Discount and Hawkins

1069 Words Nov 14th, 2012 5 Pages
Discount and Hawkins Case

Case Synopsis

The subject matter of the case is presented as a negotiation between a real estate developer, Hawkins, and a possible anchor tenant, Discount Marketplace. Both parties are represented by professional negotiators: Myra Hart is representing the Hawkins Company and Genia is representing the Discount Marketplace. The Hawkins Company is a real estate developer, who is operating across UK, offering different types of services, such as: Mortgages, Energy Performance Certificates, Sales and Lettings. They are interested in having Discount Marketplace as a tenant in a proposed shopping center. The Discount Marketplace is an innovative national retailer with the main activity focused on
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The Developer wished that the Retailer would deal only with soft goods, and asked them to use same product mix for all locations around the country. The proposal was declined because the Retailer felt it was limiting to deal with only soft goods. Retailer wanted to be free in selecting the type of goods and services. Their argument was that they needed to be more flexible regarding their product mix in order to achieve innovation and to follow their advertising strategy. Also the Retailer didn’t agree to use the same product mix across country because their main activity was based around a strategy of adapting the product mix. In order to get to an agreement the Developer suggested limiting the activity to some percentage of the operation area. They offered a limit of 10 – 15% for trial. The Retailer accepted the offer and issue was solved.
2. Operating Covenant Developer’s concern about the contract duration was that the Discount Marketplace would operate for only as long as the business would be viable. Their aspiration level was to sign the contract for a period of minimum 15 years and their soft constrain was to sign the contract for a minimum of 10 years. Developer needed to be sure that the retailer would perform the best they can and they needed to be safe in case the Marketplace wanted to make sudden changes after signing the contract, like changing the location too soon. The Retailer’s aspiration level was to have the contract
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