Ivey Publishing

Essentials of Negotiation

Lewicki, R.J., Saunders, D.M., Barry, B.,5/e (United States, McGraw Hill Irwin, 2011)
Prepared By Seung Hwan (Mark) Lee, PhD Candidate
Chapter and Title Chapter Matches: Case Information
Chapter 1:
The Nature of Negotiation

NEGOTIATING IN A DIFFICULT ENVIRONMENT: MAKING EACH DEAL COUNT
Danny Ertel, Mark Gordon

Product Number: 9B08TD08
Publication Date: 7/1/2008
Length: 8 pages

It may not be negotiator’s remorse but at certain times you may feel sorry that – or at least wonder why – you ever closed a deal. In such a case, you’ll probably discover that you did the deal for the sake of doing a deal – not to build a sustainable, positive and productive relationship. These authors describe how to make sure that every deal delivers value.

Issues: Negotiation




INDIA'S NEGOTIATIONS CONCERNING THE DABHOL POWER COMPANY 2001-2005
David W. Conklin, Danielle Cadieux

Product Number: 9B06M074
Publication Date: 8/22/2006
Revision Date: 9/21/2009
Length: 2 pages

In 2001, the Dabhol Power Company (DPC) ceased operations following several years of bitter acrimony between the state of Maharashtra and the foreign owners. GE and Bechtel each owned 10 per cent of the equity, the Maharashtra State Energy Board (MSEB) owned 15 per cent and Enron owned 65 per cent. The Overseas Private Insurance Corporation (OPIC), a U.S. government agency, had lent $138 million and also had provided insurance against "political risk" for some of the other 19 foreign lenders. The lengthy and convoluted experiences of the Enron Dabhol power project are described in detail in Andrew Inkpen's case Enron and the Dabhol Power Company, Thunderbird Case # A07020008. The purpose of India's Negotiations Concerning the Dabhol Power Company 2001-2005 is to discuss the negotiation between the various foreign investors and the government of India in an attempt to reactivate the Dabhol project. Ultimately, in 2005 a settlement was negotiated. This case adds a further dimension to the case by Andrew Inkpen, and it can be taught most effectively as a sequel to that case.

Teaching Note: 8B06M74 (3 pages)
Industry: Utilities
Issues: International Business; Government and Business; Globalization
Difficulty: 5 - MBA/Postgraduate



MAJESTICA HOTEL IN SHANGHAI?
Paul W. Beamish, Jane W. Lu

Product Number: 9B05M035
Publication Date: 4/11/2005
Revision Date: 9/21/2011
Length: 14 pages

Majestica Hotels Inc., a leading European operator of luxury hotels, was trying to reach an agreement with Commercial Properties of Shanghai regarding the management contract for a new hotel in Shanghai. A series of issues require resolution for the deal to proceed, including length of contract term, name, staffing and many other control issues. Majestica was reluctant to make further concessions for fear that doing so might jeopardize its service culture, arguably the key success factor in this industry. At issue was whether Majestica should adopt a contingency approach and relax its operating philosophy, or stick to its principles, even if it meant not entering a lucrative market.

Teaching Note: 8B05M35 (8 pages)
Industry: Accommodation & Food Services
Issues: China; Market Entry; Negotiation; Control Systems; Corporate Culture
Difficulty: 4 - Undergraduate/MBA


Chapter 2:
Strategy and Tactics of Distributive Bargaining

INFORMATION SYSTEMS AT FIRSTCARIBBEAN: CHOOSING A STANDARD OPERATING ENVIRONMENT
Louis Beaubien, Sonia Mahon

Product Number: 9B04E032
Publication Date: 3/22/2005
Revision Date: 10/9/2009
Length: 10 pages

The Canadian Imperial Bank of Commerce and Barclays Bank PLC were in advanced negotiations regarding the potential merger of their respective retail, corporate and offshore banking operations in the Caribbean. Currently there are four systems in operation in the region. All are carry-overs from the pre-merger operation of the bank. Each of the systems has different pros and cons consisting of degree of fit with the organization strategy, likely impact on organizational culture, and functionality. As part of the effort to standardize practices across the organization, a choice for one standard operating system must be made. This case may be taught on a stand alone basis or in combination with any of four additional cases that deal with various functional issues regarding the actual merger and integration. The four additional cases deal are: CIBC-Barclays: Should Their Caribbean Operations be Merged?, product 9B04M067; Harmonization of Compensation and Benefits for FirstCaribbean Bank, product 9B04C053; CIBC-Barclays: Accounting for Their Merger, product 9B04B022 and Note on Banking in the Caribbean, product 9B05M015.

Teaching Note: 8B04E32 (8 pages)
Industry: Finance and Insurance
Issues: Mergers & Acquisitions; Integration; International Management; Management Information Systems; University of West Indies
Difficulty: 4 - Undergraduate/MBA



CIBC-BARCLAYS: SHOULD THEIR CARIBBEAN OPERATIONS BE MERGED?
Don Wood, Paul W. Beamish

Product Number: 9B04M067
Publication Date: 1/10/2005
Revision Date: 9/21/2011
Length: 17 pages

At the end of 2001, the Canadian Imperial Bank of Commerce (CIBC) and Barclays Bank PLC were in advanced negotiations regarding the potential merger of their respective retail, corporate and offshore banking operations in the Caribbean. Some members of each board wondered whether this was the best direction to take. Would the combined company be able to deliver superior returns? Would it be possible to integrate, within budget, companies that had competed with each other in the region for decades? Would either firm be better off divesting regional operations instead? Should the two firms just continue to go-it-alone with emphasis on continual improvement? A decision needed to be made within the coming week. This case may be taught on a stand alone basis or in combination with any of the six additional Cross-Enterprise cases that deal with the various functional issues associated with the actual merger: Accounting and Finance - CIBC-Barclays: Accounting for Their Merger, product 9B04B022, Information Systems - Information Systems at FirstCaribbean: Choosing a Standard Operating Environment, product 9B04E032, Marketing and Branding - FirstCaribbean International Bank: The Marketing and Branding Challenges of a Start-up, product 9B05A012, Human Resources - Harmonization of Compensation and Benefits for FirstCaribbean International Bank, product 9B04C053, Finance - FirstCaribbean Merger: The Proposed Merger, product 9B06N004, and technical note - Note on Banking in the Caribbean, product 9B05M015.

Teaching Note: 8B04M67 (8 pages)
Industry: Finance and Insurance
Issues: Corporate Strategy; Emerging Markets; Mergers & Acquisitions; Integration; University of West Indies
Difficulty: 4 - Undergraduate/MBA


Chapter 3:
Strategy and Tactics of Integrative Negotiation

CHINA'S TRADE DISPUTES
David W. Conklin, Danielle Cadieux

Product Number: 9B09M018
Publication Date: 3/9/2009
Revision Date: 8/5/2009
Length: 17 pages

By 2009, China's exports had increased dramatically from $250 billion in 2000 to a projected $1,500 billion in 2009. This enormous growth of exports severely damaged competing businesses in the advanced nations, particularly the United States and Europe. China's entry into the World Trade Organization (WTO) in 2001 guaranteed China's right to export to these nations, but at the same time the WTO required China to adhere to certain rules that sought to support fair trade and create a level playing field. Several broad subjects each gave rise to a series of trade disputes: the protection of intellectual property, health and safety concerns about China's products, labour and environmental standards, China's manipulation of their currency, and costs and prices determined by the government rather than free markets. This case examines each set of trade disputes and China's attempts to resolve them. Many disputes were embedded in cultural practices and ideological positions and so they might not disappear quickly. Shortcomings in China's legal and judicial system hampered enforcement. In addition, many rested on the government's desire to protect the interests of Chinese businesses and their employees, and so China might alter its practices only if confronted with credible retalitory threats. China's central government experienced the principal-agent problem where its wishes and decisions could be ignored by local governments and firms. Meanwhile, changes in industry structure within the advanced nations were altering the negotiation positions of Western governments. The case examines the WTO dispute resolution procedures and enforcement mechanisms that have been directed at China's trade disputes.

Teaching Note: 8B09M18 (8 pages)
Issues: China; International Business; Government and Business; Globalization
Difficulty: 4 - Undergraduate/MBA



BRITISH COLUMBIA AUTOMOBILE ASSOCIATION: POST-STRIKE AND LOOKING TOWARDS THE FUTURE
Charlene Zietsma, Ken Mark

Product Number: 9B06M085
Publication Date: 11/6/2006
Revision Date: 9/21/2009
Length: 10 pages

The vice-president of human resources of the British Columbia Automobile Association (BCAA) had just concluded negotiating the first collective agreements for two separate bargaining units with the association's union, who represented about 25 per cent of BCAA's workforce. BCAA's senior management wanted to find a way to reconcile with its unionized employees while still carrying on with the biggest cultural change in the company's century-long history. They wondered how best to proceed. The case serves as a discussion vehicle for how companies can manage labor relations post-strike, while attempting to implement strategic change.

Teaching Note: 8B06M85 (9 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Strategy and Resources; Services; Small Business; Competitive Advantage
Difficulty: 4 - Undergraduate/MBA


Chapter 4:
Negotiation: Strategy and Planning

MEARL OIL COMPANY: ENVIRONMENTAL IMPACT TARGETS (A)
Pratima Bansal, Tom Ewart

Product Number: 9B05M018
Publication Date: 7/15/2005
Revision Date: 9/30/2009
Length: 9 pages

Mearl Canada Limited does not want to implement Mearl Oil Company's environmental impact targets because, in Mearl Canada's opinion, the targets create an extra layer of regulation for considerable cost and negligible benefit. Mearl's position is that all Mearl worldwide operations must adopt these performance standards, as this will allow the company to make operational their stated environmental policy. Each party has an opportunity to make their case at the International Environmental Group meeting, and it will decide if Mearl Canada may deviate from the environmental impact target and continue with their own homegrown environmental management system and standards. This case is from the point of view of the manager, Mearl Support, environmental. The supplement Mearl Oil Company: Environmental Impact Targets (B), product 9B05M019, is from the senior environmental manager, Mearl Canada Limited view and the supplement Mearl Oil Company: Environmental Impact Targets (C), product 9B05M020, is from the International Environmental Group's perspective.

Teaching Note: 8B05M18 (8 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Negotiation; Globalization; Management in a Global Environment; Environmental Business Management
Difficulty: 4 - Undergraduate/MBA



NORTEL NETWORKS COMES TOGETHER
Christina A. Cavanagh

Product Number: 9B04C018
Publication Date: 5/14/2004
Revision Date: 10/7/2009
Length: 6 pages

Nortel, a supplier of digital network solutions, was a successful company for over 100 years. The company prided itself on low staff turnover and had recently focused on global markets. When Nortel acquired Bay Networks, a leader in the worldwide networking market, a new company, Nortel Networks was created. The leadership team for the new company has decided that within four months, Nortel Networks must develop a brand identify that will create a global presence and unite the employees with the company's vision. An advertising agency has presented a concept that features music from the Beatles. It is simple and has universal appeal. The concept, however, is a radical shift from Nortel's former corporate culture. The merger's leadership team must consider the implications of pursuing the new image.

Teaching Note: 8B04C18 (5 pages)
Industry: Information, Media & Telecommunications
Issues: Brand Management; Global Offering; Negotiation; Communications
Difficulty: 4 - Undergraduate/MBA


Chapter 5:
Perception, Cognition, and Emotion

4PRINT: PLANNING FOR A PROSPEROUS FUTURE
John S. Haywood-Farmer, Brianna Ramsay

Product Number: 9B04M042
Publication Date: 11/23/2004
Revision Date: 10/14/2009
Length: 14 pages

4Print Company is a small printing firm with three locations in the greater Toronto area. An employee is preparing for lease negotiation meetings with the property management company. He knew his boss would lead the discussion but wanted to have all the necessary material since negotiating favourable lease terms would help to ensure that 4Print would continue to grow in the competitive printing industry.

Teaching Note: 8B04M42 (8 pages)
Industry: Manufacturing
Issues: Corporate Culture; Negotiation; Management Succession
Difficulty: 4 - Undergraduate/MBA



WINDLE, CASTLEMAN LLP
James A. Erskine, Sean Kelly

Product Number: 9B04C019
Publication Date: 6/24/2004
Revision Date: 10/7/2009
Length: 6 pages

A partner at a law firm has been given a choice by one of the firm's assistants, either increase her salary or she would give her two-week resignation notice. The firm was extremely busy with clients and could not afford a reduction in staff, however, this employee's performance had not been up to standard and the partner must decide whether or not he should agree to this pay increase or if there are other options.

Teaching Note: 8B04C19 (4 pages)
Industry: Real Estate and Rental and Leasing
Issues: Organizational Behaviour; Negotiation; Services; Personnel Management
Difficulty: 4 - Undergraduate/MBA


Chapter 6:
Communication

GENPACT INC. - BUSINESS PROCESS OUTSOURCING TO INDIA
Shih-Fen Chen, Ramasastry Chandrasekhar

Product Number: 9B09M078
Publication Date: 10/21/2009
Length: 25 pages

In September 2004, the chief executive officer (CEO) of General Electric Capital International Services (Gecis) was examining the company's options. Based near New Delhi, India, Gecis was a business process outsourcing (BPO) company. Gecis was set up in 1997 as an off-shore unit of General Electric Company (GE) and was a wholly-owned subsidiary. Earlier in July of 2004, GE divested itself of 60 per cent of its stake in Gecis with the result that Gecis was no longer a subsidiary of GE and was thus free to seek non-GE business. As part of several changes underway, there was a name change to Genpact Inc. (Genpact). The change in identity required the creation of management bandwidth, particularly in new client acquisition and business development. Also called for was a re-examination of the BPO business as a product line to be delivered to unaffiliated clients. The CEO recognized the need to begin negotiations with potential global clients. Each deal would involve many complexities in terms of geographies, languages and services. The CEO also was aware that all clients had areas of concern including loss of control, operations stability, savings targets and cultural compatibility. The CEO wondered how to develop a client acquisition strategy for Genpact as it moved from being a captive to an independent service provider.

Teaching Note: 8B09M78 (11 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Globalization; Service Outsourcing; Strategic Management; Customer Acquisition
Difficulty: 4 - Undergraduate/MBA



NATIONAL HOCKEY LEAGUE COLLECTIVE BARGAINING AGREEMENT
Michael Sider, Jeremy Yip, Phil Ward, Steve Dempsey

Product Number: 9B05C001
Publication Date: 2/21/2005
Revision Date: 5/27/2011
Length: 7 pages

The National Hockey League's collective bargaining agreement was due to expire on September 15, 2004. As executive director of the National Hockey League Players' Association, it is Bob Goodenow's responsibility to negotiate a new agreement in the players' best interests. The NHL has demanded that a salary cap be imposed in the next collective bargaining agreement and has threatened a lockout by owners if the players' association does not agree. The NHL has implemented a successful communications strategy and gained public support. Goodenow must decide how to proceed in order to gain a favorable position going into the negotiations and retain the loyalty of the fans on which the sport depends.

Teaching Note: 8B05C01 (4 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Sports; Negotiation; Communications
Difficulty: 4 - Undergraduate/MBA


Chapter 7:
Finding and Using Negotiation Power

ADCOCK INGRAM: DECISIONS AND MOTIVES THAT STEER ACQUISITIONS
Charlene C. Lew

Product Number: 9B10C008
Publication Date: 6/10/2010
Revision Date: 6/18/2010
Length: 16 pages

The case sketches the story of a charismatic and ambitious young business leader who, through value-adding commercial transactions, has helped set a South African pharmaceutical company, Adcock Ingram, on a trajectory of growth. In May 2009, he faces lack of closure and an ambiguous outcome to an offer to acquire a smaller pharmaceutical company. The case demonstrates the power of relationships, where the ambitions of different parties around the negotiations table and the incentives that shape their alliances can make or break a strategic business deal. The case presents students with an opportunity to analyze an unfavourable outcome of a business deal, and build a concept of behavioural requirements of success in business transactions. The case has been designed for class discussion and analysis of factors of leadership that underpin or influence acquisitions. It focuses on the behavioural components of leadership decision-making and their effect on business results. The case can provide a platform for the discussion of motives, interpersonal skills and relationships, and business activities in acquisitions.

Teaching Note: 8B10C08 (22 pages)
Industry: Manufacturing
Issues: Interpersonal Skills; Personal Values; Acquisition Strategy; Behaviours of effective negotiation; GIBS
Difficulty: 5 - MBA/Postgraduate



BLUE RIDGE SPAIN
Nicholas Athanassiou, Henry W. Lane, David T.A. Wesley, Jeanne McNett

Product Number: 9B02M003
Publication Date: 3/28/2002
Revision Date: 12/1/2009
Length: 15 pages

Blue Ridge Spain was a joint venture established between a well-known American fast food chain and an old guard family-run agricultural company that was seeking to diversify in the wake of Spain's entry into the European Union. The European Regional director of the company has been dealt an unexpected professional blow. After several years of fostering a successful joint venture, the regional director is stunned to find out that the new owners of Blue Ridge want out of the arrangement. In spite of the fact that this particular joint venture has been profitable since its inception and the company has experienced brisk growth during that time, the new owners are determined to end the partnership. The regional director is left examining how he is to respond to a request that he feels is not only detrimental to his company, but also contrary to his principles. He questions the ethics of secretly undermining the joint venture in order to achieve the upper hand in buyout negotiations. As a Greek, the importance of personal relationships and social contracts only adds to his dilemma.

Teaching Note: 8B02M03 (11 pages)
Industry: Accommodation & Food Services
Issues: Globalization; Valuation; Joint Ventures; International Business; Northeastern
Difficulty: 4 - Undergraduate/MBA


Chapter 8:
Ethics in Negotiation

PHIL CHAN (A)
Paul W. Beamish, Jean-Louis Schaan

Product Number: 9A98M022
Publication Date: 11/5/1998
Revision Date: 2/1/2010
Length: 8 pages

The case deals with a scam that has been run out of Nigeria since 1990. In it, foreign companies are approached for their assistance in facilitating an international transfer of funds in order to receive a very large but unearned commission. In the case, a Hong Kong-based manager who is travelling to Nigeria is unaware that he is walking into a situation where his company is about to be cheated. The objective of the case is to raise the issue of ethics in the conduct of international business. A follow-up case (9A98M023) is available.

Teaching Note: 8A98M22 (10 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Negotiation; Human Behaviour; Ethical Issues; Personal Values
Difficulty: 4 - Undergraduate/MBA



MALAWI BUSINESS ACTION AGAINST CORRUPTION
Oonagh Fitzgerald, James Ng'ombe

Product Number: 9B07M037
Publication Date: 10/4/2007
Length: 18 pages

The founding executive director of the African Institute for Corporate Citizenship (AICC), felt very tense as he typed the last revisions to the speech he would be giving to a Llongwe merchants' association later in the week. He really enjoyed proudly describing his initiative, "Business Action Against Corruption", and the Business Code of Conduct for Combating Corruption in Malawi, to potential new partners. However, the founding executive director was beginning to feel concerned about its slow pace of adoption. He was particularly worried about how to manage the delicate relationship with the government.

Teaching Note: 8B07M37 (6 pages)
Issues: Negotiation; Ethical Issues; Corporate Responsibility; Globalization; Political Environment; Procurement
Difficulty: 4 - Undergraduate/MBA


Chapter 9:
Relationships in Negotiation

CAMBRIDGE LABORATORIES: PROTEOMICS
Henry W. Lane, Dennis Shaughnessy, David T.A. Wesley

Product Number: 9B04M013
Publication Date: 4/5/2004
Revision Date: 9/22/2006
Length: 24 pages

Cambridge Laboratories is essentially a fee-for-service provider of laboratory tests. It spends less than 0.5 per cent of revenues on research and development and holds relatively few patents for a biotech company. It now has an opportunity to invest $5 million to establish a joint venture with an Australian proteomics company that operates on a drug discovery (royalty) model. The founder of this company believed that his technology could eventually result in the discovery of new drugs that would generate significant royalties. While the proteomics firm has superb technology, some of the intellectual leaders in the field on its staff, and partnerships with some impressive companies, its technology is yet unproven. Cambridge Labs is also concerned that its existing relationships with big pharmaceutical companies could be jeopardized if it begins to take an intellectual property position in proteomics. In addition, the Australian company consists primarily of PhDs in molecular biology, while Cambridge Labs is dominated by business executives whose primary focus is generating strong financial returns for shareholders. The cultural differences between an Australian science-oriented laboratory and a publicly traded American outsourcing company become apparent during the negotiation phase of the joint venture proposal. Students are asked to evaluate the joint venture and consider whether the cultural and strategic differences can be reconciled.

Teaching Note: 8B04M13 (12 pages)
Industry: Administrative, Support, Waste Management and Remediation Services
Issues: Joint Ventures; Biotechnology Management; Cross Cultural Management; Patents; Northeastern
Difficulty: 4 - Undergraduate/MBA



TORONTO SYMPHONY ORCHESTRA
Susan Dallhoff, Grace Bugg, Murray J. Bryant

Product Number: 9B03M040
Publication Date: 5/31/2004
Revision Date: 10/22/2009
Length: 30 pages

The Toronto Symphony Orchestra is one of Canada's foremost orchestras with considerable international exposure. The orchestra has just celebrated its 80th birthday but was in a situation that could result in its downfall. The relationship with the landlord was less than ideal and the renegotiation of the musician's' contract could put a strain on the organization's finances. The orchestra's board of directors brought in a consultant to provide recommendations on how to address these issues. The board, pleased with the recommendations and the outcome, is offering the consultant the position of chair of the board. The consultant must decide whether to accept this role or to continue with his consultant's position.

Teaching Note: 8B03M40 (16 pages)
Industry: Arts, Entertainment, Sports and Recreation
Issues: Board of Directors; Financial Crisis; Government Relations; Strategic Change
Difficulty: 4 - Undergraduate/MBA


Chapter 10:
Multiple Parties and Teams

WAL-MART PUERTO RICO: PROMOTING DEVELOPMENT THROUGH A PUBLIC-PRIVATE PARTNERSHIP
Myrna Comas, Julia Sagebien

Product Number: 9B10M024
Publication Date: 5/5/2010
Length: 14 pages

Sowing the Development of the Country (SDC) was a public-private partnership between Wal-Mart Puerto Rico (Wal-Mart PR), the island's Department of Agriculture as well as its Economic Development Bank (EDB), two NGOs Caborroje's Pro Salud y Ambiente (Caborroje's Pro Health and Environment) and ConectaRSE (a corporate social responsibility (CSR) promotion non-governmental organization(NGO)), and a group of local farmers. The objective of the project was to promote sustainable development on the island by encouraging farmers to become entrepreneurs by developing small agro-businesses. Wal-Mart acted as the primary buyer. The project faced many challenges, such as farmers' difficulties in meeting quality standards and delivery schedules, the lack of an existing vehicle through which to access funding from the EDB, and, most importantly, changes in the political party in power. Project partners had to develop a position from which to negotiate a new alliance with the incoming government administration. Since Wal-Mart was determined to guarantee the continuity and expansion of the SDC project, Wal-Mart had to step into the project champion role.

Teaching Note: 8B10M24 (9 pages)
Industry: Agriculture, Forestry, Fishing and Hunting, Retail Trade, Wholesale Trade
Issues: Government and Business; Corporate Social Responsibility; Developing Countries; Partnership; Public Administration
Difficulty: 4 - Undergraduate/MBA



PIZZA PUBLIC COMPANY LIMITED, THAILAND (A)
Michael R. Pearce, Kathleen E. Slaughter, Elizabeth O'Neil

Product Number: 9B03A024
Publication Date: 11/28/2003
Revision Date: 10/15/2009
Length: 18 pages

The Pizza Public Company Limited is a division of the Minor Group of Companies and focuses on the management and operation of food-service outlets. This case series takes place between November 1999 and February 2000 and covers the negotiation process between Pizza Public Company Limited and Tricon Restaurants USA regarding the renewal of the company's franchise agreement for Pizza Hut in Thailand. After 20 years of managing the brand, an agreement cannot be reached and Pizza Public Company Limited must plan for the development of a new pizza brand. In the (A) case, the chief operating officer of Pizza Public Company recognizes that the negotiations are breaking down and faces the challenge of how to engage the team and develop a contingency plan should the company lose the Pizza Hut brand. Supplement cases (B) through (E), products 9B03A025, 9B03A026, 9B03A027 and 9B03A028, follow the negotiation process.

Teaching Note: 8B03A24 (16 pages)
Industry: Accommodation & Food Services
Issues: Management Communication; Retailing; Negotiation; Marketing Planning; Nanyang
Difficulty: 4 - Undergraduate/MBA


Chapter 11:
International and Cross-Cultural Negotiation

NORA-SAKARI: A PROPOSED JV IN MALAYSIA (REVISED)
Paul W. Beamish, R. Azimah Ainuddin

Product Number: 9B06M006
Publication Date: 11/30/2005
Revision Date: 5/23/2012
Length: 16 pages

This case presents the perspective of a Malaysian company, Nora Bhd, which was in the process of trying to establish a telecommunications joint venture with a Finnish firm, Sakari Oy. Negotiations have broken down between the firms, and students are asked to try to restructure a win-win deal. The case examines some of the most common issues involved in partner selection and design in international joint ventures.

Teaching Note: 8B06M06 (12 pages)
Industry: Information, Media & Telecommunications
Issues: Intercultural Relations; Third World; Negotiation; Joint Ventures; Finland; Malaysia
Difficulty: 4 - Undergraduate/MBA



DIVESTING THE ZAMBIAN MINING INDUSTRY
Luka Powanga

Product Number: 9B04M060
Publication Date: 10/13/2004
Revision Date: 10/15/2009
Length: 19 pages

The Zambian government embarked on a divesture of its mining industry in 1992. However, by July of 2004, 67 per cent of the mining assets were still in government hands and the government is still looking for equity partners. This case can be used as a basis for discussing political and country risk analysis, international negotiations, feasibility study analysis, managing strategic failure, and ethical and social responsibility issues.

Teaching Note: 8B04M60 (13 pages)
Industry: Mining, Quarrying, and Oil and Gas Extraction
Issues: Mining; Nationalization; Political Environment; International Business
Difficulty: 4 - Undergraduate/MBA


Chapter 12:
Best Practices in Negotiations

MIDDLESEX MUSHROOMS LIMITED (A)
John S. Haywood-Farmer, Kara Adlington

Product Number: 9B06D014
Publication Date: 1/29/2007
Revision Date: 9/16/2009
Length: 14 pages

Tim Adlington, president and owner of Middlesex Mushrooms Limited (MML), had led the formation of a co-operative of mushroom growers with the purpose of increasing the members' negotiation power and bypassing the intermediaries to sell directly to retailers. The decision to form this co-operative had not been finalized and there were many issues to consider. In the meantime, he and Ted Kuipers were finalizing an agreement to supply mushrooms to a major Canadian supermarket chain. In addition, Adlington and Kuipers were considering the possibility of merging their companies. Adlington sits in his office knowing he has to weigh the advantages and risks of forming this co-operative as well as those of the merger.

Teaching Note: 8B06D14 (8 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: Organizational Structure; Crisis Management; Competition; Co-operatives; Small Business
Difficulty: 4 - Undergraduate/MBA



TEMBEC INC. (A): CREATING VALUE BY MANAGING STAKEHOLDER TENSION
Pratima Bansal, Tom Ewart

Product Number: 9B05M051
Publication Date: 9/22/2005
Revision Date: 10/1/2009
Length: 14 pages

Throughout the 1990s there was increasing competition for Ontario's forest land. The forest industry, including Tembec Inc., demanded from the Ontario government more certainty in the lands available to them. To reach a consensus on strategic land use, the government launched Lands for Life process and undertook extensive public consultations. Unfortunately the consultation process resulted in a polarization of stakeholders, and the 242 controversial recommendations threatened to spark a war in the woods, primarily between the forestry industry and environmentalists. Tembec's chief executive office foresaw this conflict and was determined to take a different course of action that would bring a real solution that would meet both the objectives of the forestry industry and environmentalists. He was cognizant that losing access to timber would have a devastating effect on his company, but confident that a consensus could be reach if a rational approach were followed. Students will learn to recognize the long-term opportunity associated with sustainability, and the short-term risks associated with ignoring it, to illustrate the opportunity for stakeholder consultation and partnerships, and to introduce the best practices on stakeholder collaboration and innovative problem solving. The supplement Tembec Inc. (B), product 9B05M052, presents the situation in 2005.

Teaching Note: 8B05M51 (24 pages)
Industry: Agriculture, Forestry, Fishing and Hunting
Issues: Negotiation; Human Resources Management; Stakeholder Analysis; Environmental Business Management
Difficulty: 4 - Undergraduate/MBA