Directions: 2 para per question 

 

Scenario:

Checkerboard Organic Grocery is a wholesale grocery supplier and an upscale organic boutique market with 25 locations in the United States.  All of the department heads at Checkerboard Organic Grocery are meeting with the CEO and COO this coming Monday.  It is already time to talk about the 2024 budget.  They had just finished reforecasting the 3^rd quarter 2023 sales numbers and had to make budget changes to the 4^th quarter 2023 a couple weeks ago.  Profits are flat year over year (comparing 2022 to 2023).

Below are all the important players that will be in the meeting...

 

Phoebe, CEO (with the company for 15 years):  Phoebe started her career at Checkerboard as a sales representative.  She has worked in both the sales and marketing departments before becoming CEO 8 years ago.  She is known as fair but very firm.  She likes things organized and orderly.  She is rarely unprepared and runs a tight ship.

 

Malik, COO (with the company for 23 years):  Malik has had every position you can imagine at Checkerboard.  He started in the warehouse loading trucks.  He spent many years as the Operations Director before he moved to the Finance Department.  He became COO 10 years ago.  He is known as a nice guy but shoots from the hip a lot.  He relies heavily on Diane (Finance/Accounting Director) and Stew (Operations Director) for information.  He likes being liked.

 

Diane, Finance/Accounting Director (with the company 12 years):  Diane's department lost two employees to retirement in December and desperately need to rehire.  While eavesdropping, Diane heard that the CEO and COO are rolling out a hiring freeze to cut back on payroll expenses.  With 2 people gone and all of this forecasting and reforecasting, her team has been working a lot of overtime.  Diane is worried and nervous.  How in the world will Diane be able offset costs and convince the CEO/COO to let her hire 2 new people to hopefully cut back on overtime and not burn out her staff.   She is so worried for the health and safety of her team.  They are working way too much and she needs to find a way to protect them. 

 

Wendy, Sales Director (with the company for 5 years):  Checkerboard Organic Grocery revenue is up 4% so far in 2023 (which means they are bringing in about the same amount of sales as they did in 2022).  All things considered it's not too bad.  Their sales team is working really hard but management has forecasted them to do 15% better year over year.  Wendy takes a company sponsored yoga class with Diane, the Finance/Accounting Director, and overheard that the CEO and COO were going to give the sales team an even higher goal of 20% more in sales over their final 2022 numbers. Wendy thinks she might lose one of her best sales people who needs to stay home since she had twin boys a few months ago.  Wendy is frustrated and thinks kids are the worst.  She needs to hire more people that are older and can't have kids.   Just the thought of the senior leadership trying to squeeze more money out of her team makes her blood boil.  

 

Mateo, Marketing Director (with the company for 2 years):  The 2023 marketing plans of Checkerboard Organic Grocery were completely shot as supply chain problems and an unpredictable customer base dues to the economy have been major issues.  It felt like all the marketing team could do was throw the usual ads out there.  All of their new packaging plans were put on hold as well as the brand-new digital campaign that they worked on with a local advertising agency for three months.  Mateo was told to scale advertising back to 2022 number.  Mateo was not happy since he was promised a 20% bump in the marketing budget to address their digital marketing needs.  He needs the leadership team to see how a robust digital marketing plan can increase their sales.  Mateo can't help but wonder: "Why is everyone thinking so small and safe?  And how is he going to call his good friends at the local ad agency to tell them that their campaign is on hold even longer. It's embarrassing.  Would this happen to me if I had been here longer? Is this all happening because I'm still the new guy?" 

 

Stew, Operations Director (with the company for 18 years):  Stew was thanking his lucky stars that the big warehouse software project was done in 2022.  The only problem Stew has right now is the money that was promised for follow up training sessions was completely blocked by Diane through 2023.  He knew Diane would take pleasure in blocking the training money he needed.  She was still mad at him for what happened at the Christmas party a few years ago.  Stew scratches his head wondering why nobody understands how Diane hates him and singles him out all the time.  His team needs this training since the new system is so complicated. He feels that they are only using 60% of the software and reporting.  They need more training to really see the savings and benefits of running lean warehouses.  Stew can't help but wonder how Checkerboard is going to compete with Whole Foods or Trader Joes?  He thinks it might be a good move to talk to Diane one on one and possibly threaten to take her to HR for singling him out.  Maybe she will give him the money he needs at that point.  He's willing to do anything to get that training money for his department.

 

The budget decision meeting is Monday at 9:00am and Phoebe, Malik, Diane, Wendy, Mateo, and Stew will be there.  Each department head (director) will be looking to negotiate their budget needs.  The uncertainty and pressure are getting to everyone.   

 

1. If you were Phoebe, how would you plan for this meeting?
2. What are the goals of each of the department heads (directors)?
3. Walk this scenario through using the integrative negotiation process.
4. What are some factors that facilitate a successful integrative negotiation?
5. How could this scenario be win/win, where everyone wins?  Win/lose?
6. What are the ethical quandaries/tactics in this intricate scenario?