AMD Construction and Negotiation
Read Case 3: AMD Construction in the text (pg. 448-450) and answer the following questions in a three- to -four page, APA formatted paper:
- Discuss the various steps in the capital equipment acquisition process.
- Develop a comprehensive analysis of the negotiations between Jane Axle and Tom Reed. (Provide a chart to show financial impacts.)
- What is your assessment of the negotiations process, given what you have studied? What are your recommendations for Mr. Reed? You must justify your conclusions.
Suggestion of format for analysis:
CAT-1 machine – Lease
Operating cost (without operators)
Depreciation (straight line) 4 months
Lease Expense 4 Months
Interest expense at 8% for 4 months
Salvage Value after 3 years
Benton, W.C. Jr. (2014). Purchasing and supply chain management (3rd ed.). New York, NY: McGraw-Hill Irwin:
- Chapter 14: Bargaining and Negotiations
- Chapter 16: Equipment Acquisition and Disposal
- Case 3: AMD Construction Company: Negotiating the Old-Fashioned Way
Maven Training videos and podcasts. (2009, May 21). Melanie Franklin is interviewed by the BCS – Part 3 – Interpersonal skills [Video file]. Retrieved from http://www.youtube.com/watch?v=L92yZLQYr1g
- This video links the negotiation and bargaining topics of the week with interpersonal communication and will be useful in completing this week’s assignments.