Christelle BACHA

Sarah ABOUELDEYAR
Paul YUNG
Eliot RAPATEL

International Negociation
We analyzed a scene in the movie "The Wolf of Wall Street," directed by Martin Scorsese
and released in 2013. The film is based on the memoirs of Jordan Belfort, a stockbroker who
experienced wealth and downfall in the 1990s.

I) Detailed description of the scene :

The scene takes place in the offices of the brokerage firm Stratton Oakmont, founded by
Jordan Belfort (played by Leonardo DiCaprio) and his partner Donnie Azoff (played by Jonah
Hill). The scene begins with Jordan closely observing one of his employees negotiating over
the phone with a client.

Jordan decides to take the phone and show his employees how to make a sale. He sits
down at a desk and calls a man named John, a potential client. The conversation starts with
Jordan introducing himself and explaining that he works for Stratton Oakmont. John seems
disinterested at first, but Jordan insists and manages to capture his attention by mentioning
a specific investment opportunity.

During the negotiation, Jordan's body language and non-verbal cues contribute significantly
to his persuasive communication. He maintains a strong and confident posture, with
occasional hand gestures that emphasize key points in the conversation. His facial
expressions display enthusiasm and conviction, which help to convey his belief in the
investment opportunity. Meanwhile, the employees surrounding Jordan exhibit a mix of
curiosity, anticipation, and admiration, as they lean in to listen and observe their boss in
action. The office atmosphere is bustling and energetic, with other employees engaged in
their own phone calls and conversations. The dynamic environment serves as a backdrop
for the high-stakes negotiation unfolding between Jordan and John.

Jordan brings up a company called Aerotyne International, a fictional defense and

aerospace research company, and describes it as an incredible investment opportunity with
huge growth potential. He uses technical and persuasive terms to describe the company and
its shares, giving the impression that he is well-informed, and that the opportunity is too good
to pass up.

As the conversation progresses, Jordan adopts a confident and assertive tone. He speaks
quickly, not leaving much room for John to ask questions or express doubts. Jordan
continues to emphasize the benefits of investing in Aerotyne, stating that this is a unique
chance for the client to make significant profits. He also uses high-pressure sales tactics,
mentioning that the offer is time-limited and that the shares are likely to skyrocket quickly.

Meanwhile, Jordan's employees watch the scene closely, impressed by their boss's skills.
They listen with admiration and anticipation, seeking to learn from Jordan's expertise in
negotiation and sales. The employees are clearly impressed by his ability to manage the
conversation and keep the client engaged, despite the client's initial skepticism.

In the end, Jordan succeeds in convincing John to invest $50,000 in Aerotyne International
shares. Once the deal is sealed, Jordan hangs up the phone, to the applause and cheers of
his employees, who are amazed by their boss's performance. The scene concludes on a
triumphant note, showcasing Jordan Belfort's talent for negotiation and sales, as well as his
influence on his employees who seek to follow his example.

This scene is a striking example of how Jordan Belfort uses his mastery of sales techniques
and persuasion to close lucrative deals while training and inspiring his team of brokers to
adopt similar methods for success.

II) Analysis of the negotiation through the 10 elements of negotiation

preparation

PEOPLE - WHO ?

In the negotiation scene from the movie "The Wolf of Wall Street," the negotiators are
brokers from the brokerage firm Stratton Oakmont, run by Jordan Belfort, the main character
in the movie. In this scene, the traders are sitting around a table trying to convince a
potential investor to buy stock in American Airlines. The negotiators work together to sell the
stock to the investor using aggressive and persuasive sales techniques.

However, the relationship between the negotiators is not always friendly. There are rivalries
and tensions between them, as each tries to make the best sale possible and earn the most
money for himself and the firm. In addition, competition is heightened by the commission
system implemented by Stratton Oakmont, where brokers are financially rewarded based on
their sales. This financial incentive can create conflicts of interest among traders and cause
them to lose sight of the firm's common goal.

Overall, the relationship between the negotiators in the film's negotiation scene is complex
and dynamic, with moments of collaboration and competition.

The interpersonal relationship between the traders in this negotiation scene of the movie is
quite complex. On the one hand, they are colleagues and work together to achieve a
common goal, which is to sell shares of American Airlines to a potential investor. On the
other hand, there is some competition between them because each broker wants to make
the sale and thus get a commission. This competition can lead to tension and rivalry
between the negotiators. In some scenes in the film, we can see examples of selfish
behavior and sabotage among the negotiators.

In addition, negotiators are often portrayed as highly extroverted and confident individuals
who enjoy risk and quick decision-making. This personality trait can lead them to have fairly
aggressive interactions or confront each other when they have disagreements about how
best to sell the stock.
Overall, the interpersonal relationship between traders is both competitive and collaborative,
with moments of conflict and cooperation, reflecting the competitive and aggressive
environment of the financial world.

The vertical trading mandate in the case of the trading scene is to convince the potential
investor to buy shares of American Airlines. The traders who work for the brokerage firm
Stratton Oakmont have the objective of selling these shares to the investor in order to make
money for the firm and earn commissions for themselves.

In this case of vertical trading, the traders represent one side of the trading table, the sellers,
while the potential investor represents the other side, the buyers. The negotiators must
therefore persuade the investor of the value and profitability of buying the airline's stock.

The vertical trading mandate thus involves some power asymmetry between the parties, in
which the traders seek to maximize their gain while meeting the needs and interests of their
client, the brokerage firm Stratton Oakmont. This can lead to aggressive and persuasive
behavior on the part of the negotiators as they seek to convince the potential investor to
make the purchase.

Regarding the stakeholders, they are the brokers from the brokerage firm Stratton Oakmont
on one side, and the potential investor on the other.

On Stratton Oakmont's side, the stakeholders are the brokers who are trying to sell the
American Airlines stock to the potential investor. Jordan Belfort, the main character in the
film, is the leader of Stratton Oakmont and oversees the brokers involved in the sale. On the
potential investor's side, the stakeholder is the person who is considering buying the
American Airlines stock. In the negotiation scene, this stakeholder is not explicitly named or
characterized, but is representative of a potential buyer who has financial needs and
interests.

In addition to these two primary stakeholders, there is also a broader stakeholder that is the
American Airlines firm itself. Although this stakeholder is not present in the trading scene per
se, the firm's shares are the subject of the proposed sale by Stratton Oakmont's brokers.

In sum, the stakeholder mapping in the negotiation scene in the film "The Wolf of Wall
Street" includes the Stratton Oakmont brokers, the potential investor, and the American
Airlines firm.

PROBLEM - WHAT ?

Motivations:
At first the client is not interested and wants to avoid the conversation because he s not
interested by the negotiation but Jordan is interested in making money. something important
for both of the parties here is to trust each other and know who they are negotiating with
(especially for the client). Jordan shows that this deal is a win win situation for both of them
because he will become top broker of the company and Kevin will be making money so
everyone is happy. So they have different but complementary interests since they would both
benefit from each other’s.
Solutions at the table:
Jordan will only be satisfied when he convince the client to invest.
Kevin at first is not interested in the deal and then when he is the main issue of the
negotiation is the lack of trust between the two parties. Jordan says : “I completely agree
with you, you don’t know me I don’t know you” after that they introduced so this gives them
the ability to build their trust and makes the other party wanting to trust them.
Jordan also says “You finally find a broker on wall street that you can trust and who can
make you money” he really insists on the fact that this deal will give Kevin the ability to make
more money " only one regret he may have is not to have invested more"

Justifications:
-Kevin justifies the fact that he does not want to negotiate by saying that they don’t know
each other’s. So trust is an important element between the two parties so Jordan really
insists on the fact that he is a trustworthy broker and want only to make money for him
-Jordan during the whole negotiation was really focusing on the profit for Kevin and showing
him the benefit of investing with him, he also was speaking very fast while giving a lot of
numbers and statistics : “I put you in Union Carbide into seven and to keep you out at 32,
Texas instruments at 11 and took you out at 47, Us steel at 16 took you out at 41”giving
attractive numbers makes his idea of making profit more realistic and he looks like he is an
expert in the subject since he is giving him in depth information about the stock market.
Jordan continues to insist by saying that this in a “one in a lifetime offer”.
Solutions off the table:
During this negotiations there were not many solutions off the table since the solutions
depended on a no or yes from the client. At first we felt like a solution off the table on Kevin’s
side was to cooperate because he didn’t even want to negotiate so he didn’t seem like he
wanted to make a deal with Jordan. But after he started to trust Jordan he became more
open and interested.
On Jordan’s side, he was ready to make everything in his power in order to win Kevin as a
client, his solution off the table was to fail at this.

PROCESS - HOW ?

The negotiation scene is organized informally and dynamically, rather than in a structured
and formal way. Brokers from the brokerage firm Stratton Oakmont appear before the
potential investor, who is seated in a meeting room, and begin to present their proposal for
the sale of American Airlines stock.

The negotiation is fairly informal in that there is no strict protocol or set rules for the
negotiations. Brokers get very creative and use informal means to try to persuade the
potential investor, such as sharing stories or showing charts and graphs to illustrate their
points.

However, while the negotiation is informal, it is very competitive, with several brokers trying
to persuade the potential investor to make the purchase. Brokers compete with each other

for the sales mandate, using different arguments and sales techniques. The competition is
very intense, with sometimes aggressive exchanges and palpable tension between the
parties.
As for communication, it is mainly through dialogue between the characters. The Stratton
Oakmont brokers try to convince the potential investor to buy American Airlines stock by
using persuasive arguments, statistics and financial projections. They also make provocative
and dramatic statements to get the potential investor's attention and strengthen their case.
Communication in negotiation is also characterized by the use of aggressive and creative
selling techniques, such as creating charts and graphs detailing the economic benefits of the
purchase, staging compelling stories to illustrate potential gains, and using loud and
compelling tones of voice.

In addition to dialogue and sales techniques, communication in negotiation is enhanced by

visual representation of the scene, with cinematic staging that uses close-up shots of the
characters' facial expressions to show the intensity of the negotiation and the level of
emotional tension involved.

As for the logistic part of the negotiation, it does not require complex logistical requirements.
Stratton Oakmont brokers simply appear before the potential investor, who is seated in a
meeting room. However, there are some minor logistical needs that are required for the
trade. For example, the brokers have prepared charts, graphs and statistics to support their
selling points. They also prepared PowerPoint presentations to highlight the potential
economic benefits of purchasing American Airlines stock.

In addition, the brokers use cell phones to place orders and monitor the stock market in real
time. They also use computers to access airline stock information and track stock market
fluctuations.

In sum, the logistical requirements of this trading are relatively minor, but they include
preparing charts, tables, and presentations, as well as using cell phones and computers to
track the stock market.

III) Focus on a particular issue that is relevant in that case

In this scene, an important issue to focus on is the use of persuasive communication

techniques in sales and negotiation. Jordan Belfort demonstrates his ability to turn an initially
disinterested potential client into a committed investor by employing a combination of
communication skills and strategies.

Rapport building: Jordan starts the conversation by introducing himself and his company,
establishing a connection with the client. He then finds a common ground with the potential
client by mentioning a specific investment opportunity, which captures John's attention.

Confidence and assertiveness: Throughout the conversation, Jordan maintains a confident

and assertive tone, speaking with authority and providing information that makes him appear
knowledgeable and experienced. His confidence helps to instill trust in the client and makes
his proposal more appealing.
Active listening: Jordan listens carefully to the client's concerns and addresses them
effectively. By doing so, he demonstrates empathy and understanding, which helps to create
a stronger bond with the client and makes him more open to the proposal.

Creating a sense of urgency: Jordan employs high-pressure sales tactics by mentioning

that the offer is time-limited and that the shares are likely to skyrocket quickly. This sense of
urgency encourages the client to make a decision faster and increases the likelihood of
closing the deal.

Persuasive language: Jordan uses technical and persuasive terms to describe the
company and its shares, painting a picture of a highly attractive investment opportunity. He
emphasizes the benefits and potential profits, appealing to the client's desire for financial
gain and success. The persuasive language helps to make the offer seem too good to pass
up.

Handling objections: When faced with doubts or questions from the client, Jordan
addresses them effectively and redirects the conversation back to the benefits of the
investment. By doing so, he prevents the client's concerns from derailing the negotiation and
maintains control of the conversation.

Social proof: Although not explicitly mentioned in the scene, the presence of Jordan's
employees watching and admiring his negotiation skills adds an element of social proof. This
reinforces the idea that Jordan is a successful and skilled negotiator, which can indirectly
influence the client's perception of the investment opportunity.

An essential aspect of persuasive communication in sales and negotiation is conducting

preparatory research. Before engaging in the conversation with John, Jordan likely gathered
information about the client's background, financial situation, and investment preferences.
This knowledge enabled him to present a targeted and relevant investment opportunity that
would capture John's interest. Preparatory research also allows a negotiator to anticipate
potential objections and concerns, equipping them with well-prepared responses that can
help maintain control of the conversation.

Another critical element in persuasive communication is adapting to the client's

communication style. Recognizing and responding to the way a client prefers to
communicate can help to establish rapport and facilitate a more productive conversation. In
the scene, Jordan demonstrates his ability to adapt by matching John's tone and pace,
responding to his concerns with empathy and understanding. He also maintains a balance
between providing information and allowing space for the client to express their thoughts,
which contributes to a more comfortable and engaging interaction for the client.

Moreover, it is important to highlight the ethical considerations in persuasive communication.

While Jordan Belfort's negotiation tactics were undoubtedly effective in securing the deal,
some of his techniques, such as the high-pressure sales tactics and the promotion of a
questionable investment opportunity, raise ethical concerns. In real-world negotiations and
sales, it is crucial to consider the ethical implications of the strategies employed and to strive
for an honest and transparent approach, ensuring the best interests of all parties involved
are respected.
Additionally, it is worth exploring the long-term implications of using persuasive
communication techniques in sales and negotiations, both for the negotiator and the client.
In the short term, Jordan Belfort's tactics prove successful in securing the deal, but these
high-pressure techniques can potentially damage trust and the ongoing relationship between
the negotiator and the client. Clients who feel they have been manipulated or pressured into
a decision may become less likely to engage in future transactions or refer others to the
negotiator. This highlights the importance of balancing persuasive communication with a
genuine concern for the client's needs and interests.

Furthermore, the impact of a company culture that prioritizes aggressive sales techniques
should also be considered. In the scene, Jordan's employees observe and learn from his
approach, which may lead them to adopt similar tactics in their own negotiations. Over time,
this could result in a work environment that values short-term gains over long-term client
relationships and ethical considerations. Analyzing the effects of such an environment on
employee behavior, job satisfaction, and overall company performance can provide valuable
insights into the broader implications of persuasive communication strategies in the business
world.

In conclusion, this scene from "The Wolf of Wall Street" highlights the importance of
persuasive communication techniques in sales and negotiation. Jordan Belfort demonstrates
a mastery of these techniques, allowing him to close a lucrative deal and inspire his team of
brokers. Understanding and employing these communication strategies can be a valuable
skill for negotiators in various contexts, from business transactions to conflict resolution and
beyond.