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Mobilizing an Online Business
Entrepreneurs starting online businesses often need to mobilize multiple sets of users or customers, each of whom hesitates to participate unless others join also. This case presents several challenges with similar structure. -
How to Negotiate with VCs
VC-entrepreneur partnership agreements often contain flaws that become highly damaging as the parties come up against issues of power, trust, and much more. Yet many of the flaws are systematic and predictable--and hence preventable. The author, a longtime consultant to the VC industry, outlines four recommendations for entrepreneurs sitting down at the table with prospective funders. Understand your leverage. Your leverage is not only a function of your alternatives; it has a lot to do with the VC's as well. Seek to understand them, and be prepared to educate the VC about why his exercising too much power could hurt both parties in the long term. (1) Maximize trust. Beneath all the financial projections, the VC negotiation is a process in which people are deciding whom they want to associate with for years to come. If the VC is vulnerable, use the opportunity to build trust rather than to take advantage. (2) Focus on value--not just valuation. Nonfinancial considerations such as control are also important. (3) Strive for understanding. Seemingly abstruse provisions can be highly consequential. And bear in mind that the choices a VC makes when negotiating can contain important clues about her assessments and expectations. Above all, when you're negotiating with a VC, think not only about what will look good in a press release today but also about what will help you create and capture value over the long run. -
Fighting Bonded Labor in Rural India: Village Activist Gyarsi Bai Tackles an Entrenched System of Coercion
In October 2010, the beating of a 30-year-old bonded laborer-his punishment for staying home sick from work-in India's northwestern state of Rajasthan triggered a movement to end the practice of bonded labor in the area. A holdover from feudal times, bonded labor was outlawed in India in 1976, but was still prevalent in some pockets of rural India. Entrenched power systems protected the practice, with the lower castes most affected. In this case, the bonded workers were members of an indigenous tribe called the Sahariyas. The case explores the negotiating strategy used by Sahariya village activist Gyarsi Bai and her allies to fight a powerful landowning community and a local government administration unresponsive to appeals from the poor. It describes how Bai built coalitions with larger activist groups and worked with them to gain media visibility and secure support at the state and national levels. These alliances pressured village authorities to make changes. Two years later, bonded labor continued to exist in the area, but a growing number of laborers had sought and received official freedom. In addition, a set of modest options-a local grain bank, village-run system of microcredit, and an expanded government work guarantee-gave bonded laborers viable alternatives to the debt trap of the past. The case also shows how larger activist groups were effective at finding strategies that enabled the Sahariyas to be agents for their own change. -
Distribution at American Airlines (C)
Presents 2011-2012 updates to American's distribution strategy including new challenges and disputes. [Supplement for case 909035] -
Distribution at American Airlines (D)
Supplement for case 909035. -
Fighting a Government Threat (HBR Case Study and Commentary)
In this fictionalized case study, an in-house lawyer at a cosmetics company is trying to decide the best approach to negotiating with a government entity. The company is the largest extractor of volcanic ash in the Northern Mariana Islands and the governor of the territory has proposed a large tax increase. The lawyer believes the company should approach the negotiation carefully, but the company's CEO wants to take a harder line and threaten to shut down. The CEO wants to issue a press release to that effect. The lawyer must decide whether making a statement to the press is the right tactic. Written by Francesca Gino and featuring expert commentary by Andrzej Klesyk and Michael Hartman. -
Fighting a Government Threat (HBR Case Study)
In this fictionalized case study, an in-house lawyer at a cosmetics company is trying to decide the best approach to negotiating with a government entity. The company is the largest extractor of volcanic ash in the Northern Mariana Islands and the governor of the territory has proposed a large tax increase. The lawyer believes the company should approach the negotiation carefully, but the company's CEO wants to take a harder line and threaten to shut down. The CEO wants to issue a press release to that effect. The lawyer must decide whether making a statement to the press is the right tactic. Written by Francesca Gino and featuring expert commentary by Andrzej Klesyk and Michael Hartman. -
Fighting a Government Threat (Commentary for HBR Case Study)
In this fictionalized case study, an in-house lawyer at a cosmetics company is trying to decide the best approach to negotiating with a government entity. The company is the largest extractor of volcanic ash in the Northern Mariana Islands and the governor of the territory has proposed a large tax increase. The lawyer believes the company should approach the negotiation carefully, but the company's CEO wants to take a harder line and threaten to shut down. The CEO wants to issue a press release to that effect. The lawyer must decide whether making a statement to the press is the right tactic. Written by Francesca Gino and featuring expert commentary by Andrzej Klesyk and Michael Hartman. -
Negotiating with Emotion
Some people are practically phobic about going to the bargaining table. If their minimum needs are met, they'll sign on the dotted line just to end the stress of dealing with people who have different agendas and styles. But that can be an expensive aversion, the authors write. When you're facing an important negotiation, rigorous preparation--running the numbers, scouting the marketplace, developing a Plan B--is essential. But it's only half the story. The truth is that your passions matter in real-life deal making and dispute resolution. You need to understand, channel, and learn from your emotions in order to adapt to the situation at hand and engage others successfully. The authors studied 20 seasoned negotiators to explore their thoughts and feelings about the process. They invited their participants to find and combine pictures that metaphorically depicted those feelings, and to describe in in-depth interviews the collages they'd created. Three reasons for the stressfulness of the negotiation experience emerged: lack of control, unpredictability, and the absence of feedback. This article includes a six-step warm-up exercise to help you prepare emotionally to negotiate effectively. -
In Global Negotiations, It's All About Trust
A three-part framework that allows you to optimize the outcome of your negotiations, whatever the level of trust. -
Deal Making 2.0: A Guide to Complex Negotiations
Most big deals--megamergers, major sales, infrastructure projects--are built on a series of smaller ones. Each component deal presents a tactical challenge, but sequencing the parts in a way that achieves the target outcome is a strategic challenge that can unfold over months or years. This process, which the authors call a negotiation campaign, must generally be conducted on several fronts, each involving multiple parties. A multifront campaign can be much more effective than direct negotiation. After failed talks between longshoremen and the Pacific Maritime Association--a group of shippers and port operators--the PMA's president turned away from the bargaining table and embarked on a campaign to align member--firms, the business community, the U.S. government, and the public around his target outcome: the deployment of new information technologies to help unclog busy ports. The result was an agreement that was ultimately mutually beneficial. Designing and executing a negotiation campaign involves identifying the relevant parties, grouping them into fronts according to shared interests, determining whether to combine fronts (if, for instance, doing so would unite your allies), and deciding which fronts to approach early on and which to engage only after you've made progress elsewhere. The deal between the PMA and the longshoremen involved high stakes, but many small-scale deals--such as gaining approval for a new product--also play out on multiple fronts. Going straight to a key decision maker often makes sense, but in many cases a multifront campaign is the only way. -
The Cinnamon Case: Sales Negotiation (Role Play) - B The Buyer
The case presents a role play between a buyer and a seller who must negotiate a price for a perishable but rare commodity. The case covers the dilemma faced by buyers and sellers when they are in possession of limited information but must still attempt to negotiate a best-case scenario for themselves. This case involves the buyer and is used with The Cinnamon Case: Sales Negotiation (Role Play) - (A) The Seller (W12258). -
The Cinnamon Case: Sales Negotiation (Role Play) - A The Seller
The case presents a role play between a buyer and a seller who must negotiate a price for a perishable but rare commodity. The case covers the dilemma faced by buyers and sellers when they are in possession of limited information but must still attempt to negotiate a best-case scenario for themselves. This case involves the seller and is used with The Cinnamon Case: Sales Negotiation (Role Play) - (B) The Buyer (W12259). -
The Virginia Carlton - Taylor Haydon
With the final paper of the semester now submitted, there was only one remaining obstacle for Taylor Hayden before departing the following afternoon for an exciting and challenging summer internship with a strategic consulting firm in Washington, DC: a meeting with Hunter Morgan. Morgan was the final prospect interested in subletting Hayden's bedroom in the Virginia Carlton for the summer. All other inquiries had led to dead ends. If Morgan did not agree to sublet the bedroom, Hayden would have to absorb the full cost of the bedroom expenses for the summer-an unpleasant outcome, but one with which Hayden was reconciled. This case and its companion case, "The Virginia Carlton-Hunter Morgan" (UVA-QA-0782), describe a predominantly distributive bargaining situation to which additional issues can be added for the mutual benefit of both parties. -
V-Cola: Confidential Instructions for Cash Adman Chief Financial Officer, Chikara Advertising
This is information for one of the six roles to be used in the V-Cola negotiation exercise. Please see V-Cola General Instructions (912043) and Teaching note (912042) for full information. -
V-Cola: Confidential Instructions for Cly Entman Client Services Director, Chikara Advertising
This is information for one of the six roles to be used in the V-Cola negotiation exercise. Please see V-Cola General Instructions (912043) and Teaching note (912042) for full information. -
V-Cola: Confidential Instructions for Connie Sultant "New media" Consultant
This is information for one of the six roles to be used in the V-Cola negotiation exercise. Please see V-Cola General Instructions (912043) and Teaching note (912042) for full information. -
V-Cola: Confidential Instructions for Mark Ketting Chief Marketing Officer, Trek Beverages
This is information for one of the six roles to be used in the V-Cola negotiation exercise. Please see V-Cola General Instructions (912043) and Teaching note (912042) for full information. -
V-Cola: Confidential Instructions for C.F. Oh Chief Financial Officer, Trek Beverages
This is information for one of the six roles to be used in the V-Cola negotiation exercise. Please see V-Cola General Instructions (912043) and Teaching note (912042) for full information. -
V-Cola: Confidential Instructions for Price Down Procurement Consultant, Down Consulting
This is information for one of the six roles to be used in the V-Cola negotiation exercise. Please see V-Cola General Instructions (912043) and Teaching note (912042) for full information.