5 Pages
1234 Words
Introduction - Key Strategies for Successful Business Negotiations and Partnerships
The team took a thoughtful and methodical approach to the contract renewal negotiations for the delivery of hotel guest room amenities. Upon conducting a thorough examination of cost structures, market dynamics, and customer relationships, determinations were reached on the appropriate approaches to address price volatility and sustainability.
Negotiation 1
Talking about a ground sharing agreement with NUFC has been a difficult and instructive process. Our main goal was to make the most of our limited pitch while avoiding unnecessary expenses and crowd disturbances. In my capacity as the CSFC representative throughout the talks, I took the approach of coming up with a strategy that struck a balance between our financial goals, our long-term expansion goals, and fan sentiment. I knew how critical it was to leverage our position, so I started the meeting by making a strong argument for a ground-sharing agreement. Encouraging more people to use our underutilised field—which only holds games around 40 times a year—was the main goal. Since maintaining the facility costs £4 million a year, we needed to rent at least £2 million from NUFC in order to pay our expenses without having to give up any of the capital value of our ground. This function was to safeguard our asset and ensure the partnership's sustained financial health. The Suncastle Football Club Ltd. (CSFC) team has learned that negotiating a ground sharing agreement with Newhead United (NUFC) has been insightful and full of carefully thought-out points of view and strategic considerations (Liu et al. 2020). After giving it some thought, we have concluded that the main goal should be to maximise the utilisation of our present field, which is only utilised 40 times a year. The significant yearly expense of £4 million for ground care brought attention to the pressing need to find a workable replacement that may ease this financial burden. Together, we thus set out to maintain ownership and capital value of our property while obtaining a minimum of £2 million in rent from NUFC. The goal of this method is to maintain the asset's value while achieving financial sustainability.
Considering the possibility of fan opposition to a shared pitch, we all stressed how important it is to consider our supporters' wishes while constructing a new facility. With the rivalry between the fan bases, we emphasised how crucial it is to plan ahead in order to minimise any potential conflict that can result from the suggested sharing arrangement. After realising that we wanted to proactively address our followers' concerns, our group created a design that we thought they would like and may help allay their worries about the change. It was clear from our initial conversations with NUFC over a potential ground sharing agreement that there was a lot of interest, if not a lot of uncertainty. We made the decision as a group to move forward with formally approaching NUFC in order to work with them to improve and hone our notion (Hu, Xiao and Wang, 2021). This group decision is in line with our cooperative and mutually beneficial approach, which strives to forge strong bonds among our clubs and establish a partnership that maximises resource utilisation.
Negotiation 2
The process of renegotiating a large hotel chain's contract to offer free guest amenities has been enlightening. It has required a deep comprehension of cost structures, market dynamics, and the thin line separating retaining profitability from building customer connections. As the primary UK supplier in these discussions, our objective was to maintain our alliance while responding to any demands for price reductions, considering the industry's declining profits trend and other hotel groups' cost-cutting tactics. The two main products were Shower Gel/Shampoo, which was produced and packaged in-house and sold for £3.30 per litre, and Bath Foam, which included in-house packaging charges and was priced between £3.00 and £3.25 per litre. We have strengthened our relationship with customers over the past five years by providing excellent service and keeping prices consistent with inflation (Lai and Liu, 2023).
To renegotiate the contract, we conducted a thorough analysis of our product range, current purchasing costs, and annual hotel chain utilisation. It was essential to comprehend the demands and cost structure of the customer in order to formulate our bargaining strategy. While certain products, like Shower Gel and Bath Foam, are created and packed entirely within the firm, other goods, like the Sewing Kit and Shower Can, are packaged both inside and outside. The subtleties of these cost structures were taken into account when deciding whether to change pricing without jeopardising our profit margins. The amount of money this customer currently makes, which was £301,392 the year before, was among the most important factors. We carefully analysed our costs to the purchase pricing to make sure we could keep our margins and to find any possible cost savings that would still please our customers.
The two most notable products were the Sewing Kit (£0.37 per component) and the Bath Foam and Shower Gel/Shampoo (£5.50 for 50ml each). Their yearly usage statistics for the hygiene goods (17,472 and 11,532 litres) and sewing kit (139,776 units) demonstrated how important they were to the contract renegotiation. Going forward, it will be imperative to strike a careful balance between protecting our profitability and permitting any price increases (Azim, Tushar and Saha, 2021). Even if the price of the shower goods was now the same as the original purchase price, any price increases would need to be carefully considered without jeopardising earnings, given the sewing kit cost £0.32 per unit.
Conclusion
Ultimately, the bargaining process made clear the fine line that must be drawn between upholding a long-standing alliance and giving in to customer demands for cost savings. The team's conclusions were impacted by the understandings obtained by analysing cost structures and client needs. In order to sustain a successful partnership in the future and respond to the shifting needs of the hospitality sector, it will be imperative to keep lines of communication open, practise flexibility, and embrace a customer-centric mentality.
References
- Azim, M.I., Tushar, W. and Saha, T.K., 2021. Coalition graph game-based P2P energy trading with local voltage management. IEEE transactions on smart grid, 12(5), pp.4389-4402. https://ieeexplore.ieee.org/abstract/document/9392022
- Hu, M., Xiao, F. and Wang, S., 2021. Neighborhood-level coordination and negotiation techniques for managing demand-side flexibility in residential microgrids. Renewable and Sustainable Energy Reviews, 135, p.110248. https://doi.org/10.1016/j.rser.2020.110248
- Lai, Z. and Liu, T., 2023. “Protecting our female gaze rights”: Chinese Female Gamers’ and Game Producers’ Negotiations with Government Restrictions on Erotic Material. Games and Culture, p.15554120231151300. https://doi.org/10.1177/15554120231151300
- Liu, G., Wei, L., Gu, J., Zhou, T. and Liu, Y., 2020. Benefit distribution in urban renewal from the perspectives of efficiency and fairness: A game theoretical model and the government's role in China. Cities, 96, p.102422.6 https://doi.org/10.1016/j.cities.2019.102422
