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The dilemma down under

Michael E. Ricco (School of Management, Colorado State University-Global Campus, Greenwood Village, Colorado, USA)
Patrik Hultberg (Department of Economics and Business, Kalamazoo College, Kalamazoo, Michigan, USA)

Publication date: 8 May 2018

Abstract

Synopsis

The dilemma down under is a two-party distributive negotiation with integrative potential. A large airline, Transpacific Airlines (TPA), created an internal tour operator brand named Transpacific Vacations as a separate profit center. After licensing its brand to Global Tour Services and establishing operations in the UK, negotiations to take over the internal tour operations of TPA-Australia are about to begin. The case involves the negotiation between Mr Edwards, representative of GTS, and Ms Bentley, representative of TPA-Australia.

Research methodology

The dilemma down under is based on a real negotiation with altered names and facts. All names of companies have been changed. All names of protagonists have been changed. The year of the case has also been altered. The case was created after an extensive interview with an individual engaged in the actual negotiation.

Relevant courses and levels

Students in courses related to negotiation and/or decision making. The case also works in international management/strategy courses where students are asked to apply market entry mode decisions along with the accompanying negotiations. The case is most appropriate for undergraduate courses, but can be used for graduate courses. The case can easily be used with common negotiation textbooks, such as Negotiation, 7th edition by Lewicki et al. (2014).

Theoretical bases

The exercise will be able to reinforce basic distributive negotiation concepts, including identifying issues, positions, interests, alternatives to a negotiated agreement, reservation (resistance) points, target (aspiration) points and opening bids, while at the same time challenge students to look for integrative potential among and across the issues. The case also provides an opportunity to explore the connection between negotiation and international market entry choice.

Keywords

Acknowledgements

Disclaimer. This case is written solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision making. The authors may have disguised names; financial and other recognizable information to protect confidentiality.

Citation

Ricco, M.E. and Hultberg, P. (2018), "The dilemma down under", , Vol. 14 No. 3, pp. 323-339. https://doi.org/10.1108/TCJ-01-2017-0003

Publisher

:

Emerald Publishing Limited

Copyright © 2018, Emerald Publishing Limited

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