Updated:

Case of Agreement Between BebsiCo and Bakra Beverage Report (Assessment)

Exclusively available on Available only on IvyPanda® Made by Human No AI

Introduction

My primary objective as the Director for Middle East Operations for BebsiCo was to ensure that the company reaches an agreement with Bakra Beverage at a price below $6.75 million. The recent scandal with Kabir Cola was not yet disclosed; therefore, there was no opportunity to have another round of negotiations. The effects of postponing the decision were disastrous for various reasons.

First, the scandal would be disclosed, which would allow BebsiCo to ask for more money. Second, any delay meant that Loca Cola could enter the market before BebsiCo. Finally, the boss would not be pleased with the outcomes, which would be disadvantageous for my future career. Since I had little insight into the financial position of Bakra Beverage, I decided to promote trusting relationships with the negotiator and make sure that everyone has a clear understanding of requirements and benefits.

Discussion with the opponent

I was the first to start the conversation and disclose the information about the intentions of BebsiCo. I stated that our company wanted to see Bakra Beverage as its distributor in the Kumari market. I decided that it was vital for the opponent to know that the point of the discussion was not whether there should be a deal. I wanted to discuss the terms of the agreement and stating that upfront made the atmosphere more trusting. I also mentioned that BebsiCo valued the partnership with Bakra Beverage, which ended five years ago due to instability in the country, and expressed that the company was pleased with the results and the terms of previous business relationships. The opponent also mentioned that the terms of the previous contract were acceptable and offered to base the new deal on the old agreement.

I saw that my opponent was unsure about the exact figures and hesitant to make any propositions because he was afraid to be cheap. I realized that I was in the position of power and offered $5.5 million as a fair amount based on the fact that it was $1 million more than was offered to Kabir Cola. I explained the raise by the fact that BebsiCo would need Bakra to reach at least 75% of the market. The opponent replied that $6.6 million was more appropriate since it was the old arrangement plus five years’ inflation. After a short discussion, we decided to capitalize on $6 million. The deal was acceptable for BebsiCo since it was inside BATNA and would help to promote BebsiCo’s reputation for helping developing economies and promoting human rights.

I believe that acting from the perspective of power did work very well as the price almost reached the upper limit of $6.75 million. However, the fact I could insist on 75% of market coverage was beneficial. I also believe that a trusting approach helps to relieve the pressure and stay away from panic decisions. However, such an approach would be troublesome if I were to take my opponent’s place.

While the negotiation was fairly agile, my opponent seemed too afraid of saying or doing something wrong. Therefore, I often felt that if I were to put more pressure, he would agree to any deal. Even though the negotiations went well, my opponent’s approach would guarantee the outcome if I decided to be more aggressive. In short, being more proactive would help the negotiations go smoother.

Conclusion

The simulation provided considerable insights into the importance of preparations. Breaking down all the inputs provides a sense of what can be considered a good outcome. Instead of being afraid of being too cheap, it is more beneficial to focus on building trustful relationships that can lead to a productive partnership. I learned to understand that any result is good if it meets the criteria identified before the negotiations.

More related papers Related Essay Examples
Cite This paper
You're welcome to use this sample in your assignment. Be sure to cite it correctly

Reference

IvyPanda. (2021, July 29). Case of Agreement Between BebsiCo and Bakra Beverage. https://ivypanda.com/essays/case-of-agreement-between-bebsico-and-bakra-beverage/

Work Cited

"Case of Agreement Between BebsiCo and Bakra Beverage." IvyPanda, 29 July 2021, ivypanda.com/essays/case-of-agreement-between-bebsico-and-bakra-beverage/.

References

IvyPanda. (2021) 'Case of Agreement Between BebsiCo and Bakra Beverage'. 29 July.

References

IvyPanda. 2021. "Case of Agreement Between BebsiCo and Bakra Beverage." July 29, 2021. https://ivypanda.com/essays/case-of-agreement-between-bebsico-and-bakra-beverage/.

1. IvyPanda. "Case of Agreement Between BebsiCo and Bakra Beverage." July 29, 2021. https://ivypanda.com/essays/case-of-agreement-between-bebsico-and-bakra-beverage/.


Bibliography


IvyPanda. "Case of Agreement Between BebsiCo and Bakra Beverage." July 29, 2021. https://ivypanda.com/essays/case-of-agreement-between-bebsico-and-bakra-beverage/.

If, for any reason, you believe that this content should not be published on our website, please request its removal.
Updated:
This academic paper example has been carefully picked, checked and refined by our editorial team.
No AI was involved: only quilified experts contributed.
You are free to use it for the following purposes:
  • To find inspiration for your paper and overcome writer’s block
  • As a source of information (ensure proper referencing)
  • As a template for you assignment
Privacy Settings

IvyPanda uses cookies and similar technologies to enhance your experience, enabling functionalities such as:

  • Basic site functions
  • Ensuring secure, safe transactions
  • Secure account login
  • Remembering account, browser, and regional preferences
  • Remembering privacy and security settings
  • Analyzing site traffic and usage
  • Personalized search, content, and recommendations
  • Displaying relevant, targeted ads on and off IvyPanda

Please refer to IvyPanda's Cookies Policy and Privacy Policy for detailed information.

Required Cookies & Technologies
Always active

Certain technologies we use are essential for critical functions such as security and site integrity, account authentication, security and privacy preferences, internal site usage and maintenance data, and ensuring the site operates correctly for browsing and transactions.

Site Customization

Cookies and similar technologies are used to enhance your experience by:

  • Remembering general and regional preferences
  • Personalizing content, search, recommendations, and offers

Some functions, such as personalized recommendations, account preferences, or localization, may not work correctly without these technologies. For more details, please refer to IvyPanda's Cookies Policy.

Personalized Advertising

To enable personalized advertising (such as interest-based ads), we may share your data with our marketing and advertising partners using cookies and other technologies. These partners may have their own information collected about you. Turning off the personalized advertising setting won't stop you from seeing IvyPanda ads, but it may make the ads you see less relevant or more repetitive.

Personalized advertising may be considered a "sale" or "sharing" of the information under California and other state privacy laws, and you may have the right to opt out. Turning off personalized advertising allows you to exercise your right to opt out. Learn more in IvyPanda's Cookies Policy and Privacy Policy.

1 / 1