HBS Case Study- “Frasier”
Tamika Hernandez
Khadijah Holley
Course Number: 0204 – 689-102
Negotiation for the Business Professional
The Art of Persuasion & Negotiations
November 18, 2014
Professor: Neil Halloran

Frasier Case Study

1) Who are the parties to the “Frasier” negotiation, and what are their interests? How can the various parties influence the negotiation process and its outcome?
The parties involved in the Frasier negotiations are; Paramount Television Group, National Broadcasting Company (NBC), and the actor Kelsey Grammer (Owner) . Marc Graboff (ExecutiveVice President) led the NBC negotiation team which included Scott Sassa (President of NBC West Coast) and Jeff Zucker (President of NBC entertainment). Kerry McCluggage (Paramount’s Chairman) led the negotiation team for Paramount and was sometimes joined by Gary Hart, president of Paramount.

2) What are NBC’s BATNAs? What are Paramount’s BATNAs? Of these BATNAs, which is the best option for each entity? NBC had two BATNA’s: keep Frasier regardless of the increased cost (take a financial hit) in hopes to keep it as a “tent pole” to draw in its viewers to the new shows line-ups after Frasier, or buy a comparable comedy show from another network (such as Dharma and Greg) that will bring in the same audience group 18 to 49. The only downfall was that could cause a bidding war that could increase programming expenses. Paramount’s BATNA’s were to either sell the sitcom to CBS (sister company) or agree to keep the show at NBC for less money. The best option for each group would be to keep Frasier at NBC because it would guarantee Kelsey Grammer (Frasier actor) and Paramount the three year run that they wanted and also provide NBC with the “tent pole” to launch new shows following Frasier at 9:30pm.

3) What is your best estimate of their respective reservation