Introduction to Negotiation Strategy
At Oak Spring University, we provide corporate level professional Negotiation Strategy and other business case study solution. Reliance Industries: An Indian Family Business Comes of Age in Global Energy and Petrochemicals case study is a Harvard Business School (HBR) case study written by Kannan Ramaswamy. The Reliance Industries: An Indian Family Business Comes of Age in Global Energy and Petrochemicals (referred as “Petrochemicals Family” 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, .
Negotiation strategy solution for case study Reliance Industries: An Indian Family Business Comes of Age in Global Energy and Petrochemicals ” 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?
Reliance Industries had evolved into a major player in the Asia Pacific region, and had begun to make its presence felt in the global petrochemicals and refining business segments. It had also made forays into exploration and production for oil and gas in multiple regions worldwide. This case study addresses the evolution of the company from a family-owned small-scale textile manufacturer to a global powerhouse within a few decades. It provides insights into how the company was able to trade on its competitive advantages at home in building a global strategy. Within the entrepreneurship and family business realm, the case allows for a rich thematic discussion around understanding the role of entrepreneurial leaders, the pros and cons of family control in large corporations, and impact on minority shareholders. From a global strategy perspective, the case provides a rich description of the nuances of building competitive advantage in emerging market contexts, the benefits of late movers in the race to globalize, and the unique modes of competition adopted by companies from newly industrializing countries. Since it is set in India, the case offers a comprehensive look at ground realities in that country, covering topics ranging from capital market conditions, governmental control and regulation as barriers to growth, and the role of external relationships management as a key competitive weapon in driving sustainable advantage
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 “Reliance Industries: An Indian Family Business Comes of Age in Global Energy and Petrochemicals” 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 “Kannan Ramaswamy”, 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 “Reliance Industries: An Indian Family Business Comes of Age in Global Energy and Petrochemicals ”, 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 “Reliance Industries: An Indian Family Business Comes of Age in Global Energy and Petrochemicals” can make for an effective negotiation strategy and will make it easier to negotiate with this party the next time as well.
Kannan Ramaswamy (2018), "Reliance Industries: An Indian Family Business Comes of Age in Global Energy and Petrochemicals Harvard Business Review Case Study. Published by HBR Publications.
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Financial , Regional Banks
Consumer Cyclical , Apparel/Accessories
Services , Restaurants
Capital Goods , Misc. Capital Goods
Consumer/Non-Cyclical , Beverages (Alcoholic)
Basic Materials , Metal Mining
Technology , Electronic Instr. & Controls
Financial , Investment Services
Basic Materials , Chemicals - Plastics & Rubber
Capital Goods , Construction Services
Capital Goods , Constr. - Supplies & Fixtures
