Business Negotiation-Role Play
Mr. Zhou is general manager from Xiamen Agricultural Trade Company. He will have business negotiation with Mr. Fang, general manager from Dalian Kraft Foods Company, to sell a large amount of Lychee to them. Mr. Fang, with Mr. Wang (financial officer), Mr. Li (Purchase manager) and other colleagues come to Xiamen at the invitation of Zhou’s company. And Mr. Zhou, Mr. Lin (financial officer), Mr. Wu (marketing director) and others receive Kraft Foods employees.
On the second day, both parties (Mr. Li purchase manager and Mr. Wu marketing director) introduce the basic information/products of their companies. The purchasing party is satisfied with the selling party’s Lychee. Then, they directly begin the quotation negotiation. Kraft Foods would like to purchase 2000 tonnes at the moment. Considering the purchase quantity and delivery date, Mr. Zhou gives their price offer 12000RMB/tonne, with free freight charges shipping from Xiamen to Dalian. But Mr. Fang thinks the price is too high. His taking quotation would be 9500RMB/tonne. Both the company representatives need to carry on rounds of negotiation from different aspects such as the fruit characteristics and product quality (freshness, sweetness, perishability), competitive companies and freight charges, transportation insurance and average prices of Lychee in market, and so on.
First round, considering above conditions, both parties would give their expected offer, and need to convince each other in the above aspects, such as large need of Lychee, the fruit characteristics and product quality (freshness, sweetness, perishability), competitive companies. However, they do not reach an agreement on the price. Second round, considering cost of freight, freight charges, transportation insurance and average prices of Lychee in market, both parties would make concessions and achieve the final agreement. Assignment
1. Please choose one member of your group to play the role of the management employees.
2. Working together as a group, prepare for the role. Group A: Mr. Zhou (GM), Mr. Lin (Financing), Mr. Wu (Marketing) Group B: Mr. Fang (GM), Mr. Wang (Financing), Mr. Li (Purchasing)