Simulation IBN

1792 Words Feb 26th, 2014 8 Pages
1.0 NEGOTIATION PLAN/PREPARATION

1.1 Our company’s Interest and position in this negotiation
1.1.1 Interest
For Cobalt, Our Company has three main interests in this joint venture negotiation. Firstly, we want to increase PC market share in Korea because PC market is a high-profit industry and is developing with a high speed. Secondly, we want to access smoothly to Korea and get the Korea’s government favor and policy support. The last one is that we want to find an experienced Korea PC company to be a joint venture with a stable and a long-term cooperative relationship.

1.1.2 Position
Our company’s position in this negotiation is an initiative negotiator and we decide to take an integrative and win-win attitude to this
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So in the third round, I made a compromise to 50% to 50%. But, SE was still stick to its 51%. Negotiation got stuck. After both sides coordinating, we decided to stop negotiating this issue and move on to the next issue.

At the beginning of negotiating the issue of Top Management Team, I made it clear that CEO, Operations, R&D and Finance must be from Cobalt. To this proposal, the opponent said it was very centralized to appoint all the top management from my company and it wasn’t good for the development of JV. But I insisted this point because we provided our company’s technology into JV and only the management from our company could in charge of it much efficiently. I thought it was a better decision to manage the JV. Then, the opponent raised a proposal that we both made a compromise to each other. My company made a compromise by give SE the 51% ownership and then SE would agree that the most of top management in JV come from my company. I though it was a good decision made for a win-win situation. So we both come to an agreement at these two issues.

When we negotiated the last 5 issues, such as, access to Korean markets, access to U.S. market and protection for your technology and so on, we both chosed the compromised options to obtain an integrative result. Both of us considered that the type of this negotiation is win-win. We quickly and smoothly come to an agreement of these issues because we thought the compromised options could bring profits
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