Led 430

Roberta Melgarejo

LED 430

December 08, 2013

Some of the salient situational factors are:

1. Policies and rules about credit applications are impractical.

• As mentioned credit risks must be low; credit terms and collection procedures are tough. With these guidelines, how many individuals could realistically be approved for credit. I would think this would bring down revenue eventually..

2. A lot of issues with the credit application process.

• Goes along with the issue above. Too many unrealistic requirements can cause the process to be slow or considered unreasonable.

3. Pressure to increase sales in short timeframes.

• The firm’s president is putting pressure on “you” to increase sells but goes on to say, “Sure, we need to increase sales, but the small business failure in this area is the highest in the country, so we have to be careful that we don’t make bad credit decisions.” Basically saying find a way around the credit issue to still increase sales.

Some appropriate negotiation strategies are:

• Good negotiating outcomes are a result of good relationships and relationships must be developed over time. Because of that, good negotiators are constantly looking for opportunities to enhance the relationship and strengthen their position. That being said Philip must build a relationship between him Jose and Celeste. He must gain their trust to be able to convince them that his recommendation to change the credit process would be successful for the company.

• Information is crucial for negotiation. Research the history, past problems or any sensitive points that Jose and/or Celeste may have. The more knowledge you have about the situation of the other party, the better position you’ll be in to negotiate. Do the research and bring up any statistics in your favor.

What advice would you offer to Jose Ortega? Celeste? Philip?

• A business is about taking risk and failing only to succeed. I am a...