Negotiation Planning

Price to recoup development cost and maintain competitive advantage Issues What should be on the table? What will the discussion focus on? Look for commonality and tradeoff The mod technology Preventing the sale of technology to direct competition Net Profits Recoup the development costs Audio shouldnt sell the technology to external customers Reducing profitability to the company Sharing Internal sales profit Terms What sort of stipulations may apply?Audio should not produce products using Z-25 technology Supply Z-25 magnets for free Magnetic Advances should be given first preference in any farther technology advancements in magnets Avoid selling it to competition Goals specific/measurable/sustainable target/range you argon shooting for make best guess for the former(a) side rank them YOU OTHER PARTY 1. I am shooting for 61 mm in profits (the minimum I could go is 47- overwork and the upper limit I could go is 140-TAP.TAP at minimum would be 32 mm. Taking the average of the abov e deuce would give me an estimate of 61. 5 mm as target) 1 . 80 mm as TAP ( If the deal succeeds, Mads maximum profits would be 140 32 = 108, and minimum refits would be 20 32 mm = -12, so taking average of 108 and -12 and adding them to our opportunity cost ( 12 mm (development costs)+20 mm Internal sales)) 2. Audio should not produce products for Internal dollops 2.So they will be embarrassed to take up the issue with top management Through internal sale of Z-25 products we can get 20 mm in profits Z-25 has enormous commercial possibilities The technology two years lifetime and it cost 12 mm There is 15% and 10% profitability on external and internal sales separately Negotiation Strategy How do you mean to approach the negotiation? What will you share/keep cloistered? Keep private the net profits Keep private other potential offers I plan to approach by showing them the losses of no selling the product. They could potentially gain 8 mm (20 mm from internal sales 12 mm deep c osts) if they didnt go through the deal. So I would say that they will lose more if they dont do the deal because at minimum I am offering them 20 mm + 12 mm = 32 mm. I think even the other party would show losses supporting his argument.