TRX Inc. and its box supplier could not agree on a new price. The raw material cost to manufacture boxes increased and the supplier needed a new contract with its customers. TRX knew it was the supplier's number one customer and planned to refuse any price increase. However,to maintain a long-term relationship,TRX settled on a price just below the supplier's initial increase. Both companies were happy with the new contract. What would Mary Parker Follett call this conflict settlement?
A)mediation
B)arbitration
C)negotiation
D)compromise

Question

TRX Inc. and its box supplier could not agree on a new price. The raw material cost to manufacture boxes increased and the supplier needed a new contract with its customers. TRX knew it was the supplier's number one customer and planned to refuse any price increase. However,to maintain a long-term relationship,TRX settled on a price just below the supplier's initial increase. Both companies were happy with the new contract. What would Mary Parker Follett call this conflict settlement?
A)mediation  
B)arbitration  
C)negotiation  
D)compromise

Quizplus · Accepted Answer

Mary Parker Follett would call this conflict settlement a compromise. TRX and its supplier both made concessions in their negotiations to strike a deal that both could live with. While TRX did not accept the supplier's initial increase, they did agree to a slightly higher price than what they were paying before, and the supplier likely agreed to other concessions that satisfied TRX's needs.

TRX Inc and Its Box Supplier Could Not Agree on a a New