Here’s a list of some of the most notable negotiation flops of the past year – from deals that were over before they started, to those that were botched at the table, to those that proved disastrous well after the ink had dried.
The following items are tagged PON.
On September 15, U.S. secretary of state John Kerry and Sergey Lavrov, Russia’s foreign minister, announced a deal aimed at heading off a U.S. attack on Syria, threatened by President Obama, in exchange for Syrian President Bashar al-Assad’s promise to dismantle his country’s chemical weapons.
The agreement seemed well on its way to being passed. On November 20, U.S. secretary of state John Kerry announced that the United States and Afghanistan had finished negotiating a bilateral security agreement.
The terms included a continued American troop presence through 2024 and a promise of billions in international aid to the Afghan government. The United States negotiated concessions on two hotly contested issues: Afghanistan agreed that U.S. soldiers would be subject only to American military law, not Afghan laws; and U.S. Special Operations forces could continue to conduct antiterrorism raids on private Afghan homes, the New York Times reports. Most U.S. troops would have no combat role, aside from a small counterterrorism force.
2013 witnessed a series of colorful mergers, acquisitions, and other deals. Here are 10 negotiations and negotiation trends from which business dealmakers can learn.
A number of noteworthy disputes among businesses, organizations, and individuals made headlines in 2013. We point out the negotiation angles behind stories first reported by the New York Times, the Wall Street Journal, and other media outlets. Keep an eye out for these common themes: hardball tactics that backfire, costly legal battles that could have been avoided, and disputes over poorly worded contracts.
In July 2013, U.S. Associate Attorney General Tony West met with JPMorgan Chase executives to outline an array of civil and criminal investigations of the bank, related primarily to its sales of troubled mortgage investments during the financial crisis.
A three-year dispute between Starbucks and Kraft Foods over distribution of Starbucks packaged coffee in grocery stores was resolved on November 12 when an arbitrator determined that Starbucks had breached its agreement with Kraft and ordered the coffeemaker to pay the food giant $2.75 billion.
Join us for a conversation with Ambassador Tommy Koh of Singapore, the recipient of the 2014 Great Negotiator Award. This public program will feature panel discussions with Ambassador Koh and faculty from the Program on Negotiation and the Future of Diplomacy Project.
On November 24, the United States and five other world powers announced an interim agreement to temporarily freeze Iran’s nuclear program. The six-month accord is meant to give international negotiators time to negotiate a more comprehensive pact that would remove the threat of Iran producing nuclear weapons.
A three-year dispute between Starbucks and Kraft Foods over distribution of Starbucks packaged coffee in grocery stores was resolved on November 12, when an arbitrator determined that Starbucks had breached its agreement with Kraft and ordered the coffeemaker to pay the food giant $2.75 billion, Stephanie Strom reported in The New York Times.
The dispute dates back to an agreement negotiated in 1998 when Kraft began selling Starbucks packaged coffee through grocery stores. In 2010, with sales of its ground whole bean coffee reaching $500 million annually, Starbucks offered Kraft $750 million to end their agreement.
Starbucks wanted greater flexibility to sell the single-serve coffee pods that were taking off in the market at the time. The company’s agreement with Kraft limited Starbucks to selling pods that worked in Kraft’s Tassimo machines. Starbucks was in danger of being left behind in a race for market share against Green Mountain Coffee’s Keurig system and K-Cup single serving packs.