...1. What was your final outcome? We closed the deal at $200,000 as an advance for the author. 2. Do you consider your outcome to be win-win? Why? I consider this to be a win-win for both the parties. As a publisher, my cap is $350,000 and the deal closed at $200,000 which is far less than the amount allotted to me. For the agent also this would be a win situation as $200,000 is a very high amount for a first time author. 3. Briefly describe the strategies you both used? Summarize your discussion in less than 100 words Both the parties based their discussion on Anchoring. MESO was also used at some point in the negotiation. Here are some of the strategies used by both the parties. Agent: 1. Started with a figure which is very higher than what was actually deserved by the author. 2. Stressed the fact that author might not be interested to write the book which made the publisher think twice about his price as the publisher was really impressed with the author. 3. Used the author's technical expertise and the proposal as a good leverage to influence the publisher. Publisher: 1. Counter Anchored the Agents figure with a number which is far lesser than what the agent quoted and then kept on increasing the amount in small amounts during the negotiation. 2. Used the company's reach into the mass media as a leverage to influence the agent's decision. 3. Offered to give the Agent's other authors also a good chance if this deal goes through. 4. Used a bluff that the author...
Words: 288 - Pages: 2
...salesperson on FirstAmerica Bank's trading floor is assisting a top salesperson, Linda, on a deal to finance the construction of a new cruise ship for Poseidon Cruise Lines. While the terms of the deal are being worked out, he realizes Linda has taken advantage of the Poseidon executives' unfamiliarity with complex financial structures to build an outrageously high profit margin into the deal. When the executives become suspicious of the prices FirstAmerica is quoting, Linda asks the protoganist to send them an intentionally misleading fax so that the deal will not be held up. Holding the personal belief that "before a blind man you shall not put a stumpling block," he does not know if he can bring himself to send the information. Back ground: One guy ( Mr. Big as assumed name ) had been worked on the FirstAmerica Bank’s main trading floor in New York, Specialized in cross-currency interest rate swaps as an assistant manager. March 1986 At work he worked with 3 vice president and especially Linda who has a extremely volatile and hot temper, but she was good at her work to pursuing new business, close the deal and ensuring that she received full credit for any profitable transactions. On September 1986 he start working with Linda and get use to her style. Then start working with Poseidon Cruise Lines that deal with FirstAmerica’s Bank, mostly 20-30 million transaction. But the new deal to build the most luxury French cruise. The cost of Poseidon Cruise will be 700 million...
Words: 1617 - Pages: 7
...The Joint Comprehensive Plan of Action (JCPOA), or Iranian Nuclear Deal in vernacular, that was signed earlier this year is the culmination of a decades-long diplomatic arm wrestle between Iran and the United Nations. Iran, the European Union and the permanent members of the UN Security Council collectively referred to as P5+1 (United States, United Kingdom, France, Russia, China and Germany), reached a final agreement on July 14, 2015 in Vienna after many rounds of negotiations. The deal is meant to curb Iran's nuclear program, which has been a prolonged international safety concern, in return for incremental relief from the UN sanctions that have economically isolated Iran for years. The JCPOA requires that Iran cut its stock of enriched uranium by 98%, enrich uranium up to only 3.67%, and eliminate 2/3 of its current centrifuges. Iran cannot build new uranium-enrichment facilities, and nuclear activities will be restricted to one facility. Additionally, Iran has given the International Atomic Energy Agency (IAEA) extensive access to its nuclear facilities for inspections. The physical requirements will last 15 years, while monitoring parameters will be in effect for 25 years. As Iran is confirmed to be in compliance with the deal, sanctions will be lifted and Iran will receive $100 billion of its frozen assets. Hassan Rouhani, the current Iranian president, and his administration hope the agreement will revitalize the country's economy. In exchange, the other parties predict...
Words: 851 - Pages: 4
...is less capable of handling conflicts domestically than on her job. The mother is bereavement counselor, and it is suggested numerous times that she needs to distance herself from her job when she’s at home. She has difficulties dealing with the constant intrigues between her daughters. She tends to take Rachel’s advantage, because she’s the tidy and conscientious one while flora is a mess and desperately trying to get her mother’s attention. (…)It made her feel taller, braver, cleverer, and Rachel was all those things already(…)The mother neglects her children and is not willing to deal with their problems. This obviously had an effect on the two sisters and in particular on Flora. The mother deals with her client’s problems and issues professionally and therefore she has a great need of a safe and loving environment, when she’s of work. She needs to outdistance the client’s problems and deal with her own problems instead. The children’s perpetual fights are too much for her to dealing with. (…)All day she had sat tearful needy people. It was her birthday, and she wanted to relax. She wanted to feel loved(…) In the end her neglect of her daughters leads to her “loss” of not only Rachel but also Flora. She involuntarily pushes her daughters away from her by not dealing with their disputes. The relationship between the two sisters is mostly characterized by...
Words: 653 - Pages: 3
...Ethics At Airbus 1) In each of the cases described above who benefits and who suffers from the alleged ethical and legal lapses of Airbus? Ans – When we observe across cases, its mostly the state and the airline company who is at loss due to these legal and ethical lapses Airbus – Sabena Case: As long as Van Espen’s case does not prove anything against any party, Airbus has gained significantly from the deal as it would have earned around $5bn order from the deal. The party which suffered significant loss should be the state as the Belgian government had 50.5% stake KAC – Airbus: Airbus gained a much needed order bill of around $1.1bn and possible order of $0.9bn, the employees of KAC Mr Al Mishari and its subsidiary ALAFCO, Dr. Mallalah & Mr El Fekih possibly would have earned (only a possibility) whereas the state of Kuwait higher costs, lost cash, earned higher depreciation costs and probably had to write-off it off India Inc. & Airbus: Airbus like all other cases earned the order book despite Boeing offered a deal to the Indian government $140mn cheaper. The state and eventually the airline paid $140mn more, raising its depreciation costs, debt service costs and got hold of carriers which were not properly tested thus risking the life of passengers Across cases observed, Airbus has been smart enough to save itself a persecution almost anywhere and has got large order books worth billions of dollars acquiring half of the market share but if Airbus is found...
Words: 981 - Pages: 4
...e-commerce does Groupon Now! utilize? * Ubiquity: Groupon now offers local deals at any moment of the day. * Global Reach: Groupon features a daily deal on the best stuff to do, see, eat, and buy in 48 countries, and soon beyond (read: Space). We have about 10,000 employees working across our Chicago headquarters, a growing office in Palo Alto, CA, local markets throughout North America and regional offices in Europe, Latin America, Asia and around the world. * Interactivity: Since the payment information is saved with the Groupon account you can just tap on a deal to purchase it. The app will give you a scannable barcode that the shop offering the deal can read using the Groupon NOW app. * Personalization and customization: Groupon personalizes “deals” for users who supply some information about themselves, such as their zip code, gender and age, and it will make sure you see the deals most relevant to you. * Information density: Groupon now share with the user many promotions according to the place, so the user can compare options and select the one he likes more. * Richness: If the user finds a deal he or she likes, that person “buys” the deal online via Groupon. The user can print the voucher or bring it up to display on a mobile device. 2. What value does this service provide subscribing merchants? What value does it provide customers? SUBSCRIBING MERCHANTS * A deal in Groupon becomes available only if a certain number of people sign up for...
Words: 322 - Pages: 2
...impossible to deny that majority of population is stuck in a boring routine and would love to explore different things. In addition to that the world is more and more “online”, so it became logical that creating a website/app to help people find attractive and cheap deals to have fun would be a success! They solved a really complex problem, which is engage with local customers so it’s possible to adapt Groupon to local communities. 2) What is the Groupon promise? How does the Groupon Promise affect a consumer’s perceived risk and cognitive dissonance? According to Groupon’s founder, his company promise is: “Any costumer can return a Groupon, no questions asked - even if they used it - if they feel like Groupon has let them down.”. Giving to consumers the opportunity of “returning” a coupon even if it was used without any questions reduces post purchase anxiety or tension. Some studies shows that satisfaction affects consumers chances to repeat a purchase of determined brand. With that in mind it became possible to affirm that consumers feel secure about their purchase due to Groupon’s return policy. 3) Describe the five-stage purchase decision process for a typical Groupon user. A- Problem Recognition. Groupon shows new deals (via email/notification etc) that intend to attract consumers needs, offering an opportunity to do something that is not commonly done by the consumer. B- Information Search: A Groupon offer will usually start an “internal search,” so the consumer will reflect...
Words: 581 - Pages: 3
...supplier relationships. These practices represent a reasonably comprehensive (though certainly not exhaustive) approach to maximizing value in important supplier relationships. While not a recipe for guaranteed success, these practices comprise a roadmap for systematically negotiating and managing key supplier relationships more effectively. Today’s sourcing and procurement professionals face a multitude of negotiation challenges: from internal negotiations with business units around sourcing strategies; to negotiating agreements with single and sole source suppliers; to ongoing negotiations over individual statements of work, change orders, issues of scope, and the like. This excerpt describes the four best practices related to negotiation and offers some practical ideals about how to implement them. About the study The study was based on data collected from sourcing and supply chain executives at more than 100 companies about relationship management practices with their key suppliers, across six fundamental areas: Evaluation and Selection Negotiation Post-Deal Relationship Management Termination Performance Monitoring Portfolio Governance and Management One hundred fifteen survey respondents were asked to answer scaled questions on specific practices, as well as open-ended questions about their company’s overall approach to supplier relationship management. The bulk of the study details specific findings about each practice, including a...
Words: 8901 - Pages: 36
...Negotiation techniques- types of negotiations Distributive negotiations are negotiations that usually take place between people or companies that have not done business before and it is usually a one-time deal and one person is going to get a better deal than the other. This kind of negotiation could include selling a car or a house or buying something and bargaining the prize down. In this type of negotiations each person has their own interest at heart and tries to get the best deal possible and is not thinking about the other person and since this is a one-time deal with a stranger the way the other person sees him does not really matter. When you enter into a distributive negotiation it is important to try to make the other person make the first offer and then you can counter offer, also not to give out any information that could help the other person get leverage over you and therefor get the better deal. Integrative negotiations are negotiations that take place between one or more individuals and/or company’s. It usually involves dealing with many issues instead of just one like in distributive negotiations. In these kinds of negotiations everyone is going to benefit from the deal and the people involved try to find a solution that will be good for everyone, of course one can have more strength and therefor walk away with the better end of the deal but the purpose of this negotiation is to find mutual grounds that they all can agree on. These kinds of negotiations could...
Words: 842 - Pages: 4
...NEGOTIATION S P E C I A L R E P O R T Program on Negotiation at Harvard Law School Helping you build successful agreements and partnerships Business Negotiation Skills 5 Common Business Negotiation Mistakes In this Special Report, the experts and editors from Harvard’s Program on Negotiation offer advice from past issues of the Negotiation newsletter to help you avoid common pitfalls and build better relationships and agreements with your colleagues, clients, and those closest to you. You will learn to: ■ Identify opportunities to expand the pie of resources. ■ Take steps to ensure you don’t overvalue your assets. ■ Guard against a backlash from less powerful parties. ■ Gain a keener understanding of what you really want. ■ Avoid being hurt by overcommitment to a deal. www.pon.harvard.edu $25 (US) Program on Negotiation at Harvard Law School Negotiation Editorial Board Board members are leading negotiation faculty, researchers, and consultants affiliated with the Program on Negotiation at Harvard Law School. Max H. Bazerman Harvard Business School Iris Bohnet Kennedy School of Government, Harvard University Robert C. Bordone Harvard Law School John S. Hammond John S. Hammond & Associates Deborah M. Kolb Simmons School of Management David Lax Lax Sebenius, LLC Robert Mnookin Harvard Law School Bruce Patton Vantage Partners, LLC Jeswald Salacuse The Fletcher School of Law and Diplomacy, Tufts University James Sebenius Harvard Business School Guhan Subramanian Harvard Law...
Words: 4999 - Pages: 20
...1. Negotiation Trap: I must analyze what type of bargainer I am. Identifying my type helps me avoid fall into the negotiation trap. 2. BATNA: I must analyze what my BATNA is. This is my reference for the negotiation. 3. Focus on Interest: I will approach the negotiation with a focus on interest of the other party. Identifying the possible interest of other party involved in negotiation will help me analyze the possible ways of expanding the pie (creating more value). 4. Integrative Bargaining: Focus more on Integrative bargaining. Analyze multiple issues and interest, creating and claiming value and cooperative problem solving. Consider possible trade-offs to avoid conflicts and have a win-win situation. 5. Bargaining Zone: I must analyze my bargaining Zone. The zone where the buyer’s and supplier’s negotiation ranges overlaps. 6. Reservation Price: I have to write down my reservation price. This determines when to expand the pie create more value and when to walk away from negotiation. 7. Identify the power in negotiation: Identify exactly the type power in negotiation and analyze the persuasive skills required to move from perceived power to realized power. 8. After striking with the initial deal, I will have to keep my options open for re-anchoring. Negotiation Trap: * Identifying the type of bargainer helps to identify the potential traps. * Soft bargainers agree on deals worse than the BATNA and they fail to achieve best...
Words: 807 - Pages: 4
...Personality and Communication in Negotiations BUS / 445 September 1, 2014 Professor Kerri Buie Negotiating the Purchase of Our Home Negotiations are constant in life and happen to anyone who interacts with other people every day. Everything from how to a project at work is handled to negotiating the chores with your spouse is handled by negotiation. Whether we are aware of this happening or not, it is a significant part of how we interact with almost everyone. With the amount of time we spend negotiating it is surprising on how little time we spend analyzing and perfecting our negotiating skills. Communication and personality are key components of any negotiation and will be the keys in a successful outcome for everyone involved. I recently was involved in intense and long term negotiations in the fall when I purchased my first house. The Personalities In the beginning phases, all of the parties that would take part in the negotiation were acquainted by various means. The real estate agent that we chose was a friend of one of my wife’s work colleagues. His wife was a mortgage broker that was to assist us with the acquisition of our loan and the eventual purchase of our home. Throughout the process, however, we switched mortgage brokers due to a colleague of mine recommending a broker who turned out to be able to acquire a better rate. The other side of the negotiation included the real estate broker for the seller...
Words: 1324 - Pages: 6
...(being realistic) in terms of selling your content or product, if this deal fell apart. For the buyer, it's what you think you could do in terms of replacing the content or product, and the price involved, if the deal fell through. RESERVATION PRICE = the maximum or minimum--depending on whether you're the buyer or seller--at which you would be indifferent between doing the deal, and not doing the deal If you are the seller, this is the minimum price that you'd take; it's one at which you're indifferent to whether the deal gets done. If it's a dollar less, you'd prefer to walk; if it's a dollar higher, you'd do the deal. If you're the buyer, it's the maximum price you'd pay, and you'd be indifferent to doing the deal at that price point. Again, if it's a dollar higher, you walk; if a dollar lower, you'd take the deal. ZOPA (ZONE OF POSSIBLE AGREEMENT) = When the parties are "in the same ballpark" with respect to terms and pricing. Final Assignment We're going to analyze a real, albeit slightly older, deal here from the perspective of the main players (and there are several). Hopefully those players (at least their companies) and the property is familiar to you; this deal negotiation took place in 2001. The case in question is on the Harvard Business School Press site; access it (at a cost of $3.95) using this link. Here are the topics I want you to address in your analysis of this deal negotiation; I'm going to introduce into our work here a couple of new-ish concepts...
Words: 617 - Pages: 3
...Groupon is available in 375 American cities and 40 countries. Their subscriber base has grown from 400 in 2008 to 60 million today. According to Forbes magazine, Groupon is the fastest growing company in history. Groupon is a service where subscribers are offered at least one deal in their city each day but a certain amount of people need to buy into the offer before the coupon discount is valid. Once the minimum number is met, Groupon and the merchant split the revenue. An example of how it works is that a yoga studio might offer a $100 membership for $50 if 200 people participate in the offer. Once 200 consumers have indicated interest, the deal “tips” and Groupon and the yoga studio each receive 50% of the revenue. Groupon has a policy called “The Groupon Promise” that any customer can return a Groupon, no questions asked, even if they used it. Groupon also has other services such as Groupon Stores which permits merchants to create their own deals and send them out to their own audience. Groupon also have a mobile service called Groupon Now, an app where consumers pick 2 options “I’m Hungry” or “I’m Bored” and then the phone transmits it location to Groupon services and display a list of nearby deals. Part of the reason Groupon has grown as quickly as it has is because...
Words: 1164 - Pages: 5
...of homeless college students. She also utilizes real names and ages of real people, so the reader can feel and see the reality. Bader continues to focus on the lack of programs of day care that are out there for people who are homeless and with kids. She uses quotes that clearly show how unprepared this country is when it comes to homeless students she strategically inputs the following quote “As far as I know, no college has ever asked for help in reaching homeless students,” Another way Bader could have made her point a bit more explicit is by writing her experience as a professor and having to deal with a lot of students whose home situation is affecting their schoolwork. As a professor that took the time to write this piece we can clearly see her concern about her students. Bader could have giving the reader personal experience to further prove her point, and about how she deals with this type of...
Words: 310 - Pages: 2
