...De Havilland Inc. Report on Competitive Bidding and Negotiation Presented to Louis Girard Prepared by: Michel Boyer 10046739 February 8th, 2016 Table of Contents Executive Summary 3 Issue Identification 4 Root Cause Analysis 5 Alternatives and Options 6 Recommendations 7 Implementation 9 Monitor and Control 10 Executive Summary The current inventory of parts, flaps shrouds and equipment bay doors, to produce the Dash 8 airplane will run out in approximately 18 months. In keeping with the companies’ goals of reducing costs, we have asked our suppliers to accept a 25% reduction in prices. When it came to the actual, they were not willing to budge. For that reason, we issued an RFQ. We obtained 9 bids. The lowest bidder was Morton Enterprises. After evaluating the bids, we identified two options, the first one to enter into negotiation with Morton so they can become the preferred supplier of flap shrouds and equipment bay doors. The negotiation must also include transportation, supply, support, etc. The second option is to also negotiate, at the same time as Morton, with the next 2 lowest bidders, Das Components and Lakeshore Industries. Our recommendation is to start negotiation with Morton as soon as possible. Morton’s price will permit us to reduce our manufacturer costs and enter into a long term relationship. A bid clarification meeting must be held quickly to make sure that Morton’s bid...
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...Enterprises. Their bid was 18% lower than their nearest competitor, and when I compared prices of the needed components to the prices supplied by current providers they were between 54% and 74% less expensive. However, beyond parts cost reduction we are also interested in establishing long-term co-operative contracts with the vendor. So, apart from determining who had the best price offer, I need to determine whether Morton is sufficiently stable to be relied upon in the long run. So my strategic intention here is to negotiate an agreement with Morton that will be of the greatest value possible to De Havilland keeping in mind our goal of longer-term agreements and reducing the amount of vendors we deal with. A good decision from SSB and the negotiations team will allow De Havilland to achieve this objective. Part 2: Issue Identification De Havilland has been a leading and successful Canadian aircraft manufacturing company. Plans for new airline design were based on the Dash 8...
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...Marie S. Hemsley Contract Negotiations Mon-Wed. 7-8:20pm Chapter 6 – Section VIII NEGOTIATIONS Negotiating government contracts and modifications is an art, a science, and an acquired skill. In order to acquire the skill, the negotiator must have a firm knowledge of the basic rules of government contract law and appropriate contract procedures. A successful negotiation depends on communication, price demands, and complete preparation. Negotiation without adequate preparation invites failure and is, in fact, a breach of the negotiator's obligation to oneself, the government, and to the public trust. Adequate preparation enables the negotiator to negotiate with strength to take and hold the initiative throughout the negotiation conference and to meet any challenge with confidence. It is emphasized that lack of preparation for negotiations places the government in a position of distinct disadvantage. The discussion contained in this chapter is based on the assumption that negotiation after receipt of proposals is considered necessary. That is, for any situation where adequate price completion has not been assured via competitive bids, technical requirements, or proposals taken with the view of an award based upon the lowest reasonable price. VII. Negotiation Exchange with offerors after establishment of the competitive range. Negotiation are exchanges, in either a competitive or sole source environment, between the Government and offerors, that are undertaken with the...
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...2014-19-E-858 | Oluwole Adeoti | WELL DONE MADAM | NEGOTIATION TERM PAPER | WELL DONE MADAM | NEGOTIATION TERM PAPER | TABLE OF CONTENTS Page Intro Strategy and Tactics employed by Mrs. B ………………………………… 3 Negotiation Strategy …………………………………………………………….. 5 Types of Negotiation Strategy …………………………………………………… 5 Negotiation Tactics …………………………………………………………….. 5 Types of Negotiation tactics …………………………………………………… 6 Conclusion Reference Introduction Negotiation is a means through which differences are being settled. This usually involves communication between two or more people, parties who intend to reach a mutual beneficial outcome, have points of difference to resolve, trying to gain advantage for an individual or a group or get an outcome that will satisfy various interest. Through negotiation, compromise or agreement is been reached while avoiding argument and dispute and it is aimed to achieve most favorable result for the position that that the negotiator stands for. The case well done Madam is centered on negotiation between the protagonists Mrs B and the Airport police, how she used her negotiation skill to secure the release of her driver and the company car without been booked and paying the appropriately charges. Monday, Mrs B driver had wrongfully parked at the Airport entrance against his boss wish and was arrested for illegal parking by the Airport police. Mrs B noticing this from distance used negotiation process and tactical maneuvering to gain advantage...
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...RFP- which could be from 15 to 45 days depending upon the size and complexity of the requirement. During this time, the CO should answer any questions that all Offerors may have regarding the RFP. This should be done in writing but can also be done in an open forum such as a pre-proposal conference. Once all questions have been answered, the CO should post these questions and answers on FedBizOpps for all Offerors to see and if needed, amend the RFP. The process from the seller’s point of view begins once a notice is synopsized on FedBizOpps. After the requirement is actually posted on FedBizOpps, the seller should review the entire RFP and then choose if they want to propose or not. Depending upon what the seller believes his competitive chances are, a decision should be made to propose responsively to the requirement. At this time, the seller should review the RFP again and any amendments to fully understand the needs...
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...Paper #1 I. Negotiation Style in Terms of My Personality Prior to taking this course, I thought negotiators were either tough or soft, without much room in between. I believed that being tough meant being successful and that being soft meant giving others an unfair advantage by sacrificing your position. In reality, however, neither is the case. In terms of my personality, my first thought was that I am somewhere between individualistic and competitive. I had considered myself to be somewhat of a tough negotiator because I knew I had a tendency to be stubborn and overly truthful in order to achieve my goals. As I gave the matter more thought, however, I realized that I could be somewhat cooperative as well, depending on the needs of the situation. I analyzed past negotiations and how my style has evolved. I remembered that I did try to be fair – so long as I could achieve my goals as much as possible, I was willing to give some concessions. In other words, I did not want to “win the battle but lose the war.” II. Strengths and Weaknesses of My Style – Positive and Negative Outcomes Being a tough negotiator - with more of an individualistic or competitive edge - can have both strengths and weaknesses that produce a variety of outcomes. During such discussions, it is important to concentrate on your goals and not get sidetracked by irrelevant issues. Your interests must remain paramount in order to survive in a competitive business world. On a positive note...
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...related to processing acquisition of government contracts. Before these congressional amendments sealed bidding was the standard. In most cases sealed bidding is the preferred method for construction , so if the Seahawk helicopters and Cobra aircrafts are being purchased for that type of business it would be a better option. Negotiated Contracting These amendments gave federal contracting officers more opportunities to award contracts through the newer process competitive negotiation. The process begins when the CO issues a Request for Proposals. The RFP must, include the agency’s need, the terms and conditions of the contract and any other subfactors that the agency when awarding contracts. The CO typically evaluates offeror’s price proposal, past performance on government contracts and the offeror’s technical approach. FAR 15.305. The CO can award a negotiated contract without any further negotiations through discussions. If CO conducts discussions they must identify the offerors that fall within the competitive range. This...
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...Conflict at General Hospital: Failure to keep up with the changing medical environment is the major conflict at General Hospital. In the 1980’s, their patient beds were 90% occupied, however, lately the rate has dropped to approximately 65%. The drop off is due to a nearby newly renovated facility that has installed state of the art equipment. The hospital’s CEO, Mike Hammer, clearly understands that a change is needed for the future of the hospital. In the past, he has tried to focus on cost control however; he was repeatedly blocked by the Director of Medicine, Dr. Mark Williams. Dr. Williams believes that all of the spending stemmed from “the practice of good medicine”. (Hellriegel & Slocum, 2011; Hellriegel & Slocum, 2011) Unfortunately, the hospital’s Board of Trustees sided with Dr. Williams and his concerns about impeding the physicians’ ability to practice medicine with the CEO’s cost saving restraints. Hammer then hires a Chief Operating Officer, Marge Harding, who is instructed to keep communication minimal and use her authority to place contracts and fire any at-will employee that she deems necessary in order to save money and keep the hospital open. The COO decides to implement a new electronic EKG interpretation service, which would give the doctor’s a faster and cheaper response than the current system and, in Harding’s opinion, would save the hospital $100,000 a year. Under her own authority, Harding signs a one year contract for the EKG service. ...
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...NEGOTIATION S P E C I A L R E P O R T Program on Negotiation at Harvard Law School Helping you build successful agreements and partnerships Business Negotiation Skills 5 Common Business Negotiation Mistakes In this Special Report, the experts and editors from Harvard’s Program on Negotiation offer advice from past issues of the Negotiation newsletter to help you avoid common pitfalls and build better relationships and agreements with your colleagues, clients, and those closest to you. You will learn to: ■ Identify opportunities to expand the pie of resources. ■ Take steps to ensure you don’t overvalue your assets. ■ Guard against a backlash from less powerful parties. ■ Gain a keener understanding of what you really want. ■ Avoid being hurt by overcommitment to a deal. www.pon.harvard.edu $25 (US) Program on Negotiation at Harvard Law School Negotiation Editorial Board Board members are leading negotiation faculty, researchers, and consultants affiliated with the Program on Negotiation at Harvard Law School. Max H. Bazerman Harvard Business School Iris Bohnet Kennedy School of Government, Harvard University Robert C. Bordone Harvard Law School John S. Hammond John S. Hammond & Associates Deborah M. Kolb Simmons School of Management David Lax Lax Sebenius, LLC Robert Mnookin Harvard Law School Bruce Patton Vantage Partners, LLC Jeswald Salacuse The Fletcher School of Law and Diplomacy, Tufts University James Sebenius Harvard Business School Guhan Subramanian Harvard Law...
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...to bargaining or negotiation that is used when the parties are trying to divide something up--distribute something. It contrasts with integrative bargaining in which the parties are trying to make more of something. This is most commonly explained in terms of a pie. Disputants can work together to make the pie bigger, so there is enough for both of them to have as much as they want, or they can focus on cutting the pie up, trying to get as much as they can for themselves. In general, integrative bargaining tends to be more cooperative, and distributive bargaining more competitive. Common tactics include trying to gain an advantage by insisting on negotiating on one's own home ground; having more negotiators than the other side, using tricks and deception to try to get the other side to concede more than you concede; making threats or issuing ultimatums; generally trying to force the other side to give in by overpowering them or outsmarting them, not by discussing the problem as an equal (as is done in integrative bargaining). The goal in distributive bargaining is not to assure both sides win, but rather that one side (your side) wins as much as it can, which generally means that the other side will lose, or at least get less than it had wanted. (Distributive bargaining tactics rarely assume the pie will divided in half.) Often these approaches to negotiation are framed as incompatible. Fisher, Ury, and Patton, authors of the negotiation best-seller Getting...
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...CHAPTER 1 The Nature of Negotiation Objectives 1. 2. 3. 4. Understand the definition of negotiation, the key elements of a negotiation process, and the distinct types of negotiation. Explore how people use negotiation to manage different situations of interdependence—that is, that they depend on each other for achieving their goals. Consider how negotiation fits within the broader perspective of processes for managing conflict. Gain an overview of the organization of this book and the content of its chapters. Chapter Outline A Few Words about Our Style and Approach Joe and Sue Carter Characteristics of a Negotiation Situation Interdependence Types of Interdependence Affect Outcomes Alternatives Shape Interdependence Mutual Adjustment Mutual Adjustment and Concession Making Two Dilemmas in Mutual Adjustment Value Claiming and Value Creation Conflict Definitions Levels of Conflict Functions and Dysfunctions of Conflict Factors That Make Conflict Easy or Difficult to Manage Effective Conflict Management Overview of the Chapters in This Book Chapter Summary “That’s it! I’ve had it! This car is dead!” screamed Chang Yang, pounding on the steering wheel and kicking the door shut on his 10-year-old Toysun sedan. The car had refused to start again, and Chang was going to be late for class (again)! Chang wasn’t doing well in that management class, and he couldn’t afford to miss any more classes. Recognizing 1 2 Chapter 1 The Nature of Negotiation that it was finally...
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...Negotiation Skills Chapter 1 is entitled- The Nature of Negotiation it introduces us to the definition of the term Negotiation- “a form of decision making in which two or more parties talk with one another in an effort to resolve their opposing interests.” The Objectives are 1. To understand the definition of negotiation, the key elements of a negotiation process and the distinct types of Negotiation. 2 Explore how people use negotiation to manage situations of interdependence- that is, that they depend on each other for achieving their goals. 3 Consider how negotiation fit into the broader perspective of processes of managing conflict. 4 Gain an overview of the organization and content of this book. People negotiate all the time. Negotiations occur for several reasons: 1 to agree on how to share or divide a limited resource such as land, or property or time. 2 to create something new that neither party could do on his or her own and 3 to resolve problems or a dispute between the parties. People may recognize the need for negotiation but do poorly because they misunderstand the process or do not have good negotiating skills. For most people bargaining and negotiation mean the same thing, however in the text bargaining is used to describe the competitive, win-lose situation such as haggling over price at a yard sale, flea market or a car lot: Negotiation on the other hand is used to refer to win-win situations like those that occur where parties are trying to find a mutually...
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...An important part of our role as leaders is leading and managing through conflicts. Conflict can arise internally between team members, between a leader and a team member, between two departments, or between two leaders. A conflict can also arise externally between a team member and a customer, between a leader and a customer or between a team member or leader and a supplier or a vendor. Conflicts can have serious consequences including “product delays, increased costs, and dwindling market shares” (Dubrin 2010). Conflict also bars collaboration between departments or between team members. Before we try to resolve conflict, we must first understand conflict. Then, we must consider the five conflict management styles and determine which one to use in the specific situation. We as leaders can also use different approaches to resolving conflicts. This section of the handbook will discuss understanding conflicts, the different conflict management styles, and approaches to use to resolve conflicts. Understanding Conflict We cannot attempt to resolve a conflict until we fully understand conflict. Conflict is a normal and healthy part of relationships. When handled properly, conflicts can actually strength a relationship instead of destroying it. (Segal & Smith 2013) Many different things cause conflicts. Eight common causes of conflict are (Gatlin, Wysocki, & Kepner 2002): 1) Conflicting Needs – In the workplace, these needs could include resources, recognition, or power...
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...3.2 NEGOTIATION STYLES AND STRATEGIES 3.2.1 Distributive Strategy – Distributive bargaining, also known as positional bargaining, or negotiation win-lose, is a type or style of negotiation in which parties compete for the distribution of a fixed amount of value. Distributive bargaining is more competitive. The goal in distributive bargaining is not to assure both sides win, but rather that one side wins as much as it can, which generally means that the other side will lose, or at least get less than it had wanted. The strategy is not suited for the negotiation since Zenur will have some points to consider at the negotiation. And with this approach Levon may end up losing the deal. (International Online Training Program On Intractable Conflict, 1998) 3.2.2 Integrative Strategy - Integrative strategy tends to be more cooperative. It is also known as “Win/Win" or the collaboration style, firstly put forward by Nierenberg(1968)with the philosophy that all the parties should gain benefit from the negotiation process, as this produces more successful outcomes than the adversial ‘winner takes all’ approach. . It is about making sure both parties have their needs or goals met, while creating as much mutual value as time and resources allow.URYet al.(1991) further developed a concept of a win-win approach as principled negotiation ,where the goal is to reach a lasting agreement ,rather than the win –lose traditional scenario ,the steps in the process comprises of : the creating...
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...I M P R O V I N G T H E P R A C T I C E O F M A N A G E M E NT Negotiation is not a competitive sport By Steven P. Cohen Reprint # 9B04TD05 IVEY MANAGEMENT SERVICES • July/August 2004 COPYRIGHT © 2004 To order copies or request permission to reproduce materials,please contact: Ivey Publishing,I vey Management Services c/o Richard Ivey School of Business The University of Western Ontario London,Ontario N6A 3K7 Tel: (519)661-3208 Fax: (519)661-3882 Email: cases@ivey.uwo.ca Ivey Management Services prohibits any form of reproduction,storage or transmittal of this material without its written permission.This material is not covered under authorization form CanCopy or any other reproduction rights organization. Ivey Business Journal Online is published by Ivey Management Services a division of the Richard Ivey School of Business. For subscription information,please contact: Tel: (519) 661- 4215 Email: ibjonline@ivey.uwo.ca or visit www.iveybusinessjournal.com Negotiation is not a competitive sport Taking a hard line may be fine -- but only in the short term, and only if you really believe that your counterpart is your adversary. But negotiation is often a series of episodes, which means that considering your counterpart as a partner or a collaborator is the foundation of trusting and fruitful-- and ongoing -- negotiation. How the game is played matters more than who wins. puts itself in a position it can't get out of without losing face. This is as true in international...
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