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Message: As is the case in many negotiations, BATNA is a very effective tool in conducting negotiations, Discuss this concept in detail as it relates to this case.

Epower’s interests are the inspirations for favoring particular arrangements to issues and concerns, as well as maintaining a sustainable and increasing shareholder’s value and since it’s a newly privatized company, Epower tends to obtain a wind turbine ready to work at the moment because of its need to have it working on its offshore field, There are other similar interests that are obviously present such as Epower’s necessity to restrain its consumption indeed in case all its prerequisites are available and still restrain them way more when those preconditions aren’t available, and basically the wind turbines delivery is such a risky move so Epower is trying to cover its risks for the case of non-rapid wind turbines as well as the repairing procedure that could have place in the future ( 3 years ) which means that Epower could easily have an alternative on the market.

As a commercial business, Winwind’s primary concern is to create maintainable benefit and keep up with the shareholder value as well. They’d meet its interests in case it matches E-Power’s confirmed preconditions on the delivery date and a portion of its prerequisite for a guarantee. Winwind hopes to decrease its commitments on extinguishing harms as this might threaten its benefits so the price is basically a crucial component for such a profitable business which must be connected to the weather window as well as the time delivery.

Negotiable issues are prioritized since negotiators have changing degrees of slant for what they require and it is these contrasts within the regard of each issue which gives the negotiators exchanging conceivable results, for that a scale from 1 to 3 is necessary to show each company’s priority for different issues as below:

 [1: crucial to get / 2: might delay the deal / 3: not affecting the deal].

Concern	Epower’s urge	WinWind’s Urge
Warranty	3	1
Equipment Date	3	1
Damages ( liquidated )	2	3
Price	1	2

 

Epower could be setting its Entry and exit points as follows:

For the price installation, £500 000 is an entry point since that’s exactly where they are willing to start the negotiation from, and beyond £1.2m it would be pretty impossible to have a done deal, Installation date is basically between 2-3 months as a max which is exactly their exit point for this particular concern, and for the warranty as an entry point for Epower as its indicated with 5 years as an amount of time and 3 years concerning its exit point in addition of 20% of liquidated damages as an entry point and 10% as an exit point.

Epower could literally go like: ‘’If you consider to provide the wind turbine on location and working under good conditions inside three months and acknowledge liquidated damages at 20 per cent, at that point we tend to pay more than $900 000 dollars for it’’, and it would be an even offer since each part is depending on the other in certain things, a negotiation like this one could be the optimal intersection between each part’s minimum terms and condition with the major insist over the operating turbines and delivery marge of time because committing any interdiction for those two could not be tolerated.

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