Bolter Inc

MAVERICK TEAM

Maverick, Inc. Purchasing Agent
You will be playing the role of a purchasing agent for Maverick Natural Gas, Inc., a producer of natural gas from offshore fields in the Gulf of Mexico. You will be heading up a team of Maverick representatives in the final sales negotiations for a $3.65 million contract for a Bolter JR2000 natural gas compressor set for a new offshore productionfacility. A sales representative from Bolter has submitted a bid for the contract, which you feel, will potentially solve your purchasing problem. However, final details must still be worked out.
You consider the price quoted by Bolter to be out of line with comparable products. You recognise that Bolter turbines are by far the best product available in the time frame required. However, becauseBolter has recently lost sales to competitors you anticipate that Bolter might be persuaded to substantially lower prices to the level you have set forth in the attached purchasing objectives.
Of the terms and conditions included in the initial bid, you feel that three are critical to Maverick. First, in recent months Bolter has had difficulty meeting delivery dates. Therefore, the penalty for latedelivery will be an important issue during discussions. Second, a new company policy of delayed payments has been published. The Controller at Maverick has “come down hard” on other
purchasing agents agreeing to terms of payment other than those listed in the purchasing objectives. Finally, your firm has recently cut back on legal staff and has adopted a policy of third party arbitration incontract disputes. A third party arbitration clause will be a key part of your agreement with Bolter.
The final issue of concern is the recuperator option. The consulting firm involved in the design of the platform project feels the recuperator is a must given the anticipated increasing costs of fuel. Alternatively, the production department predicts major engineering headaches caused by the use of anunproven option such as the recuperator.
Your specific assignment is to resolve all these issues during the negotiations so that the project can be completed on schedule.
You have thirty minutes to plan bargaining strategies with the other members of your negotiation team. Feel free to use part or all the information provided above in shaping your strategies. Create additional arguments tobolster your position if you so desire. It is important that you play the assigned role to the best of your abilities in order to maximise the learning of all participants. Although you can exchange information from these forms, please do not exchange forms with the other members of your negotiation team. You will have one hour to reach an agreement with the representatives of Bolter. Feel free tomake notes on these forms and ask questions if clarification of the instructions is needed. (price quotation, purchasing objectives)

MAVERICK TEAM

Maverick, Inc. Production Engineer
You will be playing the role of a production engineer for Maverick Natural Gas, Inc., a producer of natural gas from offshore fields in the Gulf of Mexico. You will be participating in the final sales negotiationsfor a $3.65 million contract for a Bolter JR2000 natural gas compressor set for a new offshore production facility. You have worked on details of the entire project with the Bolter sales representative during the last few months. You will be involved in the day-to¬day use of the product, thus you are concerned primarily with product performance. Commercial details are less important to you.
Basedon your 20 years experience in running offshore production facilities, you consider JR2000 to be the best product available for offshore production. From your point of view the marine shelter and salt spray filters are critical product options. However, you feel the recuperator (an option which uses exhaust heat to substantially reduce fuel consumption) to be a potentially large headache and an...