Planning for Negotiations

Introduction
This exercise asks you to focus on either an upcoming role-play negotiation or a real negotiation
that will occur within your life within the next several weeks or months. In this exercise, your
objective is to develop a plan for that negotiation.

Here you will find 10 question areas that can be used as a planning guide for this negotiation.
These questions reflect the important elements to consider when you prepare to negotiate. Not all
of these questions will be relevant to every negotiation, so you may not have a specific answer
for every question. The purpose of the planning process is to make sure you consider all of the
major factors that may impact the upcoming negotiation, and assemble information, arguments,
or analysis so that you can be more effective in achieving your goals in that negotiation. The
detailed questions are presented next, and a blank abbreviated planning guide is available after
the questions for you to complete about your own upcoming negotiation.

Planning Questions
Here are the major dimensions you should address in planning for a
negotiation:
1. Understanding the issues – that is, what is to be negotiated.
2. Assembling the issues and defining the bargaining mix:
• Which issues are most important and which issues are less important?
• Which issues are linked to other issues, and which are separate or unconnected?
3. Defining the interest: What are the other’s primary underlying interest?
4. Defining limits:
• What is our walkaway point on each issue – that is, what is a minimally acceptable
settlement for each issue or the issues as a package?
• If this negotiation fails, what is our best alternative for a negotiated agreement (BATNA)?
5. Defining targets and openings:
• What will be our preferred settlements in each issue?
• What will be our opening request for each issue?
• Where are we willing to trade off issues against each other in the bargaining mix?
6. Constituencies: To whom is the other accountable for the solution – that is, to whom does he
or she report or have to explain or defend the outcome? Does this party also have to be
involved in issue definition and goal setting?
7. Opposite negotiators: Who is the other party (or parties) in the
negotiation?
• What are information do we have about them?
• What issues will they have?
• What priorities are they likely to have for their issues?
• What are their interests?
• What has been my past relationship with them? What future
relationship do I need to have, or would I like to have with them?
8. Selecting a strategy:
• What overall negotiation and strategy do I want to select? How important are the outcome
and the relationship with the other?
• What strategy do I expect the other will be selecting?
9. Planning the issue presentation and defense:
• What research do I need to do on the issue so that I can argue for them convincingly and
compellingly?
• Do I have (or can I prepare) graphs, charts, and figures that will clearly communicate my
preferences?
• In what order and sequence should I present the information?
• What arguments can I anticipate from the other party, and how am I going to counteract
their arguments?
• What tactics will I use to try to move us toward agreement?
• What roles will different people play in the negotiation?
10. Protocol:
• Where will we negotiate? Do we wish to influence the choice of location?
• When will we negotiate? Do we wish to influence the time and length of negotiation?
Who will be at the actual negotiation meeting? Do we want to bring other parties to serve
a particular purpose (e.g., an expert or an observer)?
• Do we have an agenda? How can we help to either create the agenda or participate in its
development?
• What will we do if the negotiation fails?
• Who will write down and confirm the agreement? Do we need to have the contract
reviewed by a professional (e.g., attorney, accountant, agent)?
Planning Guide
This planning guide may be completed for any important upcoming negotiation:
1. What are the issues to be negotiated?
Based on the Bio Pharm case, the issues that must be negotiated I think there is more issue
that can be raised, like that Bio Pharm wants to buy or build a factory located in the US which
aims to manufacture and produce antibiotic compounds obtained from genetically modified
products where Bio Pharm has plans to build a new factory or buy an existing factory to
produce genetically modified compounds. the. However, if Bio Pharm wants to build a new
factory, it will take a very long time, which is around 12 months, which will take a lot of time
compared to buying a ready-made factory. It would be better if Bio Pharm bought an existing
factory because it bought the Seltek Plant because it was cheaper. So, I think the main issues
that should to be negotiated is Bio Pharm should buy the Seltek’s plant because it has a
cheaper instead of building the plant.

2. What are the priorities among the issues in the bargaining mix?
The priorities among the issues in the bargaining mix is divided between the most important
issues and which issues are less important. I think, the most important issues is the Bio Pharma
wants to buy a plant that is ready to use for its production and has already been approved by
the FDA or has already become a patent. Where, this is in accordance with the desired Bio
Pharm criteria as negotiated with Seltek. However, besides that, Seltek not only wants to sell
its plant but also offers Petrocheck patents to Bio Pharma. Because Seltek still had $ 200,000
in outstanding taxes payable, so Bio Pharma rejected the offer to purchase Petrocheck's patent
rights and also because it was not in line with the strategy that has made by Bio Pharm.

3. What are the primary underlying interest?

The primary underlying interest, as we know in the case, Bio Pharm has purchased a license
from the Belgian company where the company is developing Depox. Therefore, Bio Pharma
has the desire to produce Depox, because Depox has a huge market potential in the U.S
market and this complements Bio Pharm's existing conventional antibiotic product line.
However, Bio Pharma has to choose between buying a plant or building a new plant to produce
Depox because the Bio Pharma factory does not have facilities for water processing activities
and cannot modify existing plants.
4. What are my limits on each issue – walkaway points and BATNAs?
The limits on each issues :
a. The walkaway points is when the reservation have a budget aroun $40 Million.
b. For the aspiration is we have to find the lowest possible price
c. For BATNA’s I think if the negotiation end without agreement we still to build own plant
from the start by using the budget of $25 million and also a few other cost like FDA
approval and staff recruitment development.

5. What are my target points and opening requests on these issues?

For my target points these issues about the real estate tax, saya memilih untuk membeli pabrik
yang sudah siap pakai dan tidak ada biaya tambahan lainnya seperti harus membayar hutang
pajak Seltek, Petrocheck karena tidak sesuai dengan strategi yang di bentuk oleh BioPharm.
Namun, apabila Seltek menjual pabrik dengan adanya penambahan biaya yang lainnya seperti
pajak, saya memilih untuk membayar pajak tersebut namun ada beberapa syarat dan
ketentuan untuk Seltek, yaitu menurunkan harga jual plant nya.
For open request on these issues, for the real estate issue tax we could request about the
Seltek should to pay the taxes first before sells it. And also we could open request that we
don’t want to buy the Petrocheck too and ask to Seltek to sell to other companies that may
need related genetically modified bacteria.

6. Who are the important constituencies to whom the other is accountable for the solution?
7. What do I know about the other negotiator’s interests, negotiating style, and personal
reputation?
I know about the other’s negotiator’s interest, negotiationg style, and personal reputation that
I got is first, information about them. The information is a smaller pharamaceutical company
with annual sales its about $150 Million. And the second is, about the issues that they have is
they have right patent on Petrocheck that will be sell which is not related with the BioPaharm
business and Seltek have a unpaid tax of real estates taxes $200.000. Than that we know the
priorities that they likely to have for their issues is to sell the plant and what are the Seltek
interest is looking for a company who to buy thei plant. And the last I don’t have any relationship
that has been in the past.
8. What overall strategy do I want to pursue?
Overall, the strategy that I want to pursue is that I want to still not buy Petrocheck because it
is not in accordance with the strategy that has been made and avoids additional expenses.
And also my target is to pursue an investment that is owned by a price below $ 40 Million.
Then the offer I wanted to give to Seltek was about property tax assisted by the BioPharm
group.

9. What do I need to assemble – research, documents, charts and graphs, and so on – to make
the most effective presentation on what I want to achieve? What tactics will I use to present
my arguments or defend against the other negotiator’s arguments?
10. What protocol is important for this negotiation: where we negotiate, when we negotiate, who
is present for the negotiation, agenda to be followed, note taking? Also, what is our backup
plan if this negotiation fails?