Business Role: Carry Food, Woodcrafters, Inc

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PLANNING DOCUMENT FOR VIKING INVESTMENTS Role: SANDY WOOD, WoodCrafters, Inc. What issue is the most important to you? (List in order of importance) 1. To persuade Pat Olafson, the owner of Viking Investments, to pay entire outstanding invoice in cash within 15 days. Alternatively, aim for invoice payment of $700,000 in 15 days, the rest in 30 days 2. To persuade Pat not to recall the $200,000 loan 3. To persuade Pat to absorb the Oak wood cost amount $250,000, paid in 30 days ($950,000 in total) 4. To persuade Pat to lower the monthly rental payment to $4,000 What is your BATNA? Reservation Price? Target? BATNA = $425,000 from immediate sale of house (net proceed) Reservation Price = $910,000 paid by Viking on invoice at which…show more content…
To collect the rent payable of $10,000 What is your opponent’s BATNA? Reservation Price? Target? Target = To pay $700,000 for invoice price within 30 days and re-call loan amount $200,000 What is your opponent’s source of power? 1. WoodCrafters made adjustment without complying to two clauses in the contract which are; • Woodcrafters shall be responsible for any cost overruns. • This contract is final unless the amendments is in writing and sign by both parties 2. Insisting in signed Sales contract with the speculator which is not re-negotiable. (Fix price ceiling) What is your opening move/ first strategy? Other important information? Since our source of power is quite limited, we will avoid being a first mover in this negotiation. We will wait for Pat to open up the discussion. Perhaps we will get more information, and then try to analyze Pat’s concerns or issues, if any. After that, we will persuade the counterparty by using our source of power. For the settlement, we consider a package/bundle negotiation for invoice price, credit term and loan on call. In addition, we will try to lower the monthly rental payment by comparing the market price in order to save

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