25_InClassActivity_BirchPaperNegotiationsAgenda

25_InClassActivity_BirchPaperNegotiationsAgenda - ACC 333...

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Unformatted text preview: ACC 333 (Farrell) Class 25 Fall 2011 Page 1 of 2 Birch Paper Company Agenda for Transfer Pricing Negotiations 1) We will first divide into groups that will represent the different divisions of Birch Paper --- Northern, Southern, or Thompson. As a group, you will then negotiate transfer prices between divisions. 2) The negotiations should be based on the facts in the case, including the costs identified and the fact that Northern may purchase from outside. You will be negotiating the prices at which the goods will be transferred from one division to another. 3) For the first three minutes, get into your divisions and do two things: a) choose a spokesperson b) determine your strategy: i) if you re Southern, decide what range of transfer price your division will be willing to sell to Thompson for and what your first proposal will be iii) if you re Thompson, decide what range of transfer prices your division will be willing to accept from Southern and will be willing to sell to Northern, and what your first proposal might be ii) if you re Northern, decide what range of transfer prices you re willing to accept from Thompson 4) After three minutes, Southern gives first proposal of their transfer price to Thompson. After three minutes, Southern gives first proposal of their transfer price to Thompson....
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25_InClassActivity_BirchPaperNegotiationsAgenda - ACC 333...

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