NCM - Fraiser

Assignment 6 – Pakistani Prune Case

Pakistan Prune Case – Negotiation – Learning’s

- Since time was less to know about the other party its important to spend time knowing each other
- Its important to understand the objective of meeting and what we intend to do
- Discuss the reasons of pursuance
- Find common objectives
- If objective met – how execution will happen
- Clarity on obligations
- Clarity on accountabilities
- Terms of execution
- ZOPA with combined strength
- When there is a possibility mutual benefit – combine force and expose most
- Important to document as there can be a fall back if the other retracts
Assignment 7 - Frasier
An American sitcom – very popular with older age profile and as
the case study suggests – mainly men

- Frasier Crane
- Daphne Moon
- Niles Crane
- Roz Doyle
- Martin Crane

Performance

Despite its shuffle by the studio it was a successful running sitcom

and NBC was also using it as a tent pole as it provided good
viewership to before and after shows
Assignment 7 - Frasier
- Who are the parties in this negotiation scenario and what is/are the issues?

- Paramount – asking for USD $ 8 Million per episode however later reduced it by half a million
- NBC – Offering USD $ 5 Million – was even challenging internally there offer as this was close to break
even point
- Through there creative restructuring of their deal they came USD $ 500,000 close to each other

- What are their positions and interests?

- Paramount – had in its 7th year offered $ 5 Million continuity, then at one stage 20 % more than existing
but continued at USD $ 8 Million when the 30 day period began
- NBC – Had rejected the previous initial offer of USD $ 5 Million owing to its bad experience with Mad
About You, and had initially offered 5 % less than existing.
Assignment 7 - Frasier

- What are the relative stakes and power positions of various parties in this negotiation?

- NBC – Since they had Graboff now in the deal his awareness of his previous studio as well other studio
possibilities to pay as well as they had the studio analysts run break even points for the show basis its
viewership's – so they displayed some of these power positions power of expertise, commitment,
investment, power of rewarding, power of persuasion

- Paramount – Despite its belief of bad treatment and constant shuffling of days for viewership growth or
improve weekly position of NBC, there was little NBC was doing to make them feel special. Paramount
had in its 5th year agreed to USD $5 million extension for 3 seasons and in its 7 th year had agreed to
continue at USD $ 5 Million was put down and even its initial offer was rejected. So Paramount was
beginning to feel let down by NBC – Power of Morality, power of rewarding demanded in lieu of its
success, showed power of commitment, and somewhere power of competition
Assignment 7 – Frasier
- What are the possible alternatives to a negotiated agreement and BATNA for each party?

- NBC BATNA – Graboff knew Parmount wont risk leaving NBC as it would lose viewership and CBS he was
clear what maximum they would offer, Graboff felt that Paramount was calling the bluff. Also the figure of
USD $ Million was never stated by Paramount but speculative figure became their demand. If paramount
shifted it will create a bad image plus price war so the industry may not take it well. There was possibility
of sticking ground to the offer

- Paramount BATNA – No evidence, seemed to be calling a bluff, they are most likely to lose more if the
negotiation fails but they wanted to better there existing deal, which came through some creative
negotiations

- ZOPA – Paramount got some creative enhancements and should consider the bonus offerings but to
suppress its dissatisfaction of ill treatment days the show run or time can be a possible push, it brought
some irrelevant demands which caused much discomfort between the two, so stick most relevant one
which effects ratings and viewership.
Assignment 7 – Frasier
- What mistakes were done by each party in the negotiation process?

- NBC – analysis should have been done before it rejected Frasier in 7 th year
- Integrative approach was partial as even in 3rd year they had a chance
- Distributive stand was evident in past
- Treatment to Frasier has been more with the interest to NBC which would be a normal course by a
network
- Seinfeld numbers as yardstick

- Paramount offer was on speculation

- Was demanding more than the highest paid show Friends
- Had issues on days of broadcast but they had successes and remained prime time
- They don’t have a back up plan and would need to start fresh anywhere
- They were calling a bluff and some unwarranted demands which was causing pain the in the negotiation
Assignment 7 – Frasier
- What were the tactics employed by the various parties in the negotiation process?

- PARAMOUNT – it was playing high ball, new issues, breaking it off at some points but they had a 30 day
window and to a certain level biased choice & Brooklyn optician

- NBC – Breaking it off, Changed the negotiator – Grabuff was a new hire, Quivering Quill
Assignment 7 – Frasier
Learning’s from Frasier – since you joined negotiations new

- When you need them you need them – but very critical not to be desperate
- Evaluate the deal in minute detail as you will need to counter demand tactfully
- Understand the other party completely and history

- Understand what the other party wants – Period of Contract & Value
- What will make them more satisfied and what aligns to your goals
- What are your strengths and what are their strengths

- Cooling period is essential when challenges are emotion driven

- Assess if you feel bluff and why – SWOT analysis of the other party and yourself

- Alternatives need to be in place and placed while in negotiation

- Innovation in meeting the gaps you cant fulfil but make it as terms against some agreement

- If you really NEED IT be open minded and agree which makes MUTAL benefit
- Integrative approach