Introduction to Negotiation Strategy
At Oak Spring University, we provide corporate level professional Negotiation Strategy and other business case study solution. Cascades Tissue Group: Sustainable Growth? case study is a Harvard Business School (HBR) case study written by Pierre Batellier, Emmanuel ER Raufflet, Louis Hebert. The Cascades Tissue Group: Sustainable Growth? (referred as “Cascades Ctg” from here on) case study provides evaluation & decision scenario in field of Strategy & Execution. It also touches upon business topics such as - negotiation strategy, negotiation framework, Strategic planning.
Negotiation strategy solution for case study Cascades Tissue Group: Sustainable Growth? ” provides a comprehensive framework to analyse all issues at hand and reach a unambiguous negotiated agreement. At Oak Spring University, we provide comprehensive negotiation strategies that have proven their worth both in the academic sphere and corporate world.
What’s my BATNA (Best Alternative To a Negotiated Agreement) – my walkaway option if the deal fails?
What are my most important interests, in ranked order?
What is the other side’s BATNA, and what are his interests?
In October 2006, Ms. Suzanne Blanchet, President and Chief Executive Officer of Cascades Tissue Group (CTG), was pondering how much weight should be given to products sold under the CTG brand compared to those sold under distributors' or retailers' private labels. The fourth largest tissue paper producer in North America, CTG was one of the four divisions of Cascades Inc.: a giant in the Canadian pulp and paper industry. The distributor and retailer private label market offered an attractive prospect for growth, but at the expense of CTG's own brands, which were more economically viable. However, developing a brand required sustained resources and investments, especially in marketing, which CTG's plant managers were still reluctant to support. Furthermore, her decision had to take into account the opportunities and threats related to the arrival of producers from emerging countries.
By interests, we do not mean the preconceived demands or positions that you or the other party may have, but rather the underlying needs, aims, fears, and concerns that shape what you want. Negotiation is more than getting what you want. It is not winning at all cost. Number of times Win-Win is better option that outright winning or getting what you want.
Options are the solutions you generate that could meet your and your counterpart’s interests . Often people come to negotiations with very fixed ideas and things they want to achieve. This strategy leaves unexplored options which might be even better than the one that one party wanted to achieve. So always try to provide as many options as possible during the negotiation process. The best outcome should be out of many options rather than few options.
When soft bargainers meet hard bargainers there is always the danger of soft bargainers ceding more than what is necessary. To avoid this scenario you should always focus on legitimate standards or expectations. Standards are often external and objective measures to assess the fairness such as rules and regulations, financial values & resources , market prices etc. If the negotiated agreement is going beyond the industry norms or established standards of fairness then it is prudent to get out of the negotiation.
Every negotiators going into the negotiations should always work out the “what if” scenario. The negotiating parties in the “Cascades Tissue Group: Sustainable Growth?” has three to four plausible scenarios. The negotiating protagonist needs to have clear idea of – what will happen if the negotiations fail. To put it in the negotiating literature – BATNA - Best Alternative to a Negotiated Agreement. If the negotiated agreement is not better than BATNA then there is no point in accepting the negotiated solution.
One of the biggest problems in implementing the negotiated agreements in corporate world is – the ambiguity in the negotiated agreement. Sometimes the negotiated agreements are not realistic or various parties interpret the outcomes based on their understanding of the situation. It is critical to do negotiations as water tight as possible so that there is less scope for ambiguity.
Many negotiators make the mistake of focusing only on the substance of the negotiation (interests, options, standards, and so on). How you communicate about that substance, however, can make all the difference. The language you use and the way that you build understanding, jointly solve problems, and together determine the process of the negotiation with your counterpart make your negotiation more efficient, yield clear agreements that each party understands, and help you build better relationships.
Another critical factor in the success of your negotiation is how you manage your relationship with your counterpart. According to “Pierre Batellier, Emmanuel ER Raufflet, Louis Hebert”, the protagonist may want to establish a new connection or repair a damaged one; in any case, you want to build a strong working relationship built on mutual respect, well-established trust, and a side-by-side problem- solving approach.
According to
Harvard Business Review
, there are three types of negotiators – Hard Bargainers, Soft Bargainers, and Principled Bargainers.
Hard Bargainers – These people see negotiations as an activity that they need to win. They are less focused less on the real objectives of the negotiations but more on winning. In the “Cascades Tissue Group: Sustainable Growth? ”, do you think a hard bargaining strategy will deliver desired results? Hard bargainers are easy to negotiate with as they often have a very
predictable strategy
Soft Bargainers – These people are focused on relationship rather than hard outcomes of the negotiations. It doesn’t mean they are pushovers. These negotiators often scribe to long term relationship rather than immediate bargain.
Principled Bargainers – As explained in the seven elemental tools of negotiations above, these negotiators are more concern about the standards and norms of fairness. They often have inclusive approach to negotiations and like to work on numerous solutions that can improve the BATNA of both parties.
Open lines of communication between parties in the case study “Cascades Tissue Group: Sustainable Growth?” can make for an effective negotiation strategy and will make it easier to negotiate with this party the next time as well.
Pierre Batellier, Emmanuel ER Raufflet, Louis Hebert (2018), "Cascades Tissue Group: Sustainable Growth? Harvard Business Review Case Study. Published by HBR Publications.
Feel free to connect with us if you need business research.
You can download Excel Template of Case Study Solution & Analysis of Cascades Tissue Group: Sustainable Growth?
Consumer Cyclical , Auto & Truck Manufacturers
Utilities , Electric Utilities
Consumer/Non-Cyclical , Crops
Financial , Insurance (Accident & Health)
Capital Goods , Construction Services
Technology , Software & Programming
Services , Communications Services
Capital Goods , Misc. Capital Goods
Services , Real Estate Operations
Financial , Consumer Financial Services
Healthcare , Biotechnology & Drugs
