Midwestern Contemporary Art Case Study

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Option 1: Midwestern Contemporary Art Case Study
Tanya Schankel
MGT470 - Conflict Management and Negotiation
Colorado State University - Global Campus
Dr. Bonnie Adams
January 22, 2017

Option 1: Midwestern Contemporary Art Case Study
To sue or not to sue; this is Peggy Fischer 's dilemma. As the chairperson of the board (COB) of the Midwestern Contemporary Art (MCA) museum, Peggy is responsible for collecting a $5 million pledge from a former COB, Peter Smith. Mr. Smith and his wife have devoted many years of their lives to the arts, but a conflict in vision with the museum 's director, Ken Schmidt, has resulted in Mr. and Mrs. Smith withdrawing their participation from the museum along with their much-needed pledge. The board of
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To improve the likelihood for success, one must know what he/she will do if the negotiation is unsuccessful, what are the alternative actions, and will those actions negatively or positively influence one s ability to reach the desired goal. According to Lewicki, Barry, and Saunders (2011), having the right strategy greatly improves a negotiation 's success. Peggy has the following negotiation information:
BATNA and Value
Peggy 's BATNA is to sue the Smiths. While she may not wish to pursue this as a first action, it is the museum 's best alternative to acquiring the $5 million pledge should negotiations fail. The BATNA 's value is high and will have significant strength if viewed by the Smith 's as a possibility should they continue to avoid paying their debt. The court will likely see this as a contract between the parties; especially since the museum would have to claim the $5 million as income and based its growth plan on the receipt of the funds. According to Robertson and Lewis (2009).courts often weigh pledges as they do traditional contract law. However, there is no guarantee that the museum would win or that a court would not reduce the obligation due to Mr. Smith 's illness.
Personal Interests
As a nonprofit organization, the act of suing a donor conflicts with the fundamental principles of charitable acts. Court action would also make the

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