Bakra Beverage
Malhotra/Bazerman (2007): Negotiation Genius [required text]:
Ch 1: Claiming Value in Negotiation
Ch 2: Creating Value in Negotiation
Assignment #1 – Analyze the role-play of the other side using the negotiations concepts discussed. What made the negotiations of the other side successful, What made the negotiations unsuccessful?
1. Negotiation concepts of other side (Bebsico)
Bebsico is more powerful within this negotiation table because of financial risk of Bakra, not revealed.
Bakra Beverage is the 2nd largest soft drink distributor in Middle East Asia. But Bakra want to get the great chance to be the 1st distributor, if make the contract with Bebsico.
If this negotiation is not available, Bebsico has another distributor option with Jayyid.
Current environment of Kumar including political unrest issue wouldn’t be guarantee the safety and distribution target ratio (over 70% to meet BEP at least) compared to Yoman, almost same as the identical country but normal. Therefore Bebsico wouldn’t want to make the contract as the same condition with Yoman.
Negotiation starting point is 1.87mil. $ which is previous contracted value.
Contract value should be lower than 3.6mil. $ contracted with Yoman.
2. Successful factors
BATNA(Best Alternative To A Negotiation)
Although negotiation would be failed, Bebsico could continue the soft drink business with Jayyid.
Invent options for Mutual Gain
3.3mil$ distribution fee, if they