Negotiation Case Study - Desklib

Running Head: NEGOTIATION CASE STUDY
Negotiation Case Study
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NEGOTIATION CASE STUDY 2
Identify potential negotiations and parties to the negotiations analyse issues, interests,
ZOPAs, BATNAs for those negotiations
Potential negotiations
Based on the case provided, there are three potential negotiations. These include a
100% sale, merger or part sale of OOJ’s to release capital for investment in growth of new
ventures. 100% sale can be made with OOJ’s competitor. Part of sale can be made with the
Get Fresh Beverages and a merger can be made with Blueberry Farm Ltd.
Potential parties, issues, interests
The first potential negotiation party is Get Fresh Beverages Australia. The company
specialise in organic blueberry and apple juice. The company has interests of 40m for 40% of
OOJ’s and is ready to meet $2.5m cost related to the adjustment. The issue about Get Fresh
Beverage Australia is that they are not ready for further negotiation. The company is
represented by lawyer Bill Shark of Sharp, Shark and Target in the Sydney office
The second potential negotiation party is OOJ’s competitor. At first, OOJ’s
competitor was interested in buying 100% of OOJ’s for approximately $140m but later,
offered to purchase Taylor Hardy’s 88% for 140m with a seat on the Board for Taylor. OOJ’s
competitor is also ready to give Lauren Indigo role of CFO and asked if she is prepared to
move to a small town called Oakura near New Plymouth in the North Island of New Zealand.
Taylor Hardy
The third party is Taylor Hardy. He is major shareholder of OOJ and is represented by
Lauren Indigo. His interest is to sell 100% of OOJ at $160m. The issue is that he intends to
keep a small shareholding and a governance role. Concerning the partial sale, his interest is to
sell 40% of the company at $60m to Get Fresh Beverages Australia
Blueberry Farm Ltd

NEGOTIATION CASE STUDY 3
The fourth party is Blueberry Farms Ltd. The company had offered to sell its 12%
share of OOJ’s to Get Fresh Beverages Australia for $17m. The negotiators include Bill
Shark of Sharp, Shark and Target Lawyers. The key shareholder is Taylor’s ex-partner
McKenzie Greenwell (the owner of Blueberry Farms Ltd) whose goal is to build a supply
relationship for frozen blueberries with key players the Australian grocery channel. The issue
is that the company has not informed Taylor or OOJ’s lawyers about the issue.
ZOPA & BATNA between Taylor Hardy and Get Fresh Beverages
Zone of Possible Agreement (ZOPA) refers to the range of opportunity for successful
negotiation within a given case. That is, the ability to achieve a treatment that benefits both
poles according to the demands and needs imposed by each. Its determination depends
largely on the type of negotiation that is being carried out (Enache, 2011). Best Alternative to
a Negotiated Agreement (BATNA) refers to the options available during a negotiation to
obtain the best agreement according to existing offers (Program on Negotiation 2012).
Since Get Fresh Beverages is offer is 40m and Taylor’s goal is 60m, ZOPA would not
exist and both parties should consider pursuing their BATNA. Get Fresh Beverage BATNA
is to buy 12% shares of OOJ owned by Blueberry Farms Ltd and pursue its goal of
specializing in in organic blueberry and apple juice. Taylor’s BATNA is to focus on two new
products researched and developed over the last five years
ZOPA & BATNA between Taylor Hardy and OOJ’s competitor
Goal of Taylor is to sell the whole company at $160m but OOJ’s competitor is willing
to pay $140 m for 88% of the company. ZOPA would not exist and both parties should
consider pursuing their BATNA. OOJ’s competitor has no BATNA. Taylor’s BATNA is to
develop new products and supply them to Get Fresh Beverages.