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Knight Engines

In:

Submitted By imVchotani
Words 1065
Pages 5
John Sardelli
LEAD 509
Exercise : Knight Engines – Excalibur Engine Parts

1.

What are the issues in the upcoming negotiation.

Price of piston and quality are my main concerns. Other concerns are branding and timely delivery.
Timely delivery is a given in the scenario.
2. Based on the review of all the issues, what is the “bargaining mix?” (Which issues do we have to cover? Which issues are connected to other issues?
My main concern are the price and quality control of the pistons. The quality control plays a central role in the price of the product.
3.

What are my interests?

My interests are to build a relationship with Excalibur Engine Parts. I am interested in purchasing these products at a price of $600 or less. If we can reach a agreement of $600 p/item, we can possibly get the contract and make a profit. On the other hand, I assume Excalibur is interested in doing business with us to make a profit and get their brand noticed.
4. What is my resistance point—what is my walkway.
My resistance point is cost of delay. The cost of delivering the product late is not specified in the exercise, but it is assumed that If the products do not get delivered on time our repeat business with the client could be damaged substantially. Excalibur must put their commitment to timely delivery in the contract. BATNA: Knight Engines needs to make a deal of $600 per piston or less. We understand that Excalibur is interested in branding their product because it is rumored they are trying to get government contracts as well. Knight Engines has no idea what Excalibur Engine Parts BATNA is. We at Knight will strive for the lowest cost possible in effort to secure the government contract so we will begin at $450 including
5% or adding it on later for rush delivery. $470 is the cost that Mordred Technologies Inc. can sell similar products to us.
5. What

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