International Business Negotiations: Sat-Store Case
Case
Teaching Notes
Supplementary Resources
Abstract
Developing negotiation skills, together with business acumen, in an international context is a valuable asset for managers, particularly given the diversity in cultures and variability of government investment policies encountered by business people worldwide. In this context, Sat-Store, a multibrand Canadian retailer, is keen to invest in the ever-growing middle-class market of India. After conducting extensive research, it became apparent that Sat-Store needs to negotiate with a local team of officials in six areas—size of city, foreign direct investments (FDI), insourcing, supplier size, management control, and remittance of profit in U.S. dollars—in order to obtain an FDI permit. As a result, the Sat-Store negotiating team prepared a set of parameters relating to the six areas within which the members could negotiate, walk away, or request a break to meet again. To be successful at the negotiation, the team will be asked to score a minimum total of 10 points in all areas, meaning it could lose points in one area but gain in others. However, the local team has its own score that they are asked to achieve. The negotiation is realistic and intense but also interesting and engaging. Students will gain experience in applying the theory of negotiations (position- and interest-based), develop the best alternative to a negotiated agreement, and land in the zone of possible agreement.
This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2026 Sage Publications, Inc. All Rights Reserved
Resources
Appendix A. Mandi
Mandis are temporary marketplaces which are run by state governments to protect farmers by setting a minimum price for crops. This mechanism allows the government to control prices for commodities by matching demand with supply. Mandis also have middlemen, who are equivalent to commission agents (CA) and act as intermediaries between wholesalers (or traders) and farmers in the mandis (i.e., associations where farmers sell their crops). There are many reasons for their existence, one of them being the CA’s ability to provide credit and quick payments to farmers. This situation arises because a mandi is open for a limited period of time (i.e., during harvesting season only), but farmers need money throughout the year. CAs provide loans to farmers as well. As such, giant retailers will not buy from the CAs. They’ll buy from wholesalers. But it is good to know how CAs operate in the context of mandis and their relations with farmers. The system has political aspects, too, which explains why farmers from only Punjab state are protesting against the new policy of the government of India.
For further information about mandis, see also:
The New Indian Express. (2020). How farmers view the existing Mandi system. https://www.newindianexpress.com/opinions/2020/dec/12/how-farmers-view-the-existing-mandi-system-2235123.html
Kapur, D., & Krishnamurthy, M. (2014). Understanding mandis: Market towns and the dynamics of India’s rural and urban transformations. International Growth Centre (Working Paper). https://www.theigc.org/wp-content/uploads/2014/10/Kapur-Krishnamurthy-2014-Working-Paper-1.pdf
Sinha, S. (2020). In Punjab, the centrality of the mandi system. Hindustan Times. https://www.hindustantimes.com/analysis/in-punjab-the-centrality-of-the-mandi-system/story-V1QIJJuShlfDIRiaE7ukQJ.html
Kiranas are equivalent to corner stores in advanced nations, although some of them can also be large stores. They are usually operated by family members and have a tradition of being in areas of commodity-oriented goods such as grocery stores.
For further information about kiranas, see also:
Gaurav, A. (2013). Superstore vs Kirana store: A consumer survey. Indian Retailer. https://www.indianretailer.com/magazine/2013/february/SUPERMARKET-VS-KIRANA-STORE-A-Consumer-Survey.m61-2-9
Mukherjee, S. (2020). How to start a Kirana store. OkCredit. http://okcredit.in/blog/how-to-open-a-kirana-store
Appendix B. Additional Conceptional Information
The zone of possible agreement (ZOPA) is a concept in negotiation in which the team (in this case authorized by Mr. Cartland) is allowed the extent to which they can give maximum concessions in each of the six areas before it can walk away, if the team has reason to believe that both sides are so far off that the differences are irreconcilable and that giving further concession is not possible to create a win-win situation. The Sat-Store handout indicates the ZOPA for each area.
This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2026 Sage Publications, Inc. All Rights Reserved
Get a 30 day FREE TRIAL
-
Watch videos from a variety of sources bringing classroom topics to life -
Read modern, diverse business cases
-
Explore hundreds of books and reference titles
Read next
More like this
Sage Recommends
We found other relevant content for you on other Sage platforms.
Have you created a personal profile? Login or create a profile so that you can save clips, playlists and searches