Strategic Sales Negotiation And Ethical Responsibility: A Case Study

Part I

Action best taken by Joe

As a sales representative in UWEAR, it is Joe’s role to bring more customers. This implies that he should not let the contract grabbed by Samantha, by agreeing to what Bill intends to do.  He should therefore understand that the entire business is at the verge of breaking, and he has a chance to save it, by engaging in a bargaining session with Bill. He should pull out all his skills and convincing power, until both come to the point of mutual agreement.

Relations theory is a concept that is most appropriate in this particular issue. It argues that the officials (who are represented by Joe in this case) should meet up with the client (Bill) and discuss the matter in question, so as to settle the issue to a point of mutual interest.

The reason why one should consider this theory, is because it takes care of common objectives of the parties involved, rather than the terms of the contract, to rule out the stipulation process. (Kaufman & Gall, 2015)

While I prefer the above stated theory, other individuals may favor the Government and Law agreement concept. According to this theory, political ideologies determine the principal of the contract. Everything in the contract thereby revolves around these ideologies.

This theory would disadvantage Joe, since it allows a client to decline the service freely, as long as they follow the right legal process. This theory doesn’t give room to open discussions, where individuals can discuss the matter without necessarily following strict legal procedure, and consider the fate of the other party, a deed that is very ethical in the society (Tapia, Ibsen & Kochan, 2015, p.157). Unlike Industrial relation theory, this theory therefore promotes selfishness, whereby one doesn’t care for another human being in the community, because of the tough formalities. It also leaves Bill in a position to choose between Samantha and Joe. The managerial theory is therefore appropriate, as the two wont focus on the previous contract, but the objectives of each party hence reach to a reasonable agreement, ideal for both parties (Ruggie, 2014, p. 14).

The best creative solution in this circumstance, would be Joe starting the negotiation, and later excuse himself, so as to consult from the seniors, if it is okay to reduce the service cost either by 10%, more, or a little less; to a figure that Bill would be comfortable with, in reference to the current supply cost of the product, in the market. This move is very achievable, since cost reduction is what the client is after. He also needs to promise that UWEAR offers best services, compared to other competitors.

Stakeholders in the company

In every organization, stakeholders are those individuals who stand a chance to lose or benefit from the deal. Therefore, the situation in question makes Bill and Joe, two major subgroups of stakeholders. This is because both stand a chance to lose or benefit in regards to the agreement. In Joe’s side, there are crucial individuals who play a big role in supporting UWEAR Company. These include; Director, CEO, the procurement officer, human resource manager, other employees and the community from which UWEAR draws its resources from (Park & Kim, 2014, p.295).

Action best taken by Joe

Bill

Being one of the stakeholders here, Bill benefits from the services rendered by UWEAR, through his company, Peninsula. He is obliged to engage himself to a bargain with Joe, the sales representative, so as to come to a mutual agreement with UWEAR. He is also responsible of declining the supply from Joe’s team, if it does not match with his expenditure budget.

Joe

As a sales representative, he is supposed to maintain the bargain so as not to lose the contract to Samantha, the sales representative from Threads4u, a move that would greatly affect the economic stability of UWEAR. He is responsible for selling out the commodities to Bill, or any other client.

The CEO and Director

These executive stakeholders have a role of supporting the sales representatives, with necessary resources, e.g. finances, stationaries, and any required information, that would enable Joe win back the contract for UWEAR, despite having a low performance which consequently led to him being reproofed in the previous year.

Procurement Officer

He/she has the duty to advice the sales representative on how to bargain, and express margins below which he/she should never go beyond, in the bargaining process. This is to avoid losses that may be incurred as the company closes the deal with Peninsula Hotels.

The Human Resource Manger

He/she is responsible for the supply of any resources that will enable Joe win the contract. These resources may include transport, airtime for communication purposes, among others.

Bill

1. He should never use confidential information of Peninsula Hotels, for his own selfish benefit, thereby compromising the security of the company crucial details.
2. Bill must never ask for a bribe from Joe, or anyone else, in an attempt to favor his company.
3. He should also never make the bargain process hard, so as to make Joe lower the cost to a level that the company will eventually fall.
4. He is also responsible for maintenance of the agreement, and not dismiss it any time, without adequate considerations.

Joe

1. He should never give or imply a bribe to win the contract.
2. He is supposed to be honest, and promise what the company can offer.
3. Joe has the responsibility of ensuring that he doesn’t tarnish the competitor’s name, to win the client.
4. He should be polite all through, even if the contract is not renewed.

CEO, director and procurement officer

These people have several ethical responsibilities. They include;

1. Providing necessary social guidance to Joe so as to avoid portraying a bad picture to the client.
2. They are obliged to support Joe despite the outcomes of the discussion.
3. They ought to pay salaries & remunerations, and not mistreat anyone.
4. Respect the employees regardless of gender or ethnic background.
5. They should encourage and motivate the employees, but not threaten them.

The CEO, director and the procurement officer would have strongly discouraged Joe from losing the opportunity, as that is what has been sustaining the biggest part of the company.

On the other hand, Joe would commence the bargaining process immediately, after consulting the executives in UWEAR, if it would be okay to cut the price, and by what percentage. Joe would also promise the client, that they will, by all means possible, offer best services to Peninsula Hotels.

Now that UWEAR is at risk of losing the contract, drastic measures need to be taken, so as to secure the deal. Joe therefore needs to advice his seniors to reduce the cost of supply for Bill’s company, so as to make it more convenient for them, and as a result, retain the contract. This is because Bill seeks to reduce the expenses incurred in purchase of the products and services. This makes it wise for UWEAR to lower the cost, to a level convenient to both teams.

Joe needs to employ Industrial Relations theory, to support his argument. This is because the concept campaigns for mutual agreement between the two parties. This will result to Joe adjusting to a level that Bill would be comfortable with, economically.

References

Kaufman, B. E., & Gall, G. (2015). Advancing industrial relations theory: an analytical synthesis of British-American and pluralist-radical ideas. Relations Industrielles, 70(3), 407

Park, J., Lee, H., & Kim, C. (2014). Corporate social responsibilities, consumer trust and corporate reputation: South Korean consumers’ perspectives. Journal of Business Research, 67(3), 295-302.

Ruggie, J. G. (2014). Global governance and “new governance theory”: Lessons from business and human rights. Global Governance, 20(1), 5-17.

Tapia, M., Ibsen, C. L., & Kochan, T. A. (2015). Mapping the frontier of theory in industrial relations: the contested role of worker representation. Socio-Economic Review, 13(1), 157-184