Description Answer each of the following questions below for Case 3 that is attached Fertilizer is a commodity – why did Postigo spend so much time developing a relationship? Shouldn’t he have just set up an auction? What was Postigo’s BATNA to reaching a negotiated agreement with Dehvi Medji and Sons? Should Postigo have spent the time and money to meet face-to-face with all five potential vendors for the purpose of telling them about One Acre Fund rather than sending them an email? Did Postigo pay particular attention to the other party’s needs in the phone calls with Dehvi Medji? What do you think about Postigo’s sharing information with Dehvi Medji about OAF’s strategy for the future? Was this a good thing to do? Is this a good way to develop a relationship? If Dehvi Medji’s price had been good, but not the best, would you still have recommended that Postigo try to negotiate with Dehvi Medji? OAF’s founder, Andrew Youn, is an MBA. Given the importance of low-priced, good-quality fertilizer to his company’s ability to achieve its goals, should Youn be considering alternatives to buying from a handful of Kenyan wholesale suppliers? What might those alternatives be? Postigo informed the case writers that the Kenyan government did implement its program of buying fertilizer in bulk to distribute at reduced prices to farmers, but the program did not really affect OAF farmers because they could only afford to travel to government depots and did not have the cash to buy or transport the fertilizer. However, this action by the Kenyan government might have secondary effects for OAF’s negotiations with fertilizer suppliers in the future. What do you think those secondary effects might be? In what way did Postigo use his awareness of hierarchy in Kenyan culture during his negotiations with Dehvi Medji? What do you see as the strengths and weaknesses of Postigo’s negotiating strategy for fertilizer in 2007 and beyond?
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