Negotiation / Dispute Resolution- Viking Investments

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Paper Project:

Viking Investments

MBA ###: Seminar in Negotiation and Other Dispute Resolution Methods

Written by:
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11/17/12

Table of Contents

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Introduction……………………………………………………………….3 -------------------------------------------------

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Summary of Major Issues……………………………………………………………….. -------------------------------------------------

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Interest-Based Bargaining………………………………………………………………… -------------------------------------------------

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Assessment of Opposing Party (Pat Olafson)…………………………………………………………………. -------------------------------------------------

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Negotiation Preparation…………………………………………………………………. -------------------------------------------------

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Negotiation Strategy…………………………………………………………………… -------------------------------------------------

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Introduction
The purpose of this paper is to analyze a complex negotiation between Pat Olafson (Viking Investments) and Sandy Wood (WoodCrafters), from the perspective of Sandy. More specifically, this paper is written from the perspective of Sandy’s legal counsel. It is intended to provide Sandy with support and guidance for his negotiations with Pat. This negotiation holds critical significance for Sandy’s future, as business owner, a homeowner, and an employer. As Pat Olafson’s business seems to be thriving, Sandy finds himself at a critical impasse in his professional career. His business relationship with Pat has become one of financial dependence. There are three major financial issues, which Sandy must resolve in a timely fashion in order to avoid having to file for bankruptcy. These three issues include a renegotiation of lease terms, agreement on who is responsible for a lumber change order, and agreement on terms for the payment of $200,000 worth of loan principle. Sandy’s attorney will be addressing the following major topics: * Negotiation Preparation

* Interest-Based Bargaining
* Assessment of Opposing Party
* Negotiating Goals/Strategy
Interest-Based Bargaining
Given the complex and potentially contentious nature of this negotiation, it seems to lend itself well to Interest-Based Bargaining. Given the harsh facts that Sandy is faced with regarding his company’s financial position, it is possible that Sandy and Pat’s reservation points lack positive overlap or that this negotiation will involve no more that a small amount of bargaining surplus.. Furthermore, although Sandy is facing some very contentious issues, there are obvious benefits to maintaining a positive long-term relationship with Pat and Viking Investments. Therefore, applying a traditional negotiating style or a distributive negotiating style to this negotiation would likely be an ineffective approach for Sandy to take. In other words, with such a small amount of pie on the table, attempting to slice the pie isn’t likely to go in Sandy’s favor. A better approach would be to focus on the underlying interests of both parties and attempt to expand the pie. If understood and practiced by both parties, Interest-Based Bargaining seems to be an appropriate means to this end. In Interest-Based Bargaining, the following concepts are used to review and analyze each negotiation: * Interests

* Options
* Standards
* People
* Alternatives
* Closure
Interests- Sandy’s main underlying...
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