Just read the Case and answer following questions. No words limitation, no format requirement, as long as answer questions clearly. Please provide data and table when calculate profit.
1. What is your assessment of the Cache Creek trans-load operation proposed by Patrick Lo? How profitable would this business be?
2. What are Patrick Lo’s positions of strength in the negotiation with Joseph Russo, CEO of Cache Creek, in setting the royalty fee? What are Joseph Russo’s positions of strength in negotiating with Patrick Lo? Which party do you believe has the stronger negotiating position?
3. What are Patrick Lo’s positions of strength in negotiating with CP Rail regarding freight rates? What are CP Rail’s positions of strength in the negotiation with Patrick Lo? Which party do you believe has the stronger negotiating position?
4. Overall, what do you think Patrick Lo can achieve in his negotiations?
5. As Patrick Lo, what action would you take and why? What would be your negotiating strategy?