Negotiation Process

2- )Buying LaRoche coffee was the BATNA for the buyer and selling its coffee to standard restaurant was the BATNA for the seller. We both cared about BATNA since , in case of failure, BATNA would be the alternative and give flexibility to both parties. What is more, we know that if someone has a strong BATNA, it gives more power because the parties may possess an attractive alternative that could resort to.

As a result of the fact that both the buyer and the seller have a BATNA, it highly influenced the process. Due to the quality of LaRoche( the BATNA of the buyer), the buyer did not manage to decrease the price. On the other hand, the seller was more powerful in terms of BATNA and was able to determine the final price more easily.

3- ) Seller reservation price: $6,50

Buyer reservation price: $7,40

Both companies ask to the negotiators that they can’t accept the deals mentioned above. The buyer can’t buy more than $7,40 and he seller can’t sell less than $6,50 so prices between $6,50 and $7,40 were the bargaining zone. The area between these points created the bargaining zone, which affect the process and the parties in a way that they tried not to get closer their reservation points.

4-)The points between $6,50 and $7,40 are the bargaining zone. We can say that it was wide because every single cents have a great effect when it comes to large quantities. Yes, we came to a negotiated agreement. We agreed on $7,15.

5-)While the quality of coffee, equipment, packaging increased the final price, service and Laroche price and Colonial Willamsburg’s price decreased the final price. Moreover, the bonuses of the both parties affected the final prices. Furthermore, since the producer contributes the social and economic welfare of the independent coffee farmers and Anderson coffee supported extensive research on the coffees, the final price was increased. Becaause of the factors above, especially the incentives, we had targets.

There were some...