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Sarah Talley and Wal-Mart

In: Business and Management

Submitted By Sanella1987
Words 970
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1) Was this a Distributive or Integrative negotiation?- was it the optimum approach and why or why not.

Sarah Talley and Wal-Mart are in a distributive negotiation as they only haggle about the price for 4th of July Watermelons (Lewicki, Saunders& Barry 2011). Rather than giving a “why” Wal-Mart persists with the position that the price is “too high” (Sebenius & Knebel 2006). In price-only negotiations only one party can win. Furthermore, there is a huge power difference due to Wal-Mart’s high position of strength which is based on their size (Lewicki et al. 2011). In the end these negotiations ended with Wal-Mart having to pay higher prices and with Frey Farm selling less volume at lower profits as they became a co-managed supplier of another Wal-Mart supplier. So it was not the best outcome.
2) Other than not doing the deal, list the BATNA’s Sarah had for this deal.
According to Ury and Fisher (2011), BATNA’s are a method to improve your standing towards a stronger other party. It is a contingency plan. Sarah Talley must establish the lowest acceptable price (= her bottom line) to avoid the worst possible outcome. That makes it easier to resist pressure and temptation (Fisher& Ury 2011). Talley’s BATNAs include searching for other possible buyers. Then she might see that accepting Wal-Mart’s price might be better than losing them as a customer. She could also open a Frey Farm store to sell her products. Talley could wait with closing the deal until real prices are clear (close to July 4th) and then let them pay the market price. She could also go to another Wal-Mart representative who has more experience or market knowledge or search a mediator.
3) Discuss any BATNA’s she didn’t pursue that you would have to strengthen your position.

If I was Sarah, I would not have pursued an alternative that involves ditching Wal-Mart because of the...

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