Case Study: GE International, Inc.

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GE International, Inc.(GEII) and CSC (Computer System Consultant) are two computer based companies. I represent CSC who received a contract opportunity from GEII to reprogram their computers with new software and update to the latest version. Various requirements from both the sides were discussed and iterated. However, after conferring with the senior manager of GEII, CSC finds that there are budget conflicts. This case study will show how the negotiation between GEII and CSC brings up new ways of accomplishing an agreement for the budget conflict. Huffman represents the GEII senior manager who has a budget of $120,000 for the contract. Whereas CSC requires $240,000 for the contract and to complete the project. In finding discrete methods …show more content…
Empathizing the complexity and restrictions faced by Huffman from his company, I had my own obligations to the price quoted and needed a proper solution. By explaining to each other our budget constraints we started to look for other options that would be beneficial for both of us. “Generating possible BATNA (Best Alternative to Negotiation Agreement) requires three distinct operations (1) inventing a list of actions you might conceivably take if no agreement is reached (2) improving some of the more promising ideas and converting them into practical alternatives; and (3) selecting, tentatively, the one alternative that seems best” (Fisher & Ury, 1983, p.105). Huffman was promising in his attitude towards the contract which provided me a certainty to ask for reasonable substitutes in lieu of the remaining contract price. I realized the importance of having a BATNA. BATNA helps in reducing negotiation stress and sets a clear standard for all the available options. While conversing with Huffman, I presented the following terms: to provide us GEII stocks at 15% discount which are valid for 5 years, train our consultants and refer us to a contract with a GEII affiliated project. Also, …show more content…
It is difficult to change our decisions and cooperate with someone’s opinion. A successful negotiator always conveys an attitude of cooperation and collaboration. I plan to instill this quality to become a cooperative negotiator. On the contrary we might deviate from the main objective if we are too cooperative while negotiating. In this case, I had to compromise on additional benefits when my goal was to negotiate on obtaining $240,000 for the contract. Cooperation is essential however may not be constantly effective and the outcome may be unsatisfactory. At first I thought Huffman is psychologically manipulating and modifying my perception towards the agreement, although it was clear that he cannot stretch beyond his budget. I discovered that negotiation should proceed independent of trust (Fisher & Ury, 1983). Confused with the situation I had to be concrete and make sure there were no contingent agreements. Having a BATNA prior to negotiation will help us to secure ourselves in unfavorable circumstances. Furthermore, sharing mutual interests will ensure a smooth negotiation. Saying so I aim to prepare myself with clearly defined objectives and BATNAs. Also, inculcate the ability to maintain balance between being soft and

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