Planning and Preparation Paper
April 6th, 2013
I must negotiate with S.S. Scott, CEO of Scott Computers, to sidestep litigation and come to an agreement concerning Print-Rite. We have taken on substantial risk and cost due to the advantage we see this computer system giving us, but without Print-Rite, the entire system is worthless. We have sued because of non-delivery of Print-Rite, which was verbally promised to us, but not documented in our proposal or in the contract. They have countersued for breach of contract.
Goals and Decision Makers
My goal is to attain Print-Rite with a profit sharing deal as opposed to an upfront payment, and thus removing lawsuits. ...view middle of the document...
This could be because they know that if investigated there is substantial evidence that Robertson did promise the Print-Rite, and that they would lose the 5 million dollar suit. It also could be that they are looking to avoid the legal fees and the long commitment of legal proceedings, even though they feel that their cases are strong. We both have a shared interest here to avoid the long legal process and the costs associated.
We also both share the interest of the project going forward. We would get the high projected profits, and they would get their lease revenues. But this desire is not shared equally as we have much more to lose without the project than they do. We could go into bankruptcy but they would only have a write- down at worst of 1% of gross income.
We have an interest in making our payments to them delayed and based on profits. The current lease payments push us to our financial limit and any additional payment for Print-Rite would be best put off until fruition of our high potential computer printing system and the subsequent profits. They have a conflicting interest in having and getting cash as soon as possible. They would rather have their money now than later.
Our ancillary interest is in our success as a business; making profits and not going bankrupt. Their ancillary interest is in making profit on this deal themselves, and in avoiding legal action that may hurt their image.
I have little leverage, other than our lawsuit, and if they know our lawsuit is weak, then I have almost no leverage at all. Without a deal, we are bankrupt.
Their leverage is a countersuit for the broken lease, which is strong. Without a deal, they would face court time and fees and a possible 5 million judgment against them. Leverage favors...