Wednesday, February 26, 2020

Negotiation Case Essay Example | Topics and Well Written Essays - 1000 words

Negotiation Case - Essay Example Due to this economic slowdown, General Motors has been forced to take these decisions which are completely in contrast to the policies of is Chief Executive Officer. This has weakened the condition of GM among the other parties. Statements from the Chief Operating Officer, such as ‘We need support’, etc. has portrayed GM as very vulnerable to the oncoming negotiations. It is very challenging to arrive at an accurate BATNA (Best Alternative to Negotiated Agreement), as GM’s only choice is to shut down its operations across four plants as planned. GM expects to get at least $ 4.18 million from Germany and the other countries in the region. This will be the target or the aspiration point for General Motors. This will enable GM to effectively overcome its liquidity issues in Europe. It is also very essential for GM to continue to have a controlling interest and stakes in the functioning of Opel in Germany. The board of GM should continue to own at least 50% of the stakes in Opel in order to have a controlling interest in the company. Hence any claims by the German Government to own more than 50% of Opel will be the walking away point for General Motors. The Government, on the other hand, though has a higher hand, has to consider the main consequence of shutting down the Opel plant in Germany. It has been estimated that around 25,000 jobs would be lost as a result of closing Opel. This will add to the country’s unemployment rate in this global economic recession period. However the country has another option to invest in the overall infrastructure and other sectors within the country which will create more jobs in the country. However, the Government also has to face the Opel Labor union, who has the only goal of retaining their jobs and obtaining job sec urity for the current employees of Opel. Hence the pressure on the

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