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NEGOTIATIONS CASE ANALYSIS

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NEGOTIATIONS CASE ANALYSIS
NEGOTIATIONS CASE ANALYSIS

Negotiations Case Analysis

Negotiations Case Analysis

Introduction

Negotiation performed between two or more than two individuals or groups. In the given case, CMI and CTS are the two companies. Negotiation's primary objective is to satisfy both (or all) the parties involved in the process of negotiation. In this case, the objective of CTS is to get acquired, and CMI aims to acquire CTS too. All the parties involved in the negotiation aim to satisfy their interests during the dialogue of negotiation (Van, De Dreu & Manstead, 2004).

Discussion

Financial Findings

The financial findings of the merger between CMI and CTS show that CMI has a budget approved which is more than what CTS' owners are asking for. Whereas, Randall is striving enthusiastically to give the lowest possible price so as to purchase CTS. In order to, completely acquire CTS at a reasonable price; CMI does not want to spend more than $600,000 along with the book value of CTS. As per Randall CTS's worth is around $625,000. Though CMI's parent company has approved a budget of nine million for the acquisition.

Resistance points from CTS

The resistance points that CTS have are that the offer of CMI is very low, and CTS is demanding more than its actual worth. As CTS are striving in order to get a favourable offer from Randall's side. Secondly, of CTS has to satisfy their concerns regarding their ownership stake after the complete acquisition. As they want to ensure their returns, which can only be possible, if they have a partial ownership in the new company. Another resistance point is that CTS' owners do not want to sell at a lower price or to a company that cannot give decent return; this is due to the owner's investment in the company.

Direct and Indirect Stake Holders

The direct stake holders in this merger are CTS and CMI. CMI as per Frank Randall wants to expand itself as a residential real estate financial services company by acquiring
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