Nguyen Quang Anh Chuong Group 9

Mai Hoang Long

Cartoon Planning Document

ISSUE Buyer Seller

Issue Position Position
Priority Priority
Interests Interests

8 runs / episode As low number of runs as possible

Run / episode
1 - This would generate more 3 - The lower number of runs, the less
advertising revenue saturated the series and the price of
- Preferred number of runs: 8 the series can remain high for longer
time  Hollyfilm prefers the number
of runs as low as possible
Price / episode
Below $60,000 At least $30,000

2 - Required by the Board 1 - Higher price means higher profit

- Lower price / episode would - WWIN may pay a good price for
generate more net value Hollyfilm
- Required price: < $60,000 / episode - Required price: > $30,000 / episode
Payment terms Zero down payment + 20% each year 50% down payment + 25% each year
in 5 years in 2 years

3 - Delayed payment would generate 2 - They are in financial difficulty, so

more savings they need money as soon as possible.
- Preferred option: zero down - Preferred option: 50% down
payment + 20% each year in 5 years payment + 25% each year in 2 years
Possible Strum’s Below $20,000 / Episode Above $10,000 / Episode
Target: $20,000

4 - WCHI may need Strum’s for the 4 - Hollyfilm are confident with the
future quality of their product.
- Lower price means more profit - Higher price means more profit
- Prefer price of <$20,000 / episode - Prefer price of >$10,000 / episode

BATNA $3,000,000 Net profit – The net profit of

alternative program

$3,690,000 Net profit of the program. This is

Reservation Price the case all the terms are following seller’s
desires. WCHI will require at least 7 runs to
ensure having higher profit than BATNA.

$7,980,000 Net profit of the program. This is

Target the case all the terms are following buyer’s
desires. WCHI may not get any reduced in
price of Strum in this case.

Value of finalized $5,527,000 Net profit of the program.

deal