Introduction to Negotiation Strategy
At Oak Spring University, we provide corporate level professional Negotiation Strategy and other business case study solution. International Institute of Tropical Agriculture case study is a Harvard Business School (HBR) case study written by Jose B. Alvarez, Sarah Mehta. The International Institute of Tropical Agriculture (referred as “Sanginga Agripreneurs” from here on) case study provides evaluation & decision scenario in field of Organizational Development. It also touches upon business topics such as - negotiation strategy, negotiation framework, Innovation, Labor, Marketing.
Negotiation strategy solution for case study International Institute of Tropical Agriculture ” 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?
It is July 2017, and Dr. Nteranya Sanginga, the director general of the Nigeria-based International Institute of Tropical Agriculture (IITA), is making progress toward two of his primary strategic objectives for the nonprofit research Institute: 1) to scale the impact and reach of some of the IITA's most commercially viable products and technologies by working with the private sector, and 2) to address Nigeria's massive youth unemployment problem by engaging young people in agribusiness. To achieve his first goal, Sanginga in 2013 established a business incubation platform (BIP), which was tasked with establishing pilot production facilities to illustrate that a select number of IITA products could be profitably manufactured and sold to an existing market. Sanginga hoped that the BIP would attract interest from private sector companies compelled by the business case for taking a particular technology to scale. To achieve his second goal, Sanginga had founded a youth "agripreneurs" program, which would train young university graduates on improved agricultural practices, food processing, and strategies for starting an agribusiness. Since its establishment in 2012, the program had enrolled four cohorts of young people in Ibadan (a total of 70 people), and expanded to four other states in Nigeria and five additional African countries. While both programs were making progress, challenges remained. Sanginga had originally hoped that the agripreneurs program would launch dozens of small businesses, but as of mid-2017, it had produced just four independent start-ups. Most of the program's agripreneurs in Ibadan (53 of the 70) remained affiliated with the IITA. Poor access to commercial loans, which carried interest rates up to 30%, was the primary issue preventing them from starting businesses. The BIP, too, faced challenges. Chief among them was a severe cash flow constraint that prevented Schreurs from properly forecasting and investing resources to maximize the BIP's impact. As traffic inched along, Sanginga contemplated how he could steer both the BIP and the agripreneurs program toward long-term success in his remaining four years at the IITA's helm.
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 “International Institute of Tropical Agriculture” 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 “Jose B. Alvarez, Sarah Mehta”, 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 “International Institute of Tropical Agriculture ”, 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 “International Institute of Tropical Agriculture” can make for an effective negotiation strategy and will make it easier to negotiate with this party the next time as well.
Jose B. Alvarez, Sarah Mehta (2018), "International Institute of Tropical Agriculture Harvard Business Review Case Study. Published by HBR Publications.
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