Business Negotiations

Negotiations in Franchisee Multi-Brand Service Station

GMITE 9
Akash , Jasmine , Monoj

Introduction
SS Automobiles is franchisee of a multi brand car service station of a
reputed automobile manufacturer. Setting up a multi brand service facility
requires the service station to be constructed , service equipment to be
purchased and service staff to be hired.
Each step whether it is constuction of the facility, procurement of
equipment or hiring staff requires a lot of negotiations. The aim of this
project was to observe carefully the negotiations that had happened in
setting up the service station and map it to our learnings from the course.
Staff Hiring:
Staff hiring if a typical one to one negotiation berween the job seekers and
the Center Manager. Job seekers are primarily through reference or are
walkins. The goal of the organization is to keep less but very efficient staff.
This results in reducing overheads and increasing profitability. The
negotiations happen only between the center manager and the job seeker
and only in the cases of deadlock situation, the owners get involved. The
final compensation is approved by the owners and any exceptional cases of
hiring personnel who don't fit in some parameters of hiring calls for an
internal negotiation.
Service Equipment:
Service equipment order, negotiation and purchase is carried out by the two
partners together or individually based on the division of tasks among
themselves. The purchase of service equipment involved the people from
principal company who make sure that the service equipment specifications
are met. As far is the service equipment and suppliers are concerned, there
are very few in the market.
Construction:
A construction facility is required for the sevice center facility. The
specifications for the center are once again dictated by the principal
company. The negotiation happen between the construction contractor
where most of the terms in this case as we will find are dictated and
dominated by the franchisee owners.