C Negotiations - Value proposition
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Assignments
Name of assignment
Negotiations - Value Proposition (VP).
Situation
This assignment puts you in a situation where many B2B workers find themselves in daily. You have to negotiate in order to fit your value proposition into the available budget. That is, you have a limited budget to spend in order to realize your Value Proposition.
You need to negotiate with your key partner to reach your value proposition (VP). Examples:
- If your VP is all about refurbishing a large part of your hotel, you have to negotiate with the furniture supplier;
- If your VP is about bringing a whole new service to life and you need external people for it, you need to negotiate with the external service provider or a freelancer;
- If your key activity for bringing your VP to life is to create a great marketing or advertisement campaign, you must negotiate with the advertisement production team or the broadcaster.
The key partner you will be negotiating with shall be announced later on in the game.
Goal
Through negotiating, your main goal is to keep your VP as close to planned as possible and - at the same time - stay within the budget. Keep the interest of your hotel in mind, but also think about the impact of 'too complicated' negotiations with your key partner in the long term.
Task, deliverable
A negotiation is made tougher by a short time window. You only have a limited time window to reach the deal. If the deal is not reached within the given time, the team loses some valuable points. Use materials and resources on the basic structures and steps for negotiating. You need to prepare 'a structure' before going into the negotiations, such as:
- Goals
- Summary of how you got “there” (to the negotiations)
- Risks
- Questions
- Alternatives
- Influencers
And you will have to do the negotiations for real.
Assessed elements
- Has the structure been prepared correctly?
- Does the method match our hotel's strategy?
- Did the negotiations go well?
Additional information
- Strategy
- “Negotiating” by R. J. Lewicki
- Tips on negotiations
- Tactics in negotiations
- Managing relationships
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