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OA T S O H [ 2 9 U T
E GIC NG R A T
N D GE UG NI
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N IA
Y G N E ID
S N A L
A Y A W
L R K
U A N
S D IA
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MANNX-OTC CASE
There is 2 companies : NN and Thompson
The marketing departement of NN can create an OTC product that
will compete with other OTC
NN have vast OTC market and to be larger because non prescription
drug
Unfortunately, NN lack large volume presence on OTC market
NN goal to assess the potential successful OTC product
Joint venture w/ Thompson will benefit both firms

Thompson made reduced strenght version : betaMANNx-OTC +

Proved by FDA
Thompson has little capability to reach mass market of OTC ---not yet
sold their rights
MANNX-OTC CASE
Issue :
Negotiation to share profit from MANNx-OTC .
Thompson desire to keep betaMANNx-OTC as the precription drug

NN estimate analysis :
$12 million as profitability of betaMANNx to Thompson if it remains
exclusively a
prescription drug.
$30 million as maximum profit for NN if they join together.
$9 million as minimum profit for Thompson if they join together
DISTRIBUTION BARGAINING
There are a set of agreements that Northcraft and
Northcraft(NN) and Thompson
prefer points between $9 million and $ 30 million. At this point
is positive bargaining
zone show both gain great deal by reaching agreement.
INTEGRATIVE BARGAINING
A more careful assessment of each sides interest can
produce more joint profit than distributive agreement can.
Which means, integrative bargaining is to create better
agreement, especially if there is multiple issues.
Also to finding mutually beneficial trade-offs plus
strenghten bargaining relationship
JOINT VENTURE NEGOTIATION
[INTEGRATIVE]
JOINT VENTURE NEGOTIATION
[INTEGRATIVE]
NN : The profit for NN companies
T : The profit for Thompson companies
NN+T : cmbines the profit from NN and Thompson
Synergy : Benefit created by joint venture when
thompson is not allowed to market betaMANNx
.after 1,2,3,4,5,6 years : Time period for Thompson active
marketing collectively affect the available joint venture
P : The right to sell and market MANNx-OTC [Transfer
price]
JOINT VENTURE NEGOTIATION
[CONCLUSION]
Conclusion to get win-win negotiation is to combine both
distributive and integrative .
If Thompson accept the deal to take only [1/3] one-third of the
profit for joint venture in exchange for continuing to market
betaMANNx, NN would receive [2/3] two-third

thomspson will receive $3Million + one-third (1/3*30Million =

$10Million ) = $13 Million And we get two-third ($20million).
But eventhough NN is the one that get 1/3, and T is get 2/3
that is also not a
problem because in NN distributive bargaining NN put 5 million
as target price. Its
better than no agreement at all.