Negotiation Planning
Negotiation Planning Form
Fundamental Interests
What do each of the parties want?
YOU: Z-25 Technology
OTHER PARTY: Competitive Price to recoup development costs and maintain competitive advantage
Issues
What should be on the table? What will the discussion focus on? Look for commonality and tradeoff
The new technology
Preventing the sale of technology to direct competition
Net Profits
Recoup the development costs
Audio shouldn’t sell the technology to external customers – Reducing profitability to the company
Sharing Internal sales profit
Terms
What sort of stipulations may apply?
Audio should not produce products using Z-25 technology
Supply Z-25 magnets for free
Magnetic Advances should be given first preference in any further technology advancements in magnets
Avoid selling it to competition
Goals
specific/measurable/justifiable; target/range you are shooting for; make best guess for the other side; rank them
YOU:
OTHER PARTY:
1. I am shooting for 61 mm in profits (the minimum I could go is 47-TP and the maximum I could go is 140-TP. TP at minimum would be 32 mm. Taking the average of the above two would give me an estimate of 61.5 mm as target)
1. 80 mm as TP ( If the deal succeeds, MD’s maximum profits would be 140 – 32 = 108, and minimum profits would be 20 – 32 mm = -12, so taking average of 108 and -12 and adding them to our opportunity cost ( 12 mm (development costs)+20 mm internal sales))
2. Audio should not produce products for internal divisions
2.
Reservation (Walk-Away Point) need to know what yours is, but don’t focus on it; think about what’s important to the other side
YOU: 54 mm ( maximum I could lose 140-32 = 108, minimum I could lose is 0, so the average is 54mm)
OTHER PARTY: 8 mm ( the other party would have 8 mm in profits if they didn’t sell the technology ).
BATNA
know yours; guess other side’s; don’t assume they have no other options
YOU: Take up the issue with top management
OTHER PARTY: Sell the
Fundamental Interests
What do each of the parties want?
YOU: Z-25 Technology
OTHER PARTY: Competitive Price to recoup development costs and maintain competitive advantage
Issues
What should be on the table? What will the discussion focus on? Look for commonality and tradeoff
The new technology
Preventing the sale of technology to direct competition
Net Profits
Recoup the development costs
Audio shouldn’t sell the technology to external customers – Reducing profitability to the company
Sharing Internal sales profit
Terms
What sort of stipulations may apply?
Audio should not produce products using Z-25 technology
Supply Z-25 magnets for free
Magnetic Advances should be given first preference in any further technology advancements in magnets
Avoid selling it to competition
Goals
specific/measurable/justifiable; target/range you are shooting for; make best guess for the other side; rank them
YOU:
OTHER PARTY:
1. I am shooting for 61 mm in profits (the minimum I could go is 47-TP and the maximum I could go is 140-TP. TP at minimum would be 32 mm. Taking the average of the above two would give me an estimate of 61.5 mm as target)
1. 80 mm as TP ( If the deal succeeds, MD’s maximum profits would be 140 – 32 = 108, and minimum profits would be 20 – 32 mm = -12, so taking average of 108 and -12 and adding them to our opportunity cost ( 12 mm (development costs)+20 mm internal sales))
2. Audio should not produce products for internal divisions
2.
Reservation (Walk-Away Point) need to know what yours is, but don’t focus on it; think about what’s important to the other side
YOU: 54 mm ( maximum I could lose 140-32 = 108, minimum I could lose is 0, so the average is 54mm)
OTHER PARTY: 8 mm ( the other party would have 8 mm in profits if they didn’t sell the technology ).
BATNA
know yours; guess other side’s; don’t assume they have no other options
YOU: Take up the issue with top management
OTHER PARTY: Sell the