University:
University of Wyoming
Course:
MGT 4470 | Negotiations and Conflict Resolution
Academic year:

2023
Views:

403

Pages:

2
Author:

Alyssa Fields

Viking Investments Negotiation Plan Role: Sandy Wood, owner of a carpentry business - Loaned money from Pat’s investment that can be called due at anytime ($200,000) - Paying $5,000 in rent to Pat’s company, decided not to renew - $4,000 rent space fell through, can’t sue without cash - Need to renew the lease with Pat for $4000 - Still 2 months behind on rent - Meanwhile, working on a condo project that Pat is refusing to pay in full for lumber that you cannot afford ($700,000) - Pat took a vacation in during the project - The lumber supplier said that a subcontractor in the next town over has gone bankrupt and you can get lumber (oak) for half the price ($350,000) - Made the decision without Pat and am in legal trouble - Owe $210,000 to Pat, Pat Owes 950000 with new wood Important: Preventing Bankruptcy, but in order to do that the following must happen: - Getting Pat, to approve the new invoice for $950,000 - Make sure Pat does not call back the $200,000 loan - Renewing the lease on the current building at the $4,000 market value. BATNA - Selling the house or bankruptcy No deal - go to court Plan of Attack: *There will be a lot of anger in this negotiation, so spend some time to cool down* ● Listen to Pat’s side of the story and see where the ZOPA could end up. Is there an overlap where we would come out of this ok? ● Bring up bankruptcy because Pat will get less from me than I owe in that situation. ● Avoid petty blame of “who screwed up” ● Not coming to an agreement will destroy both companies ● Pat said that Fawn would do the details when he left. Going to court could make this messier ● Disclose all relevant information about bankruptcy and home sale Solutions: ● Sell my home, live in a condo? Negotiate a new living plan to avoid bankruptcy and pay back the money (worst case scenario) ● Get at least $700,000 minimum. Anything lower is a no deal ● Do more work to pay off the debt for Pat. Is there another project he needs? ● Mark up the condos in price to make up the money. More value is added with the nicer wood. ● Can the debts cancel each other out? Pat could pay $500,000-$700,000 and agree to cancel my debt and/or allow the rental renew. ● Could lower the interest rate on the loan ● Get other people involved in the case

Negotiations And Conflict Resolution Viking Investments

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