PART A - Case summary
First before summarizing the case lets be understand what Luna is? Luna was a small company that had been owned and operated by the Dumart family for almost 60 years, In the 1980s, was sold the firm’s stock to a larger stationery company and then DGG acquired that stationery company as a vehicle for manufacturing and marketing copy and printer paper. So now I summarized the case as written. It was her early time when Erika Graeper absently twirled the Luna in her fingers and smiled to herself, as the Luna tripped memories of both pleasure and small embarrassment. Luna had been given to Erika by her grandmother a dozen years ago. Since then, the Luna unused, and had been tucked in the back of a desk drawer. Erika had promptly used the pen to write a thank you note on crisp white stationery and had solemnly said that it would be a great help in her studies. Erika's only knowledge of the Luna pen came from the fact that her grandmother happened to have given her one long ago. Erika discussed the Luna Pen puzzle with three of her new colleagues before finding someone who could explain why a letter to Heinrich Dumart should be forwarded to her at DGG but Erika was tempted to write Cecil Armstrong and simply tell him that Luna had gone out of business years ago, but still she remained confused by the fact that he was somehow still getting supplies from Alven Feng of Global Service. But while she is in Kuala Lumpur and heading with other meetings to prepare in Hong Kong and Seoul, the flight delays out of the Kuala Lumpur airport, the furthest thing from Erika's mind was Luna puzzle when she had seen a handsome indigo pen in the display at the duty-free shop. Within the week, Mann confirmed that his superiors did not want to bring back to its fountain pen activities, though DGG would be glad to get whatever value was represented by the Luna name. Erika was not surprised by the tone of Schmidt's memo, though it deepened her realization that she was not in the strongest bargaining position, either with Global or with other potential buyers who might be worried about the legitimacy of the Luna name. To that end, Erika got authorization from Mann to hire an investigator in Taipei to learn more about Global Service and Alven Feng. Without providing an exact figure, the investigator estimated that Luna pens and other Luna brand products accounted for approximately one-quarter of Global's sales. Still another said nothing about Luna pen, but suggested that in light of DGG's growing Asian presence, she wished to discuss a possible relationship with Global to handle computer products. Approaches
As ERIKA GRAEPER – ERIKA’s initial approach to the negotiation with ALVEN FENG The most likely approach
“Contact other companies in Southeast Asia that might be potential buyers of the Luna name, in order to determine their possible interest. Also, write Feng and tell him DGG is planning on selling the rights to the Luna name. Request that he come to Frankfurt in the near future to discuss the settlement of this matter.” This approach may be most likely approach that I might take if I were Erika. First, it will be good as Erika by contacting other buyers to find another company that would manufacture the Luna Pens and work with DGG and to know their possible interest of buying Luna name. The reason why I choose this approach is that this approach will be the best fit approach among the other approaches in line with this situation. Among the others saying that Erika should fax feng, by this point we know that there is a cultural differences between Erika and Feng, so by sending fax to Feng will not serve effectively in the negotiation, Feng may not take the issue seriously and that will worsen the situation, even the communication is ineffective there is a language difference between Erika and Feng and also there is a...
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