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The major shareholder and CEO of Gas For Canada Ltd., a small Canadian scientific research and manufacturing company located near Toronto. Gas For Canada Ltd.
The major shareholder and CEO of Gas For Canada Ltd., a small Canadian scientific research and manufacturing company located near Toronto. Gas For Canada Ltd. specializes in developing and manufacturing rare gases for use in industry, including the computer chip manufacturing industry. You have a number of customers who eagerly purchase the various gases you make as fast as you can produce them in your small factory. The profits you make have been primarily devoted to further research in the development of new gases. Some of the research is quite speculative, and your researchers are encouraged to satisfy their scientific curiosity as much as they are encouraged to develop new products. Until now, you have not really tried to expand the business, being content to produce enough products for the current market to fund further research. You are not interested in finding a bigger manufacturing plant. Because of environmental controls required by most governments, changing location would be hugely expensive and time-consuming. You also know all 40 of your employees by first name and are keenly aware that, at your present size, you can maintain the kind of informality and congenial relations that make Gas For Canada Ltd. a pleasant place to work. Generally, you put a high value on good interpersonal relations among your workers. You also like being able to finance operations out of current earnings, and you do not seek expansion. At the same time, you would like to expand your research operations, which is your first love, almost a hobby. Canadian Superior Chip Co. is a large market-leading computer chip manufacturer and a long-time customer of Gas For Canada Ltd., which supplies all of the gases used in Canadian Superior Chip Co.'s computer chip manufacturing. Although large and somewhat bureaucratic, Canadian Superior Chip Co. has a reputation for being on the leading edge of product development and has long been known for the speed at which it can turn a concept or idea into a marketable product. Canadian Superior Chip Co. puts a very high value on product development, and views it as the key to business success. Recently, it began to develop a new superchip. If the effort is successful, the new product is likely to dominate the worldwide market for many years and make huge profits for Canadian Superior Chip Co.. Canadian Superior Chip Co. approaches Gas For Canada Ltd. with a proposition. It invites Gas For Canada Ltd. to work with it in a joint venture to perform the gas research and manufacturing required for the successful development of the superchip in exchange for a share of the profits. As Gas For Canada Ltd.'s CEO in charge of negotiating the joint venture, you must do the following:
- Identify your interests and, in that context, your BATNA and WATNA in preparation for conducting a principled negotiation process with Canadian Superior Chip Co..
- Do the same with respect to Canadian Superior Chip Co.'s interests, BATNA, and WATNA.
- Based on your conclusions in questions above, develop a proposal that might lead to an agreement to enter the proposed joint venture.
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Gas For Canada Ltds Interests BATNA and WATNA Interests Gas For Canada Ltd is primarily focused on scientific research and manufacturing of rare gases The company values maintaining its small informal ...Get Instant Access to Expert-Tailored Solutions
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