This case study assignment measures your mastery of ULOs 1.1, 1.2, 2.1, 2.2, 2.3, 3.1, 3.2, and 3.3. “The Art of the Deal” application of Negotiation Planning Guide and Dual Concern Model Analysis

This case study assignment measures your mastery of ULOs 1.1, 1.2, 2.1, 2.2, 2.3, 3.1, 3.2, and 3.3.

“The Art of the Deal” application of Negotiation Planning Guide and Dual Concern Model Analysis

Your Mission

You have been selected as the negotiator for this assignment. As the negotiator, you have a big task that will hopefully have a successful outcome for all parties involved. Given your experience and what you have learned in Units I, II, and III of this course, provide a complete negotiation plan analysis, strategy, tactics, and proposed outcome to present to Jane and the Labor Union, Joe Clondike, and any other parties. Hint: Be creative in your negotiation skills.

Note: There is no textbook solution. You should use critical and creative thinking when completing this negotiation assignment. Use as many resources as needed to make this negotiation a success. Apply the concepts from the lectures, web links, and articles that have been presented as course materials for review, as well as other outside sources.

Case Background

Jane Fox was the CEO of JF Enterprises, an upstart artificial intelligence (AI) software company. Her platform and business were acquired by a large multinational corporation from Europe that outbid all American corporation offers. Jane needed a change and a new challenge from the AI stress of developing software.

Having made $1.2 million on the sale of her company, she moved to Colorado. Her passion is to create things that make an impact in society, so she looked into buying a Colorado lodge and campground. After doing her research, she found a quaint, rundown 12-room lodge and campground. She located the owner, made an offer, and took some of the proceeds from selling her business to renovate and make the Colorado lodge and campground a success.

It took her 9 months of work to pull it off by doing the labor herself, along with family and friends. She turned a run-down abandoned piece of property into the most popular Glamp-ground and lodge in Colorado. Her success was due to social media content (reels and posts) that generated over a million followers on Instagram. Continual videos allowed her to build a subscriber base and the value of the “Underdog Victory” led to her investment being fully booked for spring, summer, fall, and winter.

Jane was never one to rest on her laurels. She eyed a run-down, partially abandoned, historic 100-year-old, 100-room hotel with a bar and lounge in nearby Taos, New Mexico (a ski resort). The hotel bar and lounge were shut down due to a fire a few years earlier and basically left abandoned.

The location was great, but the building and insides suffered from both fire and neglect. It would take a lot of work to make the property profitable and glamorous again. As she had done with the Colorado property, she found the owners and negotiated an owner-financed deal, as well as bringing in extra capital from eight other investors (the power of not using your own capital).

The biggest challenge she is facing is obtaining the labor to complete the full rehab of the property. Taos labor unions control the Local Union Workers (electricians, plumbers, steelworkers, carpenters, etc.). The Labor Union President is Joe Clondike. Labor costs for each specialty are $150-$250 an hour. This was a budget buster for the project, so Jane was able to hire non-union workers (fully certified and licensed) at half the cost. Jane estimated to complete the renovation in 9 months, and she would need over 50 non-union members from a mix of specialties.

Here is where the problems start:

1. Union workers have picketed the hotel where the non-union contractors enter.
2. Anonymous threats have been made to Jane to “Stop work and hire Union” or pay the consequences. (She has contacted law enforcement but so far there is no resolution from the calls.)
3. Local suppliers (electrical, cement, paint, wood, plumbing, etc.) who would support Jane’s construction materials requests have not delivered the product or services. Every time Jane’s non-union workers order supplies to renovate, the orders are never delivered due to being continually out of stock, or items are delivered in the wrong size or quantity with no refunds.
4. The labor union workers have participated in social media by making reels and posts on how Jane Fox is hurting families in the Taos area by renovating a building with non-union workers.
5. Disruptive crowds have begun to arrive at the worksite, yelling and heckling non-union workers entering the building.
6. Local law enforcement has been contacted but since there has been no threat of safety to others during demonstrations, there is no criminal act or other type of arrests to be made.
7. The project has been held up for 90 days.
8. Half of Jane’s non-labor union workforce have quit, citing that they do not want any problems with the crowd or union affecting their safety or their family’s safety.
9. Internal pressure is being exerted from investors to get the project going. They want their return on investment.
10. The average cost JFE computed for the renovation project was $8,000-$12,000 per room and approximately 250K for the bar-lounge-kitchen renovation.

Positives

1. Jane’s project management skills allowed her to create Program Evaluation Review Technique Charts and Critical Path Methods for a final completion date. Having this skill set along with the program manager techniques saved her over 20% (approximately $280K) in fees compared to costs if an outside contractor developed the plans.
2. Jane feels confident her renovation of the 100-year-old hotel will have a large social impact on tourism in Taos.
3. Jane has some inside information (source unknown) that some of the union laborers are not pleased with the hardline stance of the Union President. They are open to deliberation (they want to work).
4. Local government is in favor of renovation, which offers economic growth, historic rebuild, and social media.
5. The local community is 70/30 split on allowing renovation to proceed; 70% are for the project to proceed, and 30% wish to stop it.
6. The work that has been done by non-union labor to date has passed all code requirements.

Although Jane has negotiated the financial deal with the owner of the hotel bar and lounge with owner financing, she is not comfortable negotiating at this level against a labor union. Jane has hired a Sante Fe, New Mexico, lawyer who has referred her to you as the CEO of Artisan Negotiations, Inc. (this will be your role for this assignment). You are a highly skilled negotiator with an excellent reputation and track record of success. Jane has hired you to negotiate an equitable solution so she can continue to renovate the property without any further problems.

Assignment Requirements (Two Parts)

Attachment 1 is intended to help you with your strategy matrix analysis. As noted in the text and lecture preparation, organization and analyzing information is critical for a negotiator.

As a negotiator, your product will involve filling in this provided matrix with bullet statements and content to help you frame your negotiations, which will be a part of your response. When you have completed items using this matrix, explain your final solution regarding the negotiations. Complete items A-B in a 3-page paper (APA is not required, but use subheadings for topical areas):

1. Determine the best strategy (Distributive, Integrative, Accommodating) in which to explain your selection and outcomes. What negotiation style works best, and why?
2. Determine the leadership style needed for Jane Fox Enterprises to reach a solution. (Leadership styles: Autocratic, Democratic, Transformational, Laissez Faire (hands off), Participative, Charismatic)
3. Determine the leadership style of Joe Clondike in reaching a solution.

Attachment 2

Complete the Dual Concerns Model regarding all the parties involved and their outcomes, including any strength(s) and weakness(es) for all parties in all quadrants. The information can be provided in a bullet format. This attachment should be two pages. APA is not required.