NEGOTIATION SKILLS Harvard Case Solution & Analysis



In last, all the agreements that were reached are now executed mutually. Company makes sure that there are no loop holes left that can sabotage the mutual understanding. After the completion of execution stage from our own side, a confirmation document is forwarded to the counter party as well for verification.


At most of the time company is taking the defensive position. It is necessary to be calm and patient in these significant negotiations yet company can go for proactive approach also. Proactive approach in negotiation can lead towards the huge benefits, yet it can disturb the potential agreement as well. There is the thin line in between which is not to be crossed by any of the firm.

Question No 3

The major processes company go through after concluding negotiations are:

  • Implementation
  • Monitoring


Implementation includes the assuring that the requirements of the agreement made by the other company previously are fulfilled on time. The previous agreement can either be with our company or it can be with other company as well. In vast scenarios and mutual benefits, responsibility of implementation is transferred to these parties as well, for instance:

  • Any or both the parties involved in negotiations.
  • A party that was not actually the part of negotiation.
  • A government regulatory body.
  • A new mutual group formed to supervise the implementation.

Generally people involved in negotiation process are not considered for the task of implementation. There is a possibility of complications if negotiators are assigned the task of implementation. As they are not experts in understanding the complexity of terms and conditions. To ensure smooth operations, task of implementation is assigned to guarantor from the both sides. This also helps in avoiding any possible conflicts. In very rear cases the person, who was negotiator in first place is given responsibility of implementation as well.

In some cases implementation requires legitimation or a binding contract under the guidelines of governmental regulatory authority. Each situation is different and person responsible for implementation need to act accordingly.


In monitoring process, the company is continuously observing the compliance needs and formalities to be fulfilled. The general considerations in monitoring are:

  • Whether both or the parties involved are fulfilling up their obligations.
  • If the parties are moving in right direction for obtaining desired outcomes.

First question stated above directly addresses the compliance. What will be the legal situation for both of the parties if either one of them is not ready to fulfil the commitment. Non fulfillment may occur will fully, also may be due to different interpretation of the terms and conditions. This disagreement can even be upon the language of agreement. Issue of compliance my raise due to distrust among parties. However even if the parties entered the agreement with all the positive faith yet do not fulfil their commitment, there can be multiple reasons behind this like police changes, limited resources, wrong forecasts etc.

Second question addresses whether or not the desired outcome is achieved. If any of the party is not in an alignment  with the agreement then it would be nearly impossible for other party to achieve the result despite of the hard work, resources and time invested. This can also occur as a result of some sudden and big changes in the economic system. Moreover the agreements done for the natural resources relies upon goodwill backed by legal terms, yet the capacity of controlling natural resources is limited and there always remains the possibility of sudden change beyond control in the natural resources. This breeds further questions like how can these issues be addressed?

Question No 4

As the part of Occidental Petroleum, I did get the chance to involve in a small scale negotiation over the conflict upon commitment. As Occidental Petroleum is a petroleum and natural gas exploration company that operated across the globe with majority of its functions running in the United States. I have been part of the fixed asset maintenance department. Employees in fixed asset department are responsible to complete the work for finding most suitable fixed assets, acquiring assets, maintenance of assets, comparison of the assets etc. Need for negotiation raised when a young driver trespass the fence while driving his SUV under the influence of alcohol. The problem raised when the person refused to accept the responsibility and pay the fair compensation. He was continuously saying that this happened due to mechanical failure in the deceleration system of car. Thus after studying legal department of Occidental Petroleum issued the notice to the owner of SUV and the person driving to compensate or face the charges in court of law. Then the counter party was ready for out of court settlement. A team was made to negotiate with them keeping the Occidental Petroleum’s interest high above and fortunately I was the part of that team. The team at first provided the party with all the evidences of being under influence of alcohol, CCTV foot ages and the pictures of damaged places. Afterwards the legal team told the all possible charges and their sentences to the party. Counter party asked for the total amount needed in terms of compensation. Occidental Petroleum provided them the sum of amount along with breakage of the amount. Counter party was not able to deny this time as Occidental Petroleum was ready to proceed the case in court of law and handing over all the potential evidences. Counter party’s argument was they are not financially sound enough to pay for all the amount, they insisted on paying the 50% of damages. This situation was not acceptable by Occidental Petroleum and then negotiations started and both reached to the agreement that they will pay the Occidental Petroleum 85% of the amount against the damages and in return Occidental Petroleum would not peruse the case in court of law.


Evidences against the party were very strong and if the case had gone in court of law then party had to pay 100% of the damage caused. Moreover they would have been fined by huge sum. Occidental Petroleum should have either gone in the court or asked for 100% compensation as the counter party was not in the position of denying or not accepting. Occidental Petroleum did not use the proactive approach which could have been more helpful in this case.........


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