Negotiation Strategies: Wine Supply Chain Management Project

This assignment showcases a practical negotiation exercise in the context of procurement and supply chain management. The scenario involves a negotiation between Exotic Delights, a wine distributor, and Café Russe, a restaurant, regarding a one-year wine supply contract. The assignment includes two email exchanges: the initial offer from Exotic Delights, detailing the quality of their red and white wines, the benefits of their supply, and their pricing structure including discounts; and a response from the Café Russe manager, posing questions about the wine tasters' credentials, the competitiveness of the discount offered, and the liability for damaged deliveries. The assignment requires the students to analyze the negotiation strategies, data analysis results, and the overall effectiveness of the negotiation process, considering the principles of contract negotiation and leveraging knowledge from previous lectures. The goal is to reach a zero-sum deal, emphasizing collaborative learning and the application of negotiation tactics in a real-world business context. Students are expected to conduct preliminary research and leverage their knowledge to generate ideas and create a collaborative environment.

Running head: PROCUREMENT AND SUPPLY CHAIN MANAGEMENT
Procurement and Supply Chain Management
Name of the Student
Name of the University
Author Note

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Email 1 – Negotiation by the Wine Distribution Company, Exotic Delights with the
Manager of Café Russe
To – [e-mail]
Subject – Wine Supply to the Café Russe for One Year
Respected Sir,
At Exotic Delights we are all too aware of the reputation and good name of your
enterprise, the Café Russe, and the gourmet food and drink that it is known to serve a high
end clientele all the year through. We are therefore most eager to be allowed to sell you our
wine, for the entire length of a calendar year, given the exotic nature and appeal of our wine
and the exquisite taste that it is characterized by, making it ideal for consumption by
sophisticated clients at the Café Russe. We understand when writing this email, that you
receive similar such emails from wine distributors around the world and would therefore like
to keep things short and make our end of the bargain known to you as precisely and as
concisely as possible.
The wine that we produce at Exotic Delights is grown in the wine yards in the South
of France. The production of wine goes through a regular process of monitoring and
surveillance with every effort being made on the part of our wine manufacturers to make sure
that the best quality grapes go into the making of this wine. Indeed, quality is an area that we
do not compromise on at all at Exotic Delights, and we take all the pains in the book to make
sure that the wine which is served to our clientele is absolutely top class and entirely
symbolic of the high quality wine that the South of France is so well known for. Indeed we
are of the firm believe that your customers at the Café Russe will be bowled over by the mere
taste of our wine and will want to keep going back to your esteemed establishment again and

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again. You will surely be able to create a long term and faithful clientele by serving our wine
at your restaurant all round the year.
Apart from making sure that the wine that we sell you is one that is of the highest
quality, we also make it a point to provide you with two types of wine, red wine and white
wine. Both our red wine and white wine are made of the finest quality grapes and are easy on
the stomach as well, not triggering digestive issues in those who consume it. You therefore
get to benefit from procuring two types of wine when you sign up for a wine supply from us,
thus providing your loyal clientele with two excellent varieties of French wine to choose
from, both of which taste exquisite and which are certain to keep them coming back to your
restaurant more and more, and that too all round the year. The red and white wine that we
offer, apart from being fabulous in terms of taste, is also characterized by a truly wonderful
aroma. Your guests at the Café Russe are likely to be as delighted by the aroma of our wine at
Exotic Delights as they will be by the sheer taste of it, resulting in them favoring your
restaurant over others in the city for a drink or two.
We have some of the most well known and qualified wine experts in the world
serving on our wine tasting team so you can be rest assured of the fact that the wine that we
supply you with is the type of wine that you can serve to people hailing from the top most
strata of society. At Exotic Delights we are aware of the fact that the Café Russe is a
restaurant that is visited by the who is who is society and that as an establishment, Café Russe
takes special care to serve only the type of food and wine that is likely to go down well with
the rich and the famous, the elite and the sophisticated. Given that both our red and white
wine is tasted and also approved of by some of the most prominent wine experts from around
the globe, you can truly rely on the quality and the taste of the wine that we provide you with
and have it served to some of the biggest names in the city, giving them every reason to visit
your establishment again, sooner rather than later.

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In addition to providing you with high quality wine, made from grapes that are grown
in the vineyards of the South of France, of the red and white variety, we also make such top
class wine available to you at well priced bulk rates, allowing you to save a considerable
amount of money on your wine purchase. If you decide to procure wine from us for a period
of one year, we will make our wine available to you at a rate that is at least twenty percent
lower than the market price of our wine at Exotic Delights. You will therefore not only get to
serve your guests at the Café Russe with the most high quality and delicious wine but you
will also get to do so without breaking the bank. We make our fabulous wine available to you
at a price which is twenty percent lower than the regular market price of our wine, giving you
the scope to not only establish and retain a long term clientele based on the quality wine that
you serve at your restaurant, as supplied by us, but to also do so without making too heavy an
investment for this purpose. If you decide to make use of our wine supply for a second year,
after one initial year of purchase, then you get to avail a rebate as high as forty percent, a deal
that we believe you will not get from any other supplier of quality wine in the market.
As a reputed supplier of wine, Exotic Delights takes full responsibility of getting the
wine delivered to the doorstep of Café Russe in a safe and secure manner in packaged form.
All the wine bottles will be fully sealed at the time of delivery, and every care will be taken
on our part to make sure that there is no breakage at the time of delivery. The time taken to
carry out the delivery will also be quite brief, with the Café Russe not having to wait longer
than two days for the wine supply to arrive once an order is placed.
You can rely on us at Exotic Delights to provide you with a continuous supply of high
quality red and white wine at all times of the year. It never happens that our wine production
is limited or out of stock. You can always be rest assured of a plentiful supply of wine from
our end, provided you let us know of our requirement at least a day or two ahead of the actual
delivery. Letting us know a day or two in advance will help us to provide you with quality

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red and white wine, that is approved of in terms of taste and aroma by the best known and
most experienced wine experts from around the world, in a safe and secure manner, packaged
in the most exquisite and sturdy of glass bottles that are a treat to hold and behold.
We do hope that you will consider meeting your wine requirements by ordering from us for a
year.
With my thanks and best wishes
Mark Boney
Chief Executive Officer
Exotic Delights Wine Distributor
2. Email 2 – Response from the Restaurant Manager at Café Russe to the Wine
Supplier
To – [e-mail]
Subject – Re: Wine Supply to the Café Russe for One Year
Dear Mark,
Thank you for your email. It is good to know that a wine distributor as reputed and as
well known as Exotic Delights wants to supply the Café Russe with red and white wine for a
year at a minimum, and that too at rates which you say are far below the market price of such
wine. It gave me a great pleasure to read about your offer but before I consider it, there are a
number of points and questions that I would like to raise regarding your wine distribution and
supply purchase, and if answered by you convincingly enough, I will definitely think about
sealing the deal with your distribution company. My queries are as follows –

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For one, you say that your wine is tasted by some of the best known wine experts
from across the globe. I would in such a situation request for more details in this respect, in
terms of the credentials of the wine tasters who serve on your team. I would be grateful if you
could provide me with details of how experienced these wine tasters are, and where exactly in
the world that they have been tasting wine before, prior to joining the Exotic Delights Wine
Distribution Company. If you can provide with me substantive evidence of the fact that the
wine tasters on your team are people with high credentials and have international wine tasting
experience, then I will certainly be convinced of the same.
Secondly, you say that you can provide us with a plentiful supply for over a year at
discounted rate of twenty percent for the first year, and a discounted rate of forty percent
should we continue to order our wine from your distribution company for a second year. To
be honest, I have received offers from wine distribution companies of international repute,
that are offering a rebate as high as sixty percent, should we order from them for a minimum
of one year, which makes me rather unimpressed by the same offer that you have to make in
this respect. I was hoping, since Exotic Delights is not a wine distribution company that has
been in the scene for too long, that you would offer your wine at a rebate of sixty percent at
the minimum, giving us enough time to determine whether the investment that we are making
in your red and white wine is worthwhile for us or not, given, as you have rightly stated, that
Café Russe is an establishment visited by the top most strata of our society.
Thirdly, I am impressed by the fact that you offer safe and secure packaged delivery
of wine bottles to our doorstep but are you willing to take any responsibility in the event of
damage? There can always be situations where a delivery process goes awry, the trucks run
into an accident on the road and we end up with a number of broken and damaged wine
bottles in our stock. This is not something that we want, and should this ever happen, as it is
likely to happen at some point or the other, we would like to know if your company would

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take responsibility for the damage and provide us with a fresh supply of bottles for the ones
that have been damaged, without us having to pay any extra for it. If you are willing to do so,
this would definitely go a long way in getting us at Café Russe to agree to ordering your wine
supply for a year, given that we have faced problems with damaged and insecure wine bottle
deliveries in the past.
Fourthly, I would like to ask where is it in the South of France that your vineyards are
situated, that is, from where you procure the grapes for the manufacture of your wine.
Vineyards in the South of France are dime a dozen so I really have to know which particular
vineyard your company owns or which one you are alluding to in your email, when you say
that your red and white wine is manufactured using grapes from the finest vineyards in the
South of France.
Finally, I wish to know if port wine is what you supply or not or whether it is
conventional red and white wine that you make available for consumption. A significant
section of the customer base at Café Russe is fond of port wine, given that the port wine that
we have been serving since the inception of this restaurant has been of superior quality,
resulting in us being able to establish a long term and faithful client base simply on our
ability to make this port wine available to certain customers all around the year.
I do hope that you do not mind me sounding so skeptical in my response to your offer,
but as the manager of one of the finest gourmet dining destinations in town, The Café Russe,
I have to be careful of where we order our wine supply from, ensuring that we indeed serving
nothing but the best to all of our guests. I would be grateful if you could respond to my
queries at the earliest, so that my team and I can consider your offer in more detail and arrive
at a final decision in this respect as soon as it is possible to do so.
With my sincere regards

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James Kinsella
The Manager
The Café Russe
3. Assessment of the Negotiations
From the above two emails, it is clear that the manager of the wine distribution
company, Exotic Delights is not being able to drive a very hard bargain, as, were he able to
do so, the response from the manager of Café Russe would not have been one that is so full of
skepticism. Indeed what Exotic Delights is appearing to be offering the management of The
Café Russe with is filled with many benefits, given that this is a company that is willing to
supply high quality red and white wine for a period of one whole year at a discounted rate of
twenty percent, and is willing to increase the rebate by a further twenty percent, should the
wine be ordered by The Café Russe for a second consecutive year. Yet the fact remains that
Café Russe has been receiving similar offers from other wine distribution companies at a
higher rate of rebate, giving the restaurant a better supply option to fall back on for the
provision of wine for its establishment for a period of one whole year. The tall claims that are
being made by the management at the Exotic Delights Wine Distribution Company about its
wine being tasted by some of the most well known and experienced of wine experts is also
being perceived by the management at The Café Russe with a considerable degree of
skepticism and rightly so. The wine distribution company needs to come up with adequate
evidence of credentials and experience in order to convince the restaurant that its wine is
tasted by the most experienced and qualified of wine tasters in order for the deal to go
through. Finally, the tricky affair of taking responsibility for damages must be looked into by
Exotic Delights, given that Café Russe has faced problems with delivery of wine in the past,
and would not like to face a similar situation again.

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