Use Your Own Words To Outline The Key Issues In Negotiation

Use your own words to outline the key issues in the negotiation? What were the main objectives of the parties? Provide specific examples and explain your answer.

The key issues in the negotiation between EspelTech and MJT revolved around pricing, project scope, contract duration, and commitment levels. MJT was interested in reducing licensing fees, extending software use from twelve to twenty-four months, and gaining additional program management days at no extra cost. For example, MJT requested a reduction in licensing fees and an extension of the software term without extra charge, reflecting their desire for cost savings and a longer contractual relationship to support ongoing projects.

Another core issue was the total number of projects and timeframe. MJT wished to execute ten projects over twenty-four months due to staffing limitations, whereas EspelTech believed that ten projects could be completed within twelve months. EspelTech negotiated a compromise, proposing a maximum of eighteen months to accommodate MJT’s staffing constraints, highlighting a disagreement on project timelines and capacity.

Moreover, the parties faced challenges in finalizing the deal because of MJT's hesitation to commit outright, with Xie, MJT's assistant, indicating that the team might not finalize the agreement regardless of numerous resolved issues. This raised concerns for EspelTech, which sought clarity on whether MJT's delays were genuine or strategic stalling tactics. For instance, MJT cited staff turnover and requested a new, separate project proposal, complicating the negotiation process further and demonstrating an underlying uncertainty about their commitment.

The main objectives of each party differed yet overlapped: MJT aimed to secure a cost-effective, extended contractual arrangement with additional service value, but without heavy upfront commitment. They sought to reduce costs, extend project duration, and delay final decision-making. EspelTech’s goals were to secure a stable deal at a profitable price point, finalize project scope, and establish a firm commitment within a defined timeframe. For example, EspelTech was willing to compromise on the project duration but was firm on not extending software license terms without additional charges, emphasizing their focus on profitability and clear contractual terms.

References

• Fisher, R., Ury, W., & Patton, B. (2011). Getting to Yes: Negotiating Agreement Without Giving In. Penguin.
• Lewicki, R. J., Saunders, D. M., & Barry, B. (2015). Negotiation. McGraw-Hill Education.
• Shell, G. R. (2006). Bargaining for Advantage: Negotiation Strategies for Reasonable People. Penguin.
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• Raiffa, H. (2002). Negotiation Analysis: The Science and Art of Collaborative Decision Making. Harvard University Press.
• Mnookin, R., & Byrnes, J. (2003). Negotiating in the Dark. Harvard Business Review.
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• Shell, G. R. (2006). Bargaining for Advantage. Penguin.
• Fisher, R., & Ury, W. (1991). Getting to Yes: Negotiating Agreement Without Giving In. Penguin Books.