Consider the case study described below: You are the CEO of a leading electric automobile company TOLA S.A. You want to negotiate with the CEO of your competitor company DAIHUN S.A, an equal size firm, for the purpose of adopting together a new technology on long lasting car batteries that almost doubles the car cost. If only one firm adopts the new technology, it will not be able to compete with a cost-efficient rival and will make losses. If both firms adopt the technology, they will both have to increase their car prices, competition will be softer, and profits will not diminish despite the double cost. Moreover, the adoption of the new technology will allow them to add an extra margin on their profits which is not detectable by competition authorities and therefore they will not face any accusation of price fixing or collusion.

Question 2.1 (20%) Determine the participants in the negotiation. Decide on how many people should be on your team. Discuss briefly about who will lead the team and what skills and personalities do you want to have in your team. Do you think using a threat or focusing on overwhelming benefit is a better negotiation strategy?

Question 2.2 (10%) Determine interests. Use a simplified interest grid in order to write down your interests including their category, your understanding of each issue as well as the understanding of this issue by the other team. Question 2.3 (20%) Priority and outcome mapping. Use a sample Raiffa scorecard for evaluating potential results. Organize the aforementioned interests and possible outcomes by using points (up to 100) in order to evaluate importance of issues and the benefits of the outcomes.