The Failures Of Negotiation For A Contract Renewal Between The Texasags Oil Company And Cousins Corporation
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In this critical analysis, I will review the failures of negotiation for a contract renewal between the TexasAgs Oil Company and Cousins Corporation. The key failures identified are: planning the negotiation, identifying BATNA, the role of mediator or alternative negotiator, power in negotiation and the intangibles of a negotiation. Thereafter I will review approaches adopted by both parties and present with a recommendation to the protagonist.
To analyze the problems with this negotiation let’s begin with identifying the key failures.
Planning the negotiation: TexasAgs team didn’t plan well the rounds of negotiations. They assumed that the “coefficients to pricing equations” would be the only issue under discussion and were not even prepared to discuss or counter argue initial offer. They could have asked Cousins to set another reasonable anchor. TexasAgs didn’t research well about the other side. They completely missed identifying other party’s issues of interest. They should have looked at Cousin’s key issues and planned accordingly.
TexasAgs did not prioritize and discuss their issues in the negotiation. TexasAgs should have had listed down the key issues that may come up and ranked them accordingly. Also, TexasAgs should have had established some resistance points for key issues to avoid giving away too many concessions.
Identifying BATNA: TexasAgs didn’t evaluate and monitor their and opponent’s BATNA. In this situation, the existing contract