Negotiations Essay

Pages: 4 (1174 words)  ·  Bibliography Sources: 4  ·  File: .docx  ·  Level: College Senior  ·  Topic: Business


Hydro sub's staff should have been more careful in choosing the supplier. This means that instead of choosing Bolger that has only given Hydro sub -- a major headache, the company should have allowed competitive bidding on the project and then checked on each potential supplier's history. The best one should not have been chosen on cost issue alone but also on track record.


A fixed price contract was a sensible option in the eyes of FRC when it first established the contract. This is because it had a long association with ACME and did not think that it would need to add other conditions based on economic conditions or application. This turned against FRC because while it did agree to pay a hefty price of $350,000 for the computer software system, it never realized that the system might not work at the most critical time i.e. On the opening day. Since ACME had been given enough time to design the new software for larger operations, the fixed price contract now appears like the wrong choice which FRC signed in its haste to get the software.

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Statement of work refers to the document that details the services that one party would provide to its client in exchange of money. This is part of the contract that is signed between the client and the supplier. FRC may have mentioned all what it expected ACME would do in exchange for the amount of $350,000. However it may need to change it to include that if the system did not work by the time the store opened, the company will not pay the remaining amount to the firm; All after installation services would be free of cost till the system started working and for each day that FRC went without the system, the company will deduct 2% from the remaining amount and the system failed to work within one week after first trial, the company will cancel the contract completely and will not be responsible for paying the rest of the amount.

TOPIC: Essay on Negotiations Can Be Preferred Over Assignment

Since a high technology item is heavily depended on variety of factors such as training of the users, hardware/software compatibility and a match between the requirements and the features of the system, there is often a likelihood that it will fail to work properly in the first go. This means that ample time should exist between first trial and the critical day when it is needed. In many cases hardware can clash with the software which tends to cause serious operation conflicts.

FRC could have avoided the problem had it tested the product at least 3 weeks before the opening day. It is highly embarrassing and irresponsible of the firm to test the product on the opening day because that tends to cause serious reputation issues.

FRC could have avoided a contract with ACME in this case too because ACME had never prepared a software for larger operations while some other firms have done it. FRC could use the services of some other firm which had more experience with larger operations, and thus could simply avoid the headache that comes with using a company with insufficient experience.

Secondly if it had chosen to work with ACME, it should have given the company a deadline which fell at least three weeks before the opening day so it could be fully tested.


Lyon, T. 2006. Does Dual sourcing lower procurement costs. THE JOURNAL… [END OF PREVIEW] . . . READ MORE

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How to Cite "Negotiations" Essay in a Bibliography:

APA Style

Negotiations.  (2011, June 12).  Retrieved September 25, 2021, from

MLA Format

"Negotiations."  12 June 2011.  Web.  25 September 2021. <>.

Chicago Style

"Negotiations."  June 12, 2011.  Accessed September 25, 2021.