Negotiation Assignment Case Study Help
Negotiation –is a process through which more than one party who are in conflict attempt to reach to a win-win outcome. It is the positive and constructive alternative to arguing or haggling, which is aimed at building the agreement rather than winning the battle. In a way, both personal relationship and the business relationships are shaped through the negotiation process. The success in both personal as well as business life depends on having exceptional skills in negotiation.
The good negotiation between parties ends up leaving each party satisfied as well as willing to do business with each other, in the near future. As the today’s market is highly competitive and lucrative; the good negotiation between parties is highly valued. The parties involved in the negotiation effortlessly try to achieve the successful outcome that is advantageous to both the parties. Imperatively, the good negotiation between parties tends tosignificantly contribute to the success of the business as it helps in building better relationships, delivering quality as well as lasting solutions rather than the poor short term solutions that failto satisfy the needs of the either party and helps in avoiding future conflicts and problem.
Since negotiation requires give and take, one should aim to create the constructive as well as courteous interactions that is win-win for both the parties. The negotiations ends up settling the differences. There is a variety ofnegotiation strategies which are employed by parties to gain the advantage. A good negotiator attempts to achieve the successful outcome that is beneficial for both the parties. The negotiation skills in the business communication require interpersonal skills, active listening, emotional control, team work and collaboration, patience, empathy as well as confidence. By employing these skills; the negotiator becomes able to gain advantage over other party.
Strategy formulation stage of negotiation
It takes number of years for settling the dispute between many athletes in the National Football League (NFL) and the owners of the league. Dated back to the year 2011, the NFLPA as well as NFL reached an impasse on the issue of the salaries of the league players by arguing that the profit of the league was reducing with the passage of time, due to which the funds are critically required with core consideration on bolstering the small market teams as well as building new stadiums so that the league profit would be increased to a greater extent. Due to this, the owners asked the players of the league to sacrifice around 1 billion dollars of their earnings in order to help fund such investment before the revenue sharing starts.
After spending a considerable amount of time on creative thinking; the parties came forward and rather than continuing to argue on what percentage of revenues of NFL would be giving to the players; they divided revenues into three buckets:
- First for the television money.
- Second for the local revenues.
- And third for merchandising.
After the proposed buckets, the players agreed upon accepting the larger percentage of the broadcast revenues of 55 percent in return for the lower percentage of the other remaining buckets. Additionally, the NFL struck the new broadcast deals with various networks, such as:ESPN, Fox, CBS and NBC that totaled to 30 billion dollars. The situation worsened for the players as they agreed to the salary cap for the year 2011 and 2012 that prevented the team from capitalizing on their 55 percent of the revenues generated from the broadcast bucket. With the increase of the salary cap; the broadcast revenue sharing also increased, allowing the players to be paid higher salaries, which was in favor of the team players.(SHONK, 2020).
The way of increasing the revenue for the NFL is to increase the number of the regular season games as it would lead towards an increased total revenue. The players of the NFL agreed on the agreement with theleague over the new collective bargaining agreement, which give path to the increase in the salaries while ushering in 17 game season. The new agreement would lead towards an immediate impact including:
- Higher minimum salaries.
- Improved benefits.
- Less severe punishment for marijuana use
On the other hand, the additional regular season would lead towards an increased injury risk to the NFL players’ careers. There is a likelihood that the players of the league would leverage such increased injury risks by receiving even higher pay, which in turn might result in conflict between the parties.(Roberts, 2020).
Key interest underlying the negotiation
On the NFL side, the key interest was to increase the league profits returns and improve the performance of the league as a whole; whereas the team players were concerned about their salaries or earnings as they were less inclined towards paying the amount for the funds out of their earnings. Both the parties had their own concerns and implication of the negotiation had resulted in the win-win outcome for both parties involved in the negotiation…………………………………
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