Negotiating for Fertilizer Harvard Case Solution & Analysis

One acre Fund (OAF) was founded by Andrew Yoon in 2005 in order to help solve the chronic problem of hunger in Africa. The idea is to provide the resources (seeds, fertilizers, and education) needed for African farm families to support themselves if their land is one acre or less. OAF business model is that the co-operative: OAF buys inputs such as seeds and fertilizer in bulk at discounted prices and distributes for small farmers, who otherwise could not afford them. This is a matter for negotiations that OAF manager for external relations and research, Moises Postigo, conducted buy fertilizers in the last quarter of 2007. Case provides an opportunity for students to analyze the real deal-making negotiations in developing economies. A number of aspects in the context of the negotiations and the negotiation process itself make for good class discussion. Postigo did a good job preparing for negotiations, making the case emphasizes that the proper use planning negotiations and subtle understanding of negotiation environment. Some of the elements that make for a good discussion include: OAF was a new organization, the unknown five major supplier of fertilizer in Kenya. The negotiations were conducted entirely on a cell phone. The talks went through the stages of a request for bids, and discussions with several participants, vendor selection and negotiation. There were a number of issues, including the cost of shipping and payment methods. Postigo negotiated in the shadow of the possibility that the Government of Kenya to start selling subsidized fertilizer to small farmers. "Hide
by Jeanne Brett, Katherine Nelson, Nicole Tilzer Source: Kellogg School Management 17 pages. Publication Date: 01 November 2009. Prod. #: KEL434-PDF-ENG

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