French Government

Topics: Investment, Tax, Form of government Pages: 3 (987 words) Published: November 18, 2013
1a. Mouse - BATNAs

Although the parties in this case all have respective BATNAs, none are very good and would lead to a “lose-lose” proposition. For example, Mouse could disregard the positions and interests of the Mayors and attempt to move forward with the project. However, this would lead to risks such as project delays, increases in budget, lost revenue and diminished reputation in other foreign countries. Also, it would lead to a bad public relations image for the company. Therefore, the Mouse BATNA is very weak and it is in their best interest to find and agreement that satisfies all parties.

The French government’s BATNA is very weak as well. The French government could choose to disregard the positions and interests of the Mayors as well. However, appearing to be disloyal to the communes would lead to severe political issues across the country. Also, if the project did not progress smoothly it would risk the time, effort and capital invested by the government. Lastly, issues with the Mouse project could negatively impact France’s reputation with other foreign investors. It is also in the French government’s best interest to reach an agreement that satisfies the other parties.

The Mayors have the strongest BATNA in the case. They could decide not to intervene if the farmers in their communes protest by blocking the roads to the project. This would adversely impact the project and the investments that have been made by Mouse and the French government. Mouse would have no control over the protests or the difficulties it would create for the project. The French government would not be able to intervene to stop the protest by using police force because it would create negative press and political issues throughout France. Therefore, the Mayors should use this BATNA as leverage to reach an agreement that addresses their positions and interests.

1b. Mouse - Interests of Mayors

The primary interests of the Mayors are financial...
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