Negotiation Simulation: Alpha-Beta
Team: B
ABOUT YOUR TEAM 1. What is your overall goal?
Our topmost need is to attain greater scale economies in production by significantly boosting overseas sales of robots. We especially want to develop a presence in the currecnt small but rapidly growing Alphan market. We choose this goal since it is SMART. We focus on a specific goal that developing a presence Alphan market. If we can get stable sales channels and attain a considerable profit within 7 years, we will say the goal has been reached. Moreover, our company has decided to collaborate with Alpha Inc. and we have made some tentative agreement during the past five months. Thus, it is realistic for our company to sale robots in Alphan market successfully.
2. What are the issues? * The number of different models involved. We would like provide small number to Alpha Inc., because given the advantages of long production runs we must make sure there are always new models will appear in the market and worry about technology loss. However, Alpha Inc. wants many models so that they can be more initiative and can learn more technology from our company to open their own business. * The quantity of our units to be imported by Alpha during Phase 1. We desire our business can have a rapid growth and deep penetration. We therefore would like the number to be as relatively large. However, Alpha Inc. may import the units according to their basic capacity and market expectations. * The royalty rate to be paid to us during Phase 2. The higher the rate, the more money we will get, the more money Alpha Inc. will pay. * Access to vision technology. We would like complete access to Alpha Inc.’s R&D advances in artificial vision and the opportunity to sell vision-equipped robots in all markets. However, we still don’t know if Alpha Inc. will agree to sell this technology to us.
3. How important is each issue to you?
The