Question

question 9

a nordic fish company is negotiating a new contract with a net supplier. the company wants to reduce the price it pays for the suppliers nets, but the supplier is also looking for ways to increase its revenue. the company and the supplier are engaged in integrative bargaining.

which outcome would reflect this bargaining approach?

• the fishing company agrees to add signage to their boats and highlights on their packaging that market the suppliers products.
• the fishing company uses its size and power as leverage to assure they will get the lower price.
• the fishing company acquiesces to the suppliers demands so there will not be a disruption.
• the fishing company makes it clear they are considering other suppliers.

Explanation:

Define integrative bargaining

Using the Win-Win Negotiation knowledge point
Integrative bargaining is a negotiation strategy focused on creating mutual value so that both parties achieve their goals, often referred to as a win-win approach.

Analyze the options

• Option 1: The fishing company agrees to market the supplier's products on their boats and packaging in exchange for a lower price. This expands the pie, helping the supplier increase revenue while lowering the fish company's costs. This is a win-win outcome.
• Option 2: Using size and power as leverage is a distributive, win-lose approach.
• Option 3: Acquiescing completely is an accommodating style, not a mutual problem-solving approach.
• Option 4: Threatening to use other suppliers is a competitive, distributive tactic.

Select the correct outcome

The first option is the only one that reflects a collaborative, value-creating solution where both parties' underlying interests are met.

Answer:

• (A) The fishing company agrees to add signage to their boats and highlights on their packaging that market the supplier's products. (Correct answer)
• (B) The fishing company uses its size and power as leverage to assure they will get the lower price.
• (C) The fishing company acquiesces to the supplier's demands so there will not be a disruption.
• (D) The fishing company makes it clear they are considering other suppliers.