In The Alpha Term Sheet

The tactics that will be employed during the negotiation will be integrative in nature and with a weak BATNA there is little incentive for Excalibur to act aggressively, only strategically. Logrolling involves trading off issues to reach a solution. With multiple issues at hand logrolling will be most effective when both parties are honest, however considering all my interests I will be open as to which issues are most important to me (eg. price)but will hide specific details (my BATNA). I will also attempt to create positive interdependence between Knight and Excalibur by expanding the pie and offering non specific compensation. Currently, the negotiation pie is limited to the pistons and Excalibur will need to offer more resources to make a business relationship desirable for Knight. To expand the pie I will be offering free marketing on Excalibur’s website, exclusive rights to pistons and long term contracts offering

1. How did you plan for the negotiation? Explain how you decided on a strategy?

1) The dual-track process used by Ford to initiate “consideration of strategic alternatives” affects the bidding process for Hertz by giving Hertz another plan of attack if other viable sale opportunities fall through. By obtaining an IPO price as a base for the value of the company, Ford’s strategy would give Hertz other options to retrieve necessary capital, thus reducing the amount of risk. This strategy would then give Hertz a base bid that would be either equal to or above the amount of what could be theoretically obtained from an IPO.

Q&A: Based on the material covered in this chapter what questions would you ask the firm’s founders before making your funding decision? What answers would satisfy you?

All the interests can be summarized under “maximizing profits”. Without knowing their actual costs for each of the options, I can’t be a 100% sure of the priority of the issues, but I will need to gauge that based on the negotiations. With the given information, it looks like their issues are:

By studying the situation, I don't believe the 2 sides concerned ever had a deal. In the situation, the sides reached a deal just

In any negotiation, preparation is crucial; and having a set, outlined process to follow when preparing helps mitigate a potential oversight of any significant issues within the negotiation. Following a set process also helps one stay on task and in-line with what the important issues and factors are in a negotiation. In Bargaining for Advantage, G. Richard Shell provides a well-structured framework to follow in planning for a negotiation. For this reason, I used Shell’s negotiation preparation framework to plan for the negotiation between Rapid Printing Company (Rapid) and Scott Computers, Inc (Scott).

Founders’ termination term is very important for Laracey because it increases the possibility that the unvested equity of the founders could be accelerated when the incoming CEO terminates them. It directly protects the benefits of the founders.

Landry’s Debt to Asset ratio also increased from year 2002 to 2003. In 2002 Landry had a debt to asset ratio of 0.39. In 2003 Landry’s debt to asset ratio increased to 0.45. While both numbers are acceptable and considerably low, the increase from 2002 to 2003 could influence potential investors to not invest in Landry’s stock. This increase also suggests that Landry’s debt also increased from 2002 to 2003. Overall, while there was a slight increase from 2002 to 2003 Landry’s still had a good debt to asset ratio. We think that a contributing factor to the debt

9. How should Redstone proceed? What price should he offer? Should the offer be a cash offer, a stock offer, or

Negotiating is a practice that allows for two sides to reach common ground and agree upon a specific settlement or transaction. During this at times complicated process, the bargaining sides develop a measure together to move forward in their business process. As a lead negotiator of a small firm, the research and analysis of the sought after contract has to be thoroughly conveyed to the U.S. Government. The small business’s negotiating team should be very familiar with the federal negotiating team and all that the federal government is expecting from the product they desire. As there are hundreds of competitors out there, it is safe to assume that there are multiple products out there. However, the negotiating firm of the small business must use different negotiating gambits and pay particular attention to the body language and examine the language used during the entire process.

In today’s competitive scenario, achieving successful results through negotiations has become more important. But often negotiations face either complete failures or achieve far less than its actual potential. Also, such unsuccessful negotiations may perennially damage the reputation and relationships amongst the counterparties involved.

This is the stage where one or both parties are anxious to close the process and make a deal. The more anxious party will end up giving the most concessions so patience and calmness are in order if you want to secure your goals (Craver, 2004).

The process of going public provides a company with much needed growth capital.  Although there is incredible wealth transferred in initial public offerings, some companies feel cheated in the bargain.  Since 1980, the first day price increase after an initial offer has averaged 18.8%. (Ritter 2002)[1].  The

The offer of $6 million raised other problems for Mr. Kaplan as he seemed unwilling to take the amount. He was not sure whether to sell the whole firm, negotiate to have the buyer increase the amount if he increased the percentage of the shares or come up with other strategies to generate extra income. It was the main case that raised the three subproblems among others such as his sales strategy. Additionally, if Kaplan were concerned with extra liquidity, he could have forgone the idea of adding an extra car and another company apartment.