PRE-NEGOTIATION WORKSHEET

Negotiation:
Your Name(s): Ahmed Ibrahim
Your Counterpart’s Name(s): Diana Espinosa
Your role in this negotiation: CFO - Seltek

Please complete this pre-negotiation worksheet PRIOR to your negotiation. Be SPECIFIC

with your answers. Use more space if necessary.
IMPORTANT! 10% of your grade on this assignment will be based on the visual
quality of your written work and the clarity of your writing. This includes providing all
requested information, proofreading your document, running a grammar and spell
check, providing page numbers, correct use of fonts and spacing, and insuring that your
document is properly formatted and aligned. It is fully expected that you will submit
“professional quality” work to your instructor, both in content and in presentation.

PART 1: THE CONTEXT OF THE NEGOTIATION - 6 points

List the PERIPHERAL elements (other than positions and interests) which may have an
impact on the negotiation and explain why. (6 points)

Peripheral Elements Potential impact on the negotiation & reasons

why
Legitimacy If the other party trying to take more advantages from me,
then I won’t continue the negotiation. To succeed in
negotiation,
Prepare all the facts and strengths for my company
Time Constrains Time is very critical as it is better to sell as soon as
possible.
Alternative BATNA, try to convince the other company for another
alternative. As both parties have alternatives to negotiated
agreements, each party should consider the other’s likely
BATNA when preparing to negotiate.
The more strong argument and sources of power the
stronger the BATNA
Communication Exchange information will be helpful for each party to be
heard. It is important to be cognizant of what is being
assumed versus said when exchanging information
between parties.

Relationship  If the value of accomplishing the task is high and the
value of the relationship is low, then your choice of
negotiation strategy opens to a value-claiming focus, so
trying building relation is very important

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PART 2: ANALYSIS OF INTERESTS, OBJECTIVES AND
CURRENCIES (IOC matrix) (both sides) - 18 points
Please complete the IOC MATRIX as thoroughly as you can. Be sure to look beyond
what is written in your documents. Be CLEAR and SPECIFIC. (3 points per box = 18
points total)

Your Interests Your Your Objectives THEIR Currencies

Prioritie (assumed)
s1=
high 3 =
low
 Selling Plant 1 to raise the money Reducing the price of Plant and
required by Seltek for land.
different investments.
The Plant is a pack of
three components, the
Plant itself, the
Constructing and the
Land. The plant is
priced at $12 m, the
construction is
currently worth $11 m,
and the land is worth
$1 m. This is a
particular advantage if
it is purchased by
BioPharm as soon as
possible.

 Selling the 1 The patent – the buying

Patent of a patent would Reducing price of Patent as they
depend on the desire of might show no interest in this
BioPharm in sector of production. (Petrochek).
genetically engineered
products. The offer
would generate $4 m.
Though, Elf can
purchase it at $5 m in a
year's time, but money
is needed as soon as
possible.

 Taxes 3 To incluse the 200,000

$ liability within the Might accept to pay the tax in a
purchase deal. return of accepting their price
offer.

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  BATNA for the
other company. 3 Rebuild the plant for 3 Start building their own plant in
milion dollars within 6 different location.
months and sell the
patent for 4 milion
dollars.
 Labor force
1 Save 1 million dollars Might accept including the labor
of severance payments. force instead of hiring new
employees and consume time
during training, so they may
prefer having the experienced
labor than fresh employees.
Their Interests Their Objectives YOUR Currencies
(assumed) (assumed) (assumed)
 Buying Plant 1 Having the plant for its I won’t accept the offer and try to
book value, which is negotiate for higher price and
cheaper price and explain that the book value is not
considered as bargain the real value and it is just to
for BioPharma. decrease taxes.

 Land 3 Buying the land at I will consider the value of the

500,000 $, as there was land as the same value of 500K
similar land and sold USD.
for 500,000$.

 Patent 3 May not be interested I will try to sell it as a part of the

as this product will be deal and negotiate for total sum
new to Biopharma of 28 M $ including the total.
portfolio.

PART 3: ITEMS TO BE NEGOTIATED - 5 points

Complete the table below for each item you plan to negotiate. (5 points)
RELATIVE
TARGET/OBJECTIV
ITEM OPENING LIMIT IMPORTANCE
E
1=high, 3=low
30 M The whole plant for 24 M 22 M 1
Plant USD (Plant, buildings and
land)
10 M Target price at 4 M USD 4M 1
Patent
Taxes 200 K $ BioPharma to accept the 0 3
liabilities of 200K USD
Insurance 8M$ Using the insurance as a key 8M 3
negotiation to increase the
price
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PART 4: ALTERNATIVES & PREPARING YOUR
STRATEGY - 18 points
a. What alternatives are available to you if you do not reach an agreement?
Explain. Which of these alternatives is your BATNA? Explain why. (4 points)

List your
Alternatives Explanations & identify your BATNA
Plant Modification possibility to use the plant for the manufacture of computer chips.
New business (not highly attractive though)
Rebuilding the Plant Normal configuration for general manufacturing

If the discussion gets Plant: 11.5 m $, infrastructure: 10m $ & Land for 500,000 $
tough Patent: 3.8 m USD
Lower Prices Insurance: 4 m cash back (50/50 %)
Seltek hold its liabilities with 200 K USD,as it is already put in
escrow account pending resolution of the dispute.
Worst case scenario Seltek will hold all its liabilities and insurance, while Patent kept
at 4 M USD.

b. What alternatives do you believe are available to your counterpart if you do

not reach an agreement? Which of these alternatives do you believe is their
BATNA? Explain why. (4 points)

List their
Alternatives Explanations & identify their BATNA
Building their own It will consume time, investment and approvals, which will delay
plant their availability for production.
Lease factory till they This will be over costly for the company as they will pay for the
finish building their lease and for the plant.
plant

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 c. Indicate what strategy (distributive or integrative) you want to put in place
and explain why. Identify and explain which elements of the negotiation will
be distributive, and which ones will be integrative. (10 points)

Your Strategy Your explanations

Intergrative (win/win) Building the trust by being open to the CFO of BioPharm
Seltek have many issues for negotiation.
expanding the pie.
Sharing interest with Biopharma.
generate more solutions and present more options for
maximum gain.
Construction of the value
Longer relationship

Distributive elements Your explanations

Price Focused Fighting for have a slice of the pie than enlarge the pie
and it is a win/lose
Less Trust Less trust will make it hard

Haggling Specially over the cost

Integrative elements Your explanations

Value joint – enlarge the pie Increase the interests and build a collaborative problem
solving will help to find win/win agreement.

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 Trust Increasing trust by being open will make the agreement
much smoother and gain the win/win agreement.
Relationship Building a relationship with long term, increase trust
and ability to find a win/win agreement

PART 5: OPTIONS - 8 points

What CREATIVE OPTIONS, (“expanding the pie”), do you want to explore during this
negotiation? Complete the table below and explain how will each of these options bring
value to BOTH sides? Make links with the interests of both sides. (8 points)

Option Explanations & reasons

Selling the Plant as Package Biopharma will gain the benefits of being able to
including land, buildings, Labor produce their own products quickly (save time).
and Patent for well selling more efficient for it as they have the know-how
product. stablished with the right employees to start the
production.
Selling the Plant for Biopharma As they might not interested in having new production
without Patent line in their portfolio and need just the plant.

As start to get more information from BioPharma to

Selling each part a lone as know how much they willing to pay, then either to go
different products that way each part with a price or sell as a Package.

PART 6: COMMUNICATION AND RELATIONSHIP - 21

points
a. In line with your above strategy, what will be your opening statement? Write a few
sentences. (2 points)

Seltek plant producing Petrochek's lucrative, which position in both oil transportation for
oil spillage cleaning and the upcoming sewage treatment feature that will further broaden
the market,
Petrocheck has been a market leader for the past few years with successful production
capacity because the efficiency of the plant and the employees. Also, such plant structure
makes it possible to produce computer chips. The staff are very experienced in production
and research.

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b. What questions do want to ask your counterpart to uncover her/his interests
(minimum 7 questions)? Explain why. Please refer specifically to the IOC matrix on
part 2 above and review the assumptions you have made on the other side’s interests.
(7 points)

Questions to ask to the

Your explanations
other side
Would you please explain why To under stand their needs specially that our plant is
you need to buy our plant? a 70 miles away from their HQ.
When would you like to start To know how time frame he/she has for this
production in our plant? negotiation.
What do you know about our To know if there a key factors I can hold on for
plant? negotiation
How much would like to pay To get an idea of the prospected price, which is the
for our plant? bargain for them.
How did you arrive at that To know how they structed the pricing and start
particular price? tackle each
What do you think of our To know if they are interested in our production line
Patent? or not
How do you feel about package To know if there will be more interest in having a
settlement? full package of plant, land, building, patent and staff.

c. What messages do you want to send and share with your counterpart? (minimum 5
messages). Explain why. (5 points)

Message to provide to
Your reasons
the other side
Plant Production capacity To make sure they understand the production power of
our plant and our staff
Plant design Ability to add business sector as computer chips
production.
Plant history and success The goodwell of the plant is high as it is the successful
plant for producing Petrochek, increase Trust in the
plant.
The plant insurance for 8 m $ Strong negotiation message that attract Biopharma.

Other companies requested To get that message that is a good opportunity to

the patent sustain the current business.

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d. What information you are not ready to share? Explain why. (2 points)

What information you

Your reasons
are not ready to share
Depreciation of the plant over As it is very high relative the last couple of years and
the past years & Book value the book value is very low.
of the plant.
I have to wait for 1 year to Because not to have it as negotiation advantage for
sell my Patent. him/her and pressure on decreasing the prices.
That the company is almost BioPharma will put even more pressure to gain further
out of cash and it is very benefits.
important to sell as soon as
possible.

e. What is, according to you, the current level of your relationship? Why? What
behavior would you like to put in place in this negotiation? Explain why. What
actions do you plan to take in relation to this behavior? Make the link with your
strategy (part 4). Be specific. (5 points)
Your explanations: what & why
Current level of your Elementary (New) -Business only relationship
relationship 1st meeting with the CFO and we are going to discuss
pricing negotiation.

Behavior you want to 1. Not task time, during the begging of the
put in place meeting, get more comfortable and break the
ice.
2. Information change, General info, background
info of both companies as it is important to
adapt the proposal according the information
presented
3. Influence or persuation, try to get the highst
benefits of the negotiation and decrease the
other side demands.
4. Closing, either accepting or rejecting the

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 proposal.

Actions you plan to take Be open for building a relationship

in relation to this Share key information that increase my negotiation
behavior power.

Push upon their weaknesses or my powers to

decrease the demand from their side and raise my
side.

Present different options that attract the buyer

TOTAL POINTS FOR PRE-NEGOTIATION WORKSHEET:

 76 points for content
 8 points for presentation
_____ /84 = _____ / 20

POST-NEGOTIATION WORKSHEET
Negotiation:
Your Name(s):
Counterpart Name(s):
Your role in this negotiation:
Please complete this post-negotiation worksheet immediately upon completion of your
negotiation, while everything is still fresh in your mind. Be SPECIFIC with your answers,
citing precise examples from your negotiation. Use more space if necessary.
IMPORTANT! 10% of your grade on this assignment will be based on the visual
quality of your written work and the clarity of your writing. This includes providing all
requested information, proofreading your document, running a grammar and spell
check, providing page numbers, correct use of fonts and spacing, and insuring that your
document is properly formatted and aligned. It is fully expected that you will submit
“professional quality” work to your instructor, both in content and in presentation.
1. RESULTS and FIRST ANALYSIS - 14 points
a. List all the items on which you reached agreement and include the amount (or terms)
agreed upon. If you finished with a “no outcome”, indicate where you got stuck and

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 why, providing details about which items you agreed upon, and which you did not. (4
points)
Your What you
Items Analysis & explanations
Objective achieved

b. Was this a good outcome? Why or why not? Give at least two specific examples
from your negotiation. (5 points)

c. Interests and Value Discovery, Creation and Claiming. (5 points)

Explain and provide examples:
o on how you discovered value in your negotiation,
o on how you created value,
o and on how you claimed value.

Value Discovery Explanations & example

Value Creation Explanations & example

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 Value Claiming Explanations & example

2. ANALYSIS OF STRATEGY AND BATNA - 15 Points

a. Explain how you implemented and/or changed the strategies and techniques you had
planned to use during this negotiation. Why? Was this effective? Specifically refer
back to your Pre Negotiation Worksheet (Part 4, question c). Provide at least two
specific examples from your negotiation. (6 points)

Your original negotiation

Reasons & examples
strategy

Implementation &
Reasons & examples
changes

b. Describe and analyze your perception of the strategies and techniques used by your
counterpart. Provide two specific examples from your negotiation and explain why
you felt they were or were not effective. (6 points)
Your perception of their
Your analysis & explanations
negotiation strategy

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c. In your opinion, who had the strongest BATNA - you or your counterpart? Why?
Did that affect the way that you and your counterpart negotiated? Give one specific
example from your negotiation. (3 points)

3. DISCOVERY OF THE OTHER SIDE’s INTERESTS,

INFORMATION DISCLOSURE AND USE OF OPTIONS -
18 Points
a. Specifically refer back to the IOC Matrix (Part 2) from your Pre-Negotiation
worksheet and look back at your “assumed interests” of your counterpart. (10
points)
i. Were your assumptions correct? Why? Explain.
ii. What new interests did you uncover? Explain and be specific.

My assumptions of
the other side’s Were they correct? Explanations
interests

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 New interests
Explanations
uncovered

b. How did you manage the disclosure of information? Who took the lead? Why?
What was the impact on the negotiation process and relationship? Provide an
example. (4 points)

c. Where options used? By whom? How was it managed? What was the impact on
the negotiation process and relationship? Provide an example. (4 points)

4. RELATIONSHIP AND COMMUNICATION - 12 Points

a. Describe the evolution of the quality of your relationship with your counterpart
(trust level, use of power, fairness, etc.) throughout the negotiation, and explain the
circumstances that may have caused it to improve or deteriorate. In your
preparation, you had planned to put in place a certain behavior & related actions.
Did you manage to use this behavior & put in place the related actions? Why or why
not? Provide at least two specific examples from your negotiation and explain. (6
points)

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b. Describe the evolution of the quality of your communication with your counterpart
(information sharing, asking questions, listening, clarifying, summarizing, etc.)
throughout the negotiation, and what you believe the contributing factors were. In
your preparation, you had planned to ask a series of questions & pass some
messages. Did you manage to do both? Why or why not? Provide at least two specific
examples from your negotiation and explain. (6 points)

TOTAL POINTS FOR POST-NEGOTIATION WORKSHEET:

 59 points for content
 6 points for presentation
_____ / 65 = _____ / 20

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