Platinum Box Case Essay

The main problem in this Platinum solecism is the finish whether or not to single source to Jabaking with the expansion of printing equipment. Because Conrad of Jabaking was instrumental to dowery Platinum find their feet and establish its ground in the printing pains in 1992 does not necessarily mean Platinum press has to be indebted to Jabaking thirteen years after. Even though Conrad has al flairs hinted Jim Hicza since 1992 that he expects that Platinum depart reward them for the favour in future, business decisions stomach to made at crucial meters even as commodious term business relationships still has to be sustained.Platinum lead ingest to blend these two crucial business rationales if it wants to continue to grow in the business industry. One way to get this done is by exploring possible opportunities , long-term, in working with Jabaking to help them upgrade their equipment and technology system to make full current market demands long term objet dart overly acquire the services of Pnutype because of the technically sound environmental equipment. That way Platinum will sustain the long term relationship with Jabaking as well as tapping from the mellowed role equipment Pnutype has to offer for the purposes of establishing firmly and gaining goodwill in the impertinently US market.Therefore, for the immediate solution, Platinum turn on should engage multiple sourcing for this fresh US market venture for the following reasons1) This will help retain Jabaking rivalrous and on their toes for continuous improvement and to be able to appropriate better value. 2) Multisourcing will help minimize the risk of Jabakings or any other suppliers failure. Especially in name of providing high quality equipment in a time where quality ranks high on the evaluation matrix of purchasers. As we already know from the case that Jabaking does seduce a reputation of having very good quality yield but not necessarily the highest quality. 3) Jabaking may not necessarily have sufficient capacity or skills to meet the new market consume. 4) Multisourcing will give Platinum Press an opportunity to test and discover authority expert suppliers in the industry. 5) Multisourcing will also help reduce and/or quash Platinums dependence on Jabaking alone and avoid Jabaking gaining business leverage.CriteriaIn this case, a good decision will depart in a situation that strengthens Platinums Press negotiate come out and not anaemicen it. Platinum Press position is weak when there is only one known provider of the product or serviceas in a sole source or single source deal. Therefore, competition is the high hat way to right away occur at market price level. This competitive factor will be missing in sole/single source negotiations with Jabaking.Careful yell structuring results in apples-to-apples comparisons for each bidder. Platinum Press Inc. strives to collect a lower limit of three viable bids for each procurement effort. Bi ds are tabulated into a matrix that lists all vendors and fields of comparison. Each vendor is asked to submit bids with prices broken protrude for effective comparisons.In view of the problem issues outlined above, there has to be clarify in terms of the negotiation technique in question. We need to specify if the negotiation is for competitive reasons as in the case of Pnutype and Merakuri Press or if it is solely for the aim of collabo evaluation with Jabaking to help them enhance and develop their equipment quality especially as Platinum Press is someone indebted to Jabaking. The decision of which method on negotiation to apply rest solely on Jim Hicza. However, as mentioned earlier, competitive negotiation should be applied immediately while cooperative negotiation should be applied for long-term product festering assistance for Jabaking.Differentiating Between Competitive and Collaborative NegotiationsMost supply counsel professionals certainly would prefer to begin each a cquisition from a position of strength derived from a competitive environment. Competition is a great way to level the playing field. Competitive bidding drives suppliers down to a market-efficient determine environment where the negotiation process locoweed work optimally.But to have a competitive environment in any acquisition, the following conditions essential exist Competition First and foremost, there need to be a number of qualified suppliers in the targeted marketplacethat is, no single or sole source constraints. Ability to move The buyer moldiness be able to move the business away from the current provider there so-and-so be no binding commitments, for example. Sufficient Volume The buyer must have enough volume to warrant interest from a sufficient number of qualified bidders. Time for competition Sufficient time must be available to proceed through the broad(a) competitive process. Willingness to change The buyers internal line of business groups must be willing to use any of the qualified bidders.When negotiations follow a structured bid process (RFP, RFQ, auction, and so forth) or when accurate be data is known for the product or service in question, buyers can usually leverage a negotiation technique known as competitive bargaining. This is the traditional way of hammering out a deal, label by hard discussions cogitate mainly on price and found upon concrete facts. Competitive bargaining can be applied in a wide range of circumstances, even including single-source supplier relationships where an attractive utility(a) or fall-back plan exists.Competitive bargaining works in many a(prenominal) situations. Yet its not the best tactic for complex acquisitions where dynamics in addition to price are in play. Its also not a good tactic when negotiating from a position of flunk which can be argued for in this case with Jim Hicza and Conrad of Jabaking.The collaborative style is best suited for more complex negotiations, including ones where youre negotiating out of a hole, which can be the present situation Platinum Press in it reclaim now in that they are somewhat indebted to Jabaking. Collaborative negotiations rivet on mutual problem solving in a collaborative fashion. The use of validating group problem-solving techniques, rather than oppositional positioning, is a core precept of collaborative negotiations. They are non-confrontational This does not mean the buyer is weak. Rather it core that negotiations are conducted in a plus manner and are focused on creating solutions that can work for both sides. The ability to keep things positive is a critical skill for supply management professionals. Yield to principle but not to pressure A collaborative negotiation quickly falls apart if the acquire organization compromises on this guideline. Once the buying company yields to pressure from its sales opponents to focus solely on price, the positive atmosphere essential to collaborative negotiations quickly evapor ates.Successful collaborative negotiations beg greater skill and experience than competitive bargaining. These discussions typically involve a multitude of issues that must be resolved to the satisfaction of both sides. So when an inexperienced negotiation team overly focuses on one point, for example, they reserve themselves vulnerable to being taken advantage of on the other elements low negotiation. Moreover, the negotiators need to discover that these various issues are interrelated. The cost model of the entire package can change quickly if the negotiator does not understand the effect of one concession on another.AnalysisIn creating a bid evaluation matrix for Merakuri, Jabaking and Pnutype, a few weighted appraising(prenominal) steps have to be taken. These steps include identifying the important evaluative factors scope consensus on the importance of the evaluative factors specifying with precision the evaluative factors, reaching consensus on the weighting of each of the evaluative factors determining the range for the range scale developing the definition for each rank in the rating scale performing the rankings individually and finally discussing and developing a consensus ranking.