Yarn Purchase at AmTex

M. Ghufran Ahmad

Asian Journal of Management Cases, 2015, vol. 12, issue 2, 158-163

Abstract: Yarn purchase at AmTex is a two-party, single issue, distributive negotiation case exercise. A buyer and seller of blue heather cotton yarn are required to negotiate the purchase of a lot of 1,000 bags of yarn. Only the price needs to be negotiated. Both parties are under a deadline and need to quickly make the deal. Alternatives are available to each party. The buyer and the seller represent their respective organizations and both are responsible for making the most profitable deal for their organizations. This case exercise illustrates how to use bargaining techniques in a distributive negotiation setting in which negotiators are primarily concerned about claiming the maximum possible value through the deal. This exercise is well-suited to introduce the fundamental frameworks and techniques of negotiation, and may be used as the first case exercise in a course on negotiation skills.

Keywords: Distributed negotiation; two-party negotiation; BATNA; reservation price; bargaining zone; information asymmetry (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:sae:anjomc:v:12:y:2015:i:2:p:158-163

DOI: 10.1177/0972820115592212

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