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Sarah Talley and Frey Farms Produce: Negotiating with Wal-Mart

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on 20 March 2014

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Transcript of Sarah Talley and Frey Farms Produce: Negotiating with Wal-Mart

Sarah Talley and Frey Farms Produce
Frey Farm is a supplier of produce
Frey Farm - Wal-Mart Cooperation
Frey Farm started growing
Negotiation with Wal-Mart
Harsh weather conditions lead to high prices
Looking at the future
Sarah Talley and Frey Farms Produce: Negotiating with Wal-Mart
Intermediate strategy
Modes of Conflict
Trust Building Model
In 1997, Frey Farm became Supplier of Walmart
Frey Farms & Wal-Mart

Problem faced by both parties

Negotiation strategy & approaches

Future (Threats, challenges & opportunities)

Presentation outline
Sarah Talley accelerated the growth by selling produce Wal-Mart
Co-Management was a concept developed by Wal-Mart
In both cases, negotiation failed and Sarah Talley become a third party supplier
Frey Farm wants to become a Co-Managed supplier
Wal-Mart wants to offer local sourced produce at EDLP
Market position
Wal-Mart has superior bargaining power
Perceived divergence of interests
Unbalanced power relationship
Short-term: Wal-Mart demands lower prices
Long-term: "Frey Farm wants to grow alongside Wal-Mart"
Ideal position

Interests and desires for both parties
'Win-Win' situation
Create mutual trust & relationship
Relationship Frey Farm, Co-Managed Supplier & Wal-Mart

Frey Farms could face additional costs
Accommodate to Wal-Mart’s EDLP policy
‘Co-Managed' supplier - better bargaining power
Unnecessary cost could be avoided
Wal-Mart can continue its promise of Every Day Low Prices.
Full transcript