rsm461 session 3
MANAGERIAL
NEGOTIATIONS
Session 3: Advanced Negotiation Strategies
Jessica Zurawicki
Friday, September 26
AGENDA
Agenda
• Case: Moms.com
• Class Discussion
• Mini Negotiation Simulation
• Sluggers Come Home Video
• Next Week
• Role Assignment
CASE: MOMS.COM
Moms.com
• Two party, multi-issue negotiation
• Negotiation between the manager of an independent TV station and
the syndicated sales rep of a film company
• Buyer: Kim Taylor for WCHI
• Seller: Terry Schiller for Hollyville
• The following issues must be resolved:
• Price
• Runs
• Financing for the Agreement
• Once you are done negotiating, please come to the front of the room
to complete a summary sheet
Source: 2000 – 2014 Dispute Resolution Research Center, Kellogg School of Management
CLASS DISCUSSION
Discussion Questions
What was the price that you agreed upon? How did you determine this price?
1.
•
Consider the target and reservation price of both parties
•
WCHI Target Price = $30,000
WCHI Reservation Price = $60,000
Hollyville Target Price = $70,000
Hollyville Reservation Price = $35,000
•
•
•
Bargaining Zone = $30,000 to $60,000
Source: 2000 – 2014 Dispute Resolution Research Center, Kellogg School of Management
Discussion Questions
Did you recognize any trade-offs throughout the negotiation?
2.
•
•
Opportunity to be integrative and trade off runs and financing
Runs are more important to the buyer and financing is more important to the seller Source: 2000 – 2014 Dispute Resolution Research Center, Kellogg School of Management
Discussion Questions
How did you recognize trade-offs?
3.
•
Ways to get information to create value:
•
Build trust and share information
•
Ask questions
•
Give away some information
•
Make multiple offers simultaneously
•
Search for post-settlement settlements
Can you do more than recognize trade-offs?
4.
•
Yes – there is an opportunity to add issues!
Source: 2000 – 2014 Dispute Resolution Research Center, Kellogg School of Management
NEGOTIATIONS
Session 3: Advanced Negotiation Strategies
Jessica Zurawicki
Friday, September 26
AGENDA
Agenda
• Case: Moms.com
• Class Discussion
• Mini Negotiation Simulation
• Sluggers Come Home Video
• Next Week
• Role Assignment
CASE: MOMS.COM
Moms.com
• Two party, multi-issue negotiation
• Negotiation between the manager of an independent TV station and
the syndicated sales rep of a film company
• Buyer: Kim Taylor for WCHI
• Seller: Terry Schiller for Hollyville
• The following issues must be resolved:
• Price
• Runs
• Financing for the Agreement
• Once you are done negotiating, please come to the front of the room
to complete a summary sheet
Source: 2000 – 2014 Dispute Resolution Research Center, Kellogg School of Management
CLASS DISCUSSION
Discussion Questions
What was the price that you agreed upon? How did you determine this price?
1.
•
Consider the target and reservation price of both parties
•
WCHI Target Price = $30,000
WCHI Reservation Price = $60,000
Hollyville Target Price = $70,000
Hollyville Reservation Price = $35,000
•
•
•
Bargaining Zone = $30,000 to $60,000
Source: 2000 – 2014 Dispute Resolution Research Center, Kellogg School of Management
Discussion Questions
Did you recognize any trade-offs throughout the negotiation?
2.
•
•
Opportunity to be integrative and trade off runs and financing
Runs are more important to the buyer and financing is more important to the seller Source: 2000 – 2014 Dispute Resolution Research Center, Kellogg School of Management
Discussion Questions
How did you recognize trade-offs?
3.
•
Ways to get information to create value:
•
Build trust and share information
•
Ask questions
•
Give away some information
•
Make multiple offers simultaneously
•
Search for post-settlement settlements
Can you do more than recognize trade-offs?
4.
•
Yes – there is an opportunity to add issues!
Source: 2000 – 2014 Dispute Resolution Research Center, Kellogg School of Management