TEAM CODE: TC-07

UILS, PANJAB UNIVERSITY, CHANDIAGRH, INTERNATIONAL

NEGOTIATION COMPETITION, 2021.

NEGOTIATION PLAN

On behalf, of

Guruvayyur
Ceramics Ltd.
(Responding Party)

In the matter, of

Dreamz Ads

v.

Guruvayyur Ceramics Ltd.

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 NEGOTIATION PLAN: PRELIM 1

Core Issues
1. To negotiate the settlement of outstanding bills
One of dispute between the parties arises due to the pendency and discrepancies of the previous
bills. One of the main goals in the session would be to for Guruvayur Creamics Ltd.
(hereinafter, GCL) to concretize the validity of the past bills and negotiate accordingly.
2. To negotiate the payment of Bill Number 191
One of the primary points of dispute between the parties is on the payment of Bill Number 191
as due procedure has been followed, straight from the request for quotation, to placing of the
actual purchase order, the sudden charge of the Request for Quotations (hereinafter, RFQ) is
not an established process. However, Dreamz Ads (hereinafter, Dreamz) did more work than
was stipulated based on the RFQ. Therefore, GCL should also prioritize negotiating on the
remunerations of Bill 191 as per the work done.
3. To replace the faulty goods under Bill 130 & 131
Since the dispute initially started with faulty material being supplied by Dreamz vendors
followed by an immediate lockdown, GCL shall also be discussing about replacement of the
faulty materials with much more superior quality materials as per its specifications, as the
payment for the same has been made.

Goals and Objectives

1. Resolve deadlock and establish a dialogue, in order to rebuild the lost trust between the
two and to create a harmonious relationship.
2. To gain experience and improving the Company’s relationship with the advertising
agency, to build a rapport for future projects with them and utilize their services even
beyond the Covid-19 pandemic.
3. To further strengthen GCL’s brand image in the south-western part of the country with
the help of Dreamz established dominance therein.

Strengths
1. GCL enjoys dominance in the Indian building material market with over 60 years of
experience and goodwill along with a reputation of establishing industry benchmarks.
2. GCL has had profitable business with Dreamz in the past, making their relationship
important for both parties.
3. Customizable superior quality building material specified as per consumer needs.

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 Weaknesses
1. Covid-19 lockdown has halted construction work throughout the country, leading to
imbalance in the demand-supply chain for raw material.

Negotiating/Conciliatory Points
1. Installment Plan for the payment of past invoices: Should their validity be established,
the invoices of the outstanding bills will be the first issues to be resolved on the
negotiation table, through the formulation of an installment plan that will revolve
around GCL paying back the dues with equal installments over a specific time period.
2. Negotiating on replacement of faulty material and establishing a Joint-Committee to
ensure the veracity of bills and the quality of orders: Due to the problems caused
between the parties in the past due to difference in quality of goods requested and
supplied, GCL shall recommend a joint panel comprising of people from both parties
as well as a neutral expert who shall be responsible for the quality check of the orders
and the bills generated thereafter, to streamline quality control and related payments.
3. Negotiating an amicable ground for the RFQ predicament: As Dreamz has already
done more work than stipulated, with the nature of the work being advertisement for
GCL, the company shall be open to negotiate on the remunerations for the same at a
discounted rate for the remaining work.

BATNA: Should negotiations fail, GCL shall consider securing exclusivity for all advertisement
related services from Dreamz in the State Maharashtra at a discounted rate.

WATNA: Considering that Dreamz has already undertaken the labor and material required as
per the RFQ, GCL shall consider paying for the entire RFQ in monthly installment plans and secure
a longer commitment with Dreamz for the quoted demand.

Our Perspective and Needs Their Perspective and Needs

• To retain GCL’s brand image as pioneer in the • To retain CGL as a major client in order
building constructions market by using superior to strengthen Dreamz relationship and use
quality goods for our advertisement and GCL’s already established market
fortifying the same by establishing a better presence in India to grow our sphere of
relationship with Dreamz, beyond the influence from South-western part of the
immediate dispute. country to the entirety of India.

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