Negotiator’s Diary

BY LI SIQI

Preface

This Negotiator’s Diary serves the purpose to review the learning of negotiation skills and tools
acquired in the course in International Negotiation, to analyze and reflect on the cases in classes
and to explore the potential negotiation opportunities and the possible countermeasures in
everyday life.

The diary covers three main sections. In the first section, I will look back on the four practices I
did with my partners in the class and carry out analysis of them based on the negotiation tools,
including BATNA, ZOPA, cultural dimensions, etc. For the second section, I will give a brief
analysis of the negotiation between Walt Disney and Lucasfilm that is well-known for its Star
Wars series. I consider this case appealing because it revealed the importance of negotiator’s
strengthening BATNA before the formal talk starts. The third section includes two of my own
experiences in the past. One is my first job interview and the other is a classical distributive
bargain during my work.

For every case (both in and outside class) written in the diary, I will first make a short debriefing,
and then conduct the analysis.

Section I-Class case study

In this section, I will make brief introductions to the practices I did with my peers in the past six
classes and analysis of them to discover the negotiation skills and tools behind these cases. The
four cases include Ugli oranges, Grocer/Baker/Florist, Negotiation between Nike Inc. and Foot
Locker (the one we chose among three options) and Sick Leave. I will explain them in details.

1) Ugli oranges
a) Debriefing
This case is about the trade negotiation between two pharmaceutical companies on an
unique orange (Ugli orange) to produce medicine served for an emergency. I played the
 role of a company representative who made attempts to acquire what we need from my
counterpart, which my partner acted as.
Our negotiation went through a difficult process, because we were not aware of the
need differences. Driven by the similar demand we thought, we spent time convincing
and persuading each other to accept the offers. Later on, as we found out our real
needs, we eventually made compromises to reach an agreement quickly.
b) Analysis
Obviously, it was the lack of key information that resulted in barriers in the negotiation.
Both of us were misled by each other so that the agreement was not made. Despite the
fact above, it also reflected that I fell in the dilemma of trust and information sharing,
which was one of the reasons that contributed to my ignoring details. The context of this
case highlighted the significance of the negotiation, which was related to the company’s
benefits and reputation. More importantly, the negotiation occurred between two rivals.
It put high pressure on me. Therefore, I was cautious and I chose not to give all my
stakes away, because I believed it would place me at a disadvantage if I did so. However,
it turned out that, in most cases, a simple “speaking it out” benefits more. Also, I was
taught that some vital elements, such as the budget, should never be easily revealed.
Additionally, my partner and I made a mistake that we did not set the BATNA before our
talk took place. It was not until the negotiation encountered challenges when I was
forced to seek alternatives, whereas my interlocutor still insisted on her desired offer.
Truly, it was partially due to the missing information, but it was a risky move to start
negotiation without BATNA since only a few agreements can be reached on the desired
offers. BATNA not only provides negotiators with more options and power, it also help
them find their resistance points and zone of possible agreement (ZOPA). In the practice,
our talk was fruitless and time-consuming before we identified the BATNA. But our goals
were rapidly fulfilled as soon as we had one. The case did teach me a good lesson in
adopting BATNA in negotiation.
2) Grocer/Baker/Florist
a) Debriefing
In this case, I, together with my two partners, acted as grocer, baker and florist
separately. Our aim was to collaborate in opening a large market in which our three
shops would be established. However, there were three issues to be settled, the market
design, the temperature and the rental cost distribution. For each issue, we were offered
five options which represented different profit schedules. Thus, it became a challenging
and tricky practice, because each of us strove to maximize the profit while making
sacrifices to satisfy other, which means to decrease our benefit, so that we can reach a
“trilateral” agreement.
b) Analysis
Keys to solve the problem were to find out BATNA and ZOPA. The various choices for
three issues in the case indicated that we were given a range in which we need to
discover the overlapping section where we can build our partnership. This section is
 called ZOPA. Since the profits based on combinations of different options for the three
issues were directly given in the context, it was much easier for me to find my best
option, worst option and best alternatives. However, we were prohibited from telling
our profit schedules to each other. As a result, I only knew my own BATNA, and I had to
keep testing my counterparts’ bottom lines to learn their BATNAs, which increased my
difficulty in locating our ZOPA.
Another obstacle that made the negotiation tough and time-consuming was that it was a
multiparty one. One feature of such a kind is that negotiators tend to build coalitions to
gain more power in the process of negotiation. It was clearly noticed in this practice that
both my counterparts endeavored to convince me with their offers separately so that
one can form an alliance with me to put pressure on the other. In that case, the one who
succeeded in persuading me will gain the most profits and make the least compromise. A
second characteristic of multiparty negotiation is the fluctuant BATNAs. I was well
aware, in the negotiation, that all of us were in a cycle of proposing, discussing, rejecting,
modifying, re-discussing, and finally accepting offers. It suggested that we continued
changing the BATNAs to find the ZOPA where our needs are met.
At last, as we put major efforts into a solution to make a deal, we were surprise to see
that it yielded equal benefits for us. I learned in this case that it is important not only to
have my own BATNA prepared, but also to calculate BATNAs of my counterparts.
Although it is a daunting, even impossible job when facing many negotiators, it is at least
necessary to foresee their alternatives in advance to discover the ZOPA.
3) Nike Inc. vs Foot Locker
a) Debriefing
This practice differed from the previous two, since we were requested to provide a
concrete context by ourselves instead of being directly given one. Our group chose the
negotiation between the two sports and footwear retailers and design every detail on
our own. During the process, I took responsibility for the “indifference” from the five
objections and “choice” from the seven cursors of power. By setting a scenario
explaining why Foot Locker was “indifferent” and how I responded, I managed to reach
the goal.
b) Analysis
In this case, the objection and cursors of power in the negotiation were more likely to be
evaluation of counterparts and self-evaluation. An essential part is to ask questions, but
the first question is whom to ask. Regarding the cursors of power, we should ask
ourselves questions like “what we have and what we do not” “what our counterpart has
and what he/she does not”, because the course of self-asking is the process of
preparation. For this reason, we can better acquire knowledge of our stakes and power
to calibrate the level of demand. As for the objections, we need to ask our interlocutor
“why”. It is not simply a signal indicating that we will not quit easily. By analyzing our
counterpart’s objections, we are granted an opportunity to explore his/her real need
 and to adjust our strategy so that we can see whether it is still in our ZOPA or it has
reached our Walk Away Point (WAP).
However, given the fact that the context was designed by myself, there are various
possibilities when the practice turns into a real combat, in which we may have little
control over the factors of objections and cursors of power. In addition, we are unlikely
to deal with only one objection or cursor of power in a negotiation. Hence, we must be
very careful and well-prepared.
4) Sick Leave
a) Debriefing
In this practice, I encountered a “tough” counterpart. My partner and I played our roles
respectively and negotiated an agreement to decide whether I should treat my partner’s
leave as a sick leave or a paid vacation, though it was sick leave, indeed. The issue would
be much easier if the roles were from the same place. However, when both parties are
with different nationalities and have different cultures, the situation becomes harder. In
the context, my role is a Japanese who believed the sick leave should be considered a
paid vacation because we work in Japan and should follow the Japanese way. My
partner’s role is from Canada. He insisted that I should give him the sick leave to honor
the contract between us. Finally, we finished up the negotiation with my compromise.
b) Analysis
When I highlighted the word “tough” in the debriefing, I did not take it personal. It was
the context, specifically culture of the role my partner took, that strengthened his
power. As I mentioned above, negotiation with parties who share different cultures with
us is quite difficult, because the culture exerts great influence on their behavior. The
value of Canadians is largely respect. They prefer to be well informed and
knowledgeable about every detail of contracts and thoroughness and directness are
appreciated. Things are totally different in Japan as people there has propensity to value
relationships more. That can explain my partner’s “anger” when he was requested to
sign on the paper of paid vacation without prior notice, which he deemed as a behavior
with respect neither to the contract nor to him. And my consideration of my colleagues’
and superior’s feelings made the relations between my partner and I fiercer and drove
us to the negotiating table. The experience from this practice is substantial. When
negotiating with foreign clients, we should not only focus on analyzing our counterpart’s
power, but also pay attention to his/her background, experience and culture. It helps us
avoid misbehavior that undermines the potential agreement and build strong
relationship to boost the negotiation.
In this practice, I also noticed that the contract put me at a disadvantage in the talk and
resulted in my concession. It is worth thinking because fair negotiation mostly exists in
an ideal world, but we do not live there. Bias, deception and hidden agendas distribute
unequal power to different parties. For this reason, we need to “be a sleuth” and do all
possible research about our counterpart. In that way, we can learn his/her stake and
power, predict his/her offers and response and avoid being caught by surprise. What’s
 more, a small assessment of the desired outcome can help us identify our top priorities
and give up lesser ones. Another tactic can be to present information and let the other
party to response. That was what I attempted to do in the practice. When I illuminated
the reason to give my partner a paper of paid vacation, which was a common Japanese
way to deal with their leave, he expressed his understanding and desire to “do as
Romans do” after contract renewal. It enabled us to gain a good outcome in the end.

Section II-Outside the class

In this section, I choose to analyze the negotiation between Walt Disney and Lucasfilm. The
acquisition is deemed as a world changing one (at least it changed the global movie industry). In
the talk between Robert A. Iger, then CEO of Walt Disney, and George Lucas, creator of Star
Wars franchise, there are considerable things we can explore to gain some inspirations.

A) Debriefing
Although the acquisition announcement was made in October 2013, the talk between Iger and
Lucas dated back to 2011, when the CEO joined with the founder of Lucasfilm at the Hollywood
Brown Derby. Iger was seeking Lucas’s desire to sell his company while Lucas did not say “Yes”
or “No” directly. However, the CEO was fully aware that the agreement would be highly likely to
be reached. On the one hand, Lucas seemed to have a choice, but in fact he did not. He was 67
and was considering his retirement. Once he was thinking of making a new trilogy of Star Wars
through Lucasfilm. However, the former three, Episode I to III, brought him harsh criticism and
weakened his confidence. Moreover, such a huge project would need time commitment – an
estimated ten years. On the other hand, Iger, who took over Walt Disney when it was in trouble,
proved his clear vision and talent for negotiation by helping the company acquire Pixar
Animation Studios from Steve Jobs in 2006 and Marvel Entertainment in 2009. He was
experienced and skillful in this aspect and he was sure that Lucas would call back. As expected,
the call came one year later, followed by a five-month negotiation. Despite some differences,
Iger succeeded in convincing Lucas that Walt Disney will continue to make Star Wars a hit. We
all know the story later that the company produced five films within four years, including
Episode VII: The Force Awakens (2015), Episode VIII: The Last Jedi (2017), Episode IX: The Rise of
Skywalker (2019) and two Star Wars stories, Rogue One (2016) and Solo (2018).

B) Analysis
In the whole process of their talks, both parties adopted various skills and tools to facilitate the
deal to be made.

1. They started their first conversation in an informal way, when they greeted each other and
had breakfast. Moreover, Iger collaborated with Lucas when he worked in ABC. They are old
acquaintances and know each other well. As a result, all those factors relieved the pressure on
both parties and enabled following negotiations.

2. Iger proved himself a good listener. When he asked Lucas his plan, the latter replied “I’m not
ready to pursue that now. But when I am, I’d love to talk.” It sounds like an objection, but the
CEO had a strong belief that their agreement could be made as he heard Lucas mentioning his
consideration of retirement. It gave the information that the Star Wars creator was likely to quit
his schedule to make new films. Therefore, Iger chose not to push Lucas hard and ask “why”. He
simply waited for his response while making preparation for the negotiation.

3. On Lucas’s side, he had made the decision to sell his company, so he took steps to enhance
his BATNA and WAP. Firstly, Lucasfilm built a database named the Holocron, in which 17,000
characters in the Star Wars universe inhabiting several thousand planets over a span of more
than 20,000 years were listed. Any buyer who produces new Star Wars films can directly
process the data in it. Secondly, Lucas appointed his close friend Kathleen Kennedy to take over
his job in the company. Thirdly, Lucas and Kennedy hired screenwriter Michael Arndt to begin
work on the script and enlisted Lawrence Kasdan, screenwriter of two Star Wars episodes, to
act as a consultant. Last but not least, Lucas personally contacted original Star Wars cast,
including Mark Hamill, Carrie Fisher and Harrison Ford, and asked about their possible return in
new films. All the moves above were considered strengthening his alternatives and values at the
bargaining table. In case of the failure of the negotiation with Walt Disney, it is still possible for
Lucas to sell the company to other buyers.

4. Both parties made the deal by signing the papers involving all details. It was not only a signal
of success of an agreement, it also avoid potential disputes and risks. For example, Lucas
handed over his treatments for the film to Walt Disney as the contract was signed. However, he
then discovered that Disney did not work with the treatments and made up their own. Lucas
would have be burned, but, since Iger stressed that Disney would be the ultimate decision
maker about the films and it was written in the contract, Lucas could do nothing but to accept it.

Section III-My past experiences

This section is about the mistakes I have made during my two negotiation experiences. When I
go back to these stories, I realize how stupid I was to make reactions driven by the emotion and
pressure from my counterpart. The experiences consist of a job interview and a negotiation with
my client in the work.

1) Job interview
a) Debriefing
When I was a senior at the university, I participated in an interview held by ZTE
Corporation, a Chinese company in telecommunications and information technology.
 Since the company was recruiting trainees, there was no specific position that
candidates should apply for. Hence, when the interviewer asked me about my career
plan, I gave a quick reply that I would hope to work in the sector of sales and marketing.
Then, I realized the interviewer was setting a trap for me as she continued, “Imagine,
you are a representative of ZTE. And our company needs to purchase 10,000 mobile
phones for our employees. How will you convince me to buy your products?” The
question was totally unanticipated that I could only make up the answers. The interview
ended up with a failure.
b) Analysis
Before the interview was over, I have already told from the interviewer’s body language
that I lost the opportunity to be employed. Two of her moves gave me the information.
One was that she shook her head slightly once or twice when I answered the question
above. It implied her dissatisfaction with my response. The other was that she spent
most of the time scanning CVs in her hands and rarely looked at me when we were
talking. It indicated that she was losing interest in me. The result was in the way as I
expected.
My faults in this interview were clear. Initially, I did not prepare myself well. Neither did I
search for information about the company and its products, nor did I learn some
interview skills to foresee possible questions and structure my dialogue. Thus, I was
incapable of making logical and reasonable response. Additionally, I was panic when
facing a question that I did not know and I started to invent answers. It is definitely a
wrong doing in the interview, which conveyed a bad impression for the interviewer.
Even though it was my first job interview and I attributed the failure to my lack of
experience, the lesson I learned from it outweighed more than the job itself.
2) Negotiation with client
a) Debriefing
In 2017, I was working is an agency offering service for people who seek to study abroad.
My job was to prepare documents (CVs, personal statements and recommendation
letters) for clients based on their information and make online application to colleges
and universities. The conflict between me and one of my clients started when she
required that I re-write a recommendation letter because she, as a student majoring in
English translation, considered my writing style in the former one was completely
unprofessional, with which she would not get the signature from her professor. I was
busy with a large amount of work at that time, and I have the letter checked by my
colleagues, who believed it was good enough. Hence, I rejected her by saying there was
no need to do so. However, the tension between us increased due to her insistence and
my continuous refusal. She was annoyed and filed a complaint against me to my
employer. It was not until my superior intervened when my client calmed down.
b) Analysis
The confrontation between my client and I was a typical distributive bargain, because we
held the opposite goals and interests throughout. The negotiation would end up with a
 win-lose outcome if either one of us gave in. Moreover, there was no chance for a trade-
off as my client insisted on a new letter and did not accepted other options, which made
the negotiation tougher. Still, there were steps I could have taken to avoid the
escalation.

i. When she started to challenge my professionalism, I should have “fought back” with
my knowledge, remarks from my colleagues and previous successful examples. Instead
of doing so, I chose to avoid and explain the “no need” as well as my difficulties brought
by my work. It did make me unprofessional by saying so because my client would have a
sense of my reluctance or incapacity.

ii. From the beginning to the end, I did not even seek to make a concession because I had
been holding a brief that was misleading, that my client would request more if I started
making a compromise, and that I would have to put greater efforts into it. It was likely
that, if I conceded at the right time, my client might do the same. We could turn the
bargain into an integrative one.

iii. I should have turned to my colleagues and superior for advice when I noticed that the
situation was going worse rather than overestimating my control over it. Most of them
are highly experienced and can provide various solutions to this issue.

This experience left me a deep impression because it altered my stereotype about

negotiation. A good negotiator does make compromises and knows his/her BATNA and
the right time to do so. All these elements lead to a win-win outcome.

Conclusion

The six classes provides me with in-depth understanding of negotiation in different contexts.
The theories and tools I obtained offer me inspiration. With them, I often wonder, in retrospect,
what I could have done more in the past to change many things better. I am aware that practice
is the key to negotiation and contexts are varying. It is important to make thorough
preparations and to combine the theory with practice. Also, we should sum up every time to
make improvements, so that we can deliver good performance.

References

1. BATNA, Corporate Finance Institute

https://corporatefinanceinstitute.com/resources/knowledge/deals/what-is-batna/
2. Zone of Possible Agreement (ZOPA), Brand Spangler, June 2013
 https://www.beyondintractability.org/essay/zopa
3. Managing a Multiparty Negotiation, Katie Shonk, November 2019
https://www.pon.harvard.edu/daily/dealmaking-daily/managing-a-multiparty-negotiation/
4. Canadian Business Culture
https://www.monster.ca/career-advice/article/canadian-business-culture
5. How to Negotiate When You’re at a Disadvantage, Gwen Moran, November 2016
https://www.fastcompany.com/3065533/how-to-negotiate-when-youre-at-a-disadvantage
6. Negotiation Hack: How to Turn Your Negotiation Disadvantage into A Major Win, Neil Patel,
July 2015
https://www.forbes.com/sites/neilpatel/2015/07/07/negotiation-hack-how-to-turn-your-
negotiation-disadvantage-into-a-major-win/#e7d5bf06b5bc
7. Star Wars Stories: George Lucas and a Strong BATNA, Passed Over, Katie Shonk, November
2019
https://www.pon.harvard.edu/daily/batna/star-wars-stories-george-lucas-and-a-strong-
batna-passed-over/
8. How Disney Bought Lucasfilm—and Its Plans for “Star Wars”, Devin Leonard, March 2013
https://www.bloomberg.com/news/articles/2013-03-07/how-disney-bought-lucasfilm-and-
its-plans-for-star-wars?sref=kEPgXdHN