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Wheeling and Dealing The Zirconia GT Case Solution

Solution Id Length Case Author Case Publisher
1157 1067 Words (4 Pages) Scot W. Melland, Craig R. Best Harvard Business School : 895013
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Negotiations are carried out in our lives on an everyday basis. This case was based on the negotiation between a woman and a car dealer. The negotiation ended on the note that the woman was wondering if her decision was correct or not and whether she was getting a good deal or not. The other party, the car dealer had one interest only, he wanted to get a $400 bonus for a car that had been in the dealership for more time than the usual cars last. However, as a negotiator, his weaknesses were that he left the woman dissatisfied and thought that she did not get a major portion of her interests. He left some charges undisclosed which was also the reason for the woman’s dissatisfaction.

Following questions are answered in this case study solution

  1. Was it a good deal for Marcia? Why or why not? Give reasons.    

  2. Would you call it a win-win negotiation/deal or not? Give reasons.

  3. What were Darrel's strengths & weaknesses as a negotiator?

  4. If you were in place of Marcia, how would you have proceeded with the negotiations (assuming that you did want to buy the Zirconia GT)? Give your answer quoting specific instances from the case.

Case Analysis for Wheeling and Dealing The Zirconia GT

1. Was it a good deal for Marcia? Why or why not? Give reasons.

If the discount that Marcia got from the deal is discussed, it can be seen that the initial price mentioned by Darrel was $15,750. She got a factory rebate of $1000 and a trade-off discount of $500. However, these discounts did not decrease the price because there were several hidden costs for the car. The hidden costs included an extended warranty, the paint cost, and a life insurance cost that were not mentioned during the negotiation. Adding these costs and subtracting the discount meant that Marcia was paying $15,085 for the car which included the trade-off for her old car. This meant that without her trade-off if Marcia decides to keep both cars, the car cost her $15,585 which was just a $165 less than the initial price mentioned.

The deal was not good for Marcia because she was paying for some options that she did not require. Darrel did offer her a discount on these items, but he could not give it to her because he stated that his sales manager did not agree to it. Apart from that, she was giving up her old car for which she could have gotten more money if she had had it checked from other car dealers. She was getting options for which she was not disclosed about such as the additional paint charge and the life insurance fees which show that the deal was more in favor towards Darrel rather than her.

2. Would you call it a win-win negotiation/deal or not? Give reasons.

This deal cannot be claimed as a win-win negotiation. The reason is that Marcia did not get the requirements that she wanted. She did not require the expensive tires and the stereo. She was given a perception that she would be discounted for these things, but she did not get the discount. The extra charges were not put according to her will. She had to pay a $230 for a life-insurance that she did not know about and did not willingly take. The extra paint charges were not disclosed to her. This shows that all the charges were put on Darrel’s will.

Although she did enjoy the car’s ride, she knew that it was far more expensive than what she could afford. Still, the negotiations proceeded such that Marcia ended up buying the car and that too not on her terms. She was said that she would have to pay $337 monthly for the car. Even that was not quite affordable for her. Darrel offered her the first time buyer’s advantage and told her that it would reduce down to $329. However, she did not get that too which left her in the same position.

3. What were Darrel's strengths & weaknesses as a negotiator?

As a negotiator, Darrel’s biggest weakness was that in the end, the other party was not satisfied. Marcia was thinking if she had made a good deal or not which shows the weakness of the negotiation. A good negotiation means that both parties think that they have gotten most of what they desired.

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