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The B case reveals Wally's bid for King & Roberts, which has rejected and tells how Wally resubmitted the same offer and persuaded the owners to sell at that price.

Examines the wrongful death lawsuit brought by the family of an infant who died after a portable crib collapsed. The manufacturer, Kolcraft, licensed the Playskool brand name from the co-defendant, Hasbro Industries. Raises difficult questions about what the two companies should do now, after a series of tragic deaths--and after apparently complying with regulatory requirements governing product recall. Also raises provocative questions about the appropriateness of settlements in wrongful-death suits, corporate responsibility to ensure product safety, and pressures of national media attention on corporate actions. Though the circumstances here are particularly heart-breaking, managers often have to deal with lawsuits that are value-laden and have high emotional content, such as employment discrimination or sexual harassment claims, for example, or environmental and regulatory disputes. The kinds of decisions and tensions that a manager faces in such instances surely have much in common with the issues raised.

Unspoken, subtle parts of a bargaining process--also known as the shadow negotiation--can set the tone for a successful negotiation. Deborah Kolb and Judith Williams, whose book The Shadow Negotiation was the starting point for this article, say there are three strategies businesspeople can use to guide these hidden interactions. Power moves are used when two negotiating parties hold unequal power. These strategies, such as casting the status quo in an unfavorable light, can help parties realize that they must negotiate: they will be better off if they do and worse off if they don't. Process moves affect how negotiation issues are received by both sides in the process, even though they do not address substantive issues. Working outside of the actual bargaining process, one party can suggest ideas or marshal support that can shape the agenda and influence how others view the negotiation. Appreciative moves alter the tone or atmosphere so that a more collaborative exchange is possible. These strategic moves don't guarantee that all bargainers will walk away winners, but they help to get stalled negotiations moving--out of the dark of unspoken power plays and into the light of true dialogue.

In establishing joint ventures and nonequity alliances, key clauses are to be negotiated that set out the scope of the agreement and the partners' obligations to each other. Major issues include initial discussions, setting up the joint venture, the parties and framework of contract, performance clauses, restrictions on the partners, and liability. Though not always effective in practice, a confidentiality agreement or nondisclosure agreement (NDA) may be desirable for protecting both companies. This could be combined with lockout provisions that prevent one of the companies from conducting parallel negotiations with a competitor. Especially important is the need to ensure that a legally binding contract is not accidentally entered into at too early a stage. Post-establishment issues include making changes to the contract, dispute resolution, share disposal, and termination. Although lawyers play an important role, no clear dividing line separates so-called legal and business issues, and the commercial managers will often need to be involved. An argument can be made for involving the managers who will actually be running the joint venture. Managers designing strategic alliances can become more effective by raising their awareness of some of the basic legal and negotiating aspects of collaborative agreements.

Two-party, four-issue negotiation between representatives of two companies with different national and corporate cultures regarding a possible joint venture. MedDevice, a U.S.-based Fortune 500 company that manufactures high technology medical equipment, and Lee Medical Supply, a small Thailand-based company that distributes medical equipment in Southeast Asia, seek to conclude a joint venture. The venture, to be named MedLee, Ltd., will take the form of a Bangkok sales office that distributes MedDevice brand medical equipment. The CEOs have met and signed a Memorandum of Understanding. They have now instructed their subordinates (Pat Armstrong, the Director of International Strategic Market Research at MedDevice, and T.S. Lee, the Vice President and son of the owner of Lee Medical Supply) to conduct preliminary negotiations on four issues they consider central to the joint venture: decision making, staffing, profit distribution, and a conflict resolution mechanism. MedDevice and Lee Medical Supply differ greatly in their corporate cultures. The respective negotiators must develop a way for companies with such divergent cultures to work together.

Two-party, four-issue negotiation between representatives of two companies with different national and corporate cultures regarding a possible joint venture. MedDevice, a U.S.-based Fortune 500 company that manufactures high technology medical equipment, and Lee Medical Supply, a small Thailand-based company that distributes medical equipment in Southeast Asia, seek to conclude a joint venture. The venture, to be named MedLee, Ltd., will take the form of a Bangkok sales office that distributes MedDevice brand medical equipment. The CEOs have met and signed a Memorandum of Understanding. They have now instructed their subordinates (Pat Armstrong, the Director of International Strategic Market Research at MedDevice, and T.S. Lee, the Vice President and son of the owner of Lee Medical Supply) to conduct preliminary negotiations on four issues they consider central to the joint venture: decision making, staffing, profit distribution, and a conflict resolution mechanism. MedDevice and Lee Medical Supply differ greatly in their corporate cultures. The respective negotiators must develop a way for companies with such divergent cultures to work together.

Two-party, four-issue negotiation between representatives of two companies with different national and corporate cultures regarding a possible joint venture. MedDevice, a U.S.-based Fortune 500 company that manufactures high technology medical equipment, and Lee Medical Supply, a small Thailand-based company that distributes medical equipment in Southeast Asia, seek to conclude a joint venture. The venture, to be named MedLee, Ltd., will take the form of a Bangkok sales office that distributes MedDevice brand medical equipment. The CEOs have met and signed a Memorandum of Understanding. They have now instructed their subordinates (Pat Armstrong, the Director of International Strategic Market Research at MedDevice, and T.S. Lee, the Vice President and son of the owner of Lee Medical Supply) to conduct preliminary negotiations on four issues they consider central to the joint venture: decision making, staffing, profit distribution, and a conflict resolution mechanism. MedDevice and Lee Medical Supply differ greatly in their corporate cultures. The respective negotiators must develop a way for companies with such divergent cultures to work together.

Two-party negotiation between agents for a basketball player and a shoe manufacturer over a possible sneaker endorsement deal. Theotis Wiley is a promising young basketball player with a checkered past. Erive is a small shoe manufacturing company about to launch a new line of basketball shoes. Erive's Vice-President of Business Development has asked to meet with Theotis' agent regarding the possibility of an endorsement deal. Neither party knows much about the other party's interests or alternatives.

Two-party negotiation between agents for a basketball player and a shoe manufacturer over a possible sneaker endorsement deal. Theotis Wiley is a promising young basketball player with a checkered past. Erive is a small shoe manufacturing company about to launch a new line of basketball shoes. Erive's Vice-President of Business Development has asked to meet with Theotis' agent regarding the possibility of an endorsement deal. Neither party knows much about the other party's interests or alternatives.

Two-party negotiation between agents for a basketball player and a shoe manufacturer over a possible sneaker endorsement deal. Theotis Wiley is a promising young basketball player with a checkered past. Erive is a small shoe manufacturing company about to launch a new line of basketball shoes. Erive's Vice-President of Business Development has asked to meet with Theotis' agent regarding the possibility of an endorsement deal. Neither party knows much about the other party's interests or alternatives.

This case highlights the debate between the Securities and Exchange Commission (SEC) and several of the large accounting firms over whether the same firms should offer consulting services to clients they audit.

Challenges conventionally held views of negotiations, arguing that they are simplistic, static, and sterile. Develops seven propositions about real-world negotiations emphasizing the impact of complexity and the need for learning and adaption.

Challenges the notion that pre-negotiation preparation is the most important determination of success. Examines two fundamental problems with current thinking about preparation: the boundaries problem and the limits problem. Proposes an alternative model of negotiation as a cyclical process of learning, planning, and acting.

Weeks after the crash of Alaska Airlines Flight 261, 64 mechanics claim that they have been "pressured, threatened, and intimidated" into taking shortcuts. After briefly describing Alaska Airlines' history and CEO John Kelly, the case details how the airline responded to the crash and the resulting investigations. Also describes labor relations between management and its largest unions. At the end of the case CEO Kelly prepares for a news conference to respond to the mechanics allegations. Teaching purpose: To address crisis management, corporate diplomacy, labor relations, public relations, and transportation safety.

Supplements the (A) case.

Supplements the (A) case.

It's no secret that the track record of corporate acquirers has been dismal. But there is a group that's had consistent success. A recent study on M&A reveals that between 1984 and 1994, fund investors at some 80% of LBO firms enjoyed returns equal to or greater than their cost of capital on their M&A investments. And this was true even though in many cases the prices paid for the companies were pushed up by competing bidders. Why are financial acquirers so much more successful than their corporate counterparts? It's because they approach the negotiation process differently. Fund investors treat deal management as a core part of their business conducted by a permanent group of experienced executives, and they have well-established processes that they stick to. The authors examine how the best acquirers approach all five stages of deal negotiations--screening potential deals, reaching initial agreement, conducting due diligence, setting final terms, and reaching closure--comparing good practice with bad, to reveal the secrets of their success.

MBA student Doyle Williams searches for his ideal job in a private equity group and uses his negotiation skills to try to attain the best possible compensation package. A rewritten version of an earlier case.

Supplements the (A) case.

This is an MIT Sloan Management Review article. As adapting to globalization becomes increasingly necessary, business customers are pressuring suppliers to accept global pricing contracts (GPCs). However, before signing a contract, suppliers should do due diligence. Purchasers may promise a supplier access to international markets, guaranteed production volumes, and improved economies of scale and scope--but too often they fail to deliver. According the authors, suppliers must fully understand the customer's global strategy and the business conditions in its respective markets. They also need a firm grasp of their own strategy and local practices. Which GPCs would be suitable and which would be detrimental? Using data collected from interviews with global account managers in diverse industries on four continents, the authors help suppliers navigate the uneven terrain. By exploring why customers want GPCs, under what circumstances the contracts are likely to profit suppliers, and how to implement contracts successfully, the authors identify preparation as the key to success. The more information suppliers can gather (for example, about variances in their own pricing in different markets, the cost to serve the customer, exchange rates, and local regulations), the better their negotiating position.