The Texasags Oil Company Case Study Analysis

1446 Words Dec 11th, 2015 6 Pages
Introduction:
The TexasAgs oil company case study gave us insights on different aspects of a negotiation that can happen in real world scenarios. It elegantly portrayed the importance of having a BATNA, setting target and restriction points, impact of the fluctuating markets on the ongoing negotiations, downside of the emotional behavior, importance of having a third party member or mediator in the negotiation. The case illustrates that the negotiations should be based assumptions as they may or may not be right. Having facts and understanding the other parties true objectives and goals are truly essential in negotiation. It is a typical example of how the current power on one side can dominate and take complete advantage of their position.
Key failures in the case:
One of the major failures that occurred in the case was the time length of the negotiation. The negotiation took almost one year to come to certain terms of the Cousins and is not even completed yet. Hertford and Foster’s lack of preparation and power to make decisions lead to such lengthy negotiation. Both of them don’t have solid figures of what their restriction points should be, except formula price. Most times, they have to keep forwarding the Cousins negotiation terms to their bosses and get their approvals. It made clear to the Cousins that expect basic formula price, the TexasAgs have no other concrete information. It also gave ample amount of time to raise issues such as market fluctuations, competitive…
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