...Lewicki−Barry−Saunders: Negotiation: Readings, Exercises, and Cases, Fifth Edition Cases 1. Capital Mortgage Insurance Corporation (A) © The McGraw−Hill Companies, 2007 Case 1 Capital Mortgage Insurance Corporation (A) Frank Randall hung up the telephone, leaned across his desk, and fixed a cold stare at Jim Dolan. OK, Jim. They’ve agreed to a meeting. We’ve got three days to resolve this thing. The question is, what approach should we take? How do we get them to accept our offer? Randall, president of Capital Mortgage Insurance Corporation (CMI), had called Dolan, his senior vice president and treasurer, into his office to help him plan their strategy for completing the acquisition of Corporate Transfer Services (CTS). The two men had begun informal discussions with the principal stockholders of the small employee relocation services company some four months earlier. Now, in late May 1979, they were developing the terms of a formal purchase offer and plotting their strategy for the final negotiations. The acquisition, if consummated, would be the first in CMI’s history. Furthermore, it represented a significant departure from the company’s present business. Randall and Dolan knew that the acquisition could have major implications, both for themselves and for the company they had revitalized over the past several years. Jim Dolan ignored Frank Randall’s intense look and gazed out the eighth-floor window overlooking Philadelphia’s Independence...
Words: 31627 - Pages: 127
...Bank's president rescind the contract? Yes, but this is an involved process and both parties need to agree to modify it. This is because both parties had problems fulfilling their parts of the contract. Also, an organization (the Big Bank) can cannot eradicate the business contract, because since their party did something improper (that seems to be them whom input the data incorrectly). Under what circumstances can a contract be rescinded by either party? This can happen when an offer to tender is provided by the party that wants to rescind. The offer to tender means the rescission or needs to make an offer to release back all benefits they got while under the contract What facts have to be alleged and proven and what is the result of a contract that is rescinded? The facts needed are to prove that the other group involved did something indecorous. A contract can also be broken if both groups involved fashioned the same error in making the document. 2. Big Bank's president also threatens legal action. What potential causes of action could you foresee him bringing in court? He and his company could try to sue for breach of contract. Would he be successful? No, I don't think he would be. What arguments could Systems Inc. raise in its defense? That we completed the first four tasks ahead of schedule, wanted to complete the sixth one to (but haven't yet because of problems with # 5). And, that the original problem with 5 was caused by them and if this hadn't occurred the work could...
Words: 855 - Pages: 4
...III, Spring 2010 Elena Loutskina Marc Lipson Robert Conroy MarcLipson Elena Loutskina IMPORTANT SCHEDULE ANNOUNCEMENT: Thursday, February 19 is a DAY LONG exercise that requires your participation until 5:30pm that evening. By compressing the exercise into a single day we were able to designate Friday as a Reading Day. Please DO NOT schedule any travel until after your obligation for the exercise ends at 5:30pm Thursday evening. COURSE DESCRIPTION First-Year Financial Management and Policies (FMP) reflects three important features of the Darden MBA Program: (1) it is a general management program; (2) the program, through its frequent use of the case method of instruction, has a practical, pragmatic bias and a decision- orientation; and (3) the first-year program provides the basic training on which students can build in the second-year. Consistent with the first-year program, FMP aims to provide: 1. An Introduction. The course provides the basic framework necessary to pursue further study in finance in the second-year of the MBA program and on his or her own thereafter. This framework is an orientation towards valuation. 2. Basic Mastery. The course emphasizes essentials, the tools and concepts that every general manager, entrepreneur, or manager in other functional fields should know. 3. A Corporate Perspective. Because we seek to understand the problems of general managers, this is a corporate finance course, rather than a course in investments, banking, or personal...
Words: 4860 - Pages: 20
...Top of Form Week 4: Contracts and IP Issues - C: You Decide Group C Project Thread Begin answering the project questions here. | Responses Responses are listed below in the following order: response, author and the date and time the response is posted. | | Response | Author | Date/Time | | | | Contracts and IP Issues - Question # 1 | Julie Hicks | 11/19/2012 5:30:48 AM | | | I have tried to go through the case and answer the 1st question. Please feel free to add to this thread on Question No. 1. 1) Can Big Bank's President rescind the contract? Ans: No. Big Bank's president may not be able to rescind the contract as both the parties have committed mistake. A mutual mistake occurs when the parties to a contract are both mistaken about the same material fact within their contract. Also, Rescission requires that the parties must be able to be get back to where they started when the contract was made. Here, one party to the contract has already completed four out of the six conversions without a problem. Therefore, rescission will not be permitted.Under what circumstances can a contract be rescinded by either party?Ans: Unilateral rescission is affirmatively permitted upon clear and convincing evidence of fraud, mistake, illegality, coercion, duress, and as a defense upon a preponderance of evidence that the contract is adhesive or unconscionable.What facts have to be alleged and proven? What is the result of a contract that is rescinded? Ans:...
Words: 8609 - Pages: 35
...2012. This list is not comprehensive and is likely to change annually to reflect changes in the economic and business environment. If you are interested to find out whether a particular elective is being offered for your class, you can email us at mba.info@insead.edu. Also, notably 90% of the electives will be offered across both campuses, but there are some courses that will be tied to a specific campus due to the availability of the professor or the link to the specific region. All students will be given a full list of electives offered for their class in Period 1 so that they can take this information into account when planning for their campus exchange. accounting and control applied corporate reporting To be successful in any career involving financial analysis, you need a deep and broad knowledge of financial reporting standards and their application in practice. Building on the concepts covered in core courses, this elective gives students an understanding of the rationale and principles behind financial reporting. It also provides a clear sense of the main players (managers, directors, employees, investors, lenders, legislators) – and the main tensions between them. Ultimately, it shows students how to get their own financial reporting just right – and gives them an edge in reading other people`s. strategic cost management Most companies have business models, systems and mindsets that help them prosper in good times but leave them struggling in bad. This...
Words: 8199 - Pages: 33
...Below is the list of questions you should work together to answer in this thread. Feel free to come up with more to answer together if you need them. 1. Can Big Bank’s president rescind the contract? Under what circumstances can a contract be rescinded by either party? What facts have to be alleged and proven? What is the result of a contract that is rescinded? 2. Big Bank’s president also threatens legal action. What potential causes of action could you foresee him bringing in court? Would he be successful? Why or why not? What arguments could Systems Inc. raise in its defense? What are Big Bank’s potential damages? 3. Review the facts provided and the sample contract. What provisions of the contract could you cite to support an argument that it is not in Big Banks best interest to rescind the contract? What facts could you cite to support an argument that Big Bank be responsible for some of these issues and/or not in compliance with the contract? 4. In this situation, amicable resolution of problems is greatly preferred by your company. Would this be true in all contract disputes? In what situations and why would you decide to move to litigation over amicable resolution? 5. There are three types of contract performance: complete, substantial, and material breach. Describe the differences (and similarities) among the three, and explain some of the legal ramifications for one or more of these types of performances. (e.g., what happens if one party performs...
Words: 1300 - Pages: 6
...CHAPTER 1 ASSESSING THE ENVIRONMENT POLITICAL, ECONOMIC, LEGAL, TECHNOLOGICAL LECTURE OUTLINE General Outline Opening Profile: India Becoming a Crucial Cog in the Machine at I.B.M. The Global Business Environment Management in Focus: A Small Company, A Global Approach Regional Trading Blocks Comparative Management in Focus: Opening Economy Revitalizes India Information Technology The Globalization of Human Capital The Global Manager’s Role The Political and Economic Environment The Legal Environment The Technological Environment Chapter Discussion Questions Application Exercises Experiential Exercise End-of-Chapter Case Study: Under Pressure, Dubai Company Drops Port Deal Additional Cases: India: The Employment Black Hole? Mecca Cola Student Stimulation Questions and Exercises Opening Profile: India Becoming a Crucial Cog in Machine at I.B.M. The opening profile reports on the growing importance of India as a source of low-cost services in the IT market. The Indian labor market is attractive not only due to its low wages, but also because of the scientific and managerial talent found in the country. IBM’s Indian facility in Bangalore is now the company’s second largest worldwide operation. While IBM has laid off thousands of workers in the United States, its Indian operation has greatly increased employment. Some of IBM’s competitors have also begun to move their operations to India. The opening profile raises the question of the...
Words: 96329 - Pages: 386
...Introduction to Negotiation? Let us start this amazing journey of negotiation with a quote by Sir John. F. Kennedy, “'Let us never negotiate out of fear. But let us never fear to negotiate.” John F. Kennedy By definition, negotiation is an exercise in communication and language where an attempt is made to create mutual understanding as previously the two parties have been in conflicting understandings. It is also a series of episodes, where you consider your counterpart as collaborator or partner on the basis of trust and fruitful and ongoing negotiations. What matters the most is how the game is played rather than who is the winner. Definition 2: The most important thing about negotiations is that it’s all about communications. It is a dialogue where each person explains his or her viewpoints and in return listens to what the other person thinks of his or her viewpoints. During this process, opinions are exchanged, concessions are explored and proposals are made. The end of the negotiation process should create value for both the parties. Key to this is establishing credibility from the outset if the negotiations are to progress smoothly. What is negotiation? Corporations have to negotiate in numerous areas of organizational battle. Negotiation is an open development for two parties to find a suitable solution to a problematical conflict. There are five steps to the negotiation process. There are five steps to the negotiation process, which are: 1. Preparation...
Words: 2712 - Pages: 11
...YOU CAN’T HAVE A BIGGER PIE, WITHOUT A BIGGER PAN; THE FORCES BEHIND INTEGRATIVE BARGAINING By Joseph Brick 1 ABSTRACT Integrative bargaining is a highly effective means of negotiating an agreement. However, it is also an underutilized method. Although there has been a recent focus on the topic in the past thirty years, the factors which deem it beneficial are still little understood. What this paper attempts to set forth is an explanation of why integrative bargaining is a successful and desirable method of negotiating. With a better understanding of why integrative bargaining is effective, negotiators may be better able to utilize this method to its full potential. This paper culminates with a suggestion on how to best exploit this new understanding. Research up to this point has suggested that integrative bargaining is desirable due to the increasing the pie rationale. The contention set forth in this paper is that there are alternative factors driving integrative bargaining. Exploration of this theory begins with an analysis of whether integrative bargaining is driven by the interjection of equity principals into what was traditionally a law driven enterprise, that of negotiation. It is argued that the stability of contract which results from an earlier application of equitable principals in the negotiating process is just as crucial to integrative bargaining as the desire to increase the pie. With this conclusion, it becomes apparent that solutions which encourage...
Words: 5178 - Pages: 21
...Residential Land Development Residential construction planning and zoning will be the primary focus of this research assignment. First discussed topic will be a rough checklist of the development process from start to finish. Secondly discussed, will be the comprehensive land use plan. Next, the topic will be exactly what zoning is, and how it affects urban land development process. Subdivision regulations, plats, will also be discussed. Lastly a graph showing the process will be provided and discussed regarding the city of Lubbock ‘s development process. Development starts with a vision in mind; it would be have to be used with the skills, desires and resources to produce the outcome that is desirable by the developer. “Construction Funding (4th Edition)” says, “ The process of development is long and complex”, they give a check list that is a good guideline for the process, but due to the complexity of the process it is not a definite checklist. According to “Construction Funding (4th Edition)” page 67 the check list goes as follows: - Concept: Product identification and establishment of development criteria - Identity seed capital - Assemble Internal team: Site Acquisition, financial analysis, marketing, negotiation - Market area identification - Location possibilities - Feasibility study - Marketing study - Site Analysis: Preliminary environmental study, suitable for desired purpose; identifying potential obstacles and opposition - Land Acquisition: Optioning...
Words: 1654 - Pages: 7
...Negotiation I. Introduction Negotiation is a skill used throughout life from infancy to adulthood. But a lot of factors and tactics are involved within it and even though negotiating may be something we do naturally and daily, doing it well can be a competitive advantage. I suggest that this is particularly true in the global economy involving international negotiations that include various cultures and the norms that dictate interpersonal interactions such as negotiation. II. Body a. Importance of negotiation a.1 Definition of negotiation “Negotiation is a decision making process among interdependent parties who do not share identical preferences” (Neale, 1992: page 42). It is an activity in which two or more parties are involved and each one of them have their own personal goals and negotiation is the process in which all of the parties will try to reach an agreement throughout different strategies to maximize their final output. a.2 Negotiation as a day to day issue Negotiation is a process that is present in almost every aspect of our lives. Two parties will try to come up with a strategy that maximizes their output. A key word here is strategy and the way parties make their strategy, using knowledge and information and as the world is more open than ever and the information they can access is increasing, making negotiation a more complex issue. As a globalized world, people have to negotiate not only with the issues in our own country but also interact with people...
Words: 3739 - Pages: 15
...advantages and disadvantages of buying an existing business. 2. Define the steps involved in the right way to buy a business. 3. Explain the process of evaluating an existing business. 4. Describe the various techniques for determining the value of a business. 5. Understand the seller's side of the buyout decision and how to structure the deal. 6. Understand how the negotiation process works and identify the factors that affect the negotiation process. Part 2: Class Instruction Introduction Some entrepreneurs choose to buy existing businesses rather than start their own. In a typical year, between 500,000 to one million businesses are bought and sold. Purchasing an established business can offer many advantages—if the entrepreneur knows what they are really buying and if the business is priced right. Buying an Existing Business LO 1 A prospective owner must ask several key questions before buying an existing business. • Is it the right type of business for the market? • What experience do I bring to the venture? • What is the success potential? • What changes are needed—and how extensive are they—to realize the full potential of the value of the business? People buy businesses for different reasons. As described in Figure 7.1: Types of Business Buyers, we can categorize buyers into four areas: 1. Main street buyers 2. Corporate refugees 3. Serial entrepreneurs 4. Financial buyers Figure...
Words: 4427 - Pages: 18
...advantages and disadvantages of buying an existing business. 2. Define the steps involved in the right way to buy a business. 3. Explain the process of evaluating an existing business. 4. Describe the various techniques for determining the value of a business. 5. Understand the seller's side of the buyout decision and how to structure the deal. 6. Understand how the negotiation process works and identify the factors that affect the negotiation process. Part 2: Class Instruction Introduction Some entrepreneurs choose to buy existing businesses rather than start their own. In a typical year, between 500,000 to one million businesses are bought and sold. Purchasing an established business can offer many advantages—if the entrepreneur knows what they are really buying and if the business is priced right. Buying an Existing Business LO 1 A prospective owner must ask several key questions before buying an existing business. • Is it the right type of business for the market? • What experience do I bring to the venture? • What is the success potential? • What changes are needed—and how extensive are they—to realize the full potential of the value of the business? People buy businesses for different reasons. As described in Figure 7.1: Types of Business Buyers, we can categorize buyers into four areas: 1. Main street buyers 2. Corporate refugees 3. Serial entrepreneurs 4. Financial buyers Figure...
Words: 4427 - Pages: 18
...should the cost of quality be factored in to the project budget process? There are two aspects to find the value of any given product or service. One is the making/functioning of the product and the second is the trust or dependency associated with any specific product or service. Basic functionality of any product will give you the basic reward whereas; the trust or dependency is the value added factor which will give you the advantage of value addition. This value addition will result in inflow of some extra dollars. However, this is not a very easy process and involves a systemic chain of operations to include and maintain quality of any product. This chain of operations will result in the formation of a special product with increased efficiency and value. It is imperative to introduce this chain of operations and to keep check at every step of production. Failure to abide by the quality parameters at any specific point will result in defective product. This defective product will not only affect the future sales of the company but will also affect the value associated with the company’s brand name. One important discussable thing here is that how the cost of quality should be factored in the project budget process. This is not a very tough work; however, it does require a level of accuracy and precision. Although, the quality assurance cost at each level of manufacturing varies, yet, this does not imply that the cost should be split up at each level with different percentage...
Words: 3059 - Pages: 13
...Manager: Writer: Cover Design: Interior Design: Monique Rinere-Güven, Ph.D. Talia Bloch Robert J. Greenleaf Donna Lukis Bonnie Jacobs © 2000 TRAINING MANAGEMENT CORPORATION. Managing Across Cultures Series: Negotiating Across Cultures All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the publisher. Printed in the United States of America ISBN: 1-882390-911 The Cultural Orientations Indicator®, COI® and TMC’s graphical depiction of our Cultural Orientations Model are registered trademarks of Training Management Corporation; Registration: 2,329,085 and 2,361,803. 4 Training Management Corporation TABLE OF Preface OF CONTENTS TABLE CONTENTS iii Introduction 1 Negotiation Defined Negotiating Across Cultures Chapter One: The Impact of Culture on Negotiating Behavior Case Scenario The Ten Dimensions of Culture Cultural Analysis of the Case Scenario Generalizations and Stereotypes in Negotiations 5 Chapter Two: The Seven Phases of International Negotiation 29 An Overview of the Seven Phases Showing a Commitment to Negotiating Internationally Chapter Three: Negotiating Effectively Across Cultures 35 Phase 1: Strategic...
Words: 37310 - Pages: 150
