You are the owner of a company, Box-It, that produces and supplies standard shipping boxes to manufacturing companies

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You are the owner of a company, Box-It, that produces and supplies standard shipping boxes to manufacturing companies. Over the past 22 years of operations, you have been successful in streamlining operations to keep costs low. 

You have also been successful in negotiating supply contracts with several manufacturers, and have keep them satisfied because of high product quality and reliable delivery times. 

Your largest client, Snappy Stuff Inc., has been a satisfied and loyal client for nearly 10 years, and their business represents 75% of your annual business. Due to regulatory changes that affect Snappy Stuff, they have advised you that significant changes are required to the composition and shape of the boxes you supply. If you are unable to provide the boxes to meet the new specification, they will be forced to reluctantly find a different supplier. The regulation goes into effect in 6 months.

The cost to modify your production facility will be very large, and it may disrupt the flow of your present production volumes. However, because of your heavy reliance on the volume of business from Snappy Stuff, losing them as a client would likely destroy your company.  

You need to commit to the modifications to your production line to keep your business operational. However, you cannot afford the cost of the upgrades.  

You have called a meeting with the owner of Snappy Stuff to discuss the predicament, and to see if a solution can be found to meet the new regulations.  You hope to maintain the long-standing business relationship with Snappy Stuff. 

Your assignment -

1)Prepare to meet and negotiate a solution that will allow Box-it and Snappy Stuff to continue their close business relationship.

2) Would you approach this negotiation as Distributive or Integrative? Why?

3)  Written summary of your starting point, your target point, and what solution could be found to allow the production line modifications to occur.

4)  What is your BATNA?

5)      What do you anticipate the position of Snappy Stuff could be?

6)     Are there multiple solutions that could be generated?

7)      Identify what the common goals could be?

8)      Explain what information you will need to learn and what information you are willing to share to be able to reach a successful agreement.

Is there any information that you would be reluctant to share?