MGT 4193

Chapters 7-11 (Section 2)

1. You are in negotiation with Dallas Cowboy owner Jerry Jones. As you review the resume of Jerry Jones and his accomplishments, you quickly realized Jones have a great deal of power. (a) Identify the sources of power or powers Jones possesses, and explain how he has this power or these powers?

2. According to your text, communications in negotiations can be improved by the use of questions. Consider the following questions and how would you re-word them for the question to be more effective?

(a) What is the least amount you will take for your home?

(b) Think about to Chapter 6 and framing. If you were trying to persuade a college student to buy your ran-down, high mileage college vehicle, how would you frame your comments to him/her? Provide two statements on how you would frame your persuasive argument.

3. Your business has been very successful over the last ten years. You have excellent products and honesty and integrity in every transaction. Within the last month, an employee of yours has sold fraudulent products to many businesses. This employee has created not only a problem for your business, but many problems for the businesses that the products were sold to. This act has all but destroyed your company. Your company’s reputation must be restored. What actions do you take in an attempt to restore your company’s reputation?

4. Your small business organization has been very profitable for the last ten years. In fact, during this span of time it has been so profitable you have given bonuses to not only upper management (which is customary), but to all employees. Retention is good, production is good, and morale is good. However, there is a huge storm cloud on the horizon.

The company earns some $90 million last year in revenues. With all expenses and costs totaling $40 million, the company is in great financial shape. Bob Borden is an excellent employee and is accredited for a large portion of the sales of the organization. In fact, Bob’s contribution is staggering. He accounted for eighty percent of the sales (revenue) this past year. In addition, he has made additional contacts that are going to increase revenues another seventy-five percent!!!!!

Although this all seems great, there are reports and solid, conclusive evidence that Bob is using cocaine on a frequent (very frequent basis). The company has a strong ZERO TOLERANCE POLICY regarding this issue. Many of your customers have told you regularly that they could do business with any suppliers they want, but they have chosen you because you have morals, ethics, and conduct yourself in business the way it was meant to be conducted. Your reputation is spotless. There have only been four people that have ever challenged the policy and they were fired immediately. So, there has never been a drug problem within the organization, and many believe it is due to our strict zero tolerance policy that is enforced.

Bob was arrested last night on possession of a controlled substance. Although there was very little found in his possession, he was arrested and went to jail on these drug charges. You are devastated by this news. You were hoping to keep the story under the radar, but the local newspaper got the story late last night, and Bob was on the front cover this morning.

What do you do about Bob?


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