This case and its companion case, “WMC: Hydra Division” (UVA-QA-0785), are a supply-chain negotiation for which there is a narrow zone of potential agreement. Locating outcomes in that zone is challenging due to differences in raw material costs (real and perceived), potentially extreme opening offers, lack of commitment to do a deal, and different interpretations of history. The difference in raw material costs can provide an opportunity for mutually beneficial agreements to be reached. The cases are simplified versions of “Akron Foundry” (UVA-QA-0398) and “RMC: Hydra Division” (UVA-QA-0399); the performance criterion for Akron has been simplified.
Darden Business Publishing – University of Virginia