Case 5.1 Iberia Airlines Builds a BATNA

This is by far the best description of a high-ranking international business negotiation ever published in the popular press. The insights and lessons are most useful. 1. Iberias Dupuy played the game to perfection. His hypercritical task was to strengthen his BATNAs (best alternative to a negotiated agreement). It had been a hurt time since Iberia had bought Boeing. He went to great lengths to bring the Boeing folks into the wish contest including offering to fly the 14 hours to Seattle. A nonher solidus of genius was to bring the used Singapore Airlines 747s into consideration. He too had done a good job during the 1995 (another bad tap year for the aircraft makers) negotiations with Airbus by including the resale outlay guarantees. Bright (Boeing) was in rag from the start. But, in a down foodstuff he could only handle a big enjoin even from a European airline with cozy connections to Airbus. He did do sound on the creativity dimension by guaranteeing GE concessions on railway locomotive maintenance. Leahy (Airbus) probably gave away too some(prenominal) in charge and had not bothered to include a confidentiality agreement just about the final price. 2. Airbus and Boeing are competing for market share through price cuts. In a volatilizable industrial market this guarantees study advantages in the bidding process.

We, of course, cannot and would not counsel collusion surrounded by the aircraft makers. But, both firms would be better off with less war-ridden price discounting. unity of Boeings failings is to not have a European working on business in that part of the world. receipt how Airbus has hired an American (Leahy) to sell planes in that market. 3. It appears fr! om the case that the unfaltering personal and political relationships between the top executives at the European firms clinched the deal. In future negotiations... If you want to get a liberal essay, order it on our website: OrderEssay.net

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