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    MANNx Syndicate 7

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    heda kalenia
    The document discusses a potential joint venture between NN and Thompson to market an over-the-counter version of Thompson's prescription drug betaMANNx-OTC. It analyzes using distributive and integrative bargaining strategies to find an agreement that benefits both companies, such as Thompson accepting a smaller profit share in exchange for allowing NN to market the drug. An optimal solution identified is Thompson receiving one-third of profits plus $3 million in exchange for continuing to market its prescription drug.

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    © All Rights Reserved
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    MANNx Syndicate 7

    Uploaded by

    heda kalenia
    633 views8 pages
    The document discusses a potential joint venture between NN and Thompson to market an over-the-counter version of Thompson's prescription drug betaMANNx-OTC. It analyzes using distributive and integrative bargaining strategies to find an agreement that benefits both companies, such as Thompson accepting a smaller profit share in exchange for allowing NN to market the drug. An optimal solution identified is Thompson receiving one-third of profits plus $3 million in exchange for continuing to market its prescription drug.

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    The document discusses a potential joint venture between NN and Thompson to market an over-the-counter version of Thompson's prescription drug betaMANNx-OTC. It analyzes using distributive and integrative bargaining strategies to find an agreement that benefits both companies, such as Thompson accepting a smaller profit share in exchange for allowing NN to market the drug. An optimal solution identified is Thompson receiving one-third of profits plus $3 million in exchange for continuing to market its prescription drug.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    633 views8 pages

    MANNx Syndicate 7

    Uploaded by

    heda kalenia
    The document discusses a potential joint venture between NN and Thompson to market an over-the-counter version of Thompson's prescription drug betaMANNx-OTC. It analyzes using distributive and integrative bargaining strategies to find an agreement that benefits both companies, such as Thompson accepting a smaller profit share in exchange for allowing NN to market the drug. An optimal solution identified is Thompson receiving one-third of profits plus $3 million in exchange for continuing to market its prescription drug.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
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    OA T S O H [ 2 9 U T
    E GIC NG R A T
    N D GE UG NI
    S
    N IA
    Y G N E ID
    S N A L
    A Y A W
    L R K
    U A N
    S D IA
    E D
    H R
    A
    M
    MANNX-OTC CASE
    There is 2 companies : NN and Thompson
    The marketing departement of NN can create an OTC product that
    will compete with other OTC
    NN have vast OTC market and to be larger because non prescription
    drug
    Unfortunately, NN lack large volume presence on OTC market
    NN goal to assess the potential successful OTC product
    Joint venture w/ Thompson will benefit both firms

    Thompson made reduced strenght version : betaMANNx-OTC +


    Proved by FDA
    Thompson has little capability to reach mass market of OTC ---not yet
    sold their rights
    MANNX-OTC CASE
    Issue :
    Negotiation to share profit from MANNx-OTC .
    Thompson desire to keep betaMANNx-OTC as the precription drug

    NN estimate analysis :
    $12 million as profitability of betaMANNx to Thompson if it remains
    exclusively a
    prescription drug.
    $30 million as maximum profit for NN if they join together.
    $9 million as minimum profit for Thompson if they join together
    DISTRIBUTION BARGAINING
    There are a set of agreements that Northcraft and
    Northcraft(NN) and Thompson
    prefer points between $9 million and $ 30 million. At this point
    is positive bargaining
    zone show both gain great deal by reaching agreement.
    INTEGRATIVE BARGAINING
    A more careful assessment of each sides interest can
    produce more joint profit than distributive agreement can.
    Which means, integrative bargaining is to create better
    agreement, especially if there is multiple issues.
    Also to finding mutually beneficial trade-offs plus
    strenghten bargaining relationship
    JOINT VENTURE NEGOTIATION
    [INTEGRATIVE]
    JOINT VENTURE NEGOTIATION
    [INTEGRATIVE]
    NN : The profit for NN companies
    T : The profit for Thompson companies
    NN+T : cmbines the profit from NN and Thompson
    Synergy : Benefit created by joint venture when
    thompson is not allowed to market betaMANNx
    .after 1,2,3,4,5,6 years : Time period for Thompson active
    marketing collectively affect the available joint venture
    P : The right to sell and market MANNx-OTC [Transfer
    price]
    JOINT VENTURE NEGOTIATION
    [CONCLUSION]
    Conclusion to get win-win negotiation is to combine both
    distributive and integrative .
    If Thompson accept the deal to take only [1/3] one-third of the
    profit for joint venture in exchange for continuing to market
    betaMANNx, NN would receive [2/3] two-third

    thomspson will receive $3Million + one-third (1/3*30Million =


    $10Million ) = $13 Million And we get two-third ($20million).
    But eventhough NN is the one that get 1/3, and T is get 2/3
    that is also not a
    problem because in NN distributive bargaining NN put 5 million
    as target price. Its
    better than no agreement at all.

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