Frey Farms
1. How do you describe their current negotiation situation?
Frey Farms is supplier of produce and Sarah Talley is the CEO wanted to grow the business with Wal-Mart. Initially Frey Farms were direct suppliers and were negotiating directly. Now they have become third party supplier and they cannot negotiate with Wal-Mart directly. Currently the weather conditions are not in favour of their business and product pricing has increased. Their 2 initial discussions have been failed and now Wal-Mart has introduced co-management supplier system to optimize the time , money and people. Frey farm is now negotiating with management like third party supplier
Frey Farm wanted to become third party supplier
Wal-Mart wants to purchase from local market with lowest price to keep it lowest
Wal-Mart has superior bargaining power
Both have perceived divergence of interests
Both have unbalanced power relationships
Wal-Mart have short term expectations for lowest price
Frey Farm has long term expectation of becoming co-management supplier
2. How did they land there?
Frey Farms is supplier of produce and Sarah Talley is the CEO wanted to grow the business. In 1997 Frey Farm became supplier for Wal-Mart at home town and continued with their business. Sarah Talley wanted to grow their business with Wal-Mart. Wal-Mart wanted to have tie up with local supplier to have lowest price and fresh products. Frey Farms willing to expand their business by contracting with some local producers and working on optimum logistic costs Wal-Mart wanted to have tie up with local supplier to have lowest price and fresh products. Frey Farms willing to expand their business by contracting with some local producers and working on optimum logistic costs.
In 2005 they experienced harsh weather conditions due to which production was less and hence the supply from local produce.
Now Wal-Mart needs lowest price and because of weather conditions there is increase in price of product Frey Farms has challenge to keep
Frey Farms is supplier of produce and Sarah Talley is the CEO wanted to grow the business with Wal-Mart. Initially Frey Farms were direct suppliers and were negotiating directly. Now they have become third party supplier and they cannot negotiate with Wal-Mart directly. Currently the weather conditions are not in favour of their business and product pricing has increased. Their 2 initial discussions have been failed and now Wal-Mart has introduced co-management supplier system to optimize the time , money and people. Frey farm is now negotiating with management like third party supplier
Frey Farm wanted to become third party supplier
Wal-Mart wants to purchase from local market with lowest price to keep it lowest
Wal-Mart has superior bargaining power
Both have perceived divergence of interests
Both have unbalanced power relationships
Wal-Mart have short term expectations for lowest price
Frey Farm has long term expectation of becoming co-management supplier
2. How did they land there?
Frey Farms is supplier of produce and Sarah Talley is the CEO wanted to grow the business. In 1997 Frey Farm became supplier for Wal-Mart at home town and continued with their business. Sarah Talley wanted to grow their business with Wal-Mart. Wal-Mart wanted to have tie up with local supplier to have lowest price and fresh products. Frey Farms willing to expand their business by contracting with some local producers and working on optimum logistic costs Wal-Mart wanted to have tie up with local supplier to have lowest price and fresh products. Frey Farms willing to expand their business by contracting with some local producers and working on optimum logistic costs.
In 2005 they experienced harsh weather conditions due to which production was less and hence the supply from local produce.
Now Wal-Mart needs lowest price and because of weather conditions there is increase in price of product Frey Farms has challenge to keep