BATNA (BEST ALTERNATIVE TO A NEGOTIATED AGREEMENT) = This refers to what, as the seller, you think you could do with another party (being realistic) in terms of selling your content or product, if this deal fell apart. For the buyer, it's what you think you could do in terms of replacing the content or product, and the price involved, if the deal fell through.
RESERVATION PRICE = the maximum or minimum--depending on whether you're the buyer or seller--at which you would be indifferent between doing the deal, and not doing the deal
If you are the seller, this is the minimum price that you'd take; it's one at which you're indifferent to whether the deal gets done. If it's a dollar less, you'd prefer to walk; if it's a dollar higher, you'd do the deal. If you're the buyer, it's the maximum price you'd pay, and you'd be indifferent to doing the deal ...view middle of the document...
95) using this link.
Here are the topics I want you to address in your analysis of this deal negotiation; I'm going to introduce into our work here a couple of new-ish concepts (although they were touched on in Getting to Yes) that I want you to explore on your own. I will include a definition for them in RESOURCES, but make sure you understand what they mean before you attempt to address. So here are the topics/questions you need to speak to:
1) Who are the parties in the Frasier negotiations, and and what are their respective interests? How can the various parties influence the negotiation process, and the outcome?
2) What is NBC's BEST ALTERNATIVE TO A NEGOTIATED AGREEMENT (otherwise known as BATNA, ie, what they'd do if they can't reach agreement)? What is Paramount's BATNA?
3) What is your best estimate of the parties' RESERVATION PRICES (ie, the maximum or minimum--depending on whether you're the buyer or seller--at which you would be indifferent between doing the deal, and not doing the deal)?
4) Is there a ZONE OF POSSIBLE AGREEMENT (also known as ZOPA, ie, the bargaining range) . . . did it change during the negotiation?
5) Describe how you think value can be created in this negotiation, and who is likely to get the most value.
6) What obstacles might prevent agreement here?
7) How should Mark Graboff (lead negotiator for NBC) judge success in this negotiation? As President of NBC West Coast (his boss), how would you want to compensate him for doing deals like this?
I'm going to give you three options for this final:
- you can answer the above, solo (paper should be min of 4,000 words)
- you can team up with one of your classmates (joint paper should be a min of 6,000 words)
- if you have a specific work-related alternative negotiation/deal that you want to do an analysis on, let me know and we can discuss
You paper will be due by Friday, Dec 20st, though early submissions are encouraged!! Any questions should be posted to the Midterm/Final Q&A Forum.