Texoil Case Feedback

Only available on StudyMode
  • Download(s) : 107
  • Published : February 15, 2012
Open Document
Text Preview
Texoil
 Case
 –
 Seller
 Position
 –
 Analytical
 Essay
  As
 the
 seller
 during
 the
 Texoil
 case,
 I
 have
 prepared
 the
 negotiation
 with
 one
 thing
 in
 mind:
 how
 will
 I
  justify
 the
 price
 I
 want
 from
 the
 service
 station?
 This
 is
 why
 A.
 and
 I
 opened
 our
 discussion
 with
  rational
 arguments
 about
 the
 market
 in
 LA’s
 port
 and
 why
 it
 would
 represent
 a
 great
 opportunity
 for
  Texoil
 to
 buy
 our
 station.
 I
 think
 that
 we’ve
 been
 quite
 efficient
 in
 claiming
 value
 for
 our
 offer.
  It
 enabled
 us
 to
 anchor
 with
 an
 opening
 offer
 at
 USD
 750,000.
 D.
 instantaneously
 re-­‐anchored
 with
  an
 offer
 at
 USD
 400,000
 justified
 by
 its
 inability
 to
 give
 more.
 Then,
 we
 decided
 to
 test
 Texoil’s
  assumptions
 to
 see
 to
 what
 extent
 the
 offer
 was
 credible.
 It
 seemed
 that
 he
 could
 only
 afford
 this
  but
 we
 did
 not
 believe
 him
 because
 it
 was
 unclear
 to
 us
 that
 D.
 was
 not
 the
 person
 of
 charge
 of
 that
  business.
 I
 think
 that
 lack
 of
 trust
 is
 the
 main
 reason
 of
 our
 failure
 to
 close
 the
 deal.
 We
 should
 have
  better
 listen
 to
 him.
 Soon
 we
 realized
 that
 there
 was
 a
 negative
 ZOPA
 as
 our
 reservation
 values
 were
  quite
 far
 from
 the
 other.
 And
 our
 BATNA
 was
 more
 interesting
 from
 what
 D.
 offered
 us.
  However,
 I
 was
 pretty
 pleased
 with
 the
 way
 we
 tried
 to
 overcome
 this
 negative
 ZOPA
 that
 appeared
  following
 our
 anchorages.
 Yet,
 both
 sides
 remained
 on
 distributive
 bargaining
 until
 the
 end.
 Even
  though
 we
 were
 focused
 on
 joint
 gain,
 cooperative
 and
 long-­‐term,
 our
 negotiation
 was
 at
 an
  impasse.
 Indeed,
 as
 we
 failed
 in
 identifying
 the
 multiple
 issues.
 We
 lack
 some
 thinking
 outside
 of
 the
  box
 in
 our
 preparation.
  I
 think
 that
 our
 slowness
 to
 react
 wad
 due
 to
 the
 fact
 that
 pretty
 soon
 a
 Joint
 Venture
 was
 offered
 by
  D.
 Then
 we
 have
 been
 talking
 about
 meaningless
 figures
 and
 focusing
 on
 numbers
 and
 not
 interests.
  Another
 lesson
 of
 that
 missed
 deal
 was
 the
 fact
 that
 anyone
 should
 always
 have
 an
 Excel
  spreadsheet
 when
 discussing
 numbers.
  Besides,
 we
 never
 identified
 the
 compatible
 issues
 of
 the
 deal
 (my
 employment
 and
 their
  management).
tracking img