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Group Planning Document Template For Viking - v1 Scribd

This document provides a planning document for Pat Olafson of Viking Investments for a negotiation with Sandy over an invoice dispute. The key issues are resolving the invoice for $700,000 originally agreed upon versus the new amount of $950,000, and stopping a $200,000 loan renewal to Sandy. Pat's goals are to settle on the original invoice amount and stop the loan renewal, while maintaining the business relationship. Potential strategies include opening by explaining the dispute and emphasizing the contract terms, offering to settle for the original amount, and making concessions to resolve amicably while outlining litigation risks.

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Dharna Kachroo
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1K views3 pages

Group Planning Document Template For Viking - v1 Scribd

This document provides a planning document for Pat Olafson of Viking Investments for a negotiation with Sandy over an invoice dispute. The key issues are resolving the invoice for $700,000 originally agreed upon versus the new amount of $950,000, and stopping a $200,000 loan renewal to Sandy. Pat's goals are to settle on the original invoice amount and stop the loan renewal, while maintaining the business relationship. Potential strategies include opening by explaining the dispute and emphasizing the contract terms, offering to settle for the original amount, and making concessions to resolve amicably while outlining litigation risks.

Uploaded by

Dharna Kachroo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Planning Document

Individual Assignment – Viking

Negotiation Analysis
Submission by: Group 10

PLANNING DOCUMENT for VIKING Investments


Name:
Negotiation: Dispute resolution with Sandy
Role: Role for Pat Olafson

What issues and the interests behind those issues are most important to you? (List in
order of importance)

1. Resolve the invoice issue with Sandy: Settle the dispute on the changing lumber and
the consequent increase in the invoice on the 100-unit condominium project without
formal authorization. Aim to settle with the original invoice amount of $700,000
2. Stop loan renewal: Viking to stop renewing the loan to Sandy and fully realize the
potential return on that $200,000
3. Maintain good relations with Sandy: Woodcrafters owned by Sandy’s provides
high-quality services in fine carpentry

What is your BATNA? Reservation Point? Target/Goal?


 BATNA: Settle for the original invoice of $700,000 based on the contract clauses and
to go for litigation if needed
 Reservation Point: To avoid a situation that would lead Sandy to declare bankruptcy
and avoid freezing of assets by the court-appointed trustee
 Target/Goal: Target is to amicably resolve on the dispute and settle on the original
contract term of $700,000 and make timely payment of the loan renewal.
o Both Sandy’s and Vikings are in the same real-estate market and must ensure
the relation continues in the long-term

What are your sources of power?


 Clauses: The clauses legally protect in ensuring that Vikings only pays original
contract invoice of $700,000 and also stop the renewal of $200,000 with a formal
notice
 Avoided huge losses: By finding a suitable buyer for the condominium project,
Vikings was able to avoid huge losses compared to its competitors
 Reputation: Viking is one of six major developers in the local area, who occasionally
have to compete with out-of-state developers who are attracted by the affluence and
abundance of acreage at reasonable prices.

What are your weaknesses?

 Low-profit margins: With a low margin of $250,000, Vikings cannot afford to pay
for the additional cost overruns or any litigation costs in the worst case
 Time pressures and dependency on Sandy for financing the new investment
opportunities are to be finalized at the earliest before the seller finds other buyers
 Weak real estate market: The comfortable times for real estate sales have ended.
The market has become weak because of a regional economic recession.

According to your estimates based on the information you have, what issues and the
interests behind those issues are most important to your counterpart? (List in order of
importance)

1. Settle on the new invoice: To settle on the new invoice amount and keep higher
profits
2. Loan Renewal: Continue the loan renewal due to a weak market in the real estate or
at least secure more credit time for making the payment of $200,00

What is your counterpart’s BATNA? Reservation Point? Target/Goal?


 BATNA: To avoid any possible litigation and receive the payments as per the original
contract
 Reservation Point: To avoid bankruptcy and any complicated litigation by Vikings
 Target: To settle on the new contract invoice of $950,000

What are your counterpart’s sources of power?

 One of the reputed contractors for providing high-quality fine carpentry


 Can file for bankruptcy and complicate the payments

What are your counterpart’s weaknesses?

 Lack of formal authorization from Vikings, it was only through Secretary’s words the
invoice was made and in absence of Pat Olafson
 Legal clauses preventing the changes in invoices
What is your strategy? What is your opening move or first offer? Other important
information? You should also create contingencies and plans of action given potential
moves by your counterpart.

 To carefully explain the situation of the disputes arising and remind the importance of
maintaining good relations with each other
 First offer: To mention about the legal clauses that give Vikings the power to settle
on the original contract of $700,000
 Concessions: Remind Sandy’s on the amicable termination of lease for woodcraft’s
when it had prioritize the cost of its business to save $1000/month on rent
o Second concession: Waive the rent payments if Sandy’s agrees on the original
contract payment
 Contingencies:
o Assurance of potential business in the new investment opportunities in the
Hotels and Lakeforest property
o To threaten on consequences of entering into legal battles
 Cost of litigation
 Lost relationships in the long-term
 Possibility of entering into bankruptcy

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