Mexico Venture_Negotiation Assignment 19017242-Ilham Nugraha & 19017141-Felix Swarnadwipa

Party List: Alex Morgan (Regional Sales Manager of Algorithm USA) & Luis Martinez
(President of Algorithm Informacción)

*Note: AP = Aspiration Point, RP = Reservation Point, ZOPA = Zone of Possible Agreement,

BATNA = Best Alternative To A Negotiated Agreement. AP​L = Aspiration Point of Luis, RP​L =
Reservation Point of Luis. AP​A​ = Aspiration Point of Alex, RP​A​ = Reservation Point of Alex.

Luis Martinez

1. Other concerns

Aspiration Point: Focus on ‘long-term company’s objective’ than ‘actual to budget’

comparisons each month spending.

Reservation Point: -

BATNA: Luis could resign from ​Algorithm Informacción​, to join the AI’s competitor,
Seguro.

Zone of Possible Agreement (ZOPA) between Alex Morgan and Luis Martinez

1. Pricing and Sales Goals

ZOPA : At range of >10% Discount until 15% Discount.

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Mexico Venture_Negotiation Assignment 19017242-Ilham Nugraha & 19017141-Felix Swarnadwipa

(​ALEX)

Aspiration Point :-

Reservation Point : 15% Discount Rate.

BATNA :-

(​LUIS)

Aspiration Point : 25% Discount Rate.

Reservation Point : More than 10% Discount Rate.

BATNA :-

2. Advertisement & Promotion

ZOPA : Negative ZOPA or No ZOPA.

(​ALEX)

Aspiration Point : No increase in Ads and promos

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Mexico Venture_Negotiation Assignment 19017242-Ilham Nugraha & 19017141-Felix Swarnadwipa

Reservation Point :-

BATNA :-

(​LUIS)

Aspiration Point : Increase Advertisement and Promotion Expenses.

Reservation Point :-

BATNA :-

3. Sales Staff

ZOPA : Negative ZOPA or No ZOPA.

(​ALEX)

Reservation Point : Adding 3 more sales agent.

Aspiration Point : Adding 3 more sales agent, reduce receptionist and trainer.

BATNA :-

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Mexico Venture_Negotiation Assignment 19017242-Ilham Nugraha & 19017141-Felix Swarnadwipa

(​LUIS)

Aspiration Point : Do not hire any additional employees.

Reservation Point :-

BATNA :-

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Mexico Venture_Negotiation Assignment 19017242-Ilham Nugraha & 19017141-Felix Swarnadwipa

4. Commission Structure

ZOPA : Additional 10% Sales Commission.

(​ALEX)

Aspiration Point : Commission-based and up to 10% additional sales commission.

Reservation Point : Additional 10% Sales Commission, if AI surpasses first quarter

volume in the fourth quarter.

BATNA :-

(​LUIS)

Aspiration Point : Additional 10% Sales Commission.

Reservation Point :-

BATNA :-

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Mexico Venture_Negotiation Assignment 19017242-Ilham Nugraha & 19017141-Felix Swarnadwipa

5. Commission Pool

ZOPA : Negative ZOPA or No ZOPA.

(​ALEX)

Aspiration Point : No commission pool.

Reservation Point :-

BATNA :-

(​LUIS)

Aspiration Point : Do not change the commission original pool policy.

Reservation Point :-

BATNA :-

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Mexico Venture_Negotiation Assignment 19017242-Ilham Nugraha & 19017141-Felix Swarnadwipa

6. Labor in Guadalajara

ZOPA : Negative ZOPA or No ZOPA.

(​ALEX)

Aspiration Point : Apply Absenteeism policy.

Reservation Point :-

BATNA :-

(​LUIS)

Aspiration Point : Do not apply Absenteeism policy (pay for transportation

allowance and small bonus for no absent workers).

Reservation Point :-

BATNA :-

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Mexico Venture_Negotiation Assignment 19017242-Ilham Nugraha & 19017141-Felix Swarnadwipa

7. Fate of the brother

ZOPA : No ZOPA or Negative ZOPA.

(​ALEX)

Reservation Point : Doing sales and given commission after that.

Aspiration Point : Out of the team.

BATNA :-

(​LUIS)

Aspiration Point : Defending Jose Miguel Miguez.

Reservation Point :-

BATNA :-

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Mexico Venture_Negotiation Assignment 19017242-Ilham Nugraha & 19017141-Felix Swarnadwipa

Make an analysis of how the negotiation should be conducted to maximize the result.

In the cross cultural negotiation, negotiation should be conducted by understanding and

respecting tradition as well as culture especially in the destination country (in this case: Mexico).
To maximize the result of negotiation, there are several factors that should be considered by Alex
Morgan before doing the negotiation with Luis Martinez:

First of all, Alex should understand that value system in Mexican should be more emphasized on
family, personal relationship, and enjoying life. Moreover, building trust is also important to do
before doing the negotiation. Beside that, before doing the negotiation, Alex should take into
account about meeting and greeting rules of his interlocutor. In the Mexican culture, the business
meeting should be conducted at 08.00 to 08.30 am at breakfast time. In doing the negotiation,
Alex Morgan should also reflect warm and aloof personality. In addition, he could start the
negotiation by doing a small talk first and not get rush into the point. Beside those factors, Alex
Morgan also should consider about the importance of the use of his interlocutor’s names and
titles since she is a Mexican. Body language also should be concerned by Alex in doing the
negotiation such as held a negotiation by closely and comfortable standing rather than a foot
apart. If the negotiation fails, Alex also should choose “soft landing” approach rather than abrupt
end. Last but not least, Alex should choose suitable dress before doing the negotiation such as
using dark, conservation suits, and ties. In addition, it would be better for Alex to wear designer
clothes to impress his Mexican interlocutors.