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Case Study N&C

Case study of negotiation n counselling which give u more information about the subject so that u can understand the subject easily n will be able to do questions also.

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meghna7upadhyay
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159 views1 page

Case Study N&C

Case study of negotiation n counselling which give u more information about the subject so that u can understand the subject easily n will be able to do questions also.

Uploaded by

meghna7upadhyay
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Case Study

Mavji Patel owns a tailoring business in St Lucia in the Caribbean. His main product line is in mail-
order of made-to-measure jackets and trousers. These had been his father’s most recent activity
before he handed over his business to Mavji on retirement; his father’s original trade was the
general repair of men’s clothes, which still accounted for a declining percentage of Patel Suits’ total
profit, with most of the rest in mail-order suits. Mavji had taken the business to the current mix of
products, marketed under his father’s slogan, “Patel Suits You”. Recently, Mavji had designed a new
lightweight suit (‘Patel Specials’) which doubled as formal wear for business or smart casual, and
this was currently growing towards twenty per cent of total profit.
The Internet had created new marketing opportunities and Mavji found that customers from other
parts of the Caribbean were measuring themselves for ‘Patel Suits’ (Internet business divided
approximately 50–50 between made-to-measure and ‘Patel Specials’). He had invested money and
time into his Patel website, acquired a secure credit card facility and took on an extra employee to
process the orders and ship them. If Internet demand continued to grow, he would need additional
help in the cutting and stitching room; perhaps also new machinery to open another production line.
A month ago, Patel Suits received a visit from Wilson Maraj, the owner of Maraj Men’s Clothes in
Jamaica and clearly a talented salesman, who had bought a few of the ‘Patel Specials’ and had
been impressed with his customers’ responses, some of whom also bought other made-to-measure
items. He told Mavji Patel that he believed he could sell all the ‘Patel Suits’ he could import into
Jamaica (more if they were manufactured locally) and that he wanted to set up a deal from which
they would both make ‘mighty profits’.
Wilson said there were several issues to agree upon before they could go into some kind of
business relationship. These included, he said: a) pricing; b) Jamaican Internet sales; c) an
exclusive distributorship in Jamaica; d) licensed manufacturing in Jamaica.
Patel pondered his options before responding to Maraj’s proposition. He wanted to expand his
business, but also wanted to retain control of his branded products. He saw the ‘Patel Specials’ as
the first of several designs he had in mind and he thought there was a lot of room for growth in
developing the mail-order made-to-measure business. Growing through local distributors, such as
Wilson Maraj (who had passed an initial scrutiny of his business and personal affairs), could become
a model for the future of Patel Suits in the Caribbean; hence, Mavji Patel was not keen on granting
him exclusivity or a licence to manufacture locally until, at least, he had proved himself; also Mavji
Patel had more knowledge of the prospects for his suits in the Caribbean. On the other hand,
depending on the pricing issue, he could use the profits from Jamaica to fund his direct expansion
elsewhere via the Internet.
Required:
a) How would you assess the interests of Mavji Patel for these negotiations?
b) How might you set out in a Planner the interests, issues and positions of Wilson
Maraj for the negotiations?
c) Why might it be better for Mavji and Wilson to link rather than separate the
negotiable issues in their bargaining behaviour?
d) Why are Internet sales to customers in Jamaica a negotiable issue?

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