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Harvard Case - Amazon HQ2

"Amazon HQ2" Harvard business case study is written by James K. Sebenius, Ben Cook. It deals with the challenges in the field of Negotiation. The case study is 13 page(s) long and it was first published on : Jul 26, 2021

At Fern Fort University, we recommend that Amazon HQ2 be located in Northern Virginia. This decision is based on a comprehensive analysis of the case study, which considered a range of factors including strategic fit, financial implications, and community impact.

2. Background

Amazon HQ2 is a major economic development project that will bring thousands of jobs and billions of dollars in investment to the chosen location. The project has attracted interest from cities across the United States, and the competition for the project is fierce.

The main protagonists of the case study are:

  • Amazon: The global e-commerce giant that is seeking to build a new headquarters campus.
  • The cities that are competing for the project: These cities include Boston, Chicago, Los Angeles, New York City, and Washington, D.C.

3. Analysis of the Case Study

We used a variety of frameworks to analyze the case study, including:

  • Strategic fit: We assessed the strategic fit of Amazon HQ2 with the goals and objectives of Fern Fort University. We found that the project would be a good fit for the university, as it would provide opportunities for collaboration and research, and would help to attract and retain top talent.
  • Financial implications: We analyzed the financial implications of Amazon HQ2 for Fern Fort University. We found that the project would have a positive financial impact on the university, as it would generate new revenue and create new jobs.
  • Community impact: We assessed the community impact of Amazon HQ2. We found that the project would have a positive impact on the community, as it would create new jobs, boost the economy, and improve the quality of life.

4. Recommendations

Based on our analysis, we recommend that Amazon HQ2 be located in Northern Virginia. We believe that this location would provide the best possible strategic fit, financial implications, and community impact for Fern Fort University.

We recommend that the university take the following steps to implement this recommendation:

  • Contact Amazon and express interest in hosting HQ2 in Northern Virginia.
  • Develop a proposal that outlines the university's strengths and why it would be a good location for HQ2.
  • Work with local and state officials to create a competitive package of incentives for Amazon.
  • Engage with the community to build support for the project.

5. Basis of Recommendations

Our recommendations are based on the following considerations:

  • Core competencies and consistency with mission: Amazon HQ2 would be a good fit for Fern Fort University's core competencies in research and education. The project would also be consistent with the university's mission of providing a world-class education to its students.
  • External customers and internal clients: Amazon HQ2 would benefit Fern Fort University's external customers (students, parents, and employers) by providing opportunities for collaboration and research. The project would also benefit the university's internal clients (faculty and staff) by creating new jobs and improving the quality of life.
  • Competitors: Fern Fort University is competing with other universities for the Amazon HQ2 project. We believe that the university's strengths in research and education, as well as its location in Northern Virginia, give it a competitive advantage.
  • Attractiveness ' quantitative measures: We conducted a financial analysis of the Amazon HQ2 project and found that it would have a positive financial impact on Fern Fort University. The project would generate new revenue and create new jobs.

6. Conclusion

We believe that Amazon HQ2 would be a transformative project for Fern Fort University. The project would provide opportunities for collaboration and research, attract and retain top talent, and boost the economy. We urge the university to take the necessary steps to implement our recommendations and bring Amazon HQ2 to Northern Virginia.

7. Discussion

We considered a number of other alternatives before making our recommendation. These alternatives included:

  • Not bidding on the Amazon HQ2 project.
  • Bidding on the project but not offering any incentives.
  • Bidding on the project and offering a smaller package of incentives.

We believe that our recommendation is the best course of action for Fern Fort University. The project would have a positive strategic fit, financial implications, and community impact. We are confident that the university can successfully implement our recommendations and bring Amazon HQ2 to Northern Virginia.

8. Next Steps

We recommend that Fern Fort University take the following next steps:

  • Contact Amazon and express interest in hosting HQ2 in Northern Virginia.
  • Develop a proposal that outlines the university's strengths and why it would be a good location for HQ2.
  • Work with local and state officials to create a competitive package of incentives for Amazon.
  • Engage with the community to build support for the project.

We are confident that Fern Fort University can successfully implement these recommendations and bring Amazon HQ2 to Northern Virginia.

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Case Description

Amazon's failed bid for a second headquarters location ("HQ2") in Long Island City, New York offers many lessons for negotiators looking to avoid similar high-profile defeats in strategically important deals. The company's project - which promised to bring billions of dollars in net new tax revenue and thousands of jobs to the city - initially enjoyed widespread support on the ground, alongside vocal advocacy from political elites at the state and local level. But after the proposal was announced, a relatively small cohort of passionate opponents organized to pressure a key set of lawmakers into opposing the deal, ultimately leading the company to withdraw its offer. Amazon's HQ2 derailment at the hands of these well-organized activists, and its failure to mobilize its broad base of support in useful ways, mark a striking example of the potential pitfalls dealmakers face when negotiating large-scale projects in the public eye.

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