Students are required to choose one of the two case study options and complete the assignment using the provided instructions. Case Study 1: The Marketing Consultant NegotiationInstructions for Completing the Negotiation Case Study Assignment
- Read the Case Study: Carefully review the scenario provided. Pay attention to the details about the goals, constraints, and potential outcomes for both parties.
- Analyze the BATNA and WATNA: Identify the best and worst alternatives to a negotiated agreement for both Tomorrow’s Tech Solutions and Jamie.
- Develop a Negotiation Strategy: Create a strategy to achieve a win-win outcome, considering the interests and goals of both parties.
- Answer the Questions: Respond to the four specific questions below in clear, structured paragraphs. Support your answers with reasoning and references to the case study and textbook.
- Submit Your Work in the provided discussion board area and make at least one (1) quality interactive response to your peers.
You are a small business owner of a growing online retail company, Tomorrow’s Tech Solutions, specializing in eco-friendly tech accessories. You are negotiating with a freelance marketing consultant, Jamie, to create and implement a six-month social media marketing campaign.
Your budget for this project is $15,000, but Jamie’s initial proposal is $20,000. Jamie claims their expertise and proven track record justify the cost, emphasizing that their campaigns often result in a 30% increase in sales for similar businesses. However, Jamie is willing to negotiate and explore options to meet your needs.
On your side, you are concerned about overstretching your budget, especially since you recently invested in upgrading your website. However, you believe an effective marketing campaign is crucial for increasing sales and recovering those costs. Your BATNA (Best Alternative to a Negotiated Agreement) is to hire a less experienced marketing consultant who charges $12,000 but doesn’t guarantee specific results. Your WATNA (Worst Alternative to a Negotiated Agreement) is to attempt the campaign in-house with your limited marketing knowledge, which could lead to wasted time and minimal impact on sales.
Jamie’s BATNA is to secure a project with another tech company that offers similar work but at a fixed price of $18,000. Jamie’s WATNA is to have no projects lined up for the next quarter, impacting their income.
Your Task:
- Identify and evaluate the BATNA and WATNA for both parties.
- Propose a strategy to reach an agreement that aligns with your goals while addressing Jamie’s concerns.
- How can you leverage interests, options, and alternatives to achieve a win-win outcome?
Assignment Questions
- BATNA and WATNA Analysis (25 points):
What are the BATNA and WATNA for both Tomorrow’s Tech Solutions and Jamie? Explain how these alternatives influence the negotiation strategy for each party. - Identifying Interests (20 points):
What are the key interests of each party? How do these interests shape the priorities and potential concessions in the negotiation? - Proposal for a Win-Win Agreement (30 points):
Based on the BATNA, WATNA, and interests of both parties, propose a negotiation strategy. What specific steps or compromises would lead to a mutually beneficial outcome? - Evaluation of Your Strategy (25 points):
How does your strategy address potential challenges, maintain a positive relationship between the parties, and maximize value for both?
Case Study #2 Negotiation Case Study: The Office Lease Agreement
You are the owner of a small accounting firm, Efficient Tax Solutions, that has outgrown its current office space. You are negotiating with a landlord, Taylor Properties, to lease a new office in a prime downtown location.
The office meets your requirements, including proximity to clients, updated facilities, and enough room for future growth. The landlord is asking for $5,000 per month for a three-year lease, but your budget is $4,200 per month. You’re also concerned about hidden costs like maintenance fees. You are willing to consider a longer lease term if it lowers the monthly rent.
Your BATNA is to lease a smaller office in the suburbs for $3,800 per month, but it lacks downtown convenience and may impact client accessibility. Your WATNA is to stay in your current cramped office, which could lead to employee dissatisfaction and hinder business growth.
The landlord’s BATNA is to lease the space to a tech startup for $4,800 per month, though they prefer a long-term tenant like you for stability. Their WATNA is to leave the property vacant, losing $5,000 monthly income.
Instructions for the Assignment
- Read the Case Study: Carefully review the details, noting the goals, constraints, and alternatives for both parties.
- Analyze BATNA and WATNA: Determine the best and worst alternatives for both Efficient Tax Solutions and Taylor Properties.
- Develop a Negotiation Plan: Craft a strategy to achieve a win-win outcome that addresses both parties’ interests.
- Answer the Questions: Write clear, concise responses to the four questions below, using examples from the case study to support your analysis.
- Submit Your Work in the provided discussion board area and make at least one (1) quality interactive response to your peers.
Assignment Questions
- BATNA and WATNA Analysis (25 points):
Identify and evaluate the BATNA and WATNA for both the accounting firm and the landlord. How do these alternatives impact their negotiation positions? - Understanding Interests (20 points):
What are the underlying interests of both parties? How do these interests influence the negotiation? - Proposed Negotiation Strategy (30 points):
Develop a negotiation strategy that balances both parties’ goals. What specific actions or compromises could lead to a successful agreement? - Risk and Value Assessment (25 points):
Analyze the risks and potential value of your proposed agreement for each party. How does your strategy mitigate risks and maximize value?