Professional Documents
Culture Documents
El Teck Magnetic Advacnes Planning Document
El Teck Magnetic Advacnes Planning Document
(Reminder: you can expand the box size when you need to write
more)
I. The Problem
Problem Statement: I must negotiate with (person) to (solve what problem). As Sal
Granger, President of Magnetic Advances, I am negotiating with Audio
Components to obtain rights to Z-25. I believe that Magnetic Advances can take
advantage of the commercial opportunities associated with Z-25.
0.
II. Goals and Decision Makers
My specific, High Expectation:
My high expectation would be Choice 2)
on the list: Magnetics produces Z-25 and
no limitations are put on its distribution
($140M-TP). My second choice would be
Choice 3) Magnets produces Z-25 and is
prohibited from selling to Audios direct
competitor for 6 months ($130M-TP).
Target decision-maker:
I aim to persuade Audio Components to
give me the rights to Z-25 and agree
upon terms that will allow Magnetic
Advances to gain external and internal
profits.
0.
III. Underlying Needs and Interests
(Shared/Ancillary/Conflicting)
Mine
I believe that since Magnetic has the
exclusive charter to sell magnets
external, only Magnetics can exploit the
commercial opportunities associated
with Z-25. I also do not want the
decision concerning the future
marketing of Z-25 to be made by top
management.
Theirs
Audio Components does not want
transfer the Z-25 technology to us. If
Magnetic advances is selling Z-25 on the
open market, Audio components direct
competitors could buy it and the
division will lose its competitive
advantage. Also, Audio Components
would probably want to recoup its
development costs of about $12 million
and get a reasonable profit by making
Z-25 for sale to other divisions in El-Tek.
IV. Leverage
What do I lose if there is no deal? I lose
the rights to Z-25 and the possible
profits.
0.
V. Possible Proposals
0.
Theirs
My Counter Arguments
0.
VII.Third Party Moves
Can I use a third party as leverage? As an excuse? As an audience? Coalition
partner?
0.
VIII. Situation and Strategy Analysis
Situation as I see it:
__x_ Transaction My basic style is
Avoidance
_x__ Relationship
___ Balanced Concerns so I need to be
more accommodating, compromising,
and competitive in this situation.
Their
__x_
___ Problem
___
___ Avoiding
___
Please provide your reasoning here: I see this as a transaction and relationship.
Although I am trying to negotiate a difficult deal with Audio Components that if
receiving the rights to Z-25 will boost my profits, I need to negotiate politely and
fairly in order to persuade Audio Components. Since we are divisions within the same
firm/industry, I would also view this as a potential professional relationship. If Audio
were to grant me the rights today, I will be able to provide Audio with aid in a future
transaction.
0.
IX. Best Modes of Communication
___ Agent
___ Teleconference
___ E-mail
___ Telephone
___ Instant
Please provide your reasoning here: Face to Face communication would be best in
order to really sell my reasonings and intentions to Audio for granting the rights of
H-25 to Magnetics. I can directly discuss the financials as well as the costs/benefits
that each party will have to consider. Through face to face interaction, both parties
will be able to discuss the terms and concerns directly and clearly.
0.
X. Overall Positioning Theme
A short statement that sums up your underlying purpose in this negotiation:
Magnetic Advances will be able to market Z-25 commercially effectively and can
possibly benefit Audio Components in the future.
0.