Reference no: EM133048892

First Scenario

You work for Siam Automotive company in Thailand. You make parts for Toyota cars. You want to send your parts to Japan by container ship. You are negotiating with a Japanese company called K-Line because they own container ships that travel between Thailand and Japan. Yesterday, you had your first meeting with a representative from K-line. Following is what was said in the meeting:

• Some of our car parts are very fragile - they can be damaged easily. If they are damaged, they are no good. Toyota will not pay for them. That means we will lose profits.
• We need to protect all of our customers' cargo. We want to keep our customers happy.
• We do not want any other cargo put in the same container that our fragile parts are in. We want only our fragile parts in the container. We need to protect our cargo.
• We can guarantee that only fragile cargo from another company will be put in the same container as your fragile cargo. We need to control the cargo so that our containers are full.
• Mixing other cargo with our cargo will not work for us. We cannot have damaged goods sent to Toyota. So, we must have our cargo sent in separate containers. We must keep our customers happy.
• OK, we can provide that service for you, but you must pay the cargo fee for a full container even if your container is not full.
• We cannot pay the full container fee if the container is not full of our parts.
• You must pay the full container fee. It is a rule for all of our customers. We can earn more profit if we put other cargo with your cargo to fill the container. If you do not let us fill the container, then you must pay the full container fee. Otherwise, we will lose profits.
• We may have to talk to another company that has container ships.
• You can do that, but all companies that have container ships have the same rule.
• We want to send 10 containers to Japan every week. Maybe you do not really want our business.
• Of course we would like to do business with you. But, there are many other companies that want to use our container services, and we already have thousands of customers.

Which of the following is something that Siam Automotive fears?

1. Toyota will not pay for damaged parts, so Siam Automotive will lose profits.
2. Siam Automotive cannot pay the full container fee if the container is not full of their cargo.
3. Siam Automotive may have to talk to another company that has container ships.

Which of the following is NOT a shared interest between Siam Automotive and K-Line?

1. The need to protect cargo.
2. The need to control the cargo so that containers are full.
3. The need to keep the customers happy.

In this scenario, which of the following statements is an early-judgment obstacle that can get in the way of finding a creative option?

1. All companies that have container ships have the same rule.
2. Mixing other cargo with our cargo will not work for us.
3. Some of our car parts are very fragile.

In this scenario, which of the following statements is a strong BATNA?

1. There are many other companies that want to use our container services.
2. We want to send 10 containers to Japan every week.
3. We may have to talk to another company that has container ships.

Which of the following statements is a "bottom line" position in this scenario?

1. You must pay the full container fee.
2. We may have to talk to another company.
3. We will lose profits.