To decide whether to pursue this dispute, Diane should consider such factors as — Tropical Delights has new sales manager Brad Carpenter who unwilling concede anything

Tropical Delights has a new sales manager, Brad Carpenter, who is unwilling to concede anything. TD insists on full payment of $50 000 for the shipment in situation 1 above. Diane thinks a reduction in price of $15 000 would be fair for BP. Diane consults the legal department of BP and is advised to consider mediation as a means of resolving this dispute. Diane is not optimistic about the prospect of successful mediation in view of her recent dealings with Brad, but she knows that BP needs TD as a supplier of exotic fruit and suspects that TD values her company as a customer. Suggest how Diane might use mediation in this situation. What critical factors should Diane consider in deciding whether to pursue this dispute further?

SOLUTION

The cautious approach suggested above in situation 1 did not work. A different course of action is called for, but Diane still should avoid acting too quickly. It is simply time to reassess the situation. If she is correct in her assessment that their relationship is important to both companies, then mediation might be more successful than she expects. The challenge will be to gain TD’s support for the mediation option, considering Brad’s lack of cooperation. Diane could consider having her boss contact Brad’s boss to attempt to resolve the impasse. The desirability of continuing the relationship and the relatively small amount at stake are factors that support the use of mediation.

To decide whether to pursue this dispute, Diane should consider such factors as: