Students A and BStudent A: You are a senior partner at Heitinga T-com Consulting.Student B: You are a junior consultant.Decide which negotiating tactics you might use. Try to be tentative and diplomatic in your approach, as this project could bring a lot of money into the firm.Points to consider:• Main concerns: possible regulatory objections from the government; the challenges and timescale of a project this size - you estimate 18 months from the research stage to implementation of the new network.• Deliverables: decide what you can offer, e.g. an in-depth feasibility study, a report on the South African mobile market, implementation, an advisory role once the project is up and running, etc.• The team: decide how many senior and junior consultants you will need.• Consultancy fees: confirm your fees, both for the feasibility study and time spent in meetings to date. Tentatively broach the subject of payment for any future work. Will you charge an hourly rate, e.g. US $230, or an overall fee on completion of the project?• Authority: the other senior partner, Mr Heitinga, is away on business at the moment, but has given you authority to negotiate.

Students C and DStudent C: You are the Chief of Finance at Bajaj-tel.Student D: You are a manager at Bajaj-tel.Decide which negotiating tactics you might use. Your aim is to "test the ground' and see whether the consultancy is able to carry out the project.Points to consider:<ul><li>﻿﻿Main concerns: the consultants' expertise in the telecoms field. Have they worked on a similar project? If so, ask for a case study. Timing is also crucial - insist on your desired timescale.</li><li>﻿﻿Deliverables: decide on the deliverables you require, e.g. an in-depth research study, an extensive report on the South African mobile market, analysis of why the government previously refused a foreign operator; implementation of the new network and regular consultation with the consultancy thereafter.</li><li>﻿﻿The team: you prefer to work with senior consultants - junior consultants tend to be young and inexperienced.</li><li>﻿﻿Consultancy fees: negotiate the consultancy's fees for the feasibility study. You are prepared to pay up to US $160 per hour; you will pay an overall fee for any future work, but avoid talking about this at this stage. </li><li>Authority: your CEO, Mr Bajaj, would prefer to negotiate with both senior partners at the consultancy.</li></ul>

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(SS = SUNIL SUKKAWALA, JC = JEFF CARSTENS,AK = ANNABEL KUPER)SS So, you see, we saw mobile phones were only available for the super-rich.We've invested millions in India building a full-scale network and started selling pre-paid mobile phones that cost just 15 US dollars.JC And do you think you can sell a phone at 15 dollars and still makemoney?SS Absolutely. We subsidise them, of course, but typically we have a three-month payback on our subsidy.AK I understand most of your customers are pre-paid, Mr Sukkawala.SS Yes, about 90 per cent of our customer base is pre-paid. But in wealthier cities like Delhi and Mumbai, about 60 per cent of our customers are on contract.AK How interested are they in the latest handsets?SS Well, people might not own a car, but having the latest mobile phone isvery much a status symbol.JC And why South Africa?SS Basically, we look at opportunities where existing operators are under-serving the population. And we see a lot of opportunities in South Africa.Our goal is to implement a new mobile network here over the next 12 or 18 months.JC Twelve months? You mean in time for the World AthleticsChampionships next year?SS Exactly.JC Twelve months? That's going to be a ... a challenge.SS Yes, and it's also going to be a great media opportunity.AK I hear you are big sponsors of cricket and sport in general.SS Absolutely.AK Well, I think Bajaj-tel is in a pretty strong position. I've read your annualgrowth rate has been over 50 per cent.SS That's right.JC Um, by the way, I thought we were expecting Mr Bajaj in today's meeting?SS Ah! That must be him now. Excuse me ... Yes? ... Twenty minutes? .I'll let them know ... Bye.JC Mr Bajaj?SS Yes. He sends his apologies. He's been having lunch with, er, some important people. He'll be here in 20 minutes. Mr Carstens, you said earlier there could be objections from the government?AK/JC Yes, possibly. / More than likely.AK But we are hoping that a mobile operator from India would stand more ofa chance than some of the other foreign operators.SS Ah! My question is, Mr Carstens, is how can Heitinga T-com Consultinghelp us in the political arena?JC Well, er, my partner, Andrew Heitinga, has one or two well-placedcontacts.SS That's good to hear. Actually, I was wondering whether we'll be meetingMr Heitinga later ..JC Oh, I'm afraid Andrew is away on business. He'll be back Friday.SS That's a pity! Mmm, maybe we could catch up with him at the weekend, then? Over some cricket, perhaps? Do you enjoy cricket?JC Actually, I'm more ofa rugby man myself.AK I'm a big cricket fan!SS/JC Really? / You are?JC Shall we take a short break? I'd like to give Andrew a call. Annabel, wouldyou mind, er ... checking up on the refreshments?JC Refreshments? I thought lunch was ... Oh, yeah, got it.

Students C and DStudent C: You are the Chief Executive of Bajaj-tel.Student D: You are the Chief of Finance.Make some preparatory notes and decide which negotiating tactics you might use.Remember, you have already changed your negotiating team once.Points to consider:<ul><li>﻿﻿You only want to do business with Heitinga T-com Consulting if they are willing to set up operations in 12 months' time.</li><li>﻿﻿The main advantage of Bajaj-tel is the low-cost model in India - with $4 or $5 average monthly revenue per user, you still have one of the highest profit margins in the world.</li><li>﻿﻿You are prepared to pay generous fees on completion, but don't advertise this. You need guarantees that the consultancy will deliver on time, within budget and to performance.</li><li>﻿﻿This is a preliminary negotiation, but you are willing to meet again over the weekend, depending on how your discussion evolves.</li></ul>

Students A and BKeep the same roles as for Task 1. Make some preparatory notes and decide which negotiating tactics you might use before you negotiate.Points to consider:• The senior partner is not sure if there is time for Bajaj-tel to enter the market in 12 months' time. Negotiations with the government could be slow.• Sheetones a protise company ationer ores petarisar mobiling arsetingup networks in Africa.• You want to negotiate a high project fee. P.B. Bajaj is a billionaire entrepreneur, and it's a challenging project.• The junior consultant thinks this project will be a brilliant career opportunity, which will secure his/her future in the firm.

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U8 Case Study

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