Case Study Analysis Form
Student Name: Carolina Antonio
Date: April 1, 2014
Case Study #/Title: Case Study # 45 - Celebrity Fragrances: The art of negotiation
1. Defining the Issue(s)- The Major Question:
Jackson’s buyers didn't want to be in an overstocked positions
They want to be in a position to reorder the merchandise if it began to sell well
Vendor could not accept the order because it was below the minimum level
Jackson could not return the dated products
They have been working together for more than 20 years
2. Analyzing case data (if applicable): n/a
3. Generating Alternatives:
Alternative Solution 1: Ask the senior buying to negotiation with them
Advantages
Disadvantages
Senior buyer had been working with them for 20 years, the vendor probably will change their mind or find a better solution that will benefit vendors and Jackson
Jackon doesn't have to find a new vendor
Buyer and vendor relationship is maintained
Doesn't have to find another vendor
Save time
The quality of the products is known
If the negotiation doesn't work, the relationship between senior buyer and the vendors might be in trouble
Senior buyer might lose his reputation
Alternative Solution 2 : Take the risks by ordering the minimum level
Advantages
Disadvantages
They can still work together with that vendor
They don't have to find another vendor
Senior buyer have been working together for more than 20 years, so they can trust them
Maintain the vendor and buyer relationship
If the products don't sell well, it will cause a big problem for Jackson
They will lose the opportunity to find a better deal from other vendor
They still cant return the dated products
Alternative Solution 3 – find another vendor
Advantages
Disadvantages
Jackson can order the quantity that they want
Probably will get the ability to return the dated products
Get a better deal