Tuesday, January 22, 2008
I did it. I am finally back into blogging I think or at least currently at 1200 hrs and Jie Hui's msn dying on both of us, I am back into blogging. It never fails to amaze me how the simple blogging template on blogger can make me think about so much stuff that I otherwise can't come up with on the MS word processor. Take for example, a simple journal entry that my module requires me to write for 6 days. I am currently on day 2. I was having difficulties coming up with what to write for day 1 until I started blogging a bit about it. here is a small excerpt of it, only half done and not vetted yet.
"
Day 1 began with the exercise on trying to fix a price for a product called Vidget. Basically, we were divided into groups of 4. Within each group, there are two companies and I formed a company with Lynnette while Gabriel Fu formed the other company with Kai Xian. The idea was that we are the two companies that produce and sell Vidget. Being employees of the company, we are given the task of maximizing the profits of our companies and we are only able to set the prices at $15, $25 or $35. $25 was the original price Vidget was sold at by our companies. Both Lynnette and myself agreed to set the price to be at $35 because we wanted to send a signal to the other company that we should both set the price to be the highest so as to reap profit and make mutual benefits for both companies. At the same time, we were also hoping that our counterparts would do the same too.However, when we came to know that the initial price set by Gabriel and Kai Xian was $15, Lynnette and I decided to cut prices to $15 so as reduce our losses. This maintained until representatives from the two companies were allowed to meet and discuss on prices. It may be because I have read one of the recommended text before attending the lesson and also did some math on the table given, I assumed that the others knew that although one side may win the other by cutting prices, ultimately even more profit or benefits could be reaped when both companies charge the highest price. As such, during my first conversation with Gabriel, I simply established that a price of $35 by both sides is beneficial to us all. I neglected the other important areas like establishing common goals and interests, and very importantly, trust. This negligence on my side led them to cut the price down to $15 (from $35) when it was announced that profits was doubled. Gabriel later did mention that one of the reasons for them doing so was that they were afraid that Lynnette and I would break our promise and under cut them. This could have been avoided if I had paid more attention to building trust, especially since it was the first time we are seeing each other in real life.This was later resolved when we met a second time. I felt that Kai Xian handled it pretty well in the sense that she agreed to allow us to set a lower price than them so as to allow us to recuperate some losses. In a way, she was giving us some benefits to allow us to keep the doors open for negotiation. Thus the prices then maintained at $35 for both companies until the one round before the last when we both undercut our prices. I feel that this was mainly because we did not trust one another and also to begin with Lynnette and I had lower profit margins. As such, on Gabriel's and Kai Xian's side, we had a stronger motive to back stab them to gain profit. To some extent, I feel that having some kind of value is important to gain some standing in the negotiation process too."
In any case, one of the more interesting things I learn on day 1 was something about peoples' responses to issues depending on the importance of the issue and that of the relationship. The choices are collaborate, compromise, accommodate, avoid and compete. To avoid for unimportant issues and unimportant relationships. To collaborate for important issues and important relationships. I feel that it is a relative kind of thing whereby to somebody there may be very little issues that that so important that he or she may choose not to avoid, when in comparison with how important relationships are to him or her.
On a separate note, I was sitting in Jun Hong's car the other day. He just got his license!!! yeah! In any case, I thought that it was some kind of habit. I tended to look behind when every Jun Hong wanted to change lane. It wasn't that I don't trust him. Just that I am used to looking through the mirror to look behind when I change lane.
The Origin. 1/22/2008 12:09:00 am
