Yoav Cohen ; Student ID: N11968626
I. The Problem
Problem Statement: I must negotiate with (person) to (solve what problem).
I must negotiate with WCHI a 5 year license with 100 episodes of Moms.Com to maximize the net value of the bargaining deal beyond WWIN’s estimated offer of $2.5M. In addition, I should sell “Junior” at a higher price than $10K to WCHI.
II. Goals and Decision Makers
My specific, High Expectation:
Although $70,000 per episode paid upfront would seem to be an optimistic expectation from the case. My high expectation would be based on the average rating expectancy (5) which will bring WCHI to a profit of $9M - $11M.
Knowing WCHI would not likely agree to my method at its fullest, I would aim highest at $9M $90/Episode with immediate financing + Squeezing in terms of 4 runs per episode.
Junior high expectation would be for $25K/Episode
Target decision-maker:
Kim Taylor and other top management of WHCI.
Bottom Line:
Net Value of alternative deal - $2.5M on Moms.com and $1M on Junior with WXYZ
Influencers (Should I negotiate with these people first?):
The expected net value of from WWIN is $2.5M. But it is only an expectation, therefore, negotiating with WWIN before meeting with WCHI will give full clarity to what the BATNA should be Vs. WCHI.
III. Underlying Needs and Interests (Shared/Ancillary/Conflicting)
Mine
Maximize license fee for both Moms.com and Junior with immediate terms of payment (conflicting).
Not overexposing the show in order to maintain its potential value for as many years as possible (conflicting).
Reach high sales before year end performance evaluation.
Theirs
Minimize license fee for both Moms.com and Junior with immediate terms of payment (conflicting).
Showing episodes over 6 times to increase advertising revenue. (Conflicting)
Regain audience leadership over WWIN by showing a strong new program such as Moms.com
IV. Leverage
What do I lose if there is no deal?
Expecting to