Luna Negotiation Case Analysis
Deutsche Grusskarte Gesellschaft (DGG) and Global Service BATNA
The Luna Case served as a dynamic negotiation process as it surfaced gender, cultural, and geographical barriers. In William Ury’s book Getting Past No, each of the five barriers to cooperation was touched upon: your reaction, their emotion, their position, their dissatisfaction, and their power. Realistically, there were many plausible negotiation strategies that Erika Graeper could have pursued, but in my opinion DGG’s strongest BATNA was to open up communication with Mr. Feng via formal letters and phone calls and demand compensation from Global Services for past and future sales (15% royalties with proof of monthly income).
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Feng or other Senior Executive leaders. It would have been helpful to directly spell out to Global Services that they need permission to use the Luna name or ramifications will ensue (not mentioning yet of royalty fees or a possible partnership), but possible legal actions as an effective warning if they do not agree to negotiate. After Erika read the first two faxes, it should have alerted Erika to be mindful of the masculine vs. feminine dynamics. After the first fax, Erika should have written to Global Services on behalf of CEO Mann and assumed the role of a strategist/communicator with Mann’s permission. In the beginning stages of opening up lines of communication, Erika should not argue but step to their side to diffuse Feng’s wariness to negotiate. In order to build a working relationship, Erika needed to acknowledge Mr. Feng’s hesitations with working with a woman and acknowledge the differences within their culture. In Scenario 2, mentioning possibilities of legal actions is helpful because it warns Global Services of possible infringement suits and the possible termination of sales of the Luna pen. Because Global Services is successful with producing and selling products, there is a great deal of bargaining power that was advantageous for Erika.
An effective tactic Erika used in Scenario 3 is giving space to Feng to make the next move. This scenario