Negotiation

30 points Negotiators have difficulty in connecting with each other when they have little or no pertinent information about the inter of their counterparts. In the absence of illuminating information, they pass by each other like ships sailing in darkness. Peabody Products had just won a big contract from the Royal Navy to produce electric motors over the next twelve months and was scrambling to set up the necessary supplier relationships. Among the things it needed were 20,000 wiring harnesses, and it needed them in a hurry. Unfortunately, all of its regular suppliers were backlogged with other work. Then the procurement department found Western Manufacturing, a small component producer located outside Glasgow. Neither of the two companies knew much about the other, and their negotiators had reasons for not sharing certain information. For example, Peabody's representatives didn't want Western's people to know how desperate they were to get 20,000 wiring harnesses in short order. Without them their deal with the Royal Navy might founder. "If the people at Western knew this," said one company official, "we'd be in a poor bargaining position and bound to get gouged on the pretty know that they had us over a barrel. "The people at Western likewise felt that they were in a poor bargaining position. "If Peabody Products were to learn that we are operating at forty percent capacity, "said West-ern's sales manager to his boss. they'd demand a rock-bottom price-and we'd probably give it." Based on the case above, discuss FIVE (5) possible strategies that can be used to resolve the dilemma faced by the negotiators. Relate on how it could gain mutual benefit