Negotiation and its Complexities: A Case Study of Public Sector Negotiation with Vendors. (September 2017)

• Record Type: Journal Article
• Authors: Riasudeen, S.; Fernandez, Cyril R.
• Is Part Of: Asian journal of management cases. Volume 14:Number 2(2017:Jul./Dec.)
• Page Start: 88
• Page End: 93
• Publication Date: 2017-09
• Subjects: Manufacturing option -- procurement policy -- target price -- negotiation process; Industrial management -- Asia -- Periodicals; Industrial management -- Asia -- Case studies -- Periodicals; Management -- Asia -- Periodicals; Management -- Case studies -- Periodicals; 658.0095
• DOI: 10.1177/0972820117712328
• Languages: English
• ISSNs: 0972-8201

Abstract

This case is about the negotiation process carried out by the chief procurement officer (CPO) of a leading public sector unit in India. When the company receives an order, the order is materialized by using electric equipment in large quantity. Due to changes in the business situation, the company realizes that it may not be possible to purchase the equipment that they require at the same price as before. The company has two vendors from whom they buy this equipment. Both the vendors have similar manufacturing policies and same raw material suppliers. Additionally, both the vendors have gone through some management level changes. The CPO who is responsible for the purchase of the electric equipment has to conclude the deal with the vendors and obtain the best possible price which is closest to the amount they had previously paid the vendors.