MKTG 755 Winter 2023

In-Class Assignment #1

Instructions:
 Write your answer, in bold, directly beneath the case and question.
 Be concise…include all of the required information, in a brief format.
 I am looking for your perspective, not something that has been Googled.
 Be specific as possible in your answer.
 The assignment is worth 5% of the semester.
 When completed, save as “In-Class Assignment #1.
 Deposit your document in dropbox under “In-Class Assignment #1
 It is due, in dropbox, by the end of day (1159pm) on the assigned class day.
 No late submissions accepted.
“Carol Bacall” involves a salary negotiation between a theatre performer &
singer, and a theatre company.

Carol Bacall is a distinguished older performer who has not had a lead role in two
years. The Lyceum Theatre Company has a production of the renowned musical,
“Oklahoma!” opening in three weeks, and the actor who had been engaged to act
and sing the title role has developed a condition requiring surgery before the
performance.
The Lyceum is eager to hire Carol, and the trustees have authorized the business
manager to offer up to $45,000 for the lead. Naturally, the Lyceum, which is a not-
for-profit organization, would like the salary to be lower, if possible. The original
soprano hired for the lead was to have been paid $30,000, and the rather
inexperienced secondary soprano is being paid $14,000. (Industry practice is that
lead roles receive about twice the amount received by secondary role actors).
Four years ago, at the height of her career, Carol received $22,000 for the lead role,
but inflation and an increase in theatre’s popularity have nearly doubled the salary
scale since then. Carol desperately wants this role. The exposure could give her a
chance to win lead role in a forthcoming television special. She would be willing to
act and sing the part in “Oklahoma” for nothing, except for the impact on her
future engagements and reputation. Her salaries for secondary roles over the last
two years have ranged from $10,000 to $18,000; more than a year ago she received
$10,500 for singing the secondary role in “Hamilton” at the Lyceum. Last year, an
inexperienced actor who sang the lead role is rumored to have been paid more than
$24,000.

Questions:
1) Which of these parties will seek to claim or create value?
According to me both the parties will create value as it is a non-zero-
sum or integrative situation where both the parties do well. That is, as
Carol being an older performer has not had a lead role in role will be
presented with an opportunity where she will be the soprano in a
distinguished play like “Oklahoma” and The Lyceum Theater Company
would be getting a lead at a short notice for a reasonable salary of
$45000. Which taking the inflation and Carols experience as an artist in
theatre is reasonable as per the industry standard.
2) Why have you made your choice?
As both The Lyceum Theater Company and Carol in their respective
positions are in dire need of an actor and a lead role; this situation
presents them with an opportunity to fulfil their requirements. I believe
it is a win – win situation, where the actor who has not been presented
with a lead role in two years gets to be a lead and the company that
needs to find a lead for their play within three weeks gets an
experienced artist for $45000. Which does not seem unreasonable given
that an inexperienced actor who sang the lead role is rumored to have
been paid more than $24,000. Hence, offering to pay Carol a little more
leads to the benefit the company as well as Carol.

3) How will each party attempt to assert their desire?

Both the parties will assert their desire by negotiating the offer of
$45000. Where The Lyceum Theater Company which is a not-for-profit
organization will try to lower the salary to a $30000 which was the
salary being paid to the original soprano and Carol would push for her
salary for playing the lead to be up to or above $45000 stating that
inflation and an increase in theatre’s popularity nearly doubling the
salary scale. Both the parties can also use the Best Alternative to a
Negotiated Agreement, where Carol who really needs the role can settle
for less and The Lyceum Theater Company the needs a lead
immediately can go ahead with the offer of $45000.