BADM 475: Negotiation Prep Sheet for Coffee Contract - Spring 2020

This assignment presents a comprehensive negotiation preparation sheet for a BADM 475 course, focusing on a coffee contract scenario. The student, playing the role of the East Coast Vice President of Sales for Anderson Coffee, analyzes the case, defines their BATNA (Best Alternative To a Negotiated Agreement), reservation price, and aspiration point. The assignment includes issue ranking, possible package deals, and strategies to create value and build trust with the client, Sandy Grant of the Statler Hotel. It details the company's position on product, packaging, equipment, service, pricing, cancellation clauses, and delivery schedules. The student outlines tools and tactics, including interrogative negotiations, team collaboration, and the importance of understanding the management's interests. The student uses the textbook as a reference, citing key concepts like deterrence-based trust, knowledge-based trust, and identification-based trust, to achieve a successful win-win outcome. The student emphasizes the importance of preparation, strategy, analysis, and a winner's mindset. References from the textbook are included.

Running header: CONFLICT AND NEGOTIATION
Conflict and Negotiation
Students’ Name
Institutional Affiliation

CONFLICT AND NEGOTIATION
BADM 475 – FINAL Negotiation Prep Sheet
BATNA:
A realistic and objective BATNA would be appropriate to
prevent myself from falling prey of wishful thinking and certain
extremes of unrealistic optimism. My BATNA in this particular
case would be $7.5/lb. if Startler hotel are to maintain their
order of 10000 pounds. In case of lower demand, for some
reason, I will maintain my BATNA at $7.75/lb.
Reservation Price: $ value at
which I will walk away.
As directed by my CEO R.N Hatch, any price that is less than
$7.25/lb. will be unaccepted. This is because the price is far way
lower than the standard restaurant price of $8.2/lb. I will
however strive to make sure that the client accepts a price of
$7.94/lb. as stated in the bid request bearing in mind the
personal commission.
Aspiration Point: My ideal
settlement
Being not the grass-is-greener negotiator, I should ensure that I
have clearly defined my target point and all the possible
alternatives where possible. In this particular case, my
aspiration point would be the price that was stated in the bid,
$7.94/lb. Aiming at an aspiration point that will make Sandy
Grant accept the offer quickly may lead me into a state of a
winner’s curse afterwards should and must be avoided at all
costs. In this regard $7.94/lb. would be appropriate to be
starting point.
Issue Ranking My position: Other position:
Product
1 My company will is willing
and able to supply already
ground 100% Colombian
coffee that is compatible
with Startler Hotel’s
equipment.
Depending on the negotiation and
the agreement, other types of
coffee such as the Blend 100,
Arabian Mocha and Alfred’s Blend
may be supplied to Startler
depending on its preference and
customer tastes.
Packaging
2 Anderson Coffee will supply
its coffee in the 12 ounce
and 2 ounce packets as so
preferred by Startler incase
a deal is strike. Its boiled
berries make them long
lasting.
Supplying Startler with gas-flushed
coffee packages.
Equipment 3 Provide the 3 Bunn-0-Matic Provide it to them at a fee in case

CONFLICT AND NEGOTIATION
ten cup pour over machine
to Startler throughout the
contract period.
they want to buy coffee for any
price less than $7.4/lb.
Equipment
service and
repair
4 Our company will provide
free equipment service and
repair for free. However the
repairer will make visits
once every week because
of the long distance. Unless
there is an emergency.
If they buy the coffee at $7.94/lb.
then servicing could be done any
day of the week.
Pricing 6 Our company may not
commit to selling coffee to
Startler at a fixed price
throughout the contract
period as the coffee market
is quite volatile and more
easily to change over time.
We may enter into a derivatives
contract in form of either futures
or forwards regarding the price of
coffee during the contract period.
Cancellation
clause
7 Anderson is a law abiding
firm and as such
termination of any order
whatsoever may be done in
line with the legal and
corporate provisions.
Open for further discussions and
agreements.
Orders/delivery
schedule
8 One delivery per week is
optimal provided the supply
follows a fixed schedule to
allow for strategic
preparations to cut shipping
fees.
Three deliveries per month may be
considered as well.
Possible Package Deals
Package #1 Package #2 Package #3
Negotiated Item
1 lb. of coffee+
free repair+ free
delivery once a
week + free 3
Bunn-0-Matic
ten cup pour
over machine
during the
contract period.
$ value
7.94
Negotiated Item
1lb. coffee+ free
delivery once a week+
free service and
maintenance + the cup
pour over machine at a
fee during the contract
period.
$ value
7.5<price<7.75
Negotiated Item
1 lb. coffee free
servicing and
machine repair+ free
delivery with no cup
pour over machine
$ value
7.24

CONFLICT AND NEGOTIATION
Total Value Package #1: Total Value Package #2: Total Value Package #3:
Create value
In proceeding with the negotiation process, I would try to convince Sandy grant on how good Anderson’s
coffee is. I will try to cite a few examples of organizations that have had a taste of our products and
services. I will try as much as possible to stress on the long-term experience that Anderson coffee has in
this market. The positive public reputation amongst our customers is crucial in marketing our products to
other potential customers like Startlet. Further, I would try explaining the client on the significant
discount that we have already offered if we become successful in bidding. Apart from these important
issues, I will;
1. I will ensure that my negotiation is objective and that I consider my client’s interests and issues as
well e.g. price
2. Take time to explain to the client the challenges, risks and uncertainties of the coffee industry
globally in a quest to justify our relatively higher price.
3. Mention Anderson’s commitment in supporting and promoting hotels through its basic services
and advise (page 113,195).
Building trust
Any successful negotiation is built on mutual relationship and trust among the parties involved. Other
than money, other factors and virtues come in play in any successful negotiation. These values include
love, trust, honesty, integrity, transparency, peace and joy. In any case, a win-win negotiation is the most
preferred form of negotiation that will leave both parties satisfied and happy. In building trust between
Anderson Coffee and Startler Hotel, I will:
 Ensure that my behavior is consistent and that my promises and terms in the negotiation are
adhered to and delivered in time. This will help foster the deterrence-based trust that is enhanced
through consistency in behavior and conduct. Bearing in mind the consequences of a breach of

CONFLICT AND NEGOTIATION
the aforementioned acts, I will encourage my company to stick to its plans and agreed terms
(Thompson, 2015, page 147).
 Before attending the negotiation meeting, I will ensure that I do an extensive research on the
economic, social and political risks and opportunities in the market. In this regard, I will be in a
position to explore the scenario with military precision. A show of concern of the affairs of the
other party may help build the knowledge-based trust in the entire deal (Thompson, 2015, page
147,149)
 I will try to understand, relate and empathize with the other party’s situations so as to build
identification-based trust (Thompson, 2015, page 149).
 Lastly, I will use cognitive, logical and deliberate mechanisms in the negotiating process. This
involves identifying with Startlet’s organizational matters and coming up with sound and realistic
solutions that will leave us both, satisfied and happy.
Tools and strategies
 I will make use of interrogative negotiations in trying to lure Sandy into settling for my offers by
laying traps that are difficult to refuse. The use of “what if…” questions will be key in this kind
of approach.
 I will engage some two or three colleagues from the sales department who are experienced in
negotiation. Teaming up will enhance sharing of ideas and discussions of best alternatives to
settle for. The pool of ides will in one way or another facilitate a successful negotiation
(Thompson, 2015, page 230).
 I would seek to understand the management’s interests and their positions as well in order to
make sure that I don’t deviate from these objectives during negotiating(Thompson, 2015, page
253)
 In case I am accompanied by a team of other negotiators from my company, we will organize
scheduled breaks that will help us discuss privately in the midst of the negotiation (Thompson,
2015, page 258).

CONFLICT AND NEGOTIATION
 Most importantly, I would concentrate more on nurturing my mind tools. These include a
thorough preparation, picking an optimal strategy, comprehensive analysis of alternatives and
developing a “winner” mind set.
References
Thompson, L. (2015). The mind and heart of the negotiator: Global edition (6th ed.). Pearson Higher Ed.