Eurotechnologies

1. What is your role and what are you hoping to achieve in this negotiation?

In this negotiation, I am playing the role as a member of a committee of R&D personnel

which is negotiating with the management team about moving the R&D team to Wasserburg
from Munich. Our committee is hoping to try to see creative ways in which we can continue to
live and work in Munich. If that is not possible, we are trying to see ways in which we can make
the move to Wasserburg more palatable for us.

2. What do you think your counterpart is hoping to achieve?

My counterparts are the management team of Eurotechnologies, mainly the president,

VP of R&D, VP of HR and other senior company officials. Their goal is to make sure that
Eurotechnologies survives and remains competitive. To achieve that, they want to move the
R&D to Wasserburg to reduce duplication of facilities, equipment and personnel. As a member
of the R&D committee, we feel that any solution that can achieve targeted cost savings while
retaining the key members of the R&D team would be acceptable to the management.

3. What interests do you have in common?

The interests we both have in common is that we all want to see Eurotechnologies
survive and succeed. All of us like working for the company, and we want to achieve a solution
that is mutually acceptable, and beneficial to the company and its employees in the long run.

4. What interests do you have in conflict?

The interests we have in conflict is mainly the move to Wasserburg. Our R&D team is
opposed to the move for various reasons mentioned in the role information. Similarly the
management team wants us to make the move to achieve cost reductions. If there is no option
but to move to Wasserburg, both our R&D team and the management team are in disagreement
with the details surrounding the move. So both the management team and the R&D team would
want to negotiate a deal that is favourable from their perspective. This is another thing we have
in conflict.
5. What is your BATNA?

If the management team is unwilling to compromise on their position, our BATNA would
be to oppose the management teams decision and leave the company or be terminated. This
would be painful for us, as we would have to find new jobs. But we have to keep in mind, that if
we all leave the company, Eurotechnologies might not exist for long. So we have a decent
BATNA in this situation.

6. What do you think your counterparts BATNA is?

Our counterparts BATNA would be to make the move to Wasserburg more acceptable
for us. For example, they could improve the roads in the area, provide free real estate services,
better cafeteria food, etc. That could result in some of us leaving the company, but not all of us.
That would be their BATNA. I dont think they would be fine with us leaving the company en
masse as that would surely mean the death of the company.

7. What objective information exists?

The objective information exists in the supplemental reading provided in the textbook. It
mentions that the company has to cut almost 13 million in order to remain competitive. The
expense statement mentions the various expenses incurred by the Wasserburg and Munich
operations, and helps look for other ways in which the cost savings could be achieved. Another
piece of information provided is that the R&D team has agreed to take a pay cut of 20% thereby
achieving cost savings of 365,000.

8. Based on the objective information (if any), what are your target and resistance points (if
applicable)? Justify your target and resistance point decisions in light of the data. If you have no
target and resistance points, justify that as well.

This exercise is different in that there is no resistance or target points in terms of Euros
or points. Our target would be to negotiate for another alternative to the move to Wasserburg. If
that fails, we would try to obtain as many of the key items mentioned in the role information, as
part of the package in moving to Wasserburg. Our resistance point would be to at least obtain
the key items that are most important to our R&D team. If we are unable to obtain even the
 items that are most important to us, then we would have no choice but to resign from the
company and search for other jobs in the Munich area.

9. What types of power do you and your counterpart hold?

Both our teams hold equal power in this situation. As discussed in previous answers,
the R&D team and its technical excellence is fundamental to the survival of the company. Any
decision taken by the management team that results in a majority of the team leaving could put
the survival of the company in doubt. Similarly it would be unacceptable for the R&D team if
most of them were terminated or have to leave the company. So while we negotiate, we have to
keep in mind that a wrong decision, could result in disastrous consequences for the future of
Eurotechnologies.

10. What strategy and tactics will you employ in this negotiation?

Reading the role information makes it clear that the committee members on our team
have different concerns and objectives. So we have to come to a consensus on what is
important before we start the negotiation. We would show emotional frustration initially at the
management team on not consulting us before taking such an important decision that could
affect all our lives. We would then first try to negotiate on the items that are most important to
us. On items that are not significant to our decision to stay or leave the company, we would be
willing to make concessions. Overall this is more an integrative situation than a distributive
situation. It is in our power to turn it into a win-win situation, rather than a lose-lose situation, so
we would be willing to explore creative ways to reach a deal that is satisfactory and is in the
best interest of Eurotechnologies and all its employees.