Free John Branca: Negotiating Michael Jackson's Thriller (A) Case Study Solution | Assignment Help

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Publish Date: 2024-12-04

Harvard Case - John Branca: Negotiating Michael Jackson's Thriller (A)

"John Branca: Negotiating Michael Jackson's Thriller (A)" Harvard business case study is written by James K. Sebenius, Alex Green. It deals with the challenges in the field of Negotiation. The case study is 8 page(s) long and it was first published on : Oct 25, 2019

At Fern Fort University, we recommend that John Branca take the following steps to negotiate the best possible deal for Michael Jackson's Thriller album:

2. Background

**Brief summary of the case**

In 1982, Michael Jackson released his album Thriller, which went on to become the best-selling album of all time. John Branca, Jackson's attorney, was responsible for negotiating the album's distribution deal with CBS Records. Branca faced a number of challenges in the negotiations, including CBS's reluctance to pay a large advance for the album and Jackson's desire to maintain creative control over the project.

Main protagonists of the case study

  • John Branca: Jackson's attorney and lead negotiator
  • Walter Yetnikoff: President of CBS Records
  • Michael Jackson: Singer and songwriter

3. Analysis of the Case Study

Strategic analysis

Branca's strategic goal in the negotiations was to secure the best possible deal for Jackson while also maintaining a positive relationship with CBS Records. He used a number of strategies to achieve this goal, including:

  • Building a strong relationship with Yetnikoff: Branca spent time getting to know Yetnikoff and understanding his priorities. This helped him to build trust and rapport, which made the negotiations more productive.
  • Understanding CBS's needs: Branca took the time to understand CBS's business needs. This helped him to develop a proposal that met CBS's needs while also protecting Jackson's interests.
  • Being prepared to walk away: Branca was prepared to walk away from the negotiations if CBS was not willing to meet Jackson's demands. This gave him leverage in the negotiations and helped him to secure a better deal.

Financial analysis

The financial terms of the deal were complex and involved a number of different factors, including the advance payment, royalties, and accounting practices. Branca carefully analyzed the financial terms of the deal to ensure that Jackson was getting a fair deal.

Marketing analysis

Branca also considered the marketing implications of the deal. He wanted to ensure that Thriller was marketed in a way that would maximize its sales potential. He worked with CBS to develop a marketing plan that would reach Jackson's target audience.

Operational analysis

Branca also considered the operational aspects of the deal. He wanted to ensure that Thriller was produced and distributed in a way that would meet Jackson's high standards. He worked with CBS to develop a production and distribution plan that would ensure that the album was released on time and with the highest possible quality.

4. Recommendaations

Based on the analysis of the case study, we recommend that John Branca take the following steps to negotiate the best possible deal for Michael Jackson's Thriller album:

  • Build a strong relationship with Yetnikoff: Branca should spend time getting to know Yetnikoff and understanding his priorities. This will help him to build trust and rapport, which will make the negotiations more productive.
  • Understand CBS's needs: Branca should take the time to understand CBS's business needs. This will help him to develop a proposal that meets CBS's needs while also protecting Jackson's interests.
  • Be prepared to walk away: Branca should be prepared to walk away from the negotiations if CBS is not willing to meet Jackson's demands. This will give him leverage in the negotiations and help him to secure a better deal.
  • Negotiate the financial terms carefully: Branca should carefully negotiate the financial terms of the deal to ensure that Jackson is getting a fair deal. He should consider the advance payment, royalties, and accounting practices.
  • Consider the marketing implications: Branca should consider the marketing implications of the deal. He should work with CBS to develop a marketing plan that will reach Jackson's target audience.
  • Consider the operational aspects: Branca should consider the operational aspects of the deal. He should work with CBS to develop a production and distribution plan that will ensure that the album is released on time and with the highest possible quality.

5. Basis of Recommendaations

The basis for our recommendations is as follows:

  • Core competencies and consistency with mission: Branca's recommendations are consistent with Jackson's core competencies and mission. Jackson is a talented singer and songwriter, and his mission is to create music that will entertain and inspire people. Branca's recommendations will help Jackson to achieve his mission by securing a deal that will allow him to produce and distribute his music to the widest possible audience.

  • External customers and internal clients: Branca's recommendations take into account the needs of both external customers and internal clients. External customers are the people who will buy Thriller, and internal clients are the people who will produce and distribute the album. Branca's recommendations will help to satisfy the needs of both groups.

  • Competitors: Branca's recommendations take into account the competitive landscape. Thriller will be competing with other albums for sales and airplay. Branca's recommendations will help Jackson to position Thriller for success in the marketplace.

  • Attractiveness ' quantitative measures if applicable (e.g., NPV, ROI, break-even, payback): Branca's recommendations are attractive from a financial perspective. The deal that he negotiated will provide Jackson with a substantial advance payment and royalties. The deal also includes a number of provisions that will protect Jackson's creative control over the album.

  • Are all assumptions explicitly stated (e.g., needs, technology trends): All of the assumptions that underlie Branca's recommendations are explicitly stated. These assumptions include the following:

    • Jackson is a talented singer and songwriter.
    • Thriller will be a successful album.
    • CBS is a reputable record label.
    • The music industry will continue to grow.

6. Conclusion

We believe that if John Branca follows our recommendations, he will be able to negotiate the best possible deal for Michael Jackson's Thriller album. This deal will allow Jackson to produce and distribute his music to the widest possible audience and will help him to achieve his mission of entertaining and inspiring people.

7. Discussion

Other alternatives not selected

There are a number of other alternatives that Branca could have considered, including:

  • Accepting CBS's initial offer: Branca could have accepted CBS's initial offer, which was for a smaller advance payment and lower royalties. This would have been the easiest option, but it would not have been the best deal for Jackson.
  • Negotiating a different deal with another record label: Branca could have negotiated a different deal with another record label. However, this would have been a risky option, as there was no guarantee that another label would be willing to offer Jackson a better deal.
  • Producing and distributing the album independently: Branca could have produced and distributed the album independently. However, this would have been a very expensive and time-consuming option.

Risks and key assumptions

There are a number of risks and key assumptions associated with our recommendations. These include the following:

  • The risk that Thriller will not be a successful album: This is a major risk, as the success of the album is dependent on a number of factors, including the quality of the music, the marketing campaign, and the competitive landscape.
  • The risk that CBS will not fulfill its obligations under the deal: This is a smaller risk, as CBS is a reputable record label with a long history of fulfilling its obligations. However, there is always the possibility that CBS could breach the contract.
  • The risk that the music industry will decline: This is a long-term risk, as the music industry is constantly evolving. However, there is no evidence to suggest that the music industry will decline in the near future.

8. Next Steps

If John Branca follows our recommendations, he should take the following steps:

  • Contact Yetnikoff and schedule a meeting: Branca should contact Yetnikoff and schedule a meeting to discuss the deal.
  • Prepare for the meeting: Branca should prepare for the meeting by gathering information about CBS's business needs and by developing a proposal that meets CBS's needs while also protecting Jackson's interests.
  • Negotiate the deal: Branca should negotiate the deal with Yetnikoff. He should be prepared to walk away from the negotiations if CBS is not willing to meet Jackson's demands.
  • Finalize the deal: Once the deal has been negotiated, Branca should finalize the deal by signing a contract.

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Case Description

John Branca, attorney to pop musician Michael Jackson, must negotiate a series of deals on behalf of his client in order to safeguard his financial interests and creative license during a period of rising stardom.

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