Negotiation Case Study(these facts are abstract)

The tension in the room was palpable. The E.D KCCA was sitting down with the
Director Finance Department. The E.D was flanked by external Counsel, her COO
and the Finance Director. The E.D had the Lord Mayor’s Assistant on one side of her
and the Director Legal on the other. About a year ago, KCCA informed the company
that a citywide property reassessment was underway, that the company’s many
buildings and land holdings would be revalued, and their annual property rates were
likely to increase substantially. Instead of calling to discuss the possibility of an
appeal or some kind of exemption for part of the company’s land, the CEO went
directly to the newspapers and indicated that the company would move and sue if it
felt that the revaluation was unfair.

KCCA issued new property rates revaluations four(4) months ago. The company’s
appeal for a reduction in its assessment and tax abatement were both turned down by
the Appeals Board. KCCA assessed the company’s real estate holdings at more than
100 Billion, a jump of almost 30%, claiming that it had been almost 6 years since
KCCA had undertaken a thorough reassessment of all property. The company’s new
property rates’ assessment bill is 100billion. The CEO is really angry that KCCA
hasn’t gone out of its way to do everything possible to keep the company happy.

The company employs almost 300 people from all over Kampala and neighboring
towns, and it would be a major blow to the local economy to lose it. The President has
called the Lord Mayor and the E.D KCCA to make sure that KCCA was doing
everything possible to avoid driving the company out of the City. The Lord Mayor has
advised the Finance Department Director to do everything possible to keep the
company in town but understands that the new revaluation has been done “by the
book” by one of the country’s leading computer-aided mass appraisal companies and
that “special deals” are illegal.
The Finance Director is now thinking long and hard about how to handle this
negotiation.
1. What negotiation advice do you have for her?
2. What sort of negotiation strategy (step by step) do you suggest?
3. Prepare for and attend the Negotiations with the Company as your Client.
4. Advise KCCA on the strategies to adopt for these negotiations seeing as the
Head of State has gotten involved in the issue.