Read the passage that attached and answer the following questions. I am the SELLER in this situation. What do you think that the most important issues are for your counterparty in the negotiation?What do you think is your counterparty’s BATNA? Reservation price? Target?What parts of the scenario work in your counterparty’s favor? You are the CEO and co-owner of Solaris Ltd. ("Solaris"). In a few minutes you will meet the CEO of the EnergySector of Suremen AG (“Suremen”), to negotiate the potential acquisition of Solaris by Suremen. You have beenauthorized by the other co owners to negotiate the sale of Solaris.Suremen is among the oldest and largest industrial companies in the world. From its founding in 19th centuryGermany, Suremen has grown into a self described "global powerhouse" in electronics and electricalengineering. The company prides itself for its technical achievements, quality and global reach. Today,Suremen has more than 400,000 employees and in the last fiscal year Suremen earned a net income of €5.9billion from revenues of €77.3 billion.Your counterpart is the CEO of Suremen's Energy Sector. The Energy Sector offers products and services forthe generation, transmission, and distribution of power and for the extraction, conversion, and transport of oiland gas. In the last fiscal year the Energy Sector (workforce 80,000) had revenues of approximately €22.6 billionand posted a profit of €1.4 billion. The Energy Sector's mission is to expand its "green" profile, especially in thefield of concentrated solar power plants.Concentrated Solar Power ("CSP") and the_DESERTEC ProjectCSP plants use sunlight to generate electricity. Large_parabolic mirrors track the movement of the sun, catch thesunlight, and concentrate it on a tube, called a "receiver". Receivers are assembled in multiple rows that makeup the "solar field”. Receivers contain a special oil that is heated from the concentrated sunlight and subsequentlyis used to generate steam. The steam powers a turbine that produces the electricity.Areas that receive a great deal of direct sunlight which is not diffused by clouds, fumes or dust are suitable forCSP plants. Hence, these plants are typically located in steppes, bush, savannas, semideserts or deserts, which ideally are within 40 degrees north or south of the equator. Areas that meet these criteriahave an enormous potential for the generation of electricity. It is possible to generate up to 130 gigawatt hours(GWh) of solar electricity a year, enough to provide power for thousands of households and equal to the powerthat is produced by a 50 MW conventional coal or gas-fired power plant from solar energy collected from a 1km² (or 0.28 m²) field. Greenpeace estimates that with ongoing improvements in solar technology, CSP powerplants could meet up to 7% of the world's power needs by 2030 and fully one quarter by 2050. By 2020 thisshould reduce CO₂ emissions by 148 million tons annually, and 2.1 billion tons annually by 2050. To put thesenumbers into perspective, the CO₂ generated by Australia in the year 2009 was 394 million tons.Since the capacity of the typical CSP site by far exceeds local demand for electricity, the sunlight "harvested"in the regions most suitable for CSP must be exported to more power-hungry parts of the world. One ambitiousexample of this is the “DESERTEC” project. DESERTEC aims to build a net of CSP and photovoltaic powerplants, as well as wind parks, throughout the desert regions of Northern Africa. The electricity would betransmitted to European and African countries by a "super grid" of high-voltage direct current cables.DESERTEC would meet most local demand for electricity as well as provide about 15% of the energy needsof continental Europe.The DESERTEC idea, originally developed by the Club of Rome, has gained considerable traction in recentyears. Some of Europe's biggest companies (such as Munich Re, ABB, Deutsche Bank, and E.ON) haveestablished a consortium to make DESERTEC a reality. The economics of the project are staggering - theconsortium estimates that it will require investments reaching €400 billion by 2050. Suremen, as one of thefounders of the DESERTEC consortium, hopes to gain a fair share of the DESERTEC business building solarenergy plants and transmission lines and facilities.Suremen's existing product portfolioSuremen is the market leader in producing steam turbines for CSP power plants. It has already supplied theturbines for more than 50 CSP power plants worldwide. The company also designs and manufactures the othercomponents needed for building a CSP plant (such as transformers, boilers and heat exchangers). However,Suremen does not produce receivers. Only two companies in the world have the technology to manufacturereceivers: Scholl GmbH of Switzerland (which is also a member of the DESERTEC consortium) and SolarisLtd. of Israel. SolarisSolaris, based in a small town near Jerusalem, has decades of experience in the development and manufactureof solar field equipment and the planning and construction of solar fields. Most importantly, it producesreceivers. Solaris has about 500 employees, mainly 400 in Israel, and had €75 million revenues in the first halfof this year (Last fiscal year: €35m). Solaris has been active mainly in the US and in Spain, where it has equipped15 CSP power plants with receivers.The directors of Solaris, including you, together hold 15% of the company. Another 30% is owned by a wealthybusinessman from the Netherlands. Earlier this year a London-based investment company, Bioplus, increasedits share in Solaris from 15% to 55% for €100m. Shortly thereafter, Solaris planned to raise another €80m millionfrom investors, and hired an investment bank for this purpose, but no one was interested in anything less thanfull ownership or majority control.The owners have mandated you to accept only a "cash deal", and you are fully authorized to conclude such atransaction today. You are interested in selling Solaris because you (together with the other owners) believe thatthe company will not be successful as mere receiver-supplier. Large multinationals are moving into the solarpower market. As they put together bids for mega-projects like DESERTEC, they will be able to play Solarisoff against Scholl, reducing margins and therefore cash available to invest in R&D. You do not believe thatSolaris can be successful long term without cash to invest in R&D. When Solaris tried to raise additionalmoney six months ago, potential investors made clear that they were only interested in acquiringSolaris intellectual property and would transfer all Solaris' operations from Israel to their own headquartersin Europe or America. At the time, this was not acceptable to the Solaris' owners who felt a responsibility totheir local community and employees and the state of Israel. However, the situation at Solaris is now critical.Solaris needs additional cash urgently to address a number of research and production challenges. The co-owners have authorized you to try to sell the whole company to Suremen. Given the attempt to raise capital sixmonths ago was unsuccessful, the only option to selling to Suremen is to sell Solaris' assets off piecemeal. Youraccountants expect that you will realize about €120m from such an asset sale.1. What will you do if2.you cannot reach agreement in the Solaris negotiation?How much will it cost you to do so?3. What is your target in this negotiation?

Question

Read the passage that attached and answer the following questions. I am the SELLER in this situation.  What do you think that the most important issues are for your counterparty in the negotiation?What do you think is your counterparty’s BATNA? Reservation price?  Target?What parts of the scenario work in your counterparty’s favor? You are the CEO and co-owner of Solaris Ltd. (&#34;Solaris&#34;). In a few minutes you will meet the CEO of the EnergySector of Suremen AG (“Suremen”), to negotiate the potential acquisition of Solaris by Suremen. You have beenauthorized by the other co owners to negotiate the sale of Solaris.Suremen is among the oldest and largest industrial companies in the world. From its founding in 19th centuryGermany, Suremen has grown into a self described &#34;global powerhouse&#34; in electronics and electricalengineering. The company prides itself for its technical achievements, quality and global reach. Today,Suremen has more than 400,000 employees and in the last fiscal year Suremen earned a net income of €5.9billion from revenues of €77.3 billion.Your counterpart is the CEO of Suremen's Energy Sector. The Energy Sector offers products and services forthe generation, transmission, and distribution of power and for the extraction, conversion, and transport of oiland gas. In the last fiscal year the Energy Sector (workforce 80,000) had revenues of approximately €22.6 billionand posted a profit of €1.4 billion. The Energy Sector's mission is to expand its &#34;green&#34; profile, especially in thefield of concentrated solar power plants.Concentrated Solar Power (&#34;CSP&#34;) and the_DESERTEC ProjectCSP plants use sunlight to generate electricity. Large_parabolic mirrors track the movement of the sun, catch thesunlight, and concentrate it on a tube, called a &#34;receiver&#34;. Receivers are assembled in multiple rows that makeup the &#34;solar field”. Receivers contain a special oil that is heated from the concentrated sunlight and subsequentlyis used to generate steam. The steam powers a turbine that produces the electricity.Areas that receive a great deal of direct sunlight which is not diffused by clouds, fumes or dust are suitable forCSP plants. Hence, these plants are typically located in steppes, bush, savannas, semideserts or deserts, which ideally are within 40 degrees north or south of the equator. Areas that meet these criteriahave an enormous potential for the generation of electricity. It is possible to generate up to 130 gigawatt hours(GWh) of solar electricity a year, enough to provide power for thousands of households and equal to the powerthat is produced by a 50 MW conventional coal or gas-fired power plant from solar energy collected from a 1km² (or 0.28 m²) field. Greenpeace estimates that with ongoing improvements in solar technology, CSP powerplants could meet up to 7% of the world's power needs by 2030 and fully one quarter by 2050. By 2020 thisshould reduce CO₂ emissions by 148 million tons annually, and 2.1 billion tons annually by 2050. To put thesenumbers into perspective, the CO₂ generated by Australia in the year 2009 was 394 million tons.Since the capacity of the typical CSP site by far exceeds local demand for electricity, the sunlight &#34;harvested&#34;in the regions most suitable for CSP must be exported to more power-hungry parts of the world. One ambitiousexample of this is the “DESERTEC” project. DESERTEC aims to build a net of CSP and photovoltaic powerplants, as well as wind parks, throughout the desert regions of Northern Africa. The electricity would betransmitted to European and African countries by a &#34;super grid&#34; of high-voltage direct current cables.DESERTEC would meet most local demand for electricity as well as provide about 15% of the energy needsof continental Europe.The DESERTEC idea, originally developed by the Club of Rome, has gained considerable traction in recentyears. Some of Europe's biggest companies (such as Munich Re, ABB, Deutsche Bank, and E.ON) haveestablished a consortium to make DESERTEC a reality. The economics of the project are staggering - theconsortium estimates that it will require investments reaching €400 billion by 2050. Suremen, as one of thefounders of the DESERTEC consortium, hopes to gain a fair share of the DESERTEC business building solarenergy plants and transmission lines and facilities.Suremen's existing product portfolioSuremen is the market leader in producing steam turbines for CSP power plants. It has already supplied theturbines for more than 50 CSP power plants worldwide. The company also designs and manufactures the othercomponents needed for building a CSP plant (such as transformers, boilers and heat exchangers). However,Suremen does not produce receivers. Only two companies in the world have the technology to manufacturereceivers: Scholl GmbH of Switzerland (which is also a member of the DESERTEC consortium) and SolarisLtd. of Israel. SolarisSolaris, based in a small town near Jerusalem, has decades of experience in the development and manufactureof solar field equipment and the planning and construction of solar fields. Most importantly, it producesreceivers. Solaris has about 500 employees, mainly 400 in Israel, and had €75 million revenues in the first halfof this year (Last fiscal year: €35m). Solaris has been active mainly in the US and in Spain, where it has equipped15 CSP power plants with receivers.The directors of Solaris, including you, together hold 15% of the company. Another 30% is owned by a wealthybusinessman from the Netherlands. Earlier this year a London-based investment company, Bioplus, increasedits share in Solaris from 15% to 55% for €100m. Shortly thereafter, Solaris planned to raise another €80m millionfrom investors, and hired an investment bank for this purpose, but no one was interested in anything less thanfull ownership or majority control.The owners have mandated you to accept only a &#34;cash deal&#34;, and you are fully authorized to conclude such atransaction today. You are interested in selling Solaris because you (together with the other owners) believe thatthe company will not be successful as mere receiver-supplier. Large multinationals are moving into the solarpower market. As they put together bids for mega-projects like DESERTEC, they will be able to play Solarisoff against Scholl, reducing margins and therefore cash available to invest in R&D. You do not believe thatSolaris can be successful long term without cash to invest in R&D. When Solaris tried to raise additionalmoney six months ago, potential investors made clear that they were only interested in acquiringSolaris intellectual property and would transfer all Solaris' operations from Israel to their own headquartersin Europe or America. At the time, this was not acceptable to the Solaris' owners who felt a responsibility totheir local community and employees and the state of Israel. However, the situation at Solaris is now critical.Solaris needs additional cash urgently to address a number of research and production challenges. The co-owners have authorized you to try to sell the whole company to Suremen. Given the attempt to raise capital sixmonths ago was unsuccessful, the only option to selling to Suremen is to sell Solaris' assets off piecemeal. Youraccountants expect that you will realize about €120m from such an asset sale.1. What will you do if2.you cannot reach agreement in the Solaris negotiation?How much will it cost you to do so?3. What is your target in this negotiation?

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BUSINESS NEGOTIATIONS :- 
Business negotiations are the process of…