Company Profits Case Solution

1041 Words 5 Pages
Register to read the introduction… When looking at the profits the year before we had dropped and with our competitors filing for bankruptcy that profit drop could only be the beginning. I felt that part of the negotiation was a moot point. As much as we tried to backup our facts, the employees would not get off the fact that the company is continuing to profit. Then I was accused of being able to predict the future. That statement led us to our next counter. We allowed them to put their money where their mouth is. Since the workers whole heartly knew the company was going to continue to produce, we countered with $8.33 with a differed wage option, they would be able to keep the merit incentive and do away with the escrow account. The employees decided to counter our offer, if we had had more time, I believe both parties would have agreed to a figure everyone would be comfortable with. That being said, management went to arbitration. …show more content…
We will always be negotiating with people who have different situations styles, goals and objectives, and who are coming from different circumstances and have different standards. Our main objective during this negotiation was the allocation of resources, in this case employee wages and production. One of the main points we needed to take into consideration was the ripple effect. An agreement with one party may affect business and production with another and can be influenced, with negotiations that will take place in the future. Part of our strategy involved a careful analysis of our BATNA (Best Alternative to a Negotiated Agreement). If our first offer was rejected then we had to continue with our second and third if need

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