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You are required to develop and present you negotiation plan and strategy and execute the plan during the role play for which they will be evaluated on their pre-planning ,strategy tactics and the outcome.
CASE 1
Two companies one local and the other an international Freight Company are involved in an international business negotiation. The negotiation involves the finalisation of a freight contract for shipment to Trinidad of motor vehicles and electrical items manufactured in Japan by a Japanese Company . The specific elements to be negotiated include a performance bond requirement ,the freight price , the destination port and the Term of the Contract .The final negotiation is being held in Japan. The Contract must be in place by July 1st 2016 The Contract is worth $ US 3 million annually and because of this the Trinidad company is insisting on a performance bond of $US 300,000 and the Japanese freight company is only willing to put in place a bond amount of $US100,000 in addition the Trinidad company wants to pay a freight price of US $250.00 per Ton FOB Tokyo and the Japanese wants $325.00 per ton .The Trinidad company wants the cargo delivered in Port of Spain since that is where their bonded warehouse is located and logistics costs will be lower ,however the Japanese company wants to deliver at Point Lisas since they have other clients whose cargo is delivered to Point Lisas and the majority of the vessels they utilise on the Latin American/ Caribbean route prefer to call at Point Lisas . The Trinidad company has been forced to use that freight Company because it is the only company located close to its suppliers in Japan that ship to Trinidad .The Japanese Company is insisting on a Three Year Contract with a price Adjustment of 15% annually and the Trinidad Company wants a Two Year Agreement with a 10 % annual Price Adjustment .
Write up hoe you will Negotiate an Agreement between the Parties covering the various elements mentioned in the scenario.
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