Going A Long Way to Make a Deal Based on an interview with Howard Sheer Source: Weiss, J. (2020). The Book of Real-World

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Going A Long Way to Make a Deal Based on an interview with
Howard Sheer Source: Weiss, J. (2020). The Book of Real-World
Negotiations. John Wiley & Sons, Inc.: New Jersey, USA.
The Conflict The company, called Ecru, is a small clothing
company based in New York City. Ecru’s CEO, Howard Sheer, led the
negotiations with a potential new supplier based in India, called
Indegopro. Sheer began looking to India as more and more
unfavourable changes were taking place in China – where his
previous supplier base existed. Indegopro was a large factory group
based primarily in India with facilities in other countries. Sheer
very much wanted to work with Indegopro for a multitude of reasons,
but he feared that they held all the cards in the negotiation, and
it would be a difficult process to meet his goals and make the deal
profitable for the much smaller Ecru. Sheer came to know about
Endegopro through other textile mills he was working with on
related projects. Sheer did his due diligence and investigated
Indegopro thoroughly. As he did, he found that they served small
entities similar to Ecru, but also big department stores like Gap
and Banana Republic. He also found that Endegopro had a great track
record of working with all the different stores. Their quality,
value, and public relations all checked out. Ecru managed to engage
Indegopro on one order, and Sheer was very happy with how they
performed. The terms under which that first deal was done, however,
were not at all ideal for Ecru. They were working under a Letter of
Credit (LC), which they could manage, but LCs tend to be expensive,
and Ecru did not have the ability to engage this way in the future.
Ecru needed to the ability to finance the business, and the bank
would only issue a limited number of LC’s. Sheer also knew that in
Indian culture, having a strong relationship mattered a great deal
when it came to doing business. That previous arrangement (one
order) did not help in establishing a strong relationship with
Endogopro. Sheer’s challenge was that Ecru was tiny in comparison
with the other companies that partnered with Endogopro.
Can you please answer the following question:
Background of the Study
State relevant facts and the most important
issues.
Demonstrate that you have researched the problems in
this case study by incorporating related ideas/information from
peer-reviewed sources (Related Literature).
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