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Team Code: NM 31

DR. RAM MANOHAR LOHIYA NATIONAL LAW UNIVERSITY, LUCKNOW

NEGOTIATION-MEDIATION COMPETITION (PRELIMS)

NEGOTIATION PLAN OF:

Shamsher Singh Rana Enterprises Pvt. Ltd. (ShSREPL)

IN THE MATTER BETWEEN:

Sher Singh Rana Enterprises Pvt. Ltd. (SSREPL)

v.

Shamsher Singh Rana Enterprises Pvt. Ltd. (ShSREPL)


GOAL

To procure the tender for constructing a new Skyline Highway in Christland as announced by
NDA.

OBJECTIVE

 To reach a beneficial agreement with SSREPL for the purpose of procuring the said
tender.
 To negotiate and draw an arrangement with SSREPL to work together on the project
for the construction of the Highway.
 To bridge the gap between two entities and their respective leaders by reconciling
their differences.
 To aim for maximum utilization of joint resources from the two entities.

STRONG POINTS

 Qualification: ShSREPL stood second in the bid called by NDA. The entity fulfilled
the requirements of having the turnover over 10,000 crore (NR) in the previous two
years, high quality machinery, proven technical staff and a team of proven architects;
while the other available entities fulfilled only one or two criteria out of the entire list.
 Inherited Goodwill: ShSREPL has inherited its goodwill from its parent company
i.e., Rana Industries which was a leading Conglomerate in the Neverland. Rana
Industries acquired a good reputation for high quality products, excellent support
services and was also awarded with many accolades by the government of Neverland.
 Long Standing Relationship: The two entities shared a long relationship with each
other. After the demise of Daler Singh Rana, the two sons (Sher Singh Rana and
Shamsher Singh Rana) jointly ran the parent company smoothly for a period of five
years with the conglomerate set for a booming growth during that period. This shows
that they are capable of working together.
 Government’s Inclination: The NDA government is very keen to have the two
Rana entities to construct the highway as they were the best among the available
options. Owing to the long-standing relationship and reputation of the two entities,
NDA awarded them with a period of 45 days to come up with the arrangement.

WEAK POINTS

 Less Experience: One of the five criteria mentioned required a Company to have an
experience of over 10 years in the Infrastructure business. The NDA could not award
the tender to ShSREPL since its experience was less than the required.
 Ban on next participation: If the entity fails to reach an agreement with SSREPL
within a span of 45 days, it would be barred from further participating in the fresh bid
of the same project, consequently missing out on such a big opportunity.
 Alleged Infidelity: There were rumors surrounding Shamsher Singh Rana’s alleged
infidelity. Eventually, the entire conglomerate split into two.
 Differences between the leaders: The two brothers were not in talking terms and
avoided each other in public platforms.
 Statement by officials: ShSREPL’s top officials gave statements in different media
channels reflecting that they were pleased with the fact that their competitor SSREPL
did not receive the bid.

NEEDS AND INTERESTS

 Availing opportunity: To avail the great opportunity of proving itself by acquiring


the said tender.
 Time restraint: To reach an agreement with SSREPL within 45 days.
 Joint venture: To achieve the Contract jointly with ShSREPL in order to fulfill its
goal.
 Desired experience: To meet the required experience of 10 years in the Infrastructure
business.
 Company’s predominance: To establish its predominance in the infrastructure
development sector by not missing out on the opportunity.

BEST ALTERNATIVE TO A NEGOTIATION AGREEMENT (BATNA)

In the event of failure of this Negotiation ShSREPL can,

 Invest and share profit: Look forward to collaborating with any of the other
available entities with requisite experience of over 10 years in the Infrastructure
business by investing and sharing profit with them. This arrangement will help
ShSREPL to informally participate in the next bid by keeping the said other entity at
the forefront.
 Form a new entity: Participate in the next bid as a new entity by forming a joint
venture with the other available entities having required criteria.

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