NEGOTIATION PLAN FOR SANTANDER RACING LTD.

AND
SCHLOSS LTD.

Team 018

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STRATEGIC STRONG POINTS

Santander Racing Ltd. (“Santander Racing”) —

 Prior consistent success- Santander Racing owing to its team’s

exemplary performance, has been victorious for three consecutive
years previously.
 Abundance of finance- Santander Ltd. (“Santander”) is a globally
ubiquitous luxury brand which has been one of the companies listed in
the London Stock exchange 2010.
 Efficient management- Santander Racing team’s manager, Mr. Richard
Green (“Green”) has been able to maintain the best team in the
history of Formulae Tourismo (“FT2”).
Schloss Ltd. (“Schloss”) —
 Market presence- It’s one of the biggest manufacturers in the
automobile industry. It supplies engines to two of the teams in the
FT2.
 Quality products- Since Nielsen is well acquainted with engine
dynamics, Schloss offers patented state- of-the-art engines with
outstanding performance.

STRATERGIC WEAK POINTS

Santander Racing—

 Recent weak performance- In the six races of the FT2 season,

Santander Racing hasn’t been able to win any. Block has even been
questioned by the apprehensive press.

Schloss—

 Contract- Mr. Mikkel Nielsen (“Nielsen”) the owner of Schloss is

deliberating upon terminating the agreement between the two parties.
 Poor Management-The team’s manager Robin Shearer (“Shearer”)’s
techniques have been subpar and many of the team members have left
owing to issues due to this.
 Disappointed fan-base- Due to the team’s abysmal failure to win any
Grand Prix, their fan-base has been heavily dissatisfied and has
stopped rooting for them.

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NEEDS AND INTERESTS
Santander Racing—

The terms of settlement of termination can be worked out in such a way

that supply of quality products is ensured at least for their immediate
needs during the current season.

Schloss—

The administration of Scholas must gain an all pervasive control over

their managerial department as they cannot afford to lose on any more
players. Moreover, they must ensure a requisite checking on products
before their delivery.

BEST ALTERATIVE TO NEGOTIATED AGREEMENT (BATNA)

Santander Racing—

Should the negotiations fail, the best alternative for Santander Racing
would be that they get functioning products which helps them regain
their lost winning streak.

Schloss—

Should the negotiations fail, the best alternative for Schloss will be that
due to Santander Racing’s winnings the doubt cast on them for supplying
defective products will be removed.

WORST ALTERNATIVE TO NEGOTIATED AGREEMENT (WATNA)

Santander Racing—

Should the negotiations fail, the worst alternative for Santander Racing
will be that they’ll either have to keep accepting subpar engines or pay a
higher price for the good ones.

Schloss—

Should the negotiations fail, the worst alterntive for Schloss will be that
their loss of market image will cause them to have a lesser say in their
future agreements with potential buyers like Omega.

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GOALS AND OBJECTIVES
Santander Racing—

Reestablish its lost dominance in the sport by making sure that such
defective products are not used again and they themselves test the
automobiles before they are used in the race. Santander racing should
also look for potential suppliers for future endeavors.

Schloss—

Schloss would want to preserve its identity by not letting the few
instances of bad supply malign its market image as a racing team and
regain its fain-base with exceptionally great winnings.

END OF DOCUMENT