The purpose of this thesis is to analyze the effect of a change in a business’ business strategy with focus on the company’s suppliers in an economic, contractual and strategic negotiation perspective. It is assumed that the company wishes to remain profitable and seeks to maximize its profits together with maximizing its utility by targeting and selecting suppliers that can produce a supply with low CO2-emision or demanding current suppliers to reduce their CO2-emision to meet the company’s requirements. For this it is assumed that the company must evaluate the need for a different approach to the suppliers and a different negotiation strategy in order to meet both a profit-neutral state and a maximization of the utility of lowering of the CO2-emission. In this thesis two models are combined. The first model is an overall negotiation model, called The Dual Concern Model, that a negotiator can use to create a strategy based on the level of focus on relation to the other party and level of outcome the negotiator wishes. The other model is Kraljic’s Portfolio Model, which is used for categorizing suppliers from the importance of the purchase and the complexity of the market in which the supplier is represented. The combination of these two models gives the company the option to create a negotiation strategy from the circumstances of the supplier and the market. The legal challenge for the company is in maintaining the supplier to the CO2-emission requirement while maximizing the utilization of the contract. It is concluded that the overall strategic business contract, which is the result of the findings in the economic section of the thesis, must be formulated as vague and open as possible. Furthermore, the more often occurring purchasing contracts will have to regulate the procurement relationship more strictly in order for the company to maximize and secure the efficiency of the contract as far as possible. The combination of the findings from the thesis’ economic and legal sections conclude that a strategic partnership can be the efficient and most utilizing for the company and still remain most profitable.
|Educations||MSc in Commercial Law, (Graduate Programme) Final Thesis|
|Number of pages||80|