Communications, Case Study Example

I believe that Paramount’s need of having an NBC/Paramount deal completed was the greatest. This is because Paramount was relying on the detail that Frasier was the flagstaff NBC show and the success it had in the time niche. In case they quit NBC, NBC and Paramount would both suffer just as Paramount would have undergone the most suffering. The best alternative for Paramount would have been shopping the Frasier show around to additional networks in case there was a breakdown of negotiations with NBC. However, Paramount’s networks were limited due to industry consolidation and high cost of show overhead (Subramanian and Kalka, 2001).

In the year 2001, NBC started negotiating a contract with Paramount Television Group for the keeping of “Frasier”, the hit show on the network. The show’s studio producers, Paramount, made a threat of moving the show “Frasier” to CBS, which was the sister network of Paramount, if NBC did not concur with a license fee which was considerably higher than what it was paying at that time (Subramanian and Kalka, 2001). Thus, referring to this negotiation, for Frasier to successfully negotiate, it needs the most effective and powerful concepts like getting the edge, integrative negotiation, valuing the relationship and enhancement of the power to negotiate.

The integrative negotiation concept is the type of negotiation where each party wins. This kind of negotiation is mostly used for deals that are more interdependent like the one NBC and Paramount have, and deals that mostly incorporate a relationship, which is long-term, rather than just a transaction that is one time. The negotiations are collaborative because the strategy is based on both parties doing work together to coming up with a reciprocally beneficial result. Transparency is an important element of this kind of negotiation (Guasco and Peter, 2007). For example, in integrative negotiations, the objective of Paramount is to collaborate, but that is not a justification of disclosing everything to NBC concerning what it needs and will benefit from the deal.

The idea of obtaining the edge involves one party immersing itself into the issues of the other parties. Imagine how you will be viewed by them as you are fighting passionately to get a solution to their problems. There comments and their body language will make you know whether you are succeeding (Fisher and Ury, 1992). In addition, if the situation can be truly seen by you through the eyes of the other party, finding out the thing that is sending them to the person you are competing with and returning it to you can be a perfect move. For instance, Paramount would try to figure out a better payment for the fee of the license with NBC for them to keep “Frasier”. Paramount is supposed to be realistic and focus on the best solution that can be available to both parties because that will generally lead to the best result.

The concept of enhancing the power of negotiation may include BATNA. BATNA is the greatest negotiation power. Having a better alternative keeps one in a business mindset, makes one feel that he or she is on world’s top, and minimizes emotions (Guasco and Peter, 2007). For example, more BATNAs should be developed by Paramount even after beginning the negotiations. After that, a sincere and trusting relationship with the NBC should be built. This will be an enhancement of their relationship through listening and being keen to understand the issues of the other parties. A perfect negotiation ensures that the two parties become one team.

The final concept is valuing the association, which means focusing on the common goal, keeping the goals mutual, and maximizing the opportunity of success. The interdependence level resulting from this negotiation will make a determination of the necessary level of relationship to conclude the perfect deal. Successful negotiations should have trust (Fisher and Ury, 1992). For example, Paramount have to ensure NBC has trust in them because if there is no trust the deal can easily be shattered. NBC should be treated by Paramount in the same way Paramount would have liked to be treated. This includes not focusing on people or positions but focusing on interests. NBC should make sure that every detail is in a written form as agreed and they should have a leader prior to the negotiations.

References

Fisher, Roger and William, Ury. (1992). Negotiating an agreement without giving in. 2^nd ed. New York: Random House Business Books.

Guasco, Matthew P, and Peter R. Robinson. (2007). Principles of Negotiation: Strategies, Tactics, Techniques to Reach Agreements. Irvine: Entrepreneur Press.

Subramanian, Guhan and Michelle Kalka. (2001). Frasier (A). Harvard Business Review.