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October 25, 2011 Vancouver B.C.

Texoil is a large refining company that contracts with individual service stations, each of them independent from Texoil. One of the service station owners has putthe station up for sale and Texoil is the most interested in buying it because it is well located and has been successfully managed the last years. My role in the negotiation was to be a Texoilrepresentative, and my goal to buy the station at not more than 850,000. The key part of this negotiation was that is was done electronically, and that complicated the interaction because it doesn’t allowedus to make a complete judgment of the other party. In my case I only knew a few facts from the station owner and our interaction was via e-mail, therefore we didn´t had immediate responses. All ofthis together created a cold and close negotiation in which none of the parties wanted to reveal any information due to the lack of trust in each other.

The negotiation started when the seller sendme an e-mail to know if Texoil was interested on his station, and I confirmed that we were interested and made a first offer of 550,000 for the station. After that, the seller said that they had abetter buyer who was willing to pay 1,000,000 million for the station but that they didn’t accepted because they wanted to sell the station to someone who could take good care of it. At that moment Istarted to loose trust in the seller because with a million anyone could build a new station and there was no way that someone wanted to buy his station at that quantity so I stayed firm with my offerand waited until he made a lower one. But the only option that he offered to lower the price was to give him a percentage of profits for the rest of his life, it was a really high price so in responseof that I said that we couldn’t do that but offered he station at 600,000 with the 10% of profits for the next 5 years. Here is where we realized about another disadvantage of electronic negotiation...
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