NEGOTIATION PLAN, Lecture notes of Negotiation

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THE FOURTH NLU DELHI – HSF

INTERNATIONAL NEGOTIATION

COMPETITION

NEGOTIATION PLAN

IT’S ALL IN THE DRIVING SEAT

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FOR HAPPY TAXI

TEAM CODE: 10

• To insist on payment of entire consideration value upfront in cash. Alternatively, to insist upfront payment of minimum $US100 million and payment of balance consideration in staggered payments.
• To secure assurance from RideOn for the continuance of Happy Taxi as well as GoTaxi on the same business principles and ethics with promotion of good reputation, High Credibility and the Strong brand value of Happy Taxi and GoTaxi within the International Taxi Service Market.
• To secure commitment from RideOn with respect to continuance of Happy Taxi’s CSR Projects pursuant to the acquisition of the Happy Taxi as well as GoTaxi.

VIABLE/CONCILIATORY OPTIONS:

• To accommodate the interests of both the companies by compromising on the estimated value for the purchase of Happy Taxi.
• Restructuring of the CSR activities to reach a viable option for the comfort of RideOn.
• To plan a discounted consideration provided that $US100 million is paid by December, 2017.
• To appoint Happy Singh as the consultant to ensure a smooth transition of the ownership of the company.
• To leave at the discretion of RideOn to pay a reasonable amount by December 2017, and further negotiate for a staggered payment with applicability of agreed interest rates.

BATNA:

• To approach RideOn’s competitors in the international arena or investors inclined to diversifying and expanding into the public Conveyance sector.
• If GoTaxi and Happy Taxi’s businesses cannot be transferred together, GoTaxi would look forward to having a merger with an automobile spare parts company which would ensure that Happy Singh acquires a passive stake in the automobile spare parts company. Thereby, Happy Singh’s immediate requirement for cash would be considerably reduced and he shall be able to leverage his secured position in conducting further negotiations for his stake in Happy Taxi.
• Forming a joint venture with domestic players in respective cites wherein Happy Taxi would divulge its managerial and operational interests in their favor in exchange for US$100 million before December 2017, with a proportionate passive stake.

WATNA:

• To sell off the stakes of Happy Taxi to any prospective Domestic buyer in the most favorable deal without having any extraneous consideration.
• To initiate an extensive human resource expansion in terms of corporate management to transform the company into an organized business and eventually launch an initial public offering (“IPO”). The IPO shall ensure that Happy Singh’s stake in the company is reduced to a minority which would result in a change in the Company’s management. Thus his role would be reduced to Happy’s passive engagement by

proposing his participation as a consultant to the Company, with the grant of preferential opinion to ensure favorable decision making for the benefit of the Company.