Post Negotiation Analysis

Moms.com Case (as a seller) Post Negotiation Analysis

Overview of the key events

The case of Moms.com involved two parties, Hollyville, the seller, and WCHI, the buyer. The critical events presented during the negotiation process include contract length, where a discussion was made on the contract’s duration to remain in force (Muhammad et al., 2019, 92). The second key event was the number of runs per episode exposed to different figures on a negotiation basis. The other essential event was financial terms for selling and buying Moms.com. Financial terms should favor both parties involved since they have significant events on the outcome (Nkundabanyanga et al., 2014, char 1). Finally, there was the licensing fee that they had to negotiate over to develop a mutual or relatively favorable figure.

What were the critical factors that affected the negotiation situation and outcomes?

The negotiation situation and outcome were affected by the following factors. First, the negotiation process was not a fixed pie situation. This enables both the seller and the buyer to receive a better outcome at the end of their negotiation—secondly, unspecified contract length, which is non-negotiable. The seller indicates that the relationship with the buyer will continue depending on the availability of the shows; hence there is no exact time of the contract. Lastly, financial terms are presented by the seller. Revenues generated from the show are to be determined by multiplying the agreed licensing fee depending on the number of episodes available. This negatively affected the negotiation outcome between the two companies since it was challenging to find common ground.

 What did you learn about yourself and others from this experience?

As a seller, I learned the following about myself and others during the negotiation process. First, I learned different negotiation skills from Kim Taylor and myself. The skills were evidenced during the negotiations on the contract’s life, the number of episodes per run, including the negotiation net worth of the whole deal. Second, I learned that I could be an excellent sales negotiator because I conducted an effective negotiation process to sell off Moms.com to WCHI. Thus, believing in yourself is essential for effective negotiation (Richards, Guerrero, and Fischbach, 2020, 554). Lastly, Kim’s negotiation strategy was an excellent lesson for me. His presentation and aggressiveness were alarming, contributing to practical negotiation skills and strategies anyone can admire.

Which concepts presented in lectures or readings enrich your understanding of this negotiation process, its outcome, or your style, and how?

 Negotiation is a process that has various phases that are addressed systematically. I identified the following concepts in the negotiation process from the lecture’s reading.

  • Zone of possible agreement (ZOPA) concept: This concept does not necessarily mean a physical area but a palace where the negotiating parties can access common ground (Halton, 2020, char 1). This concept has enabled me to understand when the parties can strike or compromise a deal. It enables the negotiating parties to reach an agreement and find common ground that incorporates each party’s ideas (Lewis et al., 2018, 280)
  • Reserve Price Concept: The concept presents the minimum amount the seller will accept as the final bid (Hayes and Kindness, 2021, char 1). In regard to the negotiation process, I understood the pricing strategy used during the process to arrive at the final price. The initial price tends to be lower than the reserve price, allowing parties to negotiate effectively.
  •  Best Alternative to a Negotiated Agreement (BATNA) Concept: BATNA provides an avenue for parties to engage when they fail to reach an agreement. This concept enables me to learn that despite unsuccessful negotiation, there is still an alternative action to engage in (Chen, 2020, char 1). This is achieved by practically evaluating your alternatives based on the reservation value.

What would you do the same or differently in the future, or how would you like to improve your effectiveness?

To be more effective in my future negotiation process, I will consider the above concepts since I have acquired adequate knowledge of how some factors are essential in negotiation, such as BATNA. I would also implement some of the skills and strategies I learned from Kim, such as being aggressive and more focused to be more effective. According to

How do these experiences and concepts apply to other negotiations you have had outside of class?

Most of my conversations outside the classroom have minor aspects of these concepts though they can be incorporated for effective negotiations. Enriquez (2014,155) states that effective negotiation promotes unity among different parties, such as students. On the other hand, I tend to negotiate without following the crucial negotiation concepts or the experiences I have gained, which guide effective negotiation. However, the only application areas of the concepts and experiences are negotiations with my friends on television shows, news updates, and some life issues. I always ensure we have a zone for a possible agreement where my friends and I tend to have a common ground at the end of the negotiation.  

            References

Chen, J., 2021. Best Alternative to a Negotiated Agreement (BATNA). [online] Investopedia. Available at: <https://www.investopedia.com/terms/b/best-alternative-to-a-negotiated-agreement-batna.asp> [Accessed 23 April 2021].

Enriquez, L.E., 2014. “Undocumented and citizen students unite”: Building a cross-status coalition through shared ideology. Social Problems61(2), pp.155-174.

Halton, C., 2021. Zone Of Possible Agreement (ZOPA) Definition. [online] Investopedia. Available at: <https://www.investopedia.com/terms/z/zoneofpossibleagreement.asp> [Accessed 23 April 2021].

Hayes, A. and Kindness, D., 2021. Understanding Reserve Prices. [online] Investopedia. Available at: <https://www.investopedia.com/terms/r/reserve-price.asp> [Accessed 23 April 2021].

Lewis, B., Olekalns, M., Smith, P.L. and Barker Caza, B., 2018. See the benefit: Adversity appraisal and subjective value in negotiation. Negotiation Journal34(4), pp.379-400.

Muhammad, K., Saoula, O., Issa, M. and Ahmed, U., 2019. Contract management and performance characteristics: An empirical and managerial implication for Indonesia. Management Science Letters9(8), pp.1289-1298.

Nkundabanyanga, S.K., Kasozi, D., Nalukenge, I. and Tauringana, V., 2014. Lending terms, financial literacy and formal credit accessibility. International Journal of Social Economics.

Richards, J., Guerrero, V. and Fischbach, S., 2020. Negotiation competence: Improving student negotiation self-efficacy. Journal of Education for Business95(8), pp.553-558.