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Assume that you own and operate a business. Your production this year was based on prior years' experience. You have been left, however, with 100,000 unsold units on hand. You have been selling your product at $5 each and expected the same price for these 100,000 units. You have exhausted all avenues you can think of for disposing of your excess product. You do not have the storage capacity for keeping these units in inventory while you continue production. This morning a giant retail organization contacted you urgently seeking the type of product you produce to fill deficits in their supply. They offer to pay you $3 per unit.
1. How would you assess whether or not you should negotiate? Identify the factors you would consider and the overall rule you would apply.
2. What factors can you readily identify that will affect your negotiation options and outcomes?
3. What unconscious factors might also affect your negotiation performance?
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Students will develop cost curves on which firm behavior is based and will utilize these cost curves to determine the behavior of their chosen organization.
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What 3 pieces of information you may need to supply to management when making a written submission for approval of a new position?
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