Assignment 2

Brainstorming for Options Simulation

Read the following fact pattern. List possible ways to meet the interests of both parties. You can use the Options 1 form, "Create Options to Meet Interests" to help you with this task.

Next, Consider ways you can combine skills and resources to satisfy key interests for both parties.You can use the Options 2 form, "Find Ways to Maximize Joint Gains" to help you with this task.

You will find both forms in the Helpful Negotiation tools tab on the left side of BB.

Assignment 2 is Due Sunday Sept. 6 at 5:00 pm.

Liz is a Regional Manager with Wholesale Foods, a large and growing national produce distributor.She is responsible for managing relationships with suppliers, mostly small farmers in the state, as well as customers of Wholesale Foods, who range from small corner grocers to the stores of the largest regional supermarket chain. One of the suppliers with whom she must negotiate is Terry, the owner of a small fruit orchard in the northeast corner of the state.

As the manager of a large territory, Liz has to worry about her profitability, which in turn is a function of the price at which she buys and sells produce.But her profitability is also affected by the amount of effort it takes her to get the produce to market and how much she has to spend to overcome glitches in her delivery system.For example, if a farmer is late with his deliveries, Liz has to spend money to get produce from somewhere else, usually at a higher price, to meet her obligations to her customers; or if a farmer delivers fruit in bulk, Liz has to spend money to crate it properly.Similarly, her profitability is related to the price she can get for the produce from her customers.If she can develop a reputation for being a source of "quality" produce, she can get an extra few cents per pound over average market prices, which rapidly adds up to big profits.To manage some of these risks, Liz maintains a small fleet of closed-bed trucks capable of traveling around the state and employs a few more workers than are absolutely necessary in her warehouses.

Terry is his own boss, running a farm that has been in his family for three generations. Over his lifetime he has seen the farm experiment with a number of different crops, but at a significant risk: a bad harvest with a supposedly improved strain of one of his traditional crops of one his traditional crops could wipe him out.Similarly, the risk of planting something different and not being able to sell it at a good price could mean not being able to buy needed stocks and supplies at planting time.Terry has one open-bed pickup truck he uses to bring in supplies and deliver fruit.He hires only seasonal help, at planting and harvest times.

Each year, Liz and Terry get together and discuss terms: quantities and prices for his fruit, the dates on which delivery should be made, how the fruit will be crated, etc. Although they get along, Liz has the sense that there is more they could do that would be mutually profitable.

Consider ways to combine skills and resources to satisfy key interests on both sides.

I need to know Inventory of skills and resources for Terry and Liz.

I need to combine similar resources to produce values

I need to combine different resources to produce value.