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  • Case Analysis Sarah

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    mohnish1006
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    Sarah Talley owns Sarah Farm and is looking to take the farm to the next level by becoming a direct supplier to Wal-Mart. However, Wal-Mart is only willing to pay a price that would not be profitable for Sarah Farm. Sarah must decide whether to terminate the contract with Wal-Mart and focus on other customers, or try to negotiate a better price that is mutually beneficial. Key considerations include the farm's ability to meet Wal-Mart's demand and the challenges of shipping products over long distances.

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    Sarah Talley owns Sarah Farm and is looking to take the farm to the next level by becoming a direct supplier to Wal-Mart. However, Wal-Mart is only willing to pay a price that would not be profitable for Sarah Farm. Sarah must decide whether to terminate the contract with Wal-Mart and focus on other customers, or try to negotiate a better price that is mutually beneficial. Key considerations include the farm's ability to meet Wal-Mart's demand and the challenges of shipping products over long distances.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    32 views6 pages

    Case Analysis Sarah

    Uploaded by

    mohnish1006
    Sarah Talley owns Sarah Farm and is looking to take the farm to the next level by becoming a direct supplier to Wal-Mart. However, Wal-Mart is only willing to pay a price that would not be profitable for Sarah Farm. Sarah must decide whether to terminate the contract with Wal-Mart and focus on other customers, or try to negotiate a better price that is mutually beneficial. Key considerations include the farm's ability to meet Wal-Mart's demand and the challenges of shipping products over long distances.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 6

    Sarah Talley is a highly responsible and optimistic person, she seems passionate about taking Sarah Farm into

    the next league.


    Sarah Talley

    Parties

    Sarah Talley
    John
    Leonard
    Harley
    Ted
    Evansville Courier
    Wal-Mart
    Regional Buyers

    Capturing Data

    1. Identify the 7KE and prepare a game plan and a


    contingency

    1. What if Wal-Mart agree for a fair price?


    What if scenario Solution: Terminate the contarct and focus on Direct to
    customer market and small retail partners

    Frame
    Strategy Negotiate by stating the facts upfront and highlighting the potential loss of not signing this deal
    Game Plan
    Sarah Talley
    7KE

    Interests Value

    Interets:
    1. To comeup with a Win-Win contact that reflect the
    ground reality of market condition and price needs of Offering home grown fresh produce to its
    Wal-Mart customers. customers and retail partners
    2. To become a direct supplier for Wal-Mart

    5Steps
    Analysis Choices

    1. Ask the question 'WHY?' and make an anlaysis of 1. Terminate the contact with walmart and
    criterias required for becoming a direct supplier focus only of serving Independent customers
    2. Make the Complete analysis of the supply and and small retailers
    demand of watermelon 2.Negotiate with Wal-Mart for a Win-Win deal
    3. Crop cultivation issues (Agreeing on a profitable price)

    lighting the potential loss of not signing this deal


    BATNA Ethics

    1. Supplying high quality watermelon even in


    Completely focusing on direct to the extreme weather condition
    customer market in the United 2. Agreeing on a reasonable price which will
    States benefit Sarah Farm and also Wal-Mart's
    everyday low price commitment

    Decisions NAB Actions

    Agreeing on a win-win price and


    becoming a direct supplier for Wal-
    Mart
    Barriers
    Strcuctural Psychological Strategic

    1. Wal-Mart's commitment to
    1. Extremely harsh growing Everyday lowprice
    condition for watermelon Dealing with the mega-comanaged 2. Fray farms less
    2. Limited capacity to meet supplier ratherthan being a direct differentiated products
    the Wal-mart watermelon supplier 3. High cost invloved in
    demand shipping the product from
    western region
    Power

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