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    SELTEK Assignment

    Uploaded by

    Ayda Khadiva
    The document discusses negotiation over the sale price of a plant, employees, taxes, and patent. The initial asking price was USD 20.5 million but the highest offer so far is USD 10.5 million. Key points of negotiation include who will pay the USD 200,000 tax and seeking a higher sale price of USD 24.2 million by including additional assets and distribution channels.

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    © All Rights Reserved
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    SELTEK Assignment

    Uploaded by

    Ayda Khadiva
    68 views3 pages
    The document discusses negotiation over the sale price of a plant, employees, taxes, and patent. The initial asking price was USD 20.5 million but the highest offer so far is USD 10.5 million. Key points of negotiation include who will pay the USD 200,000 tax and seeking a higher sale price of USD 24.2 million by including additional assets and distribution channels.

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    The document discusses negotiation over the sale price of a plant, employees, taxes, and patent. The initial asking price was USD 20.5 million but the highest offer so far is USD 10.5 million. Key points of negotiation include who will pay the USD 200,000 tax and seeking a higher sale price of USD 24.2 million by including additional assets and distribution channels.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    68 views3 pages

    SELTEK Assignment

    Uploaded by

    Ayda Khadiva
    The document discusses negotiation over the sale price of a plant, employees, taxes, and patent. The initial asking price was USD 20.5 million but the highest offer so far is USD 10.5 million. Key points of negotiation include who will pay the USD 200,000 tax and seeking a higher sale price of USD 24.2 million by including additional assets and distribution channels.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    You are on page 1of 3

    Reservation Price:

    USD 8.2 Mio included USD 7 Mio Plant, USD 1 Mio for employee, USD 200,000 for tax

    At the negotiation table

    200.000 ribu siapa yang bayar, kita yg jual kecuali punya argumen penguat. Soalnya biofarm gaakan mau
    bayar

    Harga awal USD 20.5 Mio (include plant, employee, patent, insurance)
    Harga mentok USD 10.5 (include infrastructure, land), patent USD 3.8 Mio,
    Worksheet for Identifying and Improving Your BATNA
    Use this worksheet to identify and improve your best alternative to a negotiated agreement, or BATNA.

    TARGET (Aspiration Price):


    Jual “turn key”: Jual Bangunan (USD 11 Mio), Patent (USD 4 Mio), Insurance (USD 8 Mio), Pegawai (USD 1
    Mio), Channel Distribution → USD 24.2

    1. What are your alternatives to a negotiated agreement? Make a list of what your alternatives will be if
    the negotiation ends without agreement.

    1. Building the plant so that it would have a normal configuration for general manufacturing. Doing
    so would take six months and cost $3 million, but after rebuilding it would have an appraised
    value of $10 million. So the plant would be more flexible to sell to other manufacturing
    companies, and sell the patent for Petrochek now to Elf, for $4 million.
    2. Sell the plant now with a $7 million price without reconfiguring the general manufacturing and sell
    the patent for Petrochek now to Elf, for $4 million.
    3. Assets Liquidation
    4. With minor modifications, the plant could also be used for making computer chips; however, the
    computer chip industry has too much capacity, so it’s highly unlikely any chip manufacturer would
    buy it. In the meantime we could sell the patent to Elf for $4 million now.
    5. Keep the plant operating at break-even for up to a year from using the Petrochek patent

    2. Of the alternatives that you listed, which is your best alternative?

    BATNA: Building the plant so that it would have a normal configuration for general manufacturing. Doing
    so would take six months and cost $3 million, but after rebuilding it would have an appraised value of $10
    million. So the plant would be more flexible to sell to other manufacturing companies, and sell the patent
    for Petrochek a year from now to Exxon (predictably would sell for $5 million)

    3. Can you improve your BATNA?


    Are there any arrangements you can make with other suppliers, partners, or customers that would
    improve your BATNA?
    Are there ways to change your terms of the negotiation to improve your BATNA? If yes, what? How?
    Sell the patent to Exxon for 50% chance and amounted to $5 million.

    4. What will your new BATNA be if you have succeeded in improving it?

    Building the plant so that it would have a normal configuration for general manufacturing. Doing so would
    take six months and cost $3 million, but after rebuilding it would have an appraised value of $10 million.
    So the plant would be more flexible to sell to other manufacturing companies, and sell the patent for
    Petrochek a year from now to Exxon (predictably would sell for $5 million)

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