Albert Steinmann has been working for TX Software for the past six years. Recently, the company has realised it needs to update its website. The company it used 4 years ago has since raised its prices, so TX Software has been tasked with finding a new company to create the website (purpose). Albert's brother-in-law, Paul, has a website design business called Sites by Design which he recommends even though he has always been envious of Paul's confidence and success.
Albert's manager advises that a team will work together to produce a proposal for the new website design over the next month. Albert is informed he will be working with George who is a younger employee but is an experienced website designer having worked for Dell for the past 8 years. A female colleague named Donna who is new to the company is also added to the team. She has a background in accounting and finance. She has prepared many budgetary proposal for various projects. Before the team meet, Albert sends out an email to let the team know he is the leader and that they will be preparing a proposal with a very strict budget that cannot be changed. 1Donna thinks the budget that Albert has suggested is unfair and unreasonable but does not say anything as she is new to the company and does not want to upset anyone. In the email, Albert also tells the team the exact design of the website that they will propose. George feels frustrated by this as he understands website design principles and knows what Albert is suggesting is not appropriate.2 He responds to Albert's email stating that Albert's ideas are ridiculous and foolish. Albert's ego is hurt, so he does not listen to any of George's alternative suggestions. As a result, George gets fed up and does not contribute again to the proposal which leaves Albert and Donna to write it up Albert finishes the proposal and sends it to Donna and George only minutes before his meeting with Sites by Design. He does not get approval from management for the proposal.
On the day of the meeting with Paul and two of his associates from Sites by Design, Albert attends alone because he wants to impress his brother-in-law with his business skills. Albert is determined to get the cheapest possible price to maximise the profits for TX Software. He insists that TX Software only has a and knows the. Albert also tells Paul that he expects a "family" discount because he is doing Paul a favour by lining him up with this job. Paul tries to explain that this price is the best price he can do as he needs to make a profit and ensure he can pay his team. Albert still refuses to alter his proposed budget 3. Albert also strongly argues that the design should be based on his proposal only, and that he does not want any advice from Sites by Design on how to improve the look of the website. After nearly three hours of arguing over the price for individual changes to the website, Albert threatens to use another company if Sites by Design does not lower its price.
Please identify the problem *(why is the problem happening? What are the key causes? Use the attached Can you tell the difference? on ELMO if you think it will assist.) relate to negotiation
And the solution about the problem-- also related to the negotiation