Negotiation: Elements, Interests, And Options For Brandon And Roger

Question 1

List and Explain all the elements of principled negotiation (i.e. provide details).

Question 2

Identify and elaborate on the Interests of:
(i) Brandon
(ii) Roger

Question 3

Analyse the interests of Brandon and Roger in their negotiations and propose 3 possible options for them. Explain why each option is plausible for both parties.

Question 4

List and Analyse the Best Alternative to a Negotiated Agreement for Brandon and Roger, respectively (i.e. state the BATNA for each party and explain your answer) in their negotiation.

Elements of Principled negotiation

The purpose of negotiations is to arrive at peaceful agreements that satisfy the needs of both parties. To arrive at a friendly understanding, some guidelines help conclude, among the instructions include:

Focusing on the issues involved – This is the first principle when entering into a negotiation, it is best that the topic of discussion mainly involves the problems that have brought about the disagreement (Feltham, 2017). When people fall out of matter, there is a possibility of raising unnecessary risks.

Finding win-win solutions – In most cases, differences arise when the two parties involved want a more significant share, or they think they are being mistreated in comparison to the other. In this kind of a case, the best way to peacefully conclude the negotiation is to find a solution that benefits both the involved parties.

Being objective during the negotiation – during the negotiation, it is advised that both the parties have a better understanding of what they are conflicting about. The knowledge of the situation will give each a stronger standing ground.

Having a minimum expectation – before starting a negotiation, both the parties should have a minimum hope to which they set for the negotiation. When the opposite party goes below the expectation, then the first party visualizes signs of oppression on their side. The minimum expectations enable the parties to know when to speak out.

Separating emotions from the issues – when dealing with negotiations, it is best advised that the parties don’t act out of excitement like showing high levels of aggression or sadness, this kind of reaction may have a negative impact on the opposite party and in turn lead to a contrary conclusion of the negotiation process (Grieger & European Parliament, 2016).

Dealing with the negotiation issues one at a time – When aiming for peaceful negotiation, then order for the negotiation process is much needed, the best way to achieve order in the process is laying out the issues at hand and dealing with them one at a time.

Understanding the other person – when assessing a negotiation situation, it is very helpful to know where the other party stands, whether the other person has control over the factors at hand may prove to be beneficial. This knowledge may help understand the course of the negotiation or arrive at an understanding conclusion (Halff, 2011).

Being flexible over the course of the negotiation – some negotiations may tend to go out of topic and it proves to be helpful is the parties can understand the situation and bring it back to the subject. A negotiation can be solved in a civilized manner if the parties are prepared for anything that happens and manages it.

Interests of both the parties

Brandon is a university business graduate, after graduation, he did not easily find a job as there was hardly any company that was willing to take him in, due to this, Brandon resulted to starting his own company by the name of Vermont Seal (VS) which produced and sold Rubber Seals. Even though creating this company has brought Brandon some reputation, Brandon has always had a struggle with recognition from his peers (Holbrook & Cook, 2013). Recently, Vermont Seal has managed to develop a promising brand of rubber seals, and Brandon has been selected to negotiate a deal with his former friend Roger who represents Bodson Industries (BI). Brandon, acting on behalf of the company and himself, has some interest from the negotiation which may include:

Capital – Brandon represents the interests of Vermont Seals, a company which has significantly invested in the research and development of Rubber Seals. Vermont seals require a minimum amount of $500, 000 within a period of the next four months from the deal with Bodson Industries. In conjunction with Bodson Industries, Vermont Seal will use the revenue in the production of the new Wonder Seal improved washing machines (Hüffmeier & Hertel, 2011).

Grand Launch of the brand – Brandon knows that the other major companies are waiting to see whether the Boston industries are willing to take in the wonder seal before they decide to incorporate it into their companies. Brandon needs to reach an understanding with the Bodson Industries so that the other companies can start organizing the wonder seal in their organization.

Education Expenses – Brandon is in the process of concluding his executive MBA, and he needs capital to cater for his expenses. Brandon believes that by striking a deal with Bodson Industries, he will gain the revenue he needs to complete his education.

Friendship restoration – Brandon knows that he will be meeting his old friend Roger for the negotiation, a friend that he has not seen for nearly ten years, even though this is not a formal reason for the meeting, Brandon hopes that he can rekindle the connection that was once there between them (Hüffmeier & Hertel, 2014).

Roger is also a university graduate just like Brandon, after their graduation, Roger was more fortunate for he found work and experience in a company called Bodson Industries (BI) which is a leading company in the production of washing machines. After years of hard work and expertise, Roger was promoted to the position of CEO, a position he was awarded for his outstanding business acumen despite his young age. Roger has been selected to represent the Bodson Industries in a negotiation that is to be held together with Vermont Seal, A company which is proposing a new promising brand of Rubber Seals (Li & Sadler, 2011). Roger wishes to represent the company and himself at the negotiation table, and some of his interests include:

Possible Options for Resolving the Negotiation

Job preservation – Some rumors are going around the Bodson Industry claiming that the directors and shareholders are eagerly waiting to fire him if he fails to reach to an agreement with Brandon who is representing the Vermont seal company. Even though this might be a rumor, Roger recognizes that he is under a lot of pressure to reach an agreement with Vermont Seals or face the risk of losing his job and his reputation. Roger has to reach a deal with Brandon with the little budget of $700, 000 which he has been allocated to prove his excellence in business (Mattiske, 2011).

Respect and Recognition – Roger was promoted to the position of CEO at a very young age and has been under heavy scrutiny from his directors and shareholders. Roger needs to re-affirm his CEO capabilities to his board of directors, and he knows that the only way to earn their respect is by coming away with a deal with Vermont Seals.

Meet personal expenses – There is an additional member that has recently joined the Rogers family, a baby, with the coming of the baby, the costs around the home will increase rapidly. Therefore Roger has to find a way to meet the extra costs. Roger believes that the additional amount of revenue he needs will be found by striking a deal with Vermont Industries. Roger also believes that his continued continuity at Bodson Industries can be supported by the deal.

Restored friendship – Roger is also aware that he is meeting his old friend for the negotiation, he also secretly hopes that the harmony he once had in the university will be restored (Mayer, 2015).

There are several ways through which negotiation can be brought to an understanding between the two parties. However, there are only several that may help Roger and Brandon reach an agreement that they will both benefit from. These methods include:

This is a method that aims at bringing a better understanding of the other party to a clear. This method mainly involves asking questions like “what price would work for you.” This method also aims at making each party have a visualization on whether the two parties are speaking on the same terms like cost range. This method can also be used to direct the conditions of the agreement towards favorable conditions (Mor & Suppes, 2011).

For Brandon, This method would enable him to know the amount of capital that Roger would be offering and understand the reason behind the amount he is proposing. This method would also allow Brandon to identify more about the Babson Investments by asking Roger for information; this would involve asking a question like “who runs your company.”

Best Alternative to a Negotiated Agreement (BATNA) for Brandon

Roger is more interested in finding out whether the amount of capital that Vermont Seals need is in the range of the budget that he was offered. After finding out the necessary money, Roger can alter the amount by negotiating toward an acceptable price. Since both the parties do not know how much the other party has, Roger, can ask questions like “How would $600, 000 do for you” (Prasad & Narayanan, 2011).

This is a method that involves showing to the other party that you are the best option; this method will include giving a little bit of history on how the organizations have had experience with the matter at hand and how they have handled it efficiently. The main reason behind using this Option is to create a greater assurance that the other party will decide to go along with conditions that are being offered. This method can be applied in the given scenario and can benefit each party differently.

Brandon – For Brandon, his most significant interest at the negotiation table is the capital because it assures that the company will have continuity and he will have the revenue he needs for his education. The best course of action to ensure that they get a little more or equal to what they are asking for is by giving a brief history on how the Vermont Seal has had a great history on learning how to create the best quality seal. This method will create an impression on Roger and possibly convince him to give a fair share of capital (Prasad & Narayanan, 2014).

Roger – Roger need the negotiation to go through as his future at the industry depends on it, he also need to complete the agreement within the budget that was provided to him. Roger needs to create a good impression of the company and at the same time create a level of confidence for his friend Brandon that will encourage him to push forward the deal with Badson Industries. Roger should also talk about the company to show that there will be an optimal performance about the agreement and also assure that the company will honor the deal which might increase Brandon’s confidence (Ramsbotham, 2016).

This option is used when the project in the discussion is needed urgently; this method should be supported by explaining why the company is the better options and the immediate benefits that are to be achieved by bringing forth the execution of the project immediately. This option can also be supported by presenting prototypes to the other parties; this can be aimed at showing the other the level of readiness for the association.

Best Alternative to a Negotiated Agreement (BATNA) for Roger

Brandon – for Brandon, focusing on the urgency of the project will greatly assist the company and his studies,  if Brandon can get the project to be executed in time and earn him revenue, then he could be in time to pay for his studies. Brandon can focus on the urgency of this project by explaining to his friends the position of his company and how important the deal is to the success of the company (Seltzer, 2013).

Roger – For Roger, pointing out the urgency of the deal stands to benefit his work and his family, he can explain to his friend of how his job is heavily relying on the success of this deal and how the expenses are increasing in his home which is associated with the increase in the family members

Even though the negotiation is expected to go on smoothly, there are also alternatives for both the parties if the mediation does not reach a common conclusion. For Brandon, the other options he has for this negotiation include:

Loss of company – Brandon knows that if the deal with Bodson Industry does not come through, then the Vermont Industries will be absorbed by another company and alongside with all its achievement. If action like this were to happen, the company incorporating the Vermont Industries would also inherit the new Rubber seals and the benefits that would be brought about by launching a promising product as such (Shapiro, 2011).

Uncertain Future – the deal that is resented by Boston industries may offer a very bright future for the Vermont industries, Brandon would have an excellent launch for the product to other companies and start on the production of new washing machines. If the deal were not to happen, then the Vermont Seals crumble and be absorbed by another company, this would leave Brandon in a terrible position.

Taking up loans – Brandon is in the process of completing his executive MBA, and he needs the revenue to finance his education. Brandon is relying on the money from the deal to finance his activities, and if this were not to happen, he would only result to bank loans. Even though bank loans would not be very ideal for Brandon, it would be the only means he would finance his education expenses.

Lack of restored friendship – Brandon had secret hopes that his long-lost harmony would be restored by going through the negotiation process. If the negotiation does not happen it would mean that their friendship would not be restored, if the negotiation went sideways, it would mean that their friendship had only grown more separate than before (Skiba, 2016).

Lack chance to earn respect – his superiors have dramatically undermined Roger since the day he got promoted to the CEO position, and now he was relying on accomplishing the Vermont Seals company deal to prove himself to the board of directors. If the negotiation fails to happen, the Roger will not have a chance to prove himself and probably stay with the humiliation.

Lose job – the directors and the stakeholders were planning to get rid of Roger if he did not get through with the negotiation and came through with the best solution. If this negotiation were not to happen or result negatively, the directors and stakeholders would have a reason for taking away Rogers position.

Struggle with family – Roger was heavily relying on the deal to get a chance to earn more revenue to take care of his family now that there was a new member. If the negotiation did not go through, then Roger would get fired from his job, and he would have to struggle to maintain his family.

Lose Friendship – Roger was relying on the negotiation to go well so that he could restore the friendship that was once there between Brandon and himself. The negotiation not happening would mean that the harmony would not be restored (Zwier, 2013).

References

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