Assessment Brief: The tasks Identify any commercial negotiation between two or more business organisations that took place in the period January XXXXXXXXXXJanuary 2013. NB The negotiation need not...

Business Negotiation 1
Running Head: BUSINESS NEGOTIATION
Business Negotiation
Business Negotiation 2
Introduction
Orange is the third largest and T-Mobile is the fourth largest mobile phone operators in
the UK. Both are merging their UK operations to become the largest mobile phone operator in
the UK market with more than 28 million customers and 37% share of the market (Wray, 2009).
O2 and the Vodafone are the leading competitors of them in the UK market. T-Mobile owned by
Deutsche Telekom while Orange owned by France Telecom announced their plans to merge their
respective UK ventures that was completed on April 01, 2010. This paper identifies the
negotiation issues faced by these companies after merger and provides suggestion how these
companies solve these issues.
Task: 1 The Issues involved
Substantive Issue
At the same time, the negotiation process is the most critical aspect of merger practice.
During a merger process, negotiations are successful where both parties and organizations feel
like they have succeeded or north facing losing in the contract. The interests of the both parties
are needed that a negotiator wants met and satisfied them. Substantive interests including money,
time, resources, etc. needs to meet during the negation of the merger process (Lovells & Rab,
2010). On the other hand, T-Mobile and Orange are in merge into a new 50:50 joint venture
company means both provides health resources. Merger of Orange and T-mobile creates a
substantive issue because during the merger process one party is bargaining over substance. In
this case, Orange mobile is over substance in bargaining.
Merger of two organizations creates several issues for them related to merger control due
to negotiation. The distinction between the procedural chosen for merger process creates
substantive issues during merger negotiation. Both organizations different union form and union
Business Negotiation 3
characteristics created substantive issue during merger negotiations (Hoffman, Kahmann &
Waddington, 2005). In additional, Merger deal among the Orange and T-Mobile are expected
more than 19000 job losses due to the combined workforce of both companies rationalizing their
networks. At the same time, Orange is expected cut of 12000 employees while T-Mobile cut
6400 UK employs from their call center staff and close high street retail stores for saving costs of
worth of £3.5bn (Wray, 2009). Orange position in concern is this issue is weaker than T-Mobile,
so that its employees faces more problems and job cut issues.
On the other hand, the combined spectrum hoardings of the joint venture may give it an
unfair competitive advantage. Merger process impacts on its substantive interest in terms of the
competition issues in the UK mobile sectors. France telecom’s (Orange) financial position was
not good in the UK market and it thinks after the merger they change its respective positions in
the UK (Marquis, 2013). It can be raised competition concerns because different position of
organizations in the UK market. After the merger, Orange high cuts its resources such as high IT
cuts, store closure, job cuts and result of the network rather than T-Mobile that means it's over
substance in bargaining. In additional, through these cuts mergers will create annual operating
cost savings of more than £445m since 2014 and the combined business will earn revenue of
€9.4bn (£7.7bn) and profits before financial charges of €2.1bn (Wray, 2009). At the same way,
the merger was creating the new mobile champion in the UK and increasing completion in the
market. Mergers between competitors generally raised material substantive issues among the
companies.
Task: 2 The Tactics employed
Negotiation Tactics
Business Negotiation 4
Organizations or parties use several tactics while negotiations to accomplish their
strategy and obtain their objectives. During merger parties are considering the ethical, honest or
scrupulous while use negotiating tactics. Along with this, Orange mobile uses giving ultimatums
negotiation tactics through involve the three basic elements of the negotiation process that is
processed, behavior and substance (Guasco & Robinson, 2007). It considers several factors
during negotiation process such as the context of the negotiations, the tactics used by the parties
(T-Mobile), and the sequence and stages in which they play out. In concern of behavior element,
its focus on maintaining a relationship with T-Mobile parties through maintaining
communication between them and understand the style they adopt. On the other hand, Orange
mobile use substance element to negotiate over with parties (Rushton, 2012). It focuses on both
parties interests but negotiate over at the options, agenda and during agreement reached.
On the other hand, T-Mobile uses nickel and diming negotiation tactics through involves
the four elements during the negotiation process that is strategy, process, tools, and tactics.
During select negotiation strategy it comprises the top level goals and considers the relationship
and the final outcome of the negotiation process (Gosselin, 2007). Along with this, it followed
processes and tolls steps during negotiation with other parties to meet the interest of each party.
At the same time, it includes tactics of more detailed statements, actions and responses to other’s
party statement and actions. In additional, it also considers the persuasion and influence during
negotiation tactics and process. It follows all elements strategy, process, tools, and tactics to
successfully negotiate with other parties.
Both organizations negotiation tactics are effective and applied in the negotiation during
the merger process. T-Mobile and Orange mobile focuses on other party's interest rather than
their interest that is an essential aspect of successful negotiation. Both problems are defined in...