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Rhona is a Senior Manager for a biscuit production company. Their current factory site has become outdated and with the new contracts just signed by the European Sales Team, they would need to up production dramatically in the next few months, something that is just not possible in the current site. She has found a new warehouse building across town for lease, with really great transport links that would suit the company perfectly. Rhona is due to meet with the agents next week and is quite nervous about it. They are used to this sort of deal but it is Rhona's first time doing such a complex negotiation - she is more used to food suppliers and the occasional HR dispute.
She is under pressure to get this right, and get it right quickly - they must have access to the new site within 6 weeks so that they can fit it with their new state-of-the-art production line machinery (purchased by the Engineering Department Manager already). Delays of longer than 2 months could have cost implications on the delivery/storage of the new equipment, but also delays in getting the new site up and running will impact sales. The longest she can accept would be 3 months.
The price is also a big pressure point as she cannot afford to be paying over market rental rates. Rental increases over the time of contract must also be less than or close to inflation rates only, with rent reviews only every 5 years. There also needs to be decent length of time on the rental to make it worth their while (minimum of 8 years, though she would like 15) - could there even be a purchase option down the line?
Using your knowledge of the course, explain to Rhona the benefits of using the 4 phases of negotiation, and show her how to prepare for the negotiation next week.
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