Dave

Armstrong
GROUP - 16

Presented To:
Dr. Rinki Dahiya

Presented By:

Debahuti Deo | Palak Sharma | Pravalika | Radhika Agarwal |

Radhika Maheshwari | Rahul Meghwal | Utkarsh
CASE SUMMARY

Job-A Job-B Job-C

Thorne Enterprises

Dave Armstrong

( )
Computer Side hustle of selling a
programmer producing oil lease

Conveyor belt sales Harvard Business School

Life insurance
 Job - A
Dave Armstrong + Mr. Thorne
(Set up for a piggyback rail terminal )

Tradeoff: $50k-$70 Salary + bonus

Risk : Investment of money as the company need $1M to get started

Terminal not converted into an attractive industrial site.

What if they are unable to complete the project within a year as planned ?
Job - B

Dave Armstrong + Robert Irwin

(Set up a corporation seek out producing oil leases that might be for sale)

YES

Investment of $100k

SUCCESS FAILURE
For two years

$60,000 or 1/3rd of profits Commission at 8%

and contacts
Job - C

Work for Houston pension fund management company

Least Information The position doesn't 45k until the fund has
about the company even open up for started
another 6-12 months
The job as a securities
analyst will only be
temporary
WEIGHTAGES PROVIDED TO THE FACTORS

STEP 1-
Various factors Monetary or Non Monetary have been
listed that are impacting the choice of the job.

STEP 2-
HI and Lo are assigned to these factors , if a certain
factor is high in a job that is usually shown as HI vice-
versa for low.
WEIGHTAGES PROVIDED TO THE FACTORS

STEP 3-
After weights are assigned to each factor and then a
relative score has been calculated.

STEP 4-
Total of the factors have been calculated by
multiplying weights into contribution.
Job A scores followed by Job B ;Job C Score the
lowest.
15 Rules for Negotiating a Job Offer

1 Don't underestimate the importance of likability.

2 Help them understand why you deserve what you're

requesting.

3 ·Make it clear they can get you.

4 ·Understand the person across the table.

5 Understand their constraints

6 Be prepared for tough questions.

7 Focus on the questioner's intent, not on the

question.

8 Consider the whole deal.

9 Negotiate multiple issues simultaneously, not

serially.

10 Don’t negotiate just to negotiate.

11 Think through the timing of offers.

12 Avoid, ignore or downplay ultimatums of any kind.

13 Remember, they're not out to get you.

14 Stay at the table.

15 Maintain a sense of perspective.

Decision Tree
Factors Influencing Negotiation

Salary+Compensation Priorities

Time Value of yourself

Wait till offer is made Walk away point

 Questions and concerns to be looked while
Negotiating

Would you please explain how the performance bonus program works?
Is there an opportunity for a profit sharing bonus?
If yes, what is the basis for evaluation?
a. Personal Performance?
b. Team Performance?
c. Company Profit?
d. Historical data related to accomplishments?
I do have a concern about the relocation package because there are many
expenses in moving that this offer will not cover.
Is there room for improvement here?
Am I expected to use this relocation allowance for all of my transportation costs?
Conclusion

Negotiation is an essential skill which many organisations require

Setting up priorities is necessary while doing the negotiation
The case has very little information available about all the jobs
Dave can go ahead with job A
Creating value for the organization is important, and while negotiating showing
value is important
Thank
You