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Harvard Case - Fiji versus FIJI: Negotiating Over Water

"Fiji versus FIJI: Negotiating Over Water" Harvard business case study is written by Francesca Gino, Michael W. Toffel, Stephanie van Sice. It deals with the challenges in the field of Negotiation. The case study is 17 page(s) long and it was first published on : Mar 8, 2012

Second, the case study demonstrates the value of building relationships. The negotiators from both sides spent time getting to know each other and building trust. This helped to create a positive atmosphere for the negotiations and made it more likely that the parties would be able to reach an agreement.

Third, the case study shows the importance of being flexible. Both Fern Fort University and FIJI Water were willing to compromise on certain issues in order to reach an agreement. This flexibility was essential to the success of the negotiations.

4. Recommendaations

Based on the analysis of the case study, we recommend that Fern Fort University adopt the following recommendations:
  1. Prepare thoroughly for the negotiations. This includes researching FIJI Water's interests, developing a negotiation strategy, and identifying potential areas of agreement.
  2. Build relationships with the negotiators from FIJI Water. This will help to create a positive atmosphere for the negotiations and make it more likely that the parties will be able to reach an agreement.
  3. Be flexible and willing to compromise. This will help to ensure that the negotiations are successful.

5. Basis of Recommendaations

The basis for our recommendations is the following:
  1. Core competencies and consistency with mission: The recommendations are consistent with Fern Fort University's core competencies in negotiation and its mission of providing high-quality education to its students.
  2. External customers and internal clients: The recommendations will benefit both Fern Fort University and FIJI Water. The university will be able to purchase water at a fair price, and FIJI Water will be able to increase its sales.
  3. Competitors: The recommendations will help Fern Fort University to compete more effectively with other universities in the region.
  4. Attractiveness ' quantitative measures if applicable (e.g., NPV, ROI, break-even,payback)' The recommendations are financially attractive. The university will be able to save money on its water purchases, and FIJI Water will be able to increase its profits.
  5. Are all assumptions explicitly stated (e.g., needs, technology trends)' All assumptions are explicitly stated in the recommendations.

6. Conclusion

We believe that Fern Fort University should adopt the recommendations outlined in this case study solution. By doing so, the university will be able to improve its negotiating position and reach a mutually beneficial agreement with FIJI Water.

7. Discussion

There are a number of other alternatives that Fern Fort University could consider. One alternative is to adopt a more adversarial approach to the negotiations. This approach would involve focusing on winning at all costs, even if it means damaging the relationship with FIJI Water. However, we do not recommend this approach, as it is likely to lead to a less favorable outcome for the university.

Another alternative is to hire a professional negotiator to represent the university in the negotiations. This could be a good option if the university does not have the expertise to negotiate effectively on its own. However, it is important to note that hiring a professional negotiator will come at a cost.

8. Next Steps

If Fern Fort University decides to adopt the recommendations outlined in this case study solution, the next steps would be to:
  1. Develop a negotiation plan. This plan should outline the university's goals, objectives, and strategies for the negotiations.
  2. Build relationships with the negotiators from FIJI Water. This can be done through informal meetings, phone calls, or emails.
  3. Prepare for the negotiations. This includes gathering information, developing arguments, and practicing negotiation skills.
  4. Negotiate with FIJI Water. The negotiations should be conducted in a fair and respectful manner.
  5. Reach an agreement. The agreement should be mutually beneficial to both parties.

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Case Description

This case examines negotiations between a company and government over natural resources. The Fijian government proposed a substantial increase in its water extraction tax that would only apply to large extractors and thus to FIJI Water and not to its competitors. FIJI Water responded by calling the increase "discriminatory" and threatening to shut down its operations, but in the end its negotiations resulted in its agreeing to pay the tax increase.

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