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Chronicles the negotiation of the proposed national settlement between the states and the five major U.S. tobacco companies.

When teachers at a Madison, Wisconsin elementary school announce plans to mount a photo exhibit featuring families with gay or lesbian parents, school system superintendent Cheryl Wilhoyte faces a vexing decision. She knows well that the exhibit will be controversial and will likely offend members of the community, especially a group of conservative Christian parents. She knows, too, that liberal teachers will view the issue as one involving academic freedom, keyed to the school's system's "anti-bias" curriculum. In this leadership case, the superintendent must decide, in effect, whether and/or how to decide. Should this be a school-level decision? Or does it demand her own intervention? She must even decide on what grounds she should base her decide about whether to become involved. The case is useful for discussions of leadership in a decentralized environment, as well as issues of how authorities must deal with cultural conflict in a public sector context. HKS Case Number 1440.0

When teachers at a Madison, Wisconsin elementary school announce plans to mount a photo exhibit featuring families with gay or lesbian parents, school system superintendent Cheryl Wilhoyte faces a vexing decision. She knows well that the exhibit will be controversial and will likely offend members of the community, especially a group of conservative Christian parents. She knows, too, that liberal teachers will view the issue as one involving academic freedom, keyed to the school's system's "anti-bias" curriculum. In this leadership case, the superintendent must decide, in effect, whether and/or how to decide. Should this be a school-level decision? Or does it demand her own intervention? She must even decide on what grounds she should base her decide about whether to become involved. The case is useful for discussions of leadership in a decentralized environment, as well as issues of how authorities must deal with cultural conflict in a public sector context. HKS Case Number 1442.0

Supplements the (A) and (B) cases.

A stop-action simulation case takes participants through the process whereby four people (three young entrepreneurs and an investor) take a machine vision company from start-up to acquisition by a major publicly-traded company. Over several years, they have to reconcile their differing priorities and objectives in order to negotiate the terms of a number of rounds of additional capital infusion and new partners and deal with the stresses this creates in their relationship.

Picks up the negotiation between Thermo-Impact and Medallion Capital where the (A1) and A2) cases leave off. The companies began talks in 1995 when Medallion offered to buy Thermo-Impact. This case brings the negotiation through May 1996. Students view developments from the perspective of Thermo-Impact's owners and must make decisions about how to proceed in the negotiation with Medallion. of class.

Carries the negotiation between Thermo-Impact and Medallion Capital through October 1996. The companies began talks in 1995 when Medallion offered to buy Thermo-Impact. Students view developments from the perspective of Thermo-Impact's owners and must make decisions about how to proceed in the negotiation with Medallion. Can be taught over a span of two or three class periods.

This article offers insight to any decision maker struggling with a hard choice. Making wise trade-offs is one of the most important and difficult challenges in decision making. The sheer volume of trade-offs, however, is not what makes decision making so hard. It's the fact that each objective has its own basis of comparison, from precise numbers (34% versus 38%) to relationships (high versus low) to descriptive terms (red versus blue). You're not just trading off apples and oranges; you're trading off apples and oranges and elephants. How do you make trade-offs when comparing widely disparate things? In the past, decision makers have relied mostly on instinct, common sense, and guesswork. They've lacked a clear, rational, and easy-to-use trade-off methodology. To help fill that gap, Howard Raiffa, a professor emeritus at Harvard University, John Hammond, a Boston-area consultant, and Ralph Keeney, a professor of systems management at the University of Southern California have developed a system--which they call even swaps--that provides a practical way of making trade-offs among a range of objectives across a range of alternatives. The even-swap method will not make complex decisions easy; you'll still have to make hard choices about the values you set and the trades you make. What it does provide is a reliable mechanism for making trades and a coherent framework in which to make them.

Shrinking R&D budgets and shorter product life cycles mean investment dollars must be invested with precision if companies are going to stay on the cutting edge in their industries. For a pharmaceuticals company like SmithKline Beecham (SB), the problem is this: How do you make good decisions in a high-risk, technically complex business when the information you need to make those decisions comes largely from the project champions who are competing against one another for resources? Tom Keelin from Strategic Decisions Group and Paul Sharpe from SmithKline Beecham explain how they overhauled the resource allocation processes within the pharmaceutical development function at SB. In 1993, the company experimented with ways of depoliticizing the process and improving the quality of decision making. In most resource-allocation processes, project advocates develop a single plan of action and present it as the only viable approach. In SB's new process, the company found an effective way to get around the all-or-nothing thinking that only reinforces the project-champion culture. In another important departure from common practice, SB separated the discussion of project alternatives from their financial evaluations. The new process at SB has allowed the organization to spend less time arguing about how to value its R&D projects and more time figuring out how to make them more valuable. In the end, the company learned that by tackling the soft issues around resource allocation--such as information quality, credibility, and trust--it had also addressed the hard ones: how much to invest and where to invest it.

Two-party or two-team, multi-issue, integrative/distributive negotiation between representatives of a new low-cost airline and a potential headquarters city over an incentives package and airport facilities. Fresh Air, a new low-cost airline, is looking for a headquarters city. It is negotiating with the city of Boston, its top choice for a headquarters location, over an incentive package and airport facilities. Fresh Air plans to build on the brand reputation of its parent airline, which stands for innovation, fun, unparalleled customer service, and empowered employees. It believes that a unique corporate culture and happy customers will allow it to charge lower prices, to fill its planes, and to run profitable operations. Boston seeks to reinvent itself as a center of American business after years of business decline. The opening of a low-cost carrier would be an important part of this effort. However, in these tight fiscal times, Boston is limited financially.

Two-party or two-team, multi-issue, integrative/distributive negotiation between representatives of a new low-cost airline and a potential headquarters city over an incentives package and airport facilities. Fresh Air, a new low-cost airline, is looking for a headquarters city. It is negotiating with the city of Boston, its top choice for a headquarters location, over an incentive package and airport facilities. Fresh Air plans to build on the brand reputation of its parent airline, which stands for innovation, fun, unparalleled customer service, and empowered employees. It believes that a unique corporate culture and happy customers will allow it to charge lower prices, to fill its planes, and to run profitable operations. Boston seeks to reinvent itself as a center of American business after years of business decline. The opening of a low-cost carrier would be an important part of this effort. However, in these tight fiscal times, Boston is limited financially.

Two-party negotiation between a property owner and a neighboring business over the sale of two real estate parcels. The simulation is set in Hong Kong in 1996, just before the British returned Hong Kong to the People's Republic of China. Lee Wing and Terry Jones each operate a business next door to each other on Tai Po Kau Harbour Road. Between their two businesses is a small lot that is unattractive as a separate building site because it sits between two large warehouses. Lee Wing purchased the small lot in 1990 for $70,000 with the intent of expanding his warehouse. These plans were never realized, and the lot is currently vacant.

Two-party negotiation between a property owner and a neighboring business over the sale of two real estate parcels. The simulation is set in Hong Kong in 1996, just before the British returned Hong Kong to the People's Republic of China. Lee Wing and Terry Jones each operate a business next door to each other on Tai Po Kau Harbour Road. Between their two businesses is a small lot that is unattractive as a separate building site because it sits between two large warehouses. Lee Wing purchased the small lot in 1990 for $70,000 with the intent of expanding his warehouse. These plans were never realized, and the lot is currently vacant.

Three-party, multi-issue international trade negotiation among three culturally different countries over which of two countries will export rice to the third; inculdes coalition and ongoing relationship issues. Fuji, the regional power in the "Pacrim" trading block, is a large island nation that imports significant quantities of rice, but that is constitutionally bound to import rice from only one country at a time. The smaller, historically unfriendly island nations of Indocarta and Hawani both wish to export their rice to Fuji. In a series of one-on-one and tripartite meetings, representatives of the three nations must determine not only whether and how Fuji will import rice, but also whether Indocarta and Hawani will cooperate or compete with each other in such an arrangement. The changing economy and the cultural differences among the three nations play a crucial role in the negotiations.

Three-party, multi-issue international trade negotiation among three culturally different countries over which of two countries will export rice to the third; inculdes coalition and ongoing relationship issues. Fuji, the regional power in the "Pacrim" trading block, is a large island nation that imports significant quantities of rice, but that is constitutionally bound to import rice from only one country at a time. The smaller, historically unfriendly island nations of Indocarta and Hawani both wish to export their rice to Fuji. In a series of one-on-one and tripartite meetings, representatives of the three nations must determine not only whether and how Fuji will import rice, but also whether Indocarta and Hawani will cooperate or compete with each other in such an arrangement. The changing economy and the cultural differences among the three nations play a crucial role in the negotiations.

Three-party, multi-issue international trade negotiation among three culturally different countries over which of two countries will export rice to the third; inculdes coalition and ongoing relationship issues. Fuji, the regional power in the "Pacrim" trading block, is a large island nation that imports significant quantities of rice, but that is constitutionally bound to import rice from only one country at a time. The smaller, historically unfriendly island nations of Indocarta and Hawani both wish to export their rice to Fuji. In a series of one-on-one and tripartite meetings, representatives of the three nations must determine not only whether and how Fuji will import rice, but also whether Indocarta and Hawani will cooperate or compete with each other in such an arrangement. The changing economy and the cultural differences among the three nations play a crucial role in the negotiations.

Three-party, multi-issue international trade negotiation among three culturally different countries over which of two countries will export rice to the third; inculdes coalition and ongoing relationship issues. Fuji, the regional power in the "Pacrim" trading block, is a large island nation that imports significant quantities of rice, but that is constitutionally bound to import rice from only one country at a time. The smaller, historically unfriendly island nations of Indocarta and Hawani both wish to export their rice to Fuji. In a series of one-on-one and tripartite meetings, representatives of the three nations must determine not only whether and how Fuji will import rice, but also whether Indocarta and Hawani will cooperate or compete with each other in such an arrangement. The changing economy and the cultural differences among the three nations play a crucial role in the negotiations.

The Federal Republic of Meridia, located in Central America, is negotiating to sell off-shore oil leasing rights along its Eastern coast. the capitol of Meridia, Quintaro, is on the Western coast. Its population is 500,000. Meridia's Western coast already has a number of off-shore drilling facilities, but this would be the first in the East. The Government has high hopes about the effect these newly discovered oil fields will have on that region. The city of Guaca, which dominates that region, was just involved in a six-year civil war. Meridia has many offers by contenders. Petrocentram, from Venezuela, is one of those three. Negotiations between Meridia and Petrocam have been going on for about a month. A "final" negotiation session is about to begin. If a decision is not reached today, Meridia will begin negotiations with other companies.

Supplement to PON619, "Meridia and Petrocentram". Confidential Instructions for J. Lipeno, Meridia's Minister for Economic Development and Reconstruction.

Supplement to PON619, "Meridia and Petrocentram". Confidential Instructions forA. Garza-Lopez, Petrocentram's Vice President for Latin America.