Question 1Read the scenario given below and answer the questionsthat follow:Scenario on ConflictLinda Sims is the manager of the accounting department andJose Martinez is the manager of the sales department for a production company.This is a fast growing firm, and the staff of the accounting department (11employees) is often over whelmed with work.Since the accounting department is located immediately nextto the credit department, Ruth Rankin, the administrative assistant in credit,sometimes works on journal entries assigned to her by Sims.The company has experienced especially rapid growth over thepast six months, which has caused everyone to be busier than usual. With theincrease in sales volume, the credit office is under pressure to processapplications more quickly, and Rankin is available to help Sims out withaccounting overflow less often.Sims complains to Martinez that she needs Rankin to work inaccounting more than he needs her in credit. Martinez’ response is “if I can’tmove the credit applications through the pipeline in a timely manner, soonthere’ll be no need for an accounting department, because this company will beout of business.â€1. What is the cause of this conflict?(15 points)
2. What style did Sims initially use? If you were Sims,how would you approach Martinez in this situation?(20 points)(Approx. 2000 words)Question 2Read the scenario given below and answer the questionsthat follow:Case on NegotiationWheeling and Dealing: The Zirconia GTIt was a beautiful summer day, typical of early June inRochester, when Marcia Mirsk pulled into the dealership. She came directly fromher service station, where the mechanic gave her 1980 Chevy Cavalier two tothree months left to live. Without much thought, she got out of her rustingheap and began to peruse the new cars. Within seconds, a nicely dressed,middle-aged man approached her, introduced himself as Darrel DeRidder, andasked, “What can I do for you today?”“Well, I just started looking because my car is aboutto fall apart. I’m not really sure what I want,” Marcia replied honestly.Seizing the opening, Darrel whisked Marcia way from thepractical into the sporty. He showed her the red Zirconia GT, a little sports coupewith a not-so-little price. “This baby’s loaded: sunroof, A/C, powersteering, power brakes, AM/FM Quad stereo, magnesium hubs, full optionspackage. They’ve been very popular with our ‘young professional’ customers, ”he added, knowing full well that there would be a $400 bonus waiting for him ifhe unloaded this overloaded model that had been stuck on the lot for weeks.Marcia could hardly contain her excitement. “I’vealways wanted a car like this!” she exclaimed, her eyes reflecting genuineenthusiasm.“Hey, take it for a test drive and tell me what youthink” Darrel tossed her the keys and sat back to prepare his strategy.Marcia returned, her hair tousled (she had obviously triedout the sunroof) and looking as if she had genuinely enjoyed the drive.“How did you like it?” Darrel asked, knowing full well how theZirconia would outclass a 1980 Cavalier.“Nice … really nice,” she responded, “butit’s a little more than I need.” It was obviously wise to guard her truefeelings. “How much is it?”
There, the question had finally been asked. “Thesticker price, including all options and dealer preparation, is $15,750.”Darrel noticed the immediate slumping of her shoulders. “Of course, thereis a $1,000 factory rebate or 2.9% manufacturer’s financing available.”She was still looking at the ground. “And you do have a trade-in. Let’shave a look!” With that, the wind was returning to her sails, andsomething of her previous smile returned to her face.“Not too bad. I think that we could give you $1,000 forit. Of course, I’ll have to have rny ‘trade-in specialist’ look at it. Can Igive him your keys so he can check it out more closely?” Darrel asked.Marcia handed them over and they walked back over to the Zirconia GT. This timeMarcia looked more closely at the sticker. ”l know what Suggested RetailPrice, options, and rustproofing are, but what are the charges: $300 for A.D.M.and $200 for N.D.A.?”“Well, A.D.M is a dealer prep charge; for instance,cleaning and checking the car out,” he admitted, acting a bit annoyed atsuch an obvious question.“And the N.D.A.?” Marcia persisted.“That’s the National Dealer Advertising charge, forthose ads on TV. Advertising is very expensive for us, you know.”Marcia paused a moment. $15,750 was a lot of money for herbudget. Finally she began to speak, “Even with the trade-in, the price is….” Sensing that the intoxicating new-car aroma was beginning to wearoff, Darrel interrupted, ”I’ll give you the rustproofing, fabric finish, andfloor mats at cost That’s $300 off, only $13,450 for the car aftertrade-in.”“l don’t know,” Marcia said, with Darrel’sarithmetic going by pretty quickly .“Come back into my office and we’ll work thisout.” With that, Darrel led her into a small office near the rear of thedealership. He spent the next fifteen minutes convincing her that she could notfind a better deal on such a popular car.Suddenly, Marcia interrupted with conviction. ”I reallydon’t need the magnesium wheels, Quad stereo, or most of the options, ” Darrelwas surprised by her sudden assertiveness. He explained that the car was apackage and that they just couldn’t take the options out of it for her. Marciawas beginning to feel claustrophobic. With no windows and the door shut, shewondered if she would ever get out of this small office. With a mental start,she realized that even if she escaped, she no longer had her keys.Seeing that he wasn’t getting anywhere, Darrel decided to gofor broke. ”Since you’re such a nice person, and I would like to help you out,I’ll give you the wheels and the stereo at cost if you take the car today.That’s another $400 off, $2,700 off sticker price, or $13,050 with yourtrade-in!”“I am not sure that I can afford that much,”Marcia responded.“How much can you spend per month on your car?”“Under $350.”“Well, we can stretch the payments out to four yearsand that makes it only, let’s see , .. $337 a month. What do you say?” AsDarrel leaned over his desk awaiting her response, Marcia began to reconsiderbuying a new car, especially without shopping around first. She got up to makeher escape and to thank Darrel for his time when he blurted out, “Are youa first-time new car buyer?”“Why . . . yes,” Marcia answered.“I almost forgot,” Darrel announced, “I can offeryou $300 off invoke just to get your business and begin what I’m sure will be along-term relationship with this dealership. Even if we don’t make anything onthis car, we’re in it for the long haul. This will bring the payments down to$329. You can’t beat that; the car you want at your price, But we have to makethe deal today. There has been a lot of interest in that particular Zirconiaand I’m not sure how long it will be around.” That was just enough to halther exit; besides, at this point, Darrel was really trying to help her out.Marcia took the deal.“Just let me clear this with my sales manager,”Darrel explained as he left the room. When he returned, he was solemn. “Hedidn’t go for it. He got after me for getting carried away, especially with thenew buyer discount. Bottom line, he says you can’t have the new car buyerdiscount and the options at cost.” Marcia was angry with the salesmanager, but empathized with Darrel’s predicament and agreed to his suggestedsolution of giving up the magnesium wheels. After a quick check, Darrelindicated with evident relief that the sales manager had accepted.Now it was time for the paperwork. Darrel began by fillingin the sales discount. Marcia noticed an $80 processing fee, but she did notmention it because it was printed on the form and therefore must have been astandard charge. Darrel filled in the proper price,$15,750, and the $1,000 factory rebate, but then wrote in amysterious $105 charge. “What’s that?” Marcia inquired.“Oh, I forgot about that. That’s the paint sealant weput on all our cars to protect our customer’s investment,’ Darrel replied.The next line was the trade-in value for which Darrel had tocheck with his “trade-in specialist.” Darrel left the room andreturned with the specialist who stated that the 1980 Cavalier was in worseshape than Darrel had thought and the dealer could only offer $500 for it andwould probably lose money even at that price. Marcia thought back to themorning. Five hundred dollars was close to what her mechanic said it was worth,so she had to agree.Darrel said that he felt terrible. “I thought that wecould get more for it, but he’s the expert.” Darrel added, “You know,with a new car like that, you really should have an extended warranty. I have a6-year/60,000-mile warranty available on the Zirconia. We usually sell it for$750, but since I was wrong on the trade-in, you can have it for $500.”Knowing that she would have the car for a long time (the payments alone wouldlast four years), she took him up on the offer.“Now just take this over to the finance department andI’ll meet you out front with your new car. It’s been a pleasure.” Withthat, Darrel smiled and led Marcia to the finance window.The finance manager looked over her papers and asked Marciato sign on the dotted line. A last check of the forms revealed a $230 lifeinsurance fee, which would pay off her auto loan if she died before she could. Angered by this late addition, Marcia thought back overher three-hour ordeal and, not feeling too well, reasoned that life insurancemight not be such a bad investment after all. So with a sigh of relief, shesigned the papers not knowing how much she really paid for the car or whetheror not she got a good deal.1. Was it a good deal for Marcia? Why or why not? Givereasons.(15 points)2. Would you call it a win- win negotiation/deal or not?Give reasons.(10 points)3. What were Darrel’s strengths & weaknesses as anegotiator?(10 points)4. If you were in place of Marcia, how would you haveproceeded with the negotiations (assuming that you did want to buy the ZirconiaGT). Give your answer quoting specific instances from the case.(15points)(Approx. 3000 words)