Contract and Purchase Negotiation:Not Just the Beatles - Assignment Example

Not Just the Beatles Part It is imperative that negotiators possess unique and dynamic characteristics when they are engaging other parties in negotiations. A manager like Brian Epstein of the Beatles would have avoided negative publicity from entertainment and media industries that took advantage of his naivety in engaging them in serious and tactful negotiations that would have earned the band group millions of revenue through their performances. Effective negotiations require that the negotiators prepare in advance, know what they want (objectives & goals), how to achieve it (strategy) and most important the negotiating ability of the other party to the negotiations. Thus, because of lack of preparation Brian Epstein lost in these negotiations resulting to lose of millions of revenue. However, he would have prevented this from happening if the following steps of effective planning for negotiations were followed; framing the problem and recognizing it is a common problem between the negotiating parties. Brian Epstein failed to recognize how the problem that was facing him would be beneficial to the media and entertainment industry and hence made it difficult for him to have a strong bargaining power in the negotiations hence resulting to the loss of millions of revenue. In addition, determine your goals, articulate what you want to achieve through them and finally prepare for the negotiations (Roy, et al., 1999). Your goals must define the ultimate agenda and the conflict situation. Brian Epstein failed to formulate a plan, and goals that he wanted to achieve through his negotiations with the media and entertainment industry players like George Martin hence resulting to the loss of millions of revenue. Exchanging the list of issues you want to discuss with the negotiating party is another effective negotiating step that can provide an opportunity for the negotiating parties to synthesize the merits and demerits of the negotiations prior to the negotiations process. If Brian Epstein would have presented his agenda to the media and entertainment industry early and articulated the benefits thereafter, he would have managed a better bargaining power that would have saved the Beatles the millions of lost revenue. Evaluation and prioritization of ones’ goals and trying to identify any possible tradeoffs between them is another key step in the negotiation process (Roy, et al., 1999). As a negotiator, you must be aware of your position and goals to help and guide you identify your concerns and desires that underlie your major objectives of the negotiations. In addition, this can help you determine the procedure of the negotiations and the terms of settlement of the negotiations. Brian Epstein rushed to the media to have their performances aired without considering the ultimate repercussions. Once you have prioritized your issues and their order, it is time to decide the sequencing of the options. For instance, Brian Epstein would have started with the sharing of the profits generated from the performances upwards to securing the chance to perform on different media platforms. However, because he failed to prepare, the group lost millions of revenue due to lack of sequencing and consideration of the different options. When you are negotiating on behalf of a group ensure that their views are considered in the negotiations; Brian Epstein rushed to find a platform for the Beatles to perform without considering the views and opinions of the members. In addition, he never determined if it was essential to carry out the negotiations as a group rather than as an individual. Defining particular targets in relation to the key issues contained in the agenda is another critical step for effective negotiations. As a manager and negotiator of the Beatles, Brian Epstein should have determined what is fair and reasonable in terms of profits sharing as the ultimate resolution to avoid loss of revenue. He should have set minimums in these negotiations as a way of maintaining a strong bargaining power. Thus, because he failed to identify specific targets, the group lost millions of revenue. In addition, identification of different mechanisms of packaging ones’ issues e.g. based on revenue sharing is important before any effective negotiations take place. For instance, you can decide to balance the issues you deem more important and be more flexible with issues you think are less important. E.g., Brian Epstein should have decided to be flexible on the time of the performances and use this as leverage in the bargaining for a bigger share revenue. The development of supportive arguments and facts is imperative in negotiations. For instance, you can try to imagine how the opposing side will respond to some facts, and thus, develop counter arguments for such responses. Brian Epstein failed formulating all these facts leading to the group losing millions of revenue. For instance, Brian Epstein should have investigated what the industry charged to other groups for their performances so that he would bargain for a better deal during the negotiations using real facts to support his position. Ultimately, assess the negotiating party’s interests and priorities and try to obtain a better idea out of it before the negotiations. Know the current needs of the negotiating party to help you plan your negotiations better; something Brian Epstein failed to do. Part 2 Negotiators often are accomplished individuals with a long time experience in their industry. Therefore, the media and entertainment industry is no exceptional. Thus, as a manager negotiating in this industry like Brian Epstein, you will need to possess such skills as, problem analysis ability; effective negotiators in this industry must have the ability to identify and analyze a problem to enable them identify the symbiotic relationship in these kind of agreements. Thus, if the interests and goals of both parties are to be met, then the parties to the negotiations will have to flex their stands in order to end the negotiations (Millercenter, n.d.). Effective negotiators should also have the ability to prepare for their negotiations before they enter into any form of bargaining. For instance, because Brian Epstein failed to prepare, the Beatles lost millions of their revenue due to poor bargaining. In addition, effective negotiators should have the ability collaborate and work as team with others. Brian Epstein failed to consult with members of the Beatles, and get their views, e.g. on revenue sharing, he failed as an individual to procure a better deal for the group. Decision making ability in any form of negotiations is important. Effective negotiators must show ability to make decisions depending on the different situations and circumstances. In addition, effective negotiators must show the ability to communicate effectively and clearly when negotiating with the other side. Coupled with other skills, effective communication can make the opposing side to make concessions to your proposals. The media and entertainment industry stakeholders are people deemed to be effective in communication and thus, require an effective communication negotiator. Interpersonal skills are also essential in any form of negotiations because it displays the long-term nature of the relationship being created. Therefore, just like in any other negotiations, negotiations with stakeholders from the media and entertainment industry require good interpersonal skills. Ultimately, effective negotiators must either have the ability to keep their emotions in check or be ethical and reliable even when the contentious negotiations are frustrating. Stakeholders from the media and entertainment industry are individuals who are trained on how to keep their emotions in check due to the varied clientele they deal with. Therefore, as negotiator, you will need to be able to control your emotions and maintain a trusting environment to enable the negotiations continue conclusively for you to procure a deal with the opposing side (Luanne, n.d.). Part 3 When negotiating with stakeholders from the media and entertainment industry, it is prudent to be ready to use both the collaborative and competitive approach of negotiations depending on the prevailing circumstances. This is because these approaches are regarded as the most effective and tactful approaches for engaging players from the media and entertainment industry in negotiations given the long experience and skills they possess. Thus, as group we will combine the both approaches as discussed below: Collaborative approach-This is the most appropriate approach to this kind of negotiations given the symbiotic nature of the negotiations. Both parties here require each other to strike the deal and for the ultimate prize, which revenue. Competitive approach-If the negotiating party sets its target prior to the negotiation, then the competitive approach is the best approach to use because circumstances of the negotiations demand so. Part 4 Given the risky nature of the contract we are entering in, I propose we use the following negotiation strategies during the negotiation process. Firstly, break the negotiation into parts; breaking the negotiations into parts will help me get a better deal compared to negotiating the entire negotiations at once. Some negotiations break because the negotiators take an “all or nothing” strategy in which the opposing side must concede to their all set terms if the negotiations are to move forward. Therefore, by breaking the negotiations into sections and trying to reach agreements for each part separately, I will feel motivated and encouraged from the series of solutions and progress achieved. Have a stand before the negotiations start; it is important as a negotiator to know what you want to have discussed in the negotiations. For instance, because we are going to war zones, which are risky places, we take a position before the negotiations that, if our assets are destroyed then we receive no coverage for such scenario to avoid negative image from other clients. Thus, having set objectives and goals to accomplish during the negotiations will help me in bargaining for a better deal for my group, by looking at all possible scenarios, risks involved, which I will present before the opposing side to enable me make them concede to our set terms and ultimately, which will lead to us meeting our goals. Part 5 Negotiating parties that sets the terms and conditions for a negotiation process, often stand a good chance of controlling the negotiations. Thus, as a band group, we know our interests and priorities and thus, setting the terms of the contract is as good as the contract itself because it will help us: control or maintain a strong bargaining position. A strong bargaining position is imperative in negotiations if we are focused at winning them. Secondly, procure a better deal as a group, which will help us secure a larger portion of the revenue generated. Therefore, since we desire to control and win the negotiations we will demand that we draft the terms and conditions of the negotiations. In addition, negotiators would at times include a clause in the negotiation document, which is meant to favor to them. Thus, to eliminate these possibilities, we demand that we draft the terms and conditions of the negotiations References Luanne, K., (n.d.). Top Ten Effective Negotiation Skills. Retrieved from http://smallbusiness.chron.com/top-ten-effective-negotiation-skills-31534.html. Millercenter. (n.d.). Address Before a Joint Session of Congress (September 11, 1990) President George H.W. Bush. Retrieved from http://millercenter.org/president/speeches/detail/3425 Roy, J., et al., (1999). Negotiation, (3rd Edition). San Francisco: Irwin McGraw-Hill. Read More