Introduction to Negotiation Strategy
At Oak Spring University, we provide corporate level professional Negotiation Strategy and other business case study solution. Oilcorp's Marketing Campaign: Mixed Reactions to a CSR Initiative case study is a Harvard Business School (HBR) case study written by Juan M. Parra. The Oilcorp's Marketing Campaign: Mixed Reactions to a CSR Initiative (referred as “Oilcorp's Oilcorp” from here on) case study provides evaluation & decision scenario in field of Leadership & Managing People. It also touches upon business topics such as - negotiation strategy, negotiation framework, Ethics, Joint ventures, Social responsibility.
Negotiation strategy solution for case study Oilcorp's Marketing Campaign: Mixed Reactions to a CSR Initiative ” 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 January 2010, the head of the Colombian Red Cross approached Oilcorp, owner of the largest regional chain of service stations in the country, requesting its participation in its 100th anniversary celebration with a brand awareness campaign for its social programs. Given that the annual budget had already been approved without this campaign in mind, Oilcorp's CEO assigned the task of raising money to the marketing department. Nevertheless, the campaign backfired when Oilcorp tried to link the social message with selling more gasoline and asking customers to provide their details through its corporate website, to be added to Oilcorp's database. Carlos Cardona-a member of the marketing team at Oilcorp-was worried about the mixed reactions he was receiving. The team merely wanted to be practical, and this seemed the easiest way. However, people close to Carlos thought otherwise. For many, it seemed that the company was taking advantage of a social cause for marketing purposes. They disliked the way in which it was hiding selfish intentions behind helping those most in need. Nor did they understand why Oilcorp asked for personal information on a website in exchange for a donation that the company should give on its own initiative. In addition, Oilcorp's CEO told media the company expected to raise US$50,000 from the campaign, but Carlos was worried about achieving the target when he noticed that just 1,200 users had provided their data via the campaign's website. Because of the regular pattern of gas consumption, it was improbable that customers would buy more gasoline from Oilcorp's service stations through the influence of a social initiative. Consequently, the results of the campaign could be as much as 30% below the Colombian Red Cross's expectations and the promises made by Oilcorp's CEO in the media. Carlos and the marketing team needed to decide what actions to take given that the campaign was not on track to meet expectations.
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 “Oilcorp's Marketing Campaign: Mixed Reactions to a CSR Initiative” 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 “Juan M. Parra”, 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 “Oilcorp's Marketing Campaign: Mixed Reactions to a CSR Initiative ”, 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 “Oilcorp's Marketing Campaign: Mixed Reactions to a CSR Initiative” can make for an effective negotiation strategy and will make it easier to negotiate with this party the next time as well.
Juan M. Parra (2018), "Oilcorp's Marketing Campaign: Mixed Reactions to a CSR Initiative Harvard Business Review Case Study. Published by HBR Publications.
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