Distributive Negotiation John is a 35-year-old procurement manager who works at a large global retailer of electronica. He is in charge of air-conditioners and is negotiating with a small supplier. Johns company is responsible for 70% of the total sales of the small air-conditioning supplier. John calls the supplier and starts directly asking what he wants & needs. He is solely driven by his own goal and tends not to listen to the needs and wishes of his supplier. Withing the negotiation, he is using his power to negotiate the terms that are good for him & his employer, despite several arguments from the producer that the terms that John is asking for, are not acceptable due to potential risks. John is ignoring these arguments, closes the deal that is great for him (-5% on price without any favors in returns in the new deal) and calls his boss proud to share the news. Outtake John: Great news, same product for a cheaper price, proud on my savings Outtake Producer: We need to decrease our 70% dependency from John directly: lets start looking for another partner for growth.

Explain what are the benefits and problems with this type of negotiation strategy. What will most likely happen next? What are the long-term effects for Johns company? For the Producer? Give one more example of distributive negotiations.

WRITE topic with focus on the pros and cons and your example.