Ajanta case outcome

Answer the questions base on Ajanta case 

Case 1 Post negotiation Journal

Name –
Please enter your name and your team Number.

Richard Medina Group 4

Case 1 Post-Negotiation Entry

Answer the following :
What was the result of your negotiation? Did you get everything you had in your plan? If not, please explain the changes from initial position to final agreement.
I did get two of the most important which were better accounts receivables payment terms and a change to the delivery schedule. My goal was 45 days on the terms which we agreed, a change to the delivery schedule from 45 days which a compromise of 65% of the order in 45 days and remaining balance 25 days later. On profit margins my goal was 7% but the team agreed to 5.25% due to the better receivables terms.

How well did your planned strategy work?
I did an ok on the planned strategy. It was my first and would not have been fully prepared to take on SF Foods this week. After this negotiation and the dialogue my BATNA is well defined as well as aspiration and reservation points.

Were there any surprises in the negotiation with the other members of your company?
I was surprised that they were not as concerned with profit margins as myself. They argues that will be a reservation point for SF Foods and we could live with gains in other areas of the negotiation.

Are all members of your company in agreement on what and how to negotiate with the other company? If not. Please explain?
We are all in agreement with how to proceed on the upcoming negotiation with SF Foods in two weeks. Everyone has contributed to our BATNA and reservation and aspiration points. The presenters have been established and how we will present our offer to them and have also taken the role of SF Foods to see how they will come to this negotiation and their goals from this exercise. I think we are prepared to walk away from this negotiation but want to build upon this relationship with SF Foods and just grow the business in ways that we can all live with.

Negotiation Outcomes template

Case Title – Ajanta Group 4

Name –
Please enter your name and the role you played

Richard Medina my roles were the VP/Director and I also took on the role of the Finance Manager

Describe your Pre-Negotiation strategy and parameters (BATNA, ZOPA, AP, RP)

I was a bit confused on the pre-negotiation strategy. Did not fully understand the first negotiation with my group team members. Due to this lack of knowledge on my part, I did not have a formalized BATNA. I had an idea of what I wanted to gain from the negotiation. As the director and reading the case my goal was drive higher profit margin, better payment terms and possibly a change to the delivery of the order.

Was an Agreement Achieved?

We were able as group to reach an agreement that would allow us to meet the terms that would satisfy all members roles within this exercise.

Describe the Negotiation Outcome:

As the Director/VP, I lead the negotiation and allowed everyone to discuss their goals with this negotiation. Everyone stated their position and looked at aspiration and reservation points for everyone’s roles. We listed what was most important to least and what areas could be adjusted to close the deal. I believe we made great concessions as a group to protect our interest and put our best plan in action.

How does the achieved agreement compare with your Pre-Negotiation strategy and parameters (BATNA, ZOPA, AP, RP)? – Please explain.

As I mentioned earlier did not have a clear understanding of the BATNA. We now have a BATNA which is (If we do not reach an agreement on payment for open receivables of no greater than 45 days we will walk away from this order and any future orders from SF Foods. We will then look to recoup this business from further expanding our business with our higher profit margin customers.) Our group has 3 points of action for the negotiation and have A,B, and C targets which reservations points of 45 days payment on open receivables, expanded with for delivery on said order, and gaining higher profit margins on all orders moving forward. Our goal is to achieve wins in all parts but are flexible on B and C. We also have some concessions in place to show value and commitment from Ajanta to SF Foods.