Reference no: EM133053055

Business Negotiations

Scenario: It is almost time for the first negotiation meeting with the people from Dr Pepper.

• Since you do not know how the negotiations will go - you decide to think about alternatives in case the negotiations with Dr Pepper fail.
  • Assume there will be no agreement with Dr Pepper.
  • Assume you cannot bottle their product and you cannot import their product.
  • Assume you cannot work with Dr Pepper in any way - you can do nothing with them.
  • Assume you cannot communicate with Dr Pepper any more.
• You need to follow the 3 steps below to develop your BATNA:
  • Make a list of alternatives - what can you do without doing any business with Dr Pepper?  NO business at all with Dr Pepper in the future.
  • Develop 2 of your ideas into brief plans.
  • Choose the best one.  The best alternative is your BATNA.
• You need to do the same thing to guess at Dr Pepper's BATNA.  What will they do if they cannot do business with you?  Assume they cannot do any business with you in the future.
• Moreover, you have heard that one of the people on Dr Pepper's negotiating wteam may not always be ethical.
• You decide to list the top 3 things that you will do during the negotiation to make sure that your team acts ethically.
• You also decide on your one best strategy to deal with anyone on the Dr Pepper team if they begin to act unethically.
•  What alternatives do you have if there is no agreement with Dr Pepper?  You should have at least 3 alternatives of what you could do without doing any business with Dr Pepper.  Do not explain them yet.  Just list the 3 alternatives. 
  • Establish a new relationship with another beverage company to partner up with
  • Instead of being the only one importing or distributing Dr pepper products in SE Asia agree to only import/ distribute in thailand with full control
  • Partner up with EST cola company in thailand and import and distribute them in SE Asia
• Take 2 of your ideas and describe them in a little more detail: just 2 to 3 sentences for each one.  Do not just repeat step 1.  Explain how you could use these ideas if there is no agreement with Dr Pepper.
  • Establish a new relationship with another beverage company like Bundaberg in Australia, the plan is still the same we will only become the only importer/ distributor in SE Asia, making the syrup and bottle them in thailand, providing marketing channels and in return offer them 20% ownership of our bottling factory just like Dr pepper
  • Partner up with EST company in Thailand and import and distribute them in SE Asia. by doing this our goals and interests of the company are still the same. expanding sales in SE Asia, maintaining a relationship with the US and the EST cola company will be more recognized in other regions.
•   How could these 2 ideas help your company? 
  • In a case where we use the alternatives approach, the primary goals and interests of the company are still in mind. Our company will still add more products, increase revenue and profit streams, learn more about business from a larger company to implement.