Case Study Analysis Part B “Power Play for Howard”

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  • Topic: Negotiation, Miami Heat, Washington Wizards
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Case Study Analysis Part B “Power Play for Howard”
Team members MGT 445
April 17, 2011
Instructor

The Issues

Wes Unseld has a couple of objectives during the negotiation including resigning Howard and preserving the fiscal health of the organization, while making the fans of the Washington Bullets happy. In addition, Unseld must consider the competition for Howard’s services will be tough and he must decide on the team’s target point and resistance point to determine the Bullets’ bargaining range.

Bargaining Mix

The bargaining mix contains the different elements up for negotiation. The primary element in the mix is salary. The Bullets want to retain the player with as little financial investment as possible. The length of contract is another key element to negotiate. The Bullets are willing to commit to a few years. Another element in the mix was surfaced by the player, which consisted of fringe benefits such as limos and suites.

Interests

The interests for Unseld consist primarily in keeping the player with the team with the lowest financial investment. Unseld must also act swiftly to avoid other teams from bidding higher and maintain fan loyalty, which would be strengthened by keeping the player with the team.. A key interest for Unseld lies in maintaining team cohesion in spite of a large contract for this player, which explains his rejection of the limo and suites benefits.

Limits

The General Manager has limits on how much money and benefits he can bring to the table. Howard is looking for an amount he would be hard to match. I have a large amount I have to use but do not want to use it unless needed. I want to start low and lose him at the outset. I will have to walk away if I cannot beat the other sides offer.

Defining Targets and Opening...
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