Report 45% due Friday 28 May @ 11PM

Your Name and Student ID:

Your role in the negotiation exercise:

Your negotiation partner’s name and student ID:

Your negotiation partner’s role:

The word limit is 2000 words +/- 10%. Type the assignment in report format using Times New Roman 12 with single line spacing. All referencing must be in Harvard style. Attach your Decision sheet with the template before submitting the assignment. Decision sheet, executive summary, table of contents, any other tables, diagrams, references, and appendices are not counted in the word limit 2000. Read the guidelines in the learning guide and on the vUWS. Submit to the turn it in the link in Assessment 3 folder.

There is no cover sheet.

Write below this line.

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Introduction

The retailer negotiated with the manufacturer on how they would carry out a business transaction between the two with some goals to achieve. One of the goals of negotiating with the manufacturer is to enjoy reduced operational costs as a retailer. Olimovich et al. (2020) argue that marketing is crucial for any business that wants to succeed in any industry. It helps attract new customer customers to purchase from the business establishment and allows a company to retain customer loyalty to guarantee repeat purchases. Although marketing is beneficial to the retailer, it requires enormous capital investment and would consume a substantial amount of its profits. Therefore, the retailer considered it helpful to negotiate marketing cost-sharing with the manufacturer. Second, the retailer aimed at getting cash discounts from the negotiation with the manufacturer. Profit is the primary purpose for every company to enter into business. Business owners strive to maximize the return on investments they make in the business. Reduced operational cost is the prime way to realizes higher profit margins. A cash discount is another strategy for enhancing company profit. Through the negotiation, the parties agreed that the retailer would enjoy a cash discount on timely payment. Retailers would use timely payment as an opportunity to reduce the cost of purchases through cash discounts and sell the product at a normal price to the final to make extra income. The parties used an accommodator-oriented relationship to arrive at the above business transaction goals. According to Gerlach (2020), this negotiation approach helps parties develop interest in each other's ideas and promote long-term relationships. The negotiation between the retailer and the manufacturer agreed on several aspects that supported business transactions between the two parties. Besides, the negotiation resulted in a long-term business relationship between the manufacturers since they agreed on the minimum order quantity and the duration within which the contract between the two should remain unaltered. The report explores the rationale for the retailer and manufacturer agreeing with the negotiation outcomes.

Why the retailer agreed to the outcome of negotiation

Short-term benefits that made the retailer agree to the results of the negotiation

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