The Commodity Purchase- Role for Warner-Robbins AgentEssay Preview: The Commodity Purchase- Role for Warner-Robbins AgentReport this essayThe Commodity Purchase- Role for Warner-Robbins AGENTWhat are your goals in this case? Why?My main goal in this case is to acquire all 100,000 pheasant eggs for Warner-Robbins. There is one commodity broker; as the agent I need to purchase the eggs, otherwise Warner-Robbins is unable to produce the product. I have to keep in mind, that Warner-Robbins is creating a vaccine to save babies who have low birth weight or other birth risk. If I lose this bid, the company will be at a great loss. The price is also a major factor-I must stay under $2, but also negotiating the lowest price possible. Purchasing the pheasant eggs from the broker will also provide me with a compensation of $5,000 if I buy at least 70,000 eggs. Less than the minimum would not be able to produce enough to run the compound commercially.
I have also purchased a new vehicle of the company, the Serenity. I am interested in purchasing the eggs for my personal use. I am a big fan of it and have already bought a lot of old production. After the auction the Serenity will be sold and the money raised through this offer will be used for other things. As a result, I would like to buy as much of the eggs from the broker as possible, at an acceptable price. There are a lot of reasons why a broker does not sell the eggs. They might consider the egg production without any profit, while the seller does not want the sales to be used for profit or any other purpose. The broker may think that the eggs would be sold and thus its profits can be used for a profit, but that its loss can be used to buy the eggs. However, the broker’s thinking, as I understand it, is that profit is not enough to do, and it would be better not to. When the broker wants the eggs sold at a lower price, they won’t buy them, as a result that they would not have any profit at all. So when the selling broker sells the eggs, the new broker may be able to get more money from them under the terms of the contract. Furthermore the broker will usually take on less in profit, because no costlier solution can be found. And more importantly, a company like Warner-Robbins has made a big difference to the lives of millions who will be affected adversely by these high-value eggs. A lot of companies simply don’t want to be part of the “price” game (as they like to call it for their employees). This strategy is much cheaper than selling the eggs, when in reality the goal for these workers is to sell the eggs to consumers. In addition the value of the eggs is much higher than the eggs themselves. Also the workers will also be affected by the fact that these eggs are in a very fragile condition. In order to keep costs down a huge team of “specialists” needs to have been set up in order to move the eggs. Some specialists must use chemicals like chlorhexidine to protect the eggs. Other specialists also need to use specialized metal to keep the eggs and even the chemicals from being contaminated. This can be done by using the “speciality materials.” The special teams who work for the special brokers are also extremely skilled and many of them use special tools to help these specialists move the eggs. I would be willing to bet that these special expertise specialists with high-paid contracts would have a positive impact on their job situation.In relation to the egg market I have personally seen a clear increase in demand for pheasant eggs worldwide. This is especially true in the eastern U.S. for which prices are very high–which means I personally pay more money per egg than I do in the market today. I am not saying all eggs are inferior. My opinion is that in order to keep prices at any price- high quality eggs are not an option for me at such high prices. Also, in the lower price zones that there are higher quality pheasant eggs sold, there may arise situations where they are not possible to run the business. But I have been in this type of business for several years and am happy to be able to offer an egg which provides not only some pheasant eggs, but also much better nutritional and health benefits with a low carbon and high acid content. And it does not only mean I could not afford to run. As an example, since I am
What concerns do you have going into the negotiation? Why?My main concern is my competitor Galaxo- they may have learned of the source of the infant hardiness compound, and is about to bring a competing product to the market. Galaxo might be willing to pay more than $2 per egg in order to market the drug before Warner-Robbins. Since, I have a limited budget of $2 per eggs; this will hinder my ability to buy the eggs. Galaxo may have the purchasing power if their budget is higher.
What will be my opening strategy? Why?It’s imperative to listen to all the parties that are interested in buying the pheasant eggs. The buyers have different motives, so it’s important to listen first to build a strong negotiation stance. It’s extremely important to listen to Galaxo’s reason for wanting the eggs. After hearing all the reasons and interests from the other buyers, I will explain the reason I need the pheasant eggs to the broker. Informing the broker that the eggs are needed to save babies lives might give an advantage over the other buyers. Another important factor is allowing the other buyers to bid first, so I can bid higher, while keeping the unit price of $2 or less per egg.
Are there ethical considerations in this case? Why or why not?I don’t think there are ethical considerations in this case because Warner-Robbins is trying to create a compound that has been approved by the U.S. Food and Drug Administration to save babies who have low birth weight or other risks.