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Excalibur Plan

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Negotiation Plan – Excalibur Engine Parts

As the VP of Sales for Excalibur I am required to negotiate with Knight Engines Inc to come to an agreement for a rush order of 8000 pistons within two weeks. It is in my personal interests to deliver a substantial profit to Excalibur for the benefit of shareholders. However, negotiating a deal with Knight may be the only chance for Excalibur to avoid a major loss in this quarter. Consequently, I aim to secure a profitable contract but am willing to trade current profit for future gain.

For this negotiation I have three types of goals in place. My substantive goals are to negotiate a contract that will bring in $5.8m (target point 3) and to also secure future contracts with Knight. With little demand for the pistons it is essential that Excalibur remains on good terms with Knight and so I have a relationship goal to maintain a long term business relationship between the two companies. In addition my intangible goal is to achieve an outcome that will be viewed favourably by my superiors.

Whilst it is in my interests to secure a profit it cannot be at the expense of a business relationship. Therefore substantive and relationship outcomes are important and assuming that substantive outcomes are also important to Knight, either a trusting or principled collaboration strategy should be adopted (Savage, Blair & Sorenson 1989). As it is difficult to determine whether Knight has the same relationship goal and as I am concerned about profit, it is appropriate to adopt a principled collaboration strategy. Savage, Blair & Sorenson (1989) correctly point out that if Excalibur is trusting it is possible that Knight take advantage of the given information. Lax & Sebenius (2006) acknowledge the need to create joint value while protecting the negotiators vulnerability and suggest being strategic in the information

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