Biopharm’s Batna - an Essay

Biopharm’s BATNA is $500K for land and $25 million for the building which will take 12 months and they losee $1M per month not producing (not a strong BATNA). The reservation price can be set anywhere from $25 to $40 million depending on what factors are considered. Seltek’s BATNA will be to reconfigure the plant at a cost of $3 million which will take six months resulting in an appraised value of $10 million (also not strong). Their reservation price is $7 million ($10M - $3 million to reconfigure).

Bipharm’s target is $7M if they knew the Seltek reservation price. They don’t; but this can be learned/estimated by asking good questions. Seltek’s target is $25M if they knew Biopharm’s reservation price. They don’t; but again this can be learned/estimated by asking good questions.

There is a lot of irrelevant information in the case (insurance, taxes, patent) but the skilled workforce is relevant and common information that can be used.

Finally, this exercise illustrates that first offers anchor; make the first offer if you can (sometimes you can’t such as in a salary negotiation).

Texoil had the most negotiating power because th

The negotiation outcome was generally positive and provided me with a lot of valuable insights about the importance of emotional appeals in a negotiation dialogue. The sale of the station