Negoiation

Negotiation Plan for Capital Mortgage Insurance Corporation

Tonue Sargent

MGT 557

June 9, 2014

Instructor - Marie Smith

Negotiation Plan

Capital Mortgage Insurance Corporation (CMI) is planning to acquire Corporate Transfer Services (CTS). Discussions with CTS stockholders were promising and CMI is preparing to make an offer to purchase CTS. CMI needs a plan for conducting negotiations with CTS. “Effective strategy and planning are the most critical precursors for achieving negotiation objectives” (Lewicki, Barry, & Saunders, 2010, p. 107). This planning process involves defining the issues and defining how bargaining should progress, including the parties’ various objectives. Defining interests, resistance points, and alternatives is beneficial. Assessing constituencies and social context of negotiations is vital. Defining the protocol for negotiation is necessary. Determining the methods that would help prevent potential negotiation impasses will complement the negotiation as well. This thorough planning will aid in negotiation success.

Define issues and how bargaining should progress, including the parties’ various objectives

Issues that exist and need to be recognized before negotiating is that if this accusation is consummated it will be the first in CMI’s history. This may present a problem as CMI may be inexperienced with the process. Other issues are present, such as the individual differences of the four negotiators. Also CTS wants much more money than CMI is considering offering. Bargaining should progress by each company defining their goals, strategy, and planning. Once these three steps are completed CMI must step forward into formal negotiations with CTS. “Negotiators must anticipate what goals they want to achieve in a negotiation and focus on how to achieve those goals” (Lewicki, Barry, & Saunders, 2010, p. 108). The various parties objectives must be considered. Objectives include CMI acquiring employee location services...