( ONE PAGE) Written Assignment (Case):

Phelps, Inc

You are Philip Manual, the head of sales for an office products firm, Phelps, Inc. Your personnel sell primarily to small businesses in the Los Angeles Metropolitan area. Phelps is doing about average for this rapidly growing market. The firm’s new president, Jose Ortega, is putting a lot of pressure on you to increase sales. You feel that a major obstacle is the firm’s policy on extending credit. Celeste, the head of the credit office, insists that all new customers fill out an extensive credit application. Credit risks must be low; credit terms and collection procedures are tough. You can appreciate her point of view, but you feel it’s unrealistic. Your competitors are much more lenient in their credit examinations; they extend credit to higher credit risks; their credit terms are more favorable; and they are more lenient in collecting overdue payments. Your sales personnel are pushing back on you. They frequently complain that they aren’t playing on a “level field” with their competition. When you brought this concern to Jose, he said he wanted you and Celeste to “work things out”. His instructions didn’t give any clues to his priorities on this matter “Sure, we need to increase sales, but the small business failure in this area is the highest in the country, so we have to be careful that we don’t make bad credit decisions.”


What are the salient situational factors?
What is the most appropriate negotiation strategy?
What advice would you offer to Jose Ortega? Celeste? Philip?
Source: David Whetten and Kim Cameron, Developing Management Skills, 7th edition, Prentice Hall, Upper Saddle River, New Jersey, 2007

Reflection/Analysis Journal:

Complete these questions on negotiation:

The one or two areas in which I am strongest:
The one or two areas in which I need to improve:
If I did one thing to improve in this area, it would be to:
Making these changes will probably result in:
If I did not change or improve in these areas, it would probably affect my personal and professional life in the following ways: Two pages APA.

(TWO PAGES)View this 3 minute video clip from Stanford University. As a team discuss and respond to the following three questions.

What is the definition of communication as put forth in the video?
What is the term given to Clinton in terms of his listening skills? Explore what the term brings to mind.
Describe what the simple intervention was and determine what it served to accomplish in the scenario? Identify other interventions which might serve an equally important purpose.


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