alternatives

The range of possible things you can do away from the table without the other negotiator’s agreement. (Robert H. Mnookin, Scott R. Peppet and Andrew S. Tulumello, Beyond Winning [Belknap Press, 2004], 19)

The following items are tagged alternatives.

Using Agents Effectively in Negotiation

Posted by & filed under Negotiation Skills.

Once you’ve decided to use an agent, it’s important not to rush headlong into the process – picking the first one you speak to, for example, and sending him off to talks the next day.

You need to choose your agent carefully, then establish a clear, detailed understanding of each other’s responsibilities and expectations.

The following are critical steps in picking an agent and negotiating his contract.

Managing Group Interactions in Multiparty Negotiations

Posted by & filed under Business Negotiations.

When multiple parties gather to discuss issues, someone has to oversee the group’s efforts, or the process will descend into chaos or stalemate.

A negotiation manager should prepare the group’s agenda, establish ground rules, assign research tasks, summarize conclusions, and represent the process to the outside world.

10 Hard Bargaining Tactics

Posted by & filed under BATNA.

Don’t be caught unprepared by hard bargainers, warn Mnookin, Peppet, and Tulumello in Beyond Winning. Here is their Top 10 list of common tactics.

A Cash-Out Transaction: Cox Communications

Posted by & filed under Business Negotiations.

On August 2, 2004, Barbara Cox Anthony and Ann Cox Chambers, two sisters who together owned 73% of Cox Communications, announced that they wanted to cash out the minority shareholders of their company. Their initial offer was $32 per share, or a 14% premium to the preannouncement trading price of approximately $28 per share.

A Value-Creating Condition Thwarted

Posted by & filed under Business Negotiations.

In late 1999, with its stock in free fall, NCS HealthCare, a provider of pharmacy services to long-term care facilities, began “exploring strategic alternatives” – code in the mergers and acquisitions world that NCS’s board wanted to put the company up for sale.

In 2001, Omnicare, a larger provider in the same general industry, offered to buy NCS for $270 million, a number lower than the value of the company’s debt. The deal would have left the company’s stockholders with nothing, and talks broke down when NCS demanded a higher price. In June 2002, Omnicare’s fierce rival Genesis HealthCare came to the table with an offer for NCS. Fearful of having its deal stolen away by Omnicare, which had just beaten Genesis in a bidding contest for another company, Genesis proposed a condition on the deal. It would make an offer only if NCS’s chairman and president, who together held a majority of the voting shares, committed to the Genesis deal and rejected any competing offer from Omnicare. NCS accepted this condition, and the merger was announced on July 28, 2002.

How to Negotiate When You’re Literally Far Apart

Posted by & filed under Business Negotiations.

Imagine that you’re the CEO of a sports clothing manufacturer based in Chicago. You recently traveled to Amsterdam, the Netherlands, to meet with a distributor who has a rich and diverse network in the European sports market.

During the business trip, you both express enthusiasm about the possibility of a joint venture and agree to give the potential alliance more thought.

Back home, you learn that one of your competitors has discussed similar plans with the same distributor.

Role-Play Simulations and Managing Climate Change Risks

Posted by & filed under Pedagogy at the Program on Negotiation (Pedagogy @ PON).

Climate change risks are an increasingly important consideration in many decisions with long-term implications, such as choices around economic development and infrastructure investment. It does not make sense to invest in projects that will be destroyed by sea-level rise or undermined by sustained drought. The enormous uncertainty associated with climate change makes it difficult, however, for decision-makers to plan ahead. This is particularly true in developing countries, where pressing needs like poverty reduction often trump long-term considerations about sustainability.