Dr.

Ram Manohar Lohiya National Law University

Negotiation and Mediation Competition

TEAM CODE NM 12

Negotiation plan in the matter between

Advani Wheels Ltd.

&
TATO Motors Ltd.

-on the behalf of AdvaniWheels ltd-

STRONG POINTS
  In House Manufacturing Unit
Keeping manufacturing unit in-house gives a lot of flexibility to change the product.
If they discover an outsourced product needs a last-minute change, it would take time
and trouble to implement it. No need to contact the manufacturing company and
negotiate, while they keep making the old product.
 Carbon Free™ Range
First developed by TATO four years ago that can effectively reduce the carbon
emissions of a range of fossil fuel-based vehicles by up to 70 per cent. This
technology helped in securing an important deal with Advani.
 A Strong Partner
The Carbon Free™ vehicles and parts are more expensive than traditional vehicles
and parts, but TATO has been able to convince its clients because of its fantastic
Advani credentials.
 Maintenance Facilty
TATO provides spare parts and repairs to its clients for all TATO models in its fleet.
This would help in inviting more clients because their work will be eased. They will
not have to approach different people to deal with technical problems,

WEAK POINTS

 Less Workforce
A potential issue is that TATO's repairs team is significantly smaller than its
manufacturing team. It is often overworked and has to operate under acute time
pressures.
 Poor Management
TATO has recently been accused of poor management, with critics claiming that
relatively little progress has been made by the company since it signed the supply
agreement with Advani Wheels. This will hinder client diversification.
 Stagnation of Client Base
TATO has thought about increasing its client base in the past but it is currently using
all its resources to service its existing clients.
 Declining Market Prospects in the Near future.
There is a possibility of potential increase in the use of electric cars. This can
challenge the long term prospects of TATO as its whole business is based on catalytic
converter that can reduce the carbon emissions of fossil fuel-based vehicles.

NEEDS AND INTERESTS

 To improve its workforce because with the size of a small repair team they simply
cannot repair that many cars in the time period due to the resources they have
available. It has to even work under acute time pressure sometimes.
 To make sure that TATO is not bound by the exclusivity provision and is able to sell
CarbonFree™ products to other companies other than AdvaniWheels, although
 TATO's existing commercial agreements with other companies were allowed to
continue

BATNA
In the event that the negotiations fall through, TATO would have the following choice:

Since the advani credentials are important to TATO, the price of carbon-tm vehicles
can be reduced for the current situation from the current price of $8000 to a
reasonable range that suits both the parties, and since 150 vehicles are still left for
Advani to purchase under the agreement, Advani can be encouraged to do so in the
current situation rather than bearing the burden of repairing the defective vehicles
because the workforce is already constrained.

OBJECTIVES
 To make sure that in return of providing services like vehicles at less price the
company should be free from exclusivity agreement so that it can increase its
client’s base.
 To increase its workforce it can have agreement to provide Advani stake in the
company but limited to what would suit Tato's interest and it can pursue
Advani to supply workforce as a part of the agreement.