Part II Negotiation Simulation Bargaining Strategy Report

Joshua Hernandez, Gary Rachitsky, Jaswant Singh

Roles
Joshua: Will be the leading negotiator and will be a distributive bargainer. He will begin each key point
by aggressively pushing for the greatest return.
Jaswant & Gary: Will be the data gatherers. Once Josh as made the limits to our offers known, Jaswant
and Gary will pursuit our goals through integrative negotiations. By being more considerate to the other
teams offers, Jaswant and Gary must make it known to the other team that we are making concessions
no matter how small.
Eleven Issues for Negotiation & Rationale
1. Directors Salary
The goal for this issue is $400,000. The most recent base salary was this direct was this amount. Keeping
this low is better for the overall budget. With that said:
We will start by asking what they would want for a salary. This will force them to show us what
they are expecting which would be a high salary. We can provide them a higher base salary than
we would like however we will offer a low bonus of 2%-5%.
Fallback
If they dont except the low % bonus, we will have to lower the base salary
We cannot give more than 7% director bonus as this will cost us too many points.
Key is mid to high base salary with low % bonus
2. Pre-Production Budget
The goal for this issue is $250,000. This amount is generous for this kind of budget and keeping this low
is better for the overall budget. The director is known to be a perfectionist, and can excessive in his
spending to achieve his perfect film. With this said:
We will strongly push for $250 000 as this is considered fair in this industry
Fallback
$350 000 is our maximum offer but we would like to couple this offer with a 4 month post-
production schedule
3. Post Production Budget
The goal for this issue is 1 month. It has taken the director months producing his last film, and it is ideal
to minimize this time. In the past the director did a great job, but missed the summer blockbuster
market because of the lengthy time to finish the film.
We really want to keep the post production schedule to a minimum (around 4 months) so that
the movie can be released on time for blockbuster season.
Hitting the blockbuster season will allow them to reap the benefits, even at a low director bonus
rate.
Part II Negotiation Simulation Bargaining Strategy Report
Joshua Hernandez, Gary Rachitsky, Jaswant Singh
Fallback
We can look at negotiating a 6 month production period coupled with a low personal
location budget of $300
4. Directors Bonus
The goal for this issue is 0 percent. It is more ideal from the studio point of view to give the director a
larger salary rather than higher bonus. The percent earned from making a hit movie highly outweighs a
salary paid to the director.
We will negotiate this topic alongside the directors base salary as previous mentioned.
We will allow the director to pitch his initial base salary expectations (anticipating 750 000)
therefore we are willing to give 2% to start with. At this base we can give 7% however we could
pitch a lower base.
Fallback
At maximum, we can offer 7% at $450 000 base salary
5. Child Star
The goal for this issue is Dakota Fanning. Dakota is a talented actress that would fill the role perfectly
and has many awards to show for it.
We will ask for Dakota fanning; she offers great acting talent and the possibility to attract a large
audience.
The role is better for a daughter and not a son therefore we only want Dakota
6. Male Lead
The goal for this issue is Harrison Ford. He owes us and can be acquired for cheaper. Also he is a
talented actor and seems to fit the role.
After careful consideration, we come to the conclusion that we really want Jennifer Lopez
To obtain her we believe that the director will strongly request Tom Cruiser who we really
dislike
As a compromise, we hope they give Jennifer Lopez for Tom Cruise
Fallback
If we cannot get Jennifer Lopez for Tom Cruise, we can ask for Matthew McConaughey
7. Locations
The goal for this issue is Los Angeles. The city offers many site options as well as sets.
We will start by pushing for Hollywood sets
If they dont accept we can offer $800 for personal location budget

Part II Negotiation Simulation Bargaining Strategy Report
Joshua Hernandez, Gary Rachitsky, Jaswant Singh
Fallback
They might reject the sets, therefore we can offer one exotic location coupled with $300 for
personal location budget
8. Female Lead
The goal for this issue is Jenifer Lopez. Jenifer is a skilled and dynamic actress that has a lot to offer to
the movie.
We will push for Jennifer Lopez because she is available
Fallback
If we do not agree on the exchange between Jennifer Lopez and Tom Cruise, we will ask for
Cameron Diaz
9. Personal Location (per diem)
The goal for this issue is the use of Hollywood sets. Traveling and using exotic locations is very expensive
and time consuming. The use of Hollywood sets would save a lot of money.
We can offer $300 for location budget for 6 month post production schedule
Fallback
If they want more location budget, we will offer $400 for a 4 month post production schedule
10. Production Designer
The goal for this issue is Sandra Neal. Sandra is a savy and experienced production designer that knows
to keep costs down and keep everyone happy, as well as being trusted.
Due to her experience, we will initially ask for Sandra Neal
Fallback
If they do not agree on Sandra, we will ask for Rebecca Flint
11. Editorial Control
Our goal for this issue is to have editing rights. The director is known to spend months editing the final
cut and it would be better for NA to have these rights. It would speed up the production and release
dates.
We will strongly ask for unilateral editorial control. By pressing hard on this point, it will
hopefully reduce our fallback position.
Fallback
Considering the director will probably not agree to this much control, we will ask for equal
control. Our plan is to push hard for the first position so that the director accepts when we
fallback to this position.
Part II Negotiation Simulation Bargaining Strategy Report
Joshua Hernandez, Gary Rachitsky, Jaswant Singh
Tactics
1. Directors Salary
Opening position: $400,000
Resistance point: We would resist at $600,000 unless the negotiating party is will to take a lower
directors bonus for a higher base salary.
Aspiration point: $550,000
BATNA: $750,000 base salary, if the negotiating party is willing to take a 5% gross directors
bonus.
2. Pre-Production Budget
Opening position: $250,000
Resistance point: We would resist at $300,000 unless the negotiating party is will to go for a
short production schedule.
Aspiration point: $250,000
BATNA: $350,000 pre-production budget, if the negotiating party is willing to go for a 4 month
production schedule.
3. Post Production Budget
Opening position: 1 month
Resistance point: We would resist at 3 months unless the negotiating party is willing to take
lower pre-production budget.
Aspiration point: 2 month
BATNA: 4 month production schedule, if the negotiating party is willing to go take $350,000
pre-production budget
4. Directors Bonus
Opening position: 1%
Resistance point: We would resist at 5% unless the negotiating party is willing to take lower base
salary.
Aspiration point: 2%
BATNA: 5% gross directors bonus, if the negotiating party is willing to go take $750,000 base
salary.
5. Child Star
Opening position: Dakota Fanning
Resistance point: Emma Roberts
Aspiration point: Dakota Fanning
BATNA: Dakota Fanning
6. Male Lead
Opening position: Harrison Ford
Resistance point: Matthew McConaughey
Aspiration point: Harrison Ford
BATNA: Matthew McConaughey
7. Locations
Opening position: Hollywood Sets
Resistance point: 1 exotic location
Aspiration point: Hollywood sets
BATNA: 2 exotic sets, if the negotiating party is willing to take $300 for Personal Location budget
Part II Negotiation Simulation Bargaining Strategy Report
Joshua Hernandez, Gary Rachitsky, Jaswant Singh
8. Female Lead
Opening position: Jennifer Lopez
Resistance point: Cameron Diaz
Aspiration point: Jennifer Lopez
BATNA: Cameron Diaz
9. Personal Location (per diem)
Opening position: 300
Resistance point: 500
Aspiration point: 400
BATNA: $800 Personal location budget, if they are willing to use Hollywood sets.
10. Production Designer
Opening position: Sandra Neal
Resistance point: Rebecca Flint
Aspiration point: Sandra Neal
BATNA: Rebecca Flint
11. Editorial Control
Opening position: NA gets unilateral editorial control
Resistance point: NA has very limited editorial rights
Aspiration point: NA shares equally in all editing
BATNA: NA shares equally in all editing
Walk away Points
Following scenarios will result in negotiation termination
In a position, where the other party demands and offers resistance for a 15% gross director
bonus or 950 personal location budget the negotiation will be terminated.
Also, a demand and resistance for high directors base salary along with high % gross directors
bonus will force the termination.
Demand and resistance for high pre-production budget (>400,000).