Business Negotiation Examples: Everything You Need to Know
Business negotiation examples include a variety of cases involving small and large businesses, as well as organizations of all types.4 min read
2. Starbucks Case
3. New York City Dispute
4. Apple Lawsuit
5. Simon & Schuster
6. National Hockey Association Case
7. Chrysler Dispute
8. Time Warner Case
9. Amazon Case
Business Negotiation Examples
Business negotiation examples include a variety of cases involving small and large businesses, as well as organizations of all types. For instance, songwriter and singer Robin Thicke and two other co-writers behind the hit “Blurred Lines” brought a lawsuit against surviving family members of Marvin Gaye in a predetermined move, requiring unspecified damages regarding a dispute pertaining to copyright violations. Gaye’s offspring filed a counter lawsuit, and also issued a lawsuit against the publisher who owns Gaye’s song in an attempt to force them to give up the case. Take note of the following other examples.
Another instance involves a disagreement that lasted for three years between Kraft Foods and Starbucks regarding the distribution of Starbucks coffee located in stores, but it was settled via an arbitration settlement that Starbucks had violated the contract with Kraft. Therefore, Starbucks had to pay Kraft $2.75 billion.
New York City Dispute
New York City was going to gain around $250 million in assistance and another $200 million in grants if the city reached an agreement on an evaluation method with the teachers’ union, which amounted to a four percent enhancement of state assistance. However, 2012 ended and discussions between the United Federation of Teachers and former mayor Michael Bloomberg reached a deadlock.
One the day of the deadline, both sides announced a final negotiating session that took place late into the night, but the final session failed to produce an agreement. Finally, Governor Andrew Cuomo levied an evaluation system within New York City.
In 2011, Apple issued a lawsuit claiming Samsung had copied the iPhone model when the company created the Galaxy phone lines. Samsung countersued Apple for failing to pay royalties for the use of its wireless transmission technology. Both companies have accused one another of mimicking the function and appearance of each other’s tablet and smartphone. Both giants displayed a certain amount of willingness to make compromises to prevent a court battle. At the suggestion of a California court, they reduced the number of contentious patents by half.
Both companies said they want to avoid legal battle, and since Samsung is one of Apple’s largest suppliers, execs from both companies wished to move beyond the dispute and move forward with the business relationship.
Simon & Schuster
In the case of publishing giant Simon & Schuster, months of negotiations reached a stalemate in 2013 against Barnes & Noble when the bookstore tried to gain additional leverage by reducing orders of Simon & Schuster properties. They also used other hardline negotiating tactics, in the form of not allowing the publishing giant’s authors to host store-based reading sessions. Since Barnes & Noble sells around 20 percent of consumer-based books in the U.S., the publishing firm’s agents, writers, and editors were apologetic over the bookseller’s choice to use them as a bargaining tool.
National Hockey Association Case
A progression on a lockout that lasted 113 days from the National Hockey Association occurred when federal mediator Scot Beckenbaugh intervened. When negotiations grew heated, he divided both sides and used shuttle diplomacy by addressing both sides separately to spot problems and see where there could be some flexibility. The end result dealt with the problem of player pensions.
Fiat had hoped to acquire Chrysler in an attempt to remain solvent. Fiat got the Canadian and U.S. governments’ investments in Chrysler, obtained in a 2009 bankruptcy deal in 2011 for $640 million. With that, Fiat tried to buy a stake owned via the Voluntary Employee Beneficiary Association (VEBA), but there was a disagreement over the value of the purchase. The dispute ended up as a $4.5 billion draft error.
Time Warner Case
When cable giant Time Warner noticed a large quarterly loss in TV subscribers, amounting to the biggest subscription loss in history, the bad news stemmed from a disagreement pertaining to TV network CBS regarding fees, leading Time Warner blocking CBS from millions of homes during 2013. The contract was hailed as a victory for CBS, winning a promise of higher fees regarding programming in those blocked cities, which went from one dollar per subscriber to two dollars, including digital rights in offering content to web-based distributors like Netflix.
In 2007, five large publishers in the U.S. had negotiated a newer business model regarding e-book prices with Apple, which was about to introduce the iPad. After a publisher threatened to stall the release of the digital versions to Amazon unless it moved to a better model, Amazon agreed, with reluctance, and e-book prices shot up to around $14.99.
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