Scandia Steel Ab: Kaj Johansson

5 Pages Posted: 23 Jun 2009

See all articles by Sherwood C. Frey

Sherwood C. Frey

University of Virginia - Darden School of Business

Abstract

This case provides the background for one participant in a contract negotiation regarding price, duration, and exclusivity.

Excerpt

UVA-QA-0361

Scandia Steel AB: Kaj Johansson

You are Kaj Johansson (pronounced Kī), marketing director of Scandia Steel AB. It is August 1995 and tomorrow you expect Pat Divso, a purchasing official from Compressor Corporation, Inc. (CCI), to call on you in your Uppsala office. CCI is an American firm and Scandia's strategic partner and largest customer. You believe that Divso has asked for this meeting to try to persuade Scandia to lower its prices on X310, a specialty stainless steel developed as a result of joint research between Scandia and CCI. This will be your second meeting with Divso, who first traveled to Sweden to discuss Scandia's pricing in February 1995. At that time, you were able to withstand pressure from CCI and to succeed in holding the pricing on X310 constant.

Background

As Scandia's marketing director, one of your key responsibilities is to negotiate contract terms with Scandia's major international customers. It is a job you have been doing for twenty years and which you expect to do until you retire in five years. The job has provided you with many opportunities to travel abroad, dine in the world's finest restaurants and, generally, experience the “good life.” You enjoy the give-and-take of selling, and, aside from the tendency of Americans to talk business in a social setting, you look forward to the companionship and conversation that your job entails.

In general, you have found your job very satisfying. Scandia is world renowned for its technical leadership, product quality, and services. Most of your customers are pleased that you supply them and are willing to pay the premium price that Scandia products typically command. After 20 years, you still take pride in selling the excellence of Scandia specialty steel products.

. . .

Keywords: multi-issue negotiation

Suggested Citation

Frey, Sherwood C., Scandia Steel Ab: Kaj Johansson. Darden Case No. UVA-QA-0361. Available at SSRN: https://ssrn.com/abstract=1422922

Sherwood C. Frey (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

HOME PAGE: http://www.darden.virginia.edu/faculty/frey.htm

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