Business Negotiation – Magic Carpet Case Study
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- Topic :: Negotiations
- Document Type :: Assignment help (any type)
- Subject :: Management
- Number of Words :: 1500
Negotiation Assignment: Magic Carpet
The Magic Carpet WKS plc. has been a customer of Global Carpets (GC) for 20 years. They have a global purchasing agreement which is due for renewal next year. WKS regularly gives this Sales Manager of GC £2 million of business per annum for various UK projects. This particular project is worth £500,000. The London office of WKS is moving to a new HQ building in the city in 6 weeks’ time and the carpets are scheduled to be fully fitted by GC in 3 weeks’ time.
The Sales Manager of GC, Petrov, has been requested to attend an urgent meeting with Marcus, the Facilities Manager of WKS, to discuss a problem which has occurred with the carpet currently being installed. Up to this point there has always been a good business relationship between the Sales Department of GC and the Facilities Department of WKS. Marcus is in charge of the new HQ project. In only six weeks’ time the entire office will move into the new building.
All aspects of the work have so far been completed on time, however, the latest delivery from Global Carpets has colour mismatching from batch to batch. To add to this, the new CEO from New York is due to move to the London office to take up his new post on completion of the new HQ. Marcus fears any visible defects in the new office will draw unwanted attention onto himself. Although the project has run smoothly so far, it is slightly over budget, by around £15,000, so any savings that can be made at this stage will reflect well on his performance with the new CEO. The deadline given to GC to have the carpets fully fitted was for the end of week three.
While Marcus would like this to remain on schedule, some flexibility has arisen due to some early completion of some aspects of the re-fit. Marcus reckons he could give them up to one more week and still remain on schedule. While this re-fit has been taking place a decision has been made by WKS to occupy a new building in Edinburgh on the same scale as the new London HQ. This will require fitting out in around 4 months’ time. However, if the current problem is not resolved satisfactorily, Marcus may be forced to look for an alternative supplier for that job. It is 3pm on Friday and Marcus needs to have this resolved by the end of business today to ensure the schedule does not suffer.
- What are the interests of Marcus in this case? (5 marks)
- What are the issues of Marcus in this case? (5 marks)
- What would Marcus’s completed preparation planner look like? (5 marks)
- How might constructive debate benefit Marcus in this case? (5 marks)
- What proposal could Marcus suggest to Petrov to resolve this problem and why? (5 marks)