Xerses – Yami Contract Negotiation

Contract Negotiation Negotiation of a joint venture agreement between two companies in a high-tech industry Multiple potential bargaining issues Three independent, simultaneous negotiations – by three pairs of teams Prepare well before first session, Nov. 7 (eve) Nov. 9 (day) Iterative, alternating between team planning & meetings with the other side About 5 hr of class time available

Team Grading Criteria How well the final agreement satisfies the interests of the team How well the final agreement satisfies the interests of the pair of teams (which involves creativity in developing integrative alternatives, plus forging a final agreement that both teams would be willing to live by) Effectiveness of the team's process, including prenegotiation preparation, communications and actions during joint negotiating sessions, preparation and planning within the team, and dealing with problems and difficulties during the negotiations Creativity in alternatives, tactics, and the process

Grading (cont.) Individual grades may vary from team’s, based on contributions (confidential assessments at end) Also, an individual report (see Negotiation Simulation Assignment on Web for details) 15% negotiation performance, 15% report

Xerses-Yami Information Read/study four items on Web: – –Negotiation Simulation & Report Assignment – –Negotiation Situation & General Info – –Negotiation Proposal Form – –Negotiation Teams Plus side-specific confidential information to be passed out in advance

Ground Rules Have some meeting with other team on first class No discussions between opposing teams before that first class meeting No joint sessions outside of the class periods devoted to the negotiation Times & nature of contact between opposing teams worked out between them; other time spent planning within your team No teams leave before 2130 eve or 1345 day, unless I call time earlier No individual leaves before his/her team breaks Absolute cut-off at 2130 on Mon 11/21 (eve) or 1345 on Wed 11/23 (day class)

Ground Rules (cont.) You must rotate team roles to ensure that each team member has the opportunity to take the lead at times during the series of negotiation sessions Meet your responsibilities in the team

It is very important that you not discuss the negotiations in any way with anyone in either class outside your team, other than during actual negotiation sessions or team planning meetings