11 May IF YOU WERE SIMS, HOW WOULD YOU APPROACH MARTINEZ IN THIS SITUATION?
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Question 1
Read the scenario given below and answer the questions that follow:
Scenario on Conflict
Linda Sims is the manager of the accounting department and Jose Martinez is the manager of the sales department for a production company. This is a fast growing firm, and the staff of the accounting department (11 employees) is often over whelmed with work.
Since the accounting department is located immediately next to the credit department, Ruth Rankin, the administrative assistant in credit, sometimes works on journal entries assigned to her by Sims.
The company has experienced especially rapid growth over the past six months, which has caused everyone to be busier than usual. With the increase in sales volume, the credit office is under pressure to process applications more quickly, and Rankin is available to help Sims out with accounting overflow less often.
Sims complains to Martinez that she needs Rankin to work in accounting more than he needs her in credit. Martinez’ response is “if I can’t move the credit applications through the pipeline in a timely manner, soon there’ll be no need for an accounting department, because this company will be out of business.”
1. What is the cause of this conflict?
2. What style did Sims initially use? If you were Sims, how would you approach Martinez in this situation?
Question 2
Read the scenario given below and answer the questions that follow:
Case on Negotiation
Wheeling and Dealing: The Zirconia GT
It was a beautiful Summer day, typical of early June in Rochester, when Marcia Mirsk pulled into the dealership. She came directly from her service station, where the mechanic gave her 1980 Chevy Cavalier two to three months left to live. Without much thought, she got out of her rusting heap and began to peruse the new cars. Within seconds, a nicely dressed, middle-aged man approached her, introduced himself as Darrel DeRidder, and asked, “What can I do for you today?”
“Well, I just started looking because my car is about to fall apart. I’m not really sure what I want,” Marcia replied honestly.
Seizing the opening, Darrel whisked Marcia way from the practical into the sporty. He showed her the red Zirconia GT, a little sports coupe with a not-so-little price . “This baby ‘s loaded : sunroof, A/C, power steering, power brakes, AM/FM Quad stereo, magnesium hubs, full options package. They’ve been very popular with our ‘young professional’ customers, ” he added, knowing full well that there would be a $400 bonus waiting for him if he unloaded this overloaded model that had been stuck on the lot for weeks.
Marcia could hardly contain her excitement. “I’ve always wanted a car like this!” she exclaimed, her eyes reflecting genuine enthusiasm .
“Hey, take it for a test drive and tell me what you think” Darrel tossed her the keys and sat back to prepare his strategy .
Marcia returned, her hair tousled (she had obviously tried out the sunroof) and looking as if she had genuinely enjoyed the drive. “How did you like it?” Darrel asked, knowing full well how the Zirconia would outclass a 1980 Cavalier.
“Nice … really nice,” she responded, “but it’s a little more than I need.” It was obviously wise to guard her true feelings. “How much is it?”
There, the question had finally been asked. “The sticker price, including all options and dealer preparation, is $15,750.” Darrel noticed the immediate slumping of her shoulders. “Of course, there is a $1,000 factory rebate or 2.9% manufacturer’s financing available.” She was still looking at the ground. “And you do have a trade-in. Let’s have a look!” With that, the wind was returning to her sails, and something of her previous smile returned to her face.
“Not too bad. I think that we could give you $1,000 for it. Of course, I’ll have to have rny ‘trade-in specialist’ look at it. Can I give him your keys so he can check it out more closely?” Darrel asked. Marcia handed them over and they walked back over to the Zirconia GT. This time Marcia looked more closely at the sticker. ”l know what Suggested Retail Price, options, and rustproofing are, but what are the charges: $300 for A.D.M. and $200 for N.D.A.?”
“Well, A.D.M is a dealer prep charge; for instance, cleaning and checking the car out,” he admitted, acting a bit annoyed at such an obvious question.
“And the N.D.A.?” Marcia persisted.
“That’s the National Dealer Advertising charge, for those ads on TV. Advertising is very expensive for us, you know.”
Marcia paused a moment. $15,750 was a lot of money for her budget. Finally she began to speak, “Even with the trade-in, the price is ….” Sensing that the intoxicating new-car aroma was beginning to wear off, Darrel interrupted, ”I’ll give you the rustproofing, fabric finish, and floor mats at cost That’s $300 off, only $13,450 for the car after trade-in.”
“l don’t know,” Marcia said, with Darrel’s arithmetic going by pretty quickly .
“Come back into my office ond we’ll work this out.” With that, Darrel led her into a small office near the rear of the dealership. He spent the next fifteen minutes convincing her that she could not find a better deal on such a popular car.
Suddenly, Marcia interrupted with conviction. ”I really don’t need the magnesium wheels, Quad stereo, or most of the options, ” Darrel was surprised by her sudden assertiveness. He explained that the car was a package and that they just couldn’t take the options out of it for her. Marcia was beginning to feel claustrophobic. With no windows and the door shut, she wondered if she would ever get out of this small office. With a mental start, she realized that even if she escaped, she no longer had her keys.
Seeing that he wasn’t getting anywhere, Darrel decided to go for broke . ”Since you’re such a nice person, and I would like to help you out, I’ll give you the wheels and the stereo at cost if you take the car today. That’s another $400 off, $2,700 off sticker price, or $13,050 with your trade-in!”
“I am not sure that I can afford that much,” Marcia responded .
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