The Main Idea of Negotiation - Case Study Example

Module http bcs.bedfordstmartins.com/resdoc5e/pdf/Hacker-Orlov-MLA.pdf Negotiation “When the final result is expected to be a compromise, it is often prudent to start from an extreme position.”  (John Maynard Keynes, The Economic Consequences of the Peace) . The main idea of negotiation is that is a process through which an agreement or a compromise is attained while at the same time an argument is avoided. Similar to every other negotiation case, the biopharm- seltek negotiation involves a disagreement on the matter of selling the Seltek pharmaceutical copany to Biopharm. The main aim of this negotiation was to attain the best possible outcome for the Setlk Company, which is that the company is successfully sold to Biopharm. In any negotiation, the main principle which leads to a successful outcome is the principle of fairness. In the negotiations, it is vital that the three elements including knowledge, interpersonal skills and attitude are present in the negotiating parties because this tends to affect the ultimate end result of the cooperation. In this case, the main part in negotiatin form the Setlek company was played by the Chief financial officer of the pharmaceutical company. The CFO controlled the entire negotiation by using knowledge as power. Majority of the points that arose in the negotiation were on the side on the setlek company. The CFO had solid points that made it easier for him to control the negotiation. For the CFO of Setek company, the major factor that affect his negotiation is the idea that if he is navle to sell the company to Biopharm within this year, the selling value for the company would decline rapidly and Setlek would have to face great loss. By selling the company at $7 million at this year, Setlek would then have to focus its attention on selling the Petrochek patent, to Biopharm as well. So the fact that Setlek needs to sell not only the plant but also the Petrochek patent forces the CFO to take each step carefully. The probability of selling the patent to Elfand Exxon is very low since neither of the two companies are majorly interested in the patent to pay $5 or more for it. If biopharm agrees to buy the plant for $7 million and the patent for $4 million, Setlek would have sufficient money to divert its attention to developing in the conventional pharmaceuticals. It is thus vital that any negotiating team pay great attention to the factor that brings an advantage to the company not only in the long run but also an advantage at the present. In this case, since the company has bought the company for $12 million and now is negotiating selling it at $7 million final shows that the company needs an immediate advantage so that it can establish on its current strategy. The context of the current negotiating case is in fact not that dissimilar than that of the rest of the exercises. This is because as shown in the rest of the cases every company has to pay great attention to every small bit of detail. The company is accountable for everything that is and has been happening and thus it should be dealt as one single unit. As far as performance impact is concerned, the seller has the most effective impact as he has to take care of the interest of the company. The negotiating person is the key person and has to understand the advantages and disadvantages of the issue under discussion. He has also aware of the company exact situation and the revenue the company has. In addition of it, the CFO has the full authority given by the company to sell the plant at appropriate price. CFO has to decide what will be the appropriate price. He knew that the plant must be sell at such price which helped the company to pay off and also the company want to start new business and the company is running short of its revenue. Behavior of other during negotiation always be irritated and annoyed as the other party always put in front of you the negative point, i.e. the most important duty of the seller is to bear them and give certain reasons of all the objections raised by the other party. Seller has to be polite. One has to learn the lesson from each negotiation, every time there is a negotiation, there are different people. One has to be positive, relax and remained confident during the negotiation session. The Second case refers to a company “Galaxy Software Inc.” This is running the business of arcade and PC games. The technology used by Galaxy Software Inc. is different than what other companies use. There design in addition, is followed through by a 3D effect. It is reported that every time the company announces their upcoming game, children waiting get all the more excited. Due to the reason that their design and ideas are different than the other companies, Galaxy software believes that it is better to keep the findings and plans undercover. Every time Galaxy Software hires an employee it is made sure that the previous history of the applicant is clean and free of any charges. The check is performed by an outside party and the information regarding the employee is kept in a file. However, a confidentiality agreement is signed as well when the employee is hired. The turnover record of the company is very low because of the fact that the employees are not just work partners but they also enjoy the company of the fellow workers off the working premises. Galaxy Software claims to have the possession of the few of the brightest and talented employees in the industry. The recent project of Galaxy Software Inc was of a game called “Alvin in the wonderland”. This game is about a boy exploring through the Milky galaxy ways. Alvin in the wonderland will not only be a game but will also be an educational product for children. The company had to undergo a process of thirteen months in order for coming up with a game as such. However, Galaxy Software Inc. has to deal with an incident of theft. The backup tape of Alvin server has been exploited as no use was to be made of the back up till the coming Friday. The security personal is a very responsible person and no one is allowed inside the premises without his checks. It is therefore suspected that the thief of the data base is none other than one of the employees of the company. The negotiation was held and conducted by the vice president of the Research and Development department, Blair. He is answerable to the head of finance department in France and therefore, he is conducting this search operation himself. Every employee will be questioned and interviewed thoroughly as to avoid false claims over an employee. In context if the situation, it can be stated that the factors that affect the negotiation between the manager and the employee guilty of the charges are dependent over a few variables. Blair was well aware that the person he was hiring had been accused of a criminal record in the past. Nevertheless, Blair decided to let it pass and did not bring that topic again as it would not only effect the employee being hired but also his repute as of the fact that Blair being an integral part of the company had sealed information from the rest of the fellow workers. However, the employee had lied to Blair about the fact that he did not quit the previous job but was on the other, expelled. It can be said that both parties can be held responsible in this situation but since the employee is someone who has been giving extra ordinary results to the company over the past and was not well aware of the importance of the tape to the company, blaming him solely of theft would be wrong. The context of the case is in fact not that different than that of the exercises that have been performed. The reason behind is that, as shown in the other case, every company has to undergo every small detail when deciding or negotiating over an aspect. All details and information regarding an issue are at first gathered to avoid any misunderstandings and then a plan is made. The implementation of this plan is then conducted through thorough research and understanding. The company is responsible for everything that is and has been happening and therefore, it should be dealt with as one unit. The negotiation is solely in the favor of the company or more importantly Blair as even though he has hired someone who is not with a clean record he wanted the better of the company and anyone who can give ideas is welcomed by the company. On the other hand, the employee had been giving good performance over the past and was successful in arranging and dealing with a few of the best projects of the company. Therefore, the employee could in fact be given a chance to undo what he had done and accept his mistake. However, if the employee does that, it can be instead said that he will not be in the situation of starting his own company and hence, he would have to abandon his family and his earnings. In the light of this fact it is indeed true that the employee is in a worse position than the manager. The actions of others show that everyone tries his best to solve the conflicts that arise and no one in particular wants to sabotage anything that is important of the company but the situation that arise in one’s life force the person in to doing something which is not entirely ethical and supported by in the books of law. In my opinion, the employee should indeed accept his fault, apologize and take responsibility of every one of his actions. He should not forget of what the company has offered him over the past. This could include the provision of experience, training and the ability to perform a task in the best way feasible. In addition, in order to solve the problem he should talk about this to his family and inform them of what the future might bring. This would help him in keeping his family in confidence. This is what I would do if I were put in the employees shoes as accepting ones mistake is at times the best way to deal with a situation. Read More