OKBIT22 Managing International Relations

Business negotiations simulation:

Instructions

Business negotiation simulation

Purpose is to practice negotiation skills in a simulation = a make-believe negotiation

Everyone should get acquainted with the material, otherwise it is not going to work

Simulation is on the 13th of MarchListen up!!!

The negotiations

The simulation is about a final sales negotiation between two industrial companies

Bolter = seller and Maverick = buyerProduct is a $3 million natural gas

compressor set for installation of an offshore gas platform

The negotiators

There are 3 people in Bolter team and 2 in Maverick (originally 3 and 3)

Each person has a certain role to play and will get instruction material accordingly

Each participant of the negotiation will have somewhat different personal and professional motives regarding the deal

Roles

There are five roles to be played, so we will have two negotiation groups

The roles are: Bolter:

Sales representative Regional sales manager Applications engineer

Maverick: Purchasing agent Production engineer (Consulting design engineer)

The negotiation groups

Group A Bolter:

Xiaowen as Sales representative Nicholas as Application engineer Jukka as Regional sales manager

Maverick: Erasmus as Production engineer Minna as Purchasing agent (+ consulting design

engineer)

The negotiation groups

Group B Bolter:

Crispus as Sales representative Jere as Application engineer Elina as Regional sales manager

Maverick: Jyri as Production engineer Sergei as Purchasing agent (+ consulting design

engineer)

The background

Your job is to come to an agreement during the negotiations

During the negotiations you will bargain over pricing, product and service options, terms and conditions

The final agreement will consist of a completed purchase agreement signed by representatives of both parties

Previous to the negotiation

Bolter has submitted a price quotation for the gas compressor set including several product options and Bolter’s standard term & conditions

You can see this quotation in your materialGet to know the material given to you well!

Before negotiations

On the negotiation day, from 9.50-10.20, Bolter team is sent to a different location to plan bargaining strategies and tactics

Maverick can also use this time to discuss mutual objectives

This session lasts max. 30 minutes

Actual negotiations

The negotiations take place after the team meeting

Lasts max. 1 hourPrivate intra-team meetings are permittedThe simulation is complete when the final

contract terms are specified and approved by both teams

Week after negotiations

We will go through the negotiations and evaluate the performances

You have filled in “Negotiator evaluation form” and “Team performance form”

Questions?