$0.00 – $6.50
Candace Modlin and Robert C. Bordone
Two-party or two-team, multi-issue, integrative/distributive negotiation between representatives of a new low-cost airline and a potential headquarters city over an incentives package and airport facilities
Fresh Air, a new low-cost airline, is looking for a headquarters city. It is negotiating with the city of Boston, its top choice for a headquarters location, over an incentive package and airport facilities. Fresh Air plans to build on the brand reputation of its parent airline, which stands for innovation, fun, unparalleled customer service, and empowered employees. It believes that a unique corporate culture and happy customers will allow it to charge lower prices, to fill its planes, and to run profitable operations.
Boston seeks to reinvent itself as a center of American business after years of business decline. The opening of a low-cost carrier would be an important part of this effort. However, in these tight fiscal times, Boston is limited financially. It needs to save money for an important national event coming to the city soon; furthermore, it cannot shortchange its employees and city groups for fear of backlash. Boston also is reluctant to set a bad precedent; if it commits to a substantial incentive package for Fresh Air, future companies considering a move to Boston will expect the same. Boston must also consider how it is viewed politically, in the eyes of its constituents and of other airlines at Logan Airport.
TEACHING POINTS:
- Establishing a process for effective negotiation when balancing multiple issues, some of which are directly related to each other
- Developing and using objective criteria
- Distributing value
- Inventing creative options for mutual gain by exploring the interests of the other party
- Exploring the tension between distributing and creating value, generally and as regards to sharing information
- Identifying and deeply understanding interests and evaluating how well a value-creating solution meets these interests
- Separating the people from the problem; balancing the substance of the negotiation with the development of a workable long-term relationship
- Preparing for a factually complex, multi-issue negotiation: identifying issues; exploring and anticipating interests; brainstorming creative options; thinking about process
TEACHING MATERIALS:
For all parties:
- General instructions
Confidential instructions for:
- Fresh Air representative(s)
- City of Boston representative(s)
Teacher's Package includes:
- All of the above
- Teaching notes
Fresh Air Attributes
| Time required: | 3-5 hours |
|---|---|
| Number of participants: | 2 |
| Teams involved: | No |
| Agent present: | Non-lawyer |
| Neutral third party present: | None |
| Scoreable: | No |
| Teaching notes available: | Yes |
