question 3: How should Adel decide whom to take to the negotiation?
Answer 1: Following factors should Adel consider in deciding whether or not to use a team for the negotiation:
a) The team creates complexity and makes the negotiation tougher.
b) He should consider whether the negotiation requires a skill that he does not have.
c) He should consider if someone in his group has prior experience in that field.
d) He should analyze whether he will be able to handle the deal or there will be a need for expertise for different levels to efficiently negotiate a deal.
e) He should keep in mind about the prior experience with the team. If the experience was good then take his team otherwise not.
Answer 2:
1) What are the topics we will talk about?
2) Qualification of the people with whom negotiation is taking place.
3) Is there any need for more people?
Answer 3:
Adel should decide this on the basis of knowledge and experience.
For Example, There are two people A and B. A is having great knowledge in that field whereas B is having average knowledge but experience also. In this situation, he should go with B as he has both knowledge and experience which will help him to efficiently achieve the negotiation. If he will go with A then there is a less chance because knowledge is not everything.
He should not take seniors with them as they will make it more complex.