Alyssa Goodwin

SEE 3850

Research Project Section: Strategy and Tactics

April 29, 2021

Disney and Pixar Merger

o Strategy and Tactics

 Strategy: Describe in detail the strategy each side is using to achieve their desired

outcome.

When it comes to strategy and tactics there is a variety of

approaches that a negotiator can take. We see in negotiating that

sometimes one side can be only for themselves while the other side has

both parties in mind when coming to a deal. This is what we see in this

case of the Disney and Pixar Negotiation.

From the previous weeks research, we can see that Pixar came into

the negotiation with a very competitive strategy. Their concern was for

their maximum outcome with little concern of what Disney’s outcome was

going to be. They had one deal to make but it came with a variety of

elements that Pixar was not going to bend on. They even stated at one

point that if Disney could not figure it out that they knew their software

was eye appealing and would be able to take it to a competing company.

This goes to show that they were in it for their potential and had no care

what Disney would lose out on or gain.

Now Disney is a bit unique because throughout the negotiating

process they had two different negotiators who used two completely

different styles. Eisner being the first in charge approached the negotiation

with an avoidance strategy and we can tell this because he really did not

care what Disney’s out come or Pixar’s outcome was going to be. He was

not willing to negotiate the terms that Pixar wanted and did not care if they
 lost out on closing the deal. When Iger came into the picture it was a

different strategy, he approached the negotiation with an accommodation’s

strategy. Iger viewed their outcome as more important that what Disney

may have been wanting. Taking this strategy approach was a way to

recover any relationship they had lost when Eisner was involved and

allowed them to make a deal in the contract.

 Tactics: Describe and evaluate three specific tactics each side is using to advance

their strategy.

I want to start out by looking at what tactics Pixar used in the

process. The first tactic I evaluated was highballing and I say this because

Pixar came in with a lot of demands, wants, and needs. I think that they

came into the situation very cocky and required a lot to secure the deal.

The second tactic was intimidation, and this was where they tried to

originally undermine Disney when Eisner was in charge. They did this by

saying if they did not want to agree to their terms that they simply could

leave and take their request to a different company who would be willing

to work with them. It is basically like a threat to get one negotiating side to

agree without really thinking if there is an overall benefit. Lastly, I think

their final tactic was silence. They saw that they were not getting what

they wanted, the relationship between the two was being torn apart, and

they felt they deserved what they were asking for. In order to make a point

they decided to be silent and take a break from working with Disney on a

new contract.
 With Disney, in the earlier stages when Eisner was in the first part,

I think one of the tactics used was the wince. When Pixar came with

everything, they expected Eisner came off with a negative and stunned act

and refused to give them what they wanted. I think that Eisner also used

the low-balling tactic. He wanted to give them the least of what they were

asking for due to wanting to save money. He did not want to give them all

these extra benefits that Disney workers had, and he wanted them to

follow Disney’s standard of work not theirs. Now when Iger came in I

think he used the tactic of the written word. He saw deals that may have

seemed non-negotiable, but he was very candid and honest with what

could be done with each deal that they were wanting to reach. He

questioned the word on everything to make sure he understood the

importance of why they wanted certain things.

 Critique how the strategy and tactics each side is using is affecting their position.

Looking at Pixar’s strategies and tactics I would say that in the

beginning it affected how the other side approached the deal. They came

in very demanding of certain items which in some cases can make sense

considering that they had been established prior to Disney acquiring them.

However, using intimidation and highballing can cause tension between

the two and make it harder for someone to be open to negotiate.

When we look at the first part of Disney’s strategies and tactics,

we can see that they were ready to fight back, and this can affect how the

other side views their relationship with them. It also can also affect their
 position if they show they are unwilling to come to terms or adjust. I think

has Iger took over and we see his strategy and tactics it affects their

negotiating position in a good way because he was willing to look at

everything and compromise with Pixar.

 Describe the strategies and tactics you would use to achieve your desired outcome in

the same negotiation.

If I were dealing with this same negotiation, I would come in with

a compromising or problem-solving strategy. This is the ideal way to

approach it because I think that it can save a relationship when you are

more open to look at what the other party is wanting and also examining

how it can benefit you. When things get a little bumpy like they did in this

negotiation it would be best to use problem-solving strategies to work out

something that can keep both parties happy.

When it comes to tactics, I would want to keep it simple and not so

harsh. My goal is to not look weak, shady, or hostile. I would want to use

the trial balloon tactic for this negotiation because it allows me to test the

waters and for them to test the waters for what we are trying to make a

deal on. This is a trial run that we can see how it works and then come

back around and negotiate further if needed. It also allows us to see what

works and what does not.

 Explain how the negotiation contains elements of both cooperation and competition.

Provide insight and examples from your research.

 When researching the main competition, we see is Pixar’s

policies/views compared to Disney’s. Pixar felt that their relaxed culture

and atmosphere was ideal when originally Disney did not. Disney felt that

they needed to be stricter in their culture and not so relaxed. Disney even

had actual competition in the fact that if a deal were not reached, they

could lose Pixar to a competing company. Another competition factor was

that Disney felt Pixar would take over all their power and try to change

everything.

With the same as competition there was cooperation where Iger

believed that they could loosen their reigns on their atmosphere and Pixar

agreed that they could meet in the middle. They knew on days when there

were meetings or guest that they would dress a little nicer and then other

days they could just be in jeans. Also, Disney cooperated with the terms

like health benefits and vacation that Pixar had set in place for their

employees.