Management 639: Negotiations & Conflict
Final Exam – Spring 2016
Aggie Honor Code
“An Aggie does not lie, cheat, or steal, or tolerate those who do.”
I agree to uphold the Aggie Honor Code on this exam. I agree to not research this case analysis online for previous responses to this case. Online research into the questions asked is acceptable.
Naga Surya Sushanth Kothapally SK Printed Name Signature [Your initials constitute a legal signature online.]
Introduction
In this critical analysis I will review the failures of negotiation for a contract renewal between TexasAgs Oil Company and Cousins Corporation. The key failures identified were: planning the negotiation, identifying BATNA, role
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Knight. Though it was integrative negotiation, Petersen gained strong lead by opening formula price reduction, TexasAgs could have dampened the “first offer effect” by introducing new negotiator (Lewicki, Saunders, Barry, 2011, p. 41).
Power balancing & missing on intangibles: Cousins on many occasions put TexasAgs under pressure to accept one of their issue before they moved to discuss another one. This style of Mr. Petersen & Mr. Hansen put TexasAgs under immense pressure to accept concessions to keep the negotiation afloat. TexasAgs went into a submissive role due to tough stance demonstrated by Mr. Petersen.
Mr. Hertford missed the intangible aspect of integrative negotiation and believed winning contract should be a successful outcome. In fact it was other way round in this situation. TexasAgs are one of the largest and best known petrochemicals company There was no urgency to seal a deal with cousins as cousin do not yet have any competitative deal. TexasAgs could have utilized some of their strengths of quality supply and worldwide reputation to avoid extra few concessions, which were not accordance to industry norm. Both parties didn’t view the issues from a broad
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Reintiate negotiations by introducing new negotatiors in the equation, and discussing some of the isuses on table to achive pareto efficent frontier (Lewicki, Saunders, Barry, 2011, p. 62). Negotiators should find a bride solution in accordance with stratergies of integrative negotation. In current circumstances TexasAgs is taking heavy losess to get the contract signed, this is not good for a long term business relation.
2. Identify and work the BATNA. Also be aware of other negotiator’s BATNA. Remind other negotiator the advantages of TexasAgs offer relative to their unpredictable BATNA. Remind them in subtle way their BATNA is not as strong as it looks. The new production facility of competitor will not be operational until 1987. Resell rights, favoured nations and meet competition are not industry norm and they would not get it even with new competitor. (Lewicki, Saunders, Barry, 2011, p. 258).
3. Discuss the issues that are of interst to TexasAgs & renegotiate some of the agreeded concessions in light of request for a new unfavourable concession. TexasAgs initiated the neogtiation proactively to get a extended contract up until 1989. The ongoing deal is only until 1987 that anways is convered bythe existing
Lewicki, J. R., Barry, B., & Saunders, M. D. (2010). Negotiation: Readings, exercises and cases
Negotiations are a part of daily life whether we are aware of them occurring or not. In everything that we do there are preferred end results and the end results are likely to affect more than one person. The goal in this however, is to ensure that all parties are equally benefited from the actions and reactions that occur to create that end result. While some dealings are done in a more subtle manner without a great deal of negotiation per say there are other situations that would warrant more vocalized mutually acceptable compromises. The purpose of this paper will be to effectively explain a situation of which required negotiation on the part of both parties that almost all of us have endured and that would be the process of buying a vehicle.
Lewicki, R. J., Saunders, D. M., & Barry, B. (2006). Negotiation Readings, Exercises, and Cases Fifth Ed. Bill Brubaker, Mark Asher, A Power Play for Howard Negotiation (pp. 616-626). New York, NY: Mcgraw-Hill Irwin.
The most common negotiation that was used several times was voting for the majority just to get it over and done with. A few examples would ...
Lewicki, R. J., Saunders, D. M., & Barry, B. (2010). Negotiation: Readings, exercises, and cases. New York: McGraw-Hill Irwin
This detailed analysis concentrates on how Portakabin has started picking up a competative preference in the contract and offer of transitory or perpetual settlement by focusing on quality.
Paul Gaudin and Jean Fontaine negotiated a favorable contract for Pacific Oil Company in 1982 with Reliant Chemical Company. Gaudin and Fontaine prepared well for this negotiation, but they assumed it that negotiations would be quick and easy. Gaudin and Fontaine believed that even with the current and future market condition, a positive outcome could be obtained by offering the best service possible and having an established positive relationship. However, their aspiration to gain a favorable “re-negotiated” contract was hamstrung by competition; market expansion for vinyl chloride monomer “VCM”, and a different style of negotiation by Reliant.
The common rules of offer and acceptance need to be considered in determining if Gordon formed a contract with Ritebuild Ltd before they purported to withdraw their offer.
The negotiation process theoretically begins with the initial decision to bargain and the structure of the negotiation in terms of their negotiating partner, although some of these decisions may be constrained by its context (Barry & Oliver 1996, p132). In a private real estate transaction, for instance, the potential buyer has the option not to bargain and to take at initial price, or they could place an offer and work towards a price beneficial for both parties. However, in situations where the option to bargain is not limited, the relationship between the parties may be used to explain the negotiator’s initial decision. Empirically, it is found that parties who are close place greater importance in the preservation of the relationship through compromise and even yielding, rather than working in collaboration (Barry & Oliver 1996, p132). These parties may view the risk of damaging the relationship to be of greater loss than the losses incurred in bargaining and will therefore be less inclined to negotiate over other non-confrontational options that are available. It is also true th...
Negotiation has been used as a vital communication tool not only in business but also in social intercourse. It helps people make common agreement and avoid conflict. So we need to use the tactics which we learned from this course and books to do more practice, only in this way we can gain advantages in negotiation.
There are two negotiators dealing with the same potential client in the Middle East. Both have identical proposals and packages. One ignores the importance of cross cultural negotiation training believing the proposal will speak for itself. The other undertakes some cross cultural training. He/she learns about the culture, values, beliefs, etiquette and approaches to business, meetings and negotiations. Nine times out of ten the latter will succeed over the rival.
Thompson, L. L. (2007). The Truth About Negotiations. Upper Saddle River, New Jersey: Pearson Education.
The nature and terms of the contract may help in deciding whether the performance has become impossible or commercially difficult. Just because there is inflation, or a strike or a business loss, the party can’t be excused from performing the contract.
This essay will examine the subject of consideration in contract law. In doing so it will examine how and why the doctrine of consideration was initially used and how it has developed over time; by analysing how economic duress has come into play and developed over time to fill in the gap on whether consideration in a contract is sufficient or where one of the parties is threatening to terminate a contract unless the other party agrees to their first party’s demands and where the second party has no apparent choice but to do so.
Negotiation approaches are generally described as either distributive or integrative. At the heart of each strategy is a measurement of conflict between each party’s desired outcomes. Consider the following situation. Chris, an entrepreneur, is starting a new business that will occupy most of his free time for the near future. Living in a fancy new development, Chris is concerned that his new business will prevent him from taking care of his lawn, which has strict requirements under neighborhood rules. Not wanted to upset his neighbors, Chris decides to hire Matt to cut his grass.