Communication and Negotiation Skills

SBS-MBA/MSC[pic 1]

AL AIN – 2018

Communication and Negotiation Skills

Prepared By:                 Adil Jaleel

Submitted To:        Dr. Azra Fatima

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SOLUTION:1

Situation 1:

Most Likely to take –Option 1

Fax Feng requesting a meeting with him In Taipei next week. Outline the understanding that Global Service Company has built a considerable business using the Luna name without DGG’s permission. Raise the issue of back payments for past misuse of the name, and a possible license or sale for future use.

There are various factors to be considered here before picking a suitable approach.

From DGG’s perspective:

DGG had already abandoned the production of Luna pens completely and fountain pens were just ‘too far removed’ from their core business. They had no intention of restarting production of the Luna pens. Even Wilhelm Mann mentioned that they had bigger things on their agenda and anything they get out of this would be a ‘windfall’. DGG’s annual revenue in the previous year was over USD 590 Million and their net earnings were around USD 90 Million. If they filed a case against Global, it would be expensive and time consuming seeing as they would have to hire local counsel in all the countries where Luna was being sold.  They would be glad to get whatever value was represented by the Luna name.

From Feng’s Perspective :

Global Service was a private limited company but observers estimate that they had trade activities  in excess of USD 21 Million and Luna Pens accounted for 25% of their global Sales.  Luna was important to them. They knowingly had been selling Luna Pens without a proper license for its production once DGG stopped production.

In this scenario , DGG had an upper hand of sorts since they would appreciate anything at all that they got out of this negotiation where In Luna was something that Feng would not want to lose since it represented a quarter of his global sales.  I believe the initial approach above would be what I would most likely pick if these were my only options because it clearly requests for a meeting with Feng without threatening him with a suit directly. It raises the issue at hand which will ensure that it grabs Feng’s attention since anything too polite would most likely be dismissed by Feng and it comes directly to the point without beating around the bush since DGG didn’t want to spend too much time with it. It clearly mentions the issues of back payments and promises a possible license or sale for future use.