Cinnamon Case
Negotiation Planning Worksheet
Role in the Negotiation: Buyer/Seller
Roll numbers and names of your representatives:
BARGAINING MIX
What issues will be up for
discussion in the
negotiation
(List and then number as
per importance)
Needs and interests
(Tangible and intangible)
BATNA
(Best Alternative to
Negotiated Agreement)
List alternatives in
sequence of importance
Group Number:
WE OTHER PARTY
1) Government is about 1) Purchase of 1000kg
to issue an ordinance consignment being
to use high quality quite a bulk quantity.
ingredients in baby 2) Requirement of high
food. quality cinnamon
2) 10% subsidy to be 3) It is mandatory for us
given to granted to to shift to high grade
baby food cinnamon as it has
manufacturers. been mandated by the
3) Improvement in the Government
Top Line of Offshoot
Intermediaries after
they promote their use
of high grade
cinnamon in their
finished goods
Sale of the entire Incorporating high grade
consignment as a whole as cinnamon in their production
the shelf life of the raw as soon as possible due to the
materials is only 3 weeks mandate.
390/kg offer is already in Since it’s a large, reputed
hand for 700kg. So will look firm they would look to try
to gain a premium from and close the deal and also at
Offshoot. the best possible rate for
them (lowest)
1) Searching for other 1) Finding other vendors/
Baby food traders who would deal with
manufacturers who high grade cinnamon and try
would purchase the to negotiate a better deal with
whole consignment at them.
a premium price over 2) Benchmarking the ideal
400/kg. price from industry
standards.
 2) Selling 700 kgs to Marex
Pharma and either trying to
sell them the balance 300 or
find another buyer for the
balance 300 quantity
ASPIRATION /
TARGET PRICE
800/kg Others
1. 600 per kg
2. 500 per kg
3. 400 per kg

RESERVATION
POINT/ WALKAWAY 550/kg Others
1. 550 per kg
2. 450 per kg
3. 3500 per kg

BARGAINING RANGE/ 250/kg 50/kg

ZOPA
Zone of Possible
Agreement

POTENTIAL
CONCESSIONS 1. Goodwill Long term relationship
2. Credit period offered
3. Future deal
structuring
4. Utility of the product

OTHER Concession - Future lesser price for

CONSIDERATIONS 1. Credit period of 45 days . further deals
-time constraints With downpayment of 50%
- goodwill of the company 2. Bond for 3 years and
and reputation quoting same price for the
-repetitive interaction or next 2 years too , minimising
one-time deal inflation
-general information about
parties arising from
context

OPENING OFFER 800/kg 600/kg