In January 2016, the president and chief executive officer of Canaan Group in Richmond, British Columbia, was evaluating plans for a proposed trans-loading facility, which would be located inland from Port Metro Vancouver. The trans-loading facility had the potential to simultaneously offer a lower-cost transportation alternative for exporters and significantly reduce greenhouse gas emissions in the Lower Mainland. Despite the potential opportunities, three important hurdles needed to be overcome before successfully launching the new operation. First, co-operation was needed from exporters and their shipping companies to provide sufficient throughput of containers. Second, an agreement from Canadian Pacific Rail to provide service at a competitive rate was essential. Third, successful negotiations were required for a long-term lease for the proposed site to justify the necessary investment. The Canaan Group president reviewed the data from a completed pilot study and wondered what his next step should be.
Case Study Analysis:CANAAN GROUP: PORT METRO VANCOUVER CONTAINER TRANSLOAD SERVICE
Read the attached case study, provide a thorough analysis of the case and 3) answer the following questions in a comprehensive manner. Support your arguments with research. One should be your textbook 9 – David, P. (2018). International logistics: The management of international trade operations. 5th edition
Questions
1. With which stakeholder should he start his negotiation?
2. What were his bargaining strengths and weaknesses?
3. Were there other stakeholders that should be engaged?
4. What is your assessment of the Cache Creek trans-load operation proposed by Patrick Lo? How profitable would this business be?
5. What are Patrick L’s position 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 the negotiation with Patrick Lo? Which party has the stronger negotiating position?
6. What are Patrick Lo’s position of strength in the negotiation with CP Rail regarding freight rates? What are CP Rail’s positions of strength in the negotiation with Patrick Lo? Which party has the stronger negotiating position?
7. What do you think Patrick Lo can achieve in his negotiations?
8. As Patrick Lo, what action would you take and why? What would be your negotiation strategy?
All papers must be written in APA style with cover letters, running heads, topic headings, intext citations, reference sources, Intro, body and conclusion.
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