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Scandinavian Case Study Response Paper
Q1.
The motive behind Conquip’s approach in sending the RFQ embedded with a 10% price-
reduction requirement was to place a time pressure upon FD. To prove this point, Conquip,
instead of calling for negotiations with de Winter, opts to pressurize FD through a product, LEIF,
that has not been widely adopted by the organization. In FD's perspective, this is a constraint that
removes the vast options for FD to negotiate on the efforts for improving the terms of the
agreement. As a result, it ultimately leaves FD with the only choice given: to agree or refuse.
At first, having run a strict negotiation with no 'wiggle room' may seem like a great
strategy, but there is a downside. There is no difference from either party to which Conquip must
realize that FD might also be putting the same pressure on them as well. What must be
acknowledged, especially in this case, is that the party with greater power and alternatives might
benefit from the time pressure. However, the other part with the least amount of power should
avoid 'stalling' and negotiate well before the deadline.
Q2.
A. According to De Winter, the offer was embedded with a threat originating from the close
relationship between Conquip and FF. The suspicion grew when Conquip requested the
quotation, which lacked several high-volume products affiliated to FD. As a result, de Winter
thought that the interest obtained originated solely from the products that were in direct
competition with FF, focused on their price reduction.
B. After growing suspicious of the offer, De Winter later realized the RFQ was simply a frame to
FD, known as a mechanism through which people make sense of situations that lead them to
pursue or avoid further actions. In this case, Conquip tried to give a solution, defining it in terms
that would be meaningful and benefitting FD.
Q3.
Regardless of the 10 percent reduction of FD on its prices as requested by Conquip and
its withholding of a positive and considerable margin, its primary objective was to ensure a long-
term sales relationship was preserved between it and Conquip. However, knowing Conquip was
trying to use FD for their advantage, FD could not afford to lose or be given false hope. The sole
purpose of negotiating was to not make concessions too easily, especially with FD's poor
BATNA. But De Winter's BATNA was not any better; therefore, his best option was pursuing
the agreement.
Q4.
Marc De Winter improve his bargaining at meeting 2 through his change from position-
based negotiating to interest-based negotiating. He demonstrated the positive outcome that would
come about when both companies work together. Conquip’s interest was to reduce supplier
costs. At the same time, FD intended to preserve its positive margins and retain the long-term
sales partnership with Conquip. With the new given approach, Conquip would rely on receiving
FD's product consistently at a fair price, with the added value of being the sole provider for FD.
In FD's perspective, this would mean a consistent customer for its product, which will ensure
positive cash flow and steady employment. This win-win situation works extremely well for both
organizations and guarantees a long-term relationship between the two.