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After a negotiation with other party I need to prepare issues and negotiating tactics I used in attempt to make the sale. I am on the seller team and I contacted two students from the buying team and agreed on a deal and there are notes in the attachment and it has to be written detailed. (more instructions about the deal in the attachment).
negotiation_scenario__sellers.docx

negotiation_written_assignment__22_.docx

negotiation_assignment.xlsx

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Seller’s Scenario
Your team has been assigned to negotiate a new contract for next year’s food concessions at the
ASU football games. There are six games on the schedule, and based on this year’s attendance
the games should all be sold out (31,000 fans/game). ASU does all of its own food preparation
and ASU employees also serve the customers.
On average during each game day the following food items are sold, plus or minus 10%:
15,000 hamburgers
12,000 hotdogs
6,000 polish sausages
18,000 bags of chips
27,000 12 ounce soft drinks
14,000 12 ounce bottles of water
The university buys all of the food from one source: Arkansas Foods of Little Rock (AFLR).
AFLR delivers the food the day before the game and stocks the ASU stadium kitchen for the
university at no extra charge.
The university prepares for a 10% oversell of each of the items just in case there is more than
average demand (for example, 16,500 hamburgers are cooked on a game day). Sometimes there
is not as much demand as normal, as much as 10%. Therefore there can be as much as 20% of
the food that is prepared that does not get sold. All food items that have been prepared that are
left over are thrown out. The drinks do not go bad and therefore are kept until the next game.
Your boss has found out that ASU is looking for a new supplier for game day food and she sees
this as a good opportunity to get the company’s foot in the door at ASU. She also heard that they
are looking at outsourcing the food preparation and sales at the stadium.
She knows that ASU has talked to three other suppliers, but she has not knowledge of the prices
they quoted to ASU. She would like you to get the ASU business as long as it is profitable. She
would also like some of the other events at ASU as well, and would be willing to take less of a
profit to capture that business. She is willing to make as little as 25% profit or maybe slightly
lower if ASU is willing to commit to a long term contract (2-5 years) that includes at least the
men’s and women’s basketball games.
One advantage that your company has is a portable storage unit, where the hamburgers, hotdogs,
and sausages are stored until they are needed. The company does not have to cook the food far
in advance, any left overs never leave the storage unit, and therefore not much waste is
generated.
Here are your costs for food, including buns and condiments:
Hamburgers: $1.50 each
Hotdogs: $1.10 each
Polish Sausages: $2.00 each
Chips: $0.40 each
Soda: $0.80 each
Bottled Water: $0.65 each
Your 4 cooks make $17.25/hour and your 28 servers make $10.75/hr. You estimate that this is
the number of employees you will need per game. Assume 8 hours a game for each employee.
You will need to cold call the head of the purchasing department at ASU and set up an
appointment to discuss your company’s offer.
Negotiation Preparation and Execution Assignment
Write a paper (8-10 pages) that addresses the following:
Preparation: (50 points)
1) Explain your negotiation framework regarding price; i.e., what were your minimumtarget-maximum prices and how did you arrive at those numbers?
Minimum 10%= $8560 per game and $51360 in 6 games
Maximum 20%= $17120 per game and $102720 in 6 games
2) What are your assumed bargaining strengths? Weaknesses?
Strength:
The buyer did not need neither our chefs or servers
Weakness:
3) What were the important negotiation issues for your team? Why were they important?
Determining if they want to go with the 10% offer or 20% offer
4) What did your team decide on for negotiation goals? What concessions were you
prepared to make?
We made a deal of $67500
5) What negotiating tactics did you plan to use, and why did you choose them?
High bowl
Execution: (50 points)
1) How did you apply your minimum-target-maximum price framework to the actual
negotiation? How did your analysis of price assist or hinder your team in its negotiations?
We added 25% to our target, then, we increased our target price based on the profit goal
2) How did your assumed bargaining strengths actually work out in the negotiation? What
points of leverage did you end up actually using, and why? How did your assumed
bargaining weaknesses actually work out in the negotiation? How did your actual
weaknesses compare to your assumed ones?
Using the high bowl technique added pressure on the other team to ensure that we are winning
3) Discuss how you approached the important negotiation issues for your team. What
concessions did you make, and why? What did you hold firm on, and why?
we asked more questions so that we know what type of deal the team were welling to take
4) What negotiating tactics did you plan to use, and why did you choose them? What
tactics did you end up using? Why did you use those tactics? How were they helpful or not
helpful to you?
We used high bowl
5) What tactics did the other team use? How did you react to those tactics? How were they
helpful or not helpful to the seller?
Honesty and openness
6) Discuss what you think you did well on in the negotiation. Then discuss what you think
you could have done better on, and what you would do differently if you had a chance to do
it over.
The price exceeded our expectation
We would’ve offered a higher offer so it would make it safer for a good deal
Demand
Hamburgers
Hotdogs
Polish sausages
Bags of chips
Soft drinks (12 ounce)
Bottles of water (12 ounce)
plus or minus
oversell
15000
12000
6000
18000
27000
14000
10%
10%
20%
Prices
Hamburgers
Hotdogs
Polish sausages
Bags of chips
Soft drinks
Bottles of water
Total
$
$
$
$
$
$
$
Wages
Chefs
Servers
Total
1.50
1.10
2.00
0.40
0.80
0.65
6.45
per hour
4
$17.25
28
$10.75
$28.00
Each game
$
552.00
$ 2,408.00
$ 2,960.00
6 Games
$
3,312.00
$ 14,448.00
$ 17,760.00
Goal
Profit
6 Games
25%
8 hours
31,000 fans/game
1 Game Schedule
Hamburgers
Hotdogs
Polish sausages
Bags of chips
Soft drinks (12 ounce)
Bottles of water (12 ounce)
Total
With wages
Minimum 10%
$
2,250.00
$
1,320.00
$
1,200.00
$
720.00
$
2,160.00
$
910.00
$
8,560.00
$
11,520.00
Maximum 20%
$
4,500.00
$
2,640.00
$
2,400.00
$
1,440.00
$
4,320.00
$
1,820.00
$ 17,120.00
$ 20,080.00
6 Game Schedule
Hamburgers
Hotdogs
Polish sausages
Bags of chips
Soft drinks (12 ounce)
Bottles of water (12 ounce)
Total
With wages
Minimum
$
13,500.00
$
7,920.00
$
7,200.00
$
4,320.00
$
12,960.00
$
5,460.00
$
51,360.00
$
69,120.00
Maximum
$ 27,000.00
$ 15,840.00
$ 14,400.00
$
8,640.00
$ 25,920.00
$ 10,920.00
$ 102,720.00
$ 120,480.00
Sale price
Profit margin

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