7 Famous Negotiation Examples That Can Teach You Valuable Lessons
Negotiation is a skill that can help you achieve your goals in business and in life. Whether you are negotiating a contract, a salary, a partnership, or a deal, you can learn from the successes and failures of others who have been in similar situations. Here are seven famous negotiation examples that can inspire you to improve your negotiation skills.
Key Takeaways
Negotiation is a skill that can help you achieve your goals in business and in life.
Negotiation can be learned from the successes and failures of others who have been in similar situations.
Negotiation requires preparation, communication, cooperation, competition, and adaptation.
1. Disney Buys Lucasfilm
In 2012, Disney announced that it was acquiring Lucasfilm, the company behind the Star Wars franchise, for $4.05 billion. The deal was the result of a personal relationship and trust between Disney CEO Robert Iger and Lucasfilm founder George Lucas, who had been negotiating for over two years. Iger was able to persuade Lucas to sell his company by appealing to his creative vision and legacy, as well as offering him a fair price and a role as a consultant.
2. U.S. Women’s Hockey and Soccer Teams Win Equal Pay
In 2017, the U.S. women’s national hockey and soccer teams successfully negotiated for better pay and benefits from their respective governing bodies. The hockey team threatened to boycott the world championship tournament unless they received a living wage, health insurance, maternity leave, and more support for youth development. The soccer team filed a lawsuit against the U.S. Soccer Federation for gender discrimination and unequal pay. Both teams used public pressure, media attention, and solidarity to leverage their bargaining power and achieve their goals.
3. Starbucks Settles with Kraft Foods
In 2013, Starbucks was ordered to pay $2.75 billion to Kraft Foods as a settlement for breaching their contract over the distribution of Starbucks packaged coffee in grocery stores. The dispute began in 2010, when Starbucks accused Kraft of mismanaging its brand and terminated their 12-year agreement. Kraft claimed that Starbucks owed it a termination fee and damages for lost profits. The case was resolved by an arbitrator, who ruled in favor of Kraft.
4. Apple and Samsung End Their Patent War
In 2018, Apple and Samsung agreed to end their long-running legal battle over smartphone patents, which spanned seven years and involved dozens of lawsuits in multiple countries. The conflict started in 2011, when Apple sued Samsung for copying its iPhone design and features. Samsung countersued, alleging that Apple infringed on its wireless technology patents. The two companies reached several settlements and verdicts over the years, but the core dispute remained unresolved until they decided to drop all litigation and focus on innovation.
5. The Louisiana Purchase
In 1803, the United States purchased the Louisiana Territory from France for $15 million, doubling the size of the nation and opening up new opportunities for exploration and trade. The deal was negotiated by President Thomas Jefferson’s envoys, Robert Livingston and James Monroe, who were originally sent to France to buy the port of New Orleans for $10 million. However, they seized the opportunity to buy the entire territory when Napoleon Bonaparte offered it for sale, motivated by his need for money and his loss of interest in his American empire.
6. The Cuban Missile Crisis
In 1962, the world came close to a nuclear war when the United States discovered that the Soviet Union had installed nuclear missiles in Cuba, within striking distance of the U.S. mainland. President John F. Kennedy responded by imposing a naval blockade around Cuba and demanding that the Soviets remove their missiles. After 13 tense days of diplomatic negotiations, the crisis was resolved by a secret agreement between Kennedy and Soviet leader Nikita Khrushchev. The U.S. agreed to withdraw its missiles from Turkey and Italy in exchange for the Soviet withdrawal from Cuba.
7. The Camp David Accords
In 1978, President Jimmy Carter hosted a historic summit at Camp David between Egyptian President Anwar Sadat and Israeli Prime Minister Menachem Begin, who were at war for decades over the disputed land of Palestine. After 13 days of intense negotiations, Carter mediated a breakthrough agreement that led to the signing of the Camp David Accords, which established peace between Egypt and Israel and laid the foundation for a comprehensive Middle East peace process.
Tips
- Negotiation is a process of communication and exchange that aims to reach an agreement that satisfies both parties’ interests and needs.
- Negotiation is not a zero-sum game where one party wins and the other loses. Negotiation can be a positive-sum game where both parties can gain more than they expected by creating value and expanding the pie of benefits.
- Negotiation requires preparation, research, planning, and strategy. You need to know your goals, interests, alternatives, and limits before you enter a negotiation. You also need to understand the other party’s perspective, motivations, and expectations.
- Negotiation involves both cooperation and competition. You need to balance your own interests with the other party’s interests and find areas of common ground and mutual benefit. You also need to protect your own interests and avoid being exploited or manipulated by the other party.
- Negotiation is influenced by various factors such as culture, personality, power, emotions, ethics, and time. You need to be aware of these factors and how they affect your behavior and decisions in a negotiation. You also need to adapt your style and tactics to different situations and contexts.
The Impact of Negotiation on Global Demand
Negotiation is a vital skill for any business, especially in a globalized market. Negotiation can help to create value, resolve conflicts, and achieve mutual gains. In this report, we will look at three famous negotiation examples that show how negotiation can increase or decrease global demand in different industries.
The Disney-Lucasfilm Deal: A Win-Win for Entertainment
In 2012, Disney announced that it was acquiring Lucasfilm, the company behind the Star Wars franchise, for $4.05 billion. This was a surprising and strategic move that benefited both parties. Disney gained access to one of the most popular and profitable media brands in the world, as well as the creative talent of George Lucas. Lucasfilm gained the financial and marketing resources of Disney, as well as the opportunity to expand its reach and influence in the entertainment industry. The deal also created a huge demand for Star Wars products and content across the globe, generating billions of dollars in revenue for both companies. This negotiation example shows how trust and relationship building can lead to a win-win outcome that creates value for both sides and satisfies their interests.
The Starbucks-Kraft Dispute: A Lose-Lose for Coffee
In 2010, Starbucks decided to end its 12-year partnership with Kraft Foods, which distributed Starbucks packaged coffee in grocery stores. Starbucks claimed that Kraft had breached the contract by mismanaging the brand and failing to meet sales targets. Kraft denied the allegations and demanded compensation for the termination. The dispute escalated to arbitration, where Starbucks was ordered to pay Kraft $2.75 billion in damages. This was a costly and damaging outcome for both parties. Starbucks lost a significant amount of money and reputation, as well as a valuable distribution channel. Kraft lost a major source of revenue and market share, as well as a loyal customer base. The dispute also hurt the demand for coffee products in general, as consumers were turned off by the negative publicity and the price increases. This negotiation example shows how hardball tactics and poor communication can lead to a lose-lose outcome that destroys value for both sides and harms their interests.
The U.S. Women’s Soccer Negotiation: A Win for Equality
In 2019, the U.S. women’s national soccer team (USWNT) filed a lawsuit against the U.S. Soccer Federation (USSF), alleging gender discrimination and unequal pay. The USWNT argued that they were paid less than the men’s team despite having more success and popularity. The USSF countered that the pay gap was justified by differences in revenue, performance, and market factors. The lawsuit sparked a public outcry and a global movement for gender equality in sports. In 2020, the USWNT reached a partial settlement with the USSF, securing equal working conditions and benefits such as travel, accommodation, and medical care. The pay issue is still pending, but the USWNT has gained widespread support and recognition for their fight for justice. The negotiation also boosted the demand for women’s soccer around the world, inspiring more girls and women to play and watch the sport. This negotiation example shows how principled negotiation and social pressure can lead to a win for equality that creates value for society and advances a common cause.
Frequently Asked Questions
Q: What are some common negotiation strategies?
A: Some common negotiation strategies are: preparing well, building rapport, listening actively, asking open-ended questions, framing the issues, exploring options, making trade-offs, creating value, and closing the deal.
Q: What are some common negotiation mistakes?
A: Some common negotiation mistakes are: failing to do your homework, making the first offer, accepting the first offer, revealing your bottom line, focusing on price only, getting emotional, being rigid, and ignoring the relationship.
Q: What are some common negotiation terms?
A: Some common negotiation terms are: BATNA (best alternative to a negotiated agreement), ZOPA (zone of possible agreement), reservation price (the lowest or highest acceptable offer), value creation (expanding the pie of benefits for both parties), value claiming (dividing the pie of benefits among the parties), and anchoring (setting a reference point for the negotiation).
Q: What are some common negotiation styles?
A: Some common negotiation styles are: competitive (trying to win at the expense of the other party), collaborative (trying to find a win-win solution for both parties), accommodating (trying to satisfy the other party’s interests), avoiding (trying to avoid or postpone the negotiation), and compromising (trying to split the difference between the parties).
Q: What are some common negotiation skills?
A: Some common negotiation skills are: communication, persuasion, problem-solving, creativity, emotional intelligence, assertiveness, and resilience.
References:
https://deepblue.lib.umich.edu/bitstream/2027.42/26263/1/0000344.pdf
https://www.pon.harvard.edu/daily/negotiation-skills-daily/famous-negotiators-feature-in-top-negotiations-of-2012/
https://www.pon.harvard.edu/daily/business-negotiations/these-examples-illustrate-the-importance-of-negotiation-in-business/
https://www.brighthubpm.com/methods-strategies/106943-negotiation-tips-for-project-managers-learning-from-historic-cases/
Essential Topics You Should Be Familiar With:
