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1) What did Peter Welz do or did not do that aggravated the problem?

CDL unit are using many tactics and tricks so that they can use to try to take advantage of
iSxure. I think Peter Welz team knows some of them. They range from lies and
psychological abuse to various forms of pressure tactics. They may be illegal, unethical or
simply unpleasant. Their sole purpose is to help the user win some substantive gain in an
unprincipled contest of will. Such tactics we called it as tricky bargaining.
So from the case study we understand that the whole negotiation process become
uncomfortable for Peter Welz. iSxure recognized that a tricky bargaining tactic is being
used against them, and they haven’t responded in standard way as most of the people
respond.
The most standard response in this situation is to put up with it. It may be unpleasant for
the iSxure to lose this marquee account player. So they may give the other side the benefit
of the doubt or get angry and promise to never deal with them again. But there may be an
internal apprehension in their mind that the other side will be appeased this time but will
not ask for more in future. So the short term goal can be achieved with this response but in
long term the decision may not be beneficial for iSxure.
The interest of both parties from the negotiation process are mentioned below: -

iSxure Interests BPV Interests

To finalize the contract of the BPV as a marquee account which
Extract more from iSxure by negotiating hard and using
would send powerful positive signal to investors and other
hard pressure tactics
potential customers.
In early meetings, Welz and his colleagues convincingly Negotiation not based on value rather than price. So it is a
portrayed iSxure’s value proposition to BPV and proposed a positional bargaining from BPV representatives.
genuinely fair price schedule, at a significant discount from list,
that was more intended to land this important client like BPV
expeditiously than to maximize profits from the contract. iSxure
did not want price to be an obstacle in these talks.
BPV want to delay the negotiation process and escalate
Peter Welz team want to reach the 2003 quarter target.
demands from iSxure.

Following are the actions that Peter Welz might take to avoid the deadlock and situation
aggravation:-

 Peter Welz and his team should focus on interests of the BPV rather than
committing to an extreme position. And iSxure need to find out what are the factors
which restrict them or protecting them from changing their position. Keeping in
view the mutual interest of both parties they should have done this and might BPV
also respond to that.
 Not only had the value based negototitaion tactics proved to be successful in this
case, Peter Welz should invest in mutual gain options. Some alternatives apart from
the present offerings need to be worked out which would be beneficial for both the
parties.

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 The authority within the organization of iSxure is not clear, who are responsible for
the negotiation with the end clients. Peter Welz indicated that also throughout the
process the CDL people at BPV were having separate conversations with iSxure's
licensing attorney, and their lead sales agent which creates confusion and
contradiction in their offerings and whole negotiation process. So Peter Welz must
have done something before the negotiations to remove the vague authority within
the organization. Before starting the agreements, he should have found out the
actual authority and then only give concessions. Peter Welz should have mentioned
that any agreement if not approved or changed, would be subject not a commitment
on his part and could be changed by Peter Welz himself.
 Peter Welz might insist on using objective criteria of the negotiation process. Also
he doesn't practice in verifying the factual declarations form BPV which might
reduce the incentive for deception.
 During the initial stages of negotiation Peter Welz should have jointly set the
timelines for reaching an agreement. A well calculated delay from BPV strike
Deadline, relying on the psychological pressure of the deadline to make iSxure
management more malleable. He should have pointed it out whenever such tactic is
employed by BPV and highlighted to Spitzer regarding the missing of time and
fading opportunity, and how BPV representative’s valuable time is lost before
reaching an agreement.
 Even though the meeting had been scheduled weeks back, with confirmation from
Spitzer that he would attend along with his team to finalize, Spitzer was not present
while starting the meeting.
 In every negotiation meeting iSxure should not start with basic fact-based pitch, and
avoid patiently answering BPV’s questions and objections from the last meeting.
This would increase the credibility of the Peter Welz team in the negotiation
process. Peter Welz should not started with the basic pitch, instead he should have
recapped what had already been negotiated.
 Peter Welz have to understand and recognize the explicit tactics of BPV which is
“Take it or leave it" tactic and negotiating about it, consider ignoring it at first. Peter
Welz team should ignore those tactics and keep on talking as if they haven’t heard it
or change the subject by introducing other solutions. Also Peter Welz should not
have started the meeting without Spitzer joining. Peter Welz should have identified
this as their pressure tactic of deliberate waiting and moved out until Spitzer joined
the meeting.
 Peter Welz should have worked out on his BATNA. It is the most advantageous
alternative course of action he can take if negotiations fail and an agreement cannot
be reached. It helps Peter Welz to focus and drive as a successful negotiator. He
shouldn’t accept a worse resolution than its BATNA. If the deals are not accurately
valued, all the considerations are not taken into account such as relationship value,
time value of money and the likelihood etc. BATNA might helped Peter Welz to carry
on effective negotiation process.

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 A minutes of meeting should have helped Peter Welz in saving time and to avoid
renegotiation process every time.
 Peter Welz gave price concession very early into the negotiation. This could have
been delayed, very much later into the negotiation.

2. What should Peter Welz do next?

Following are the options which Peter Welz can choose after that: -

 Peter Welz should turn around to it BATNA and walk out of the negotiation process
to show an impression that BPV is not interested in negotiation and further
discussion ill not going to produce any results.
 Peter Welz should approach Vitaly Smirnovsky to talk directly and start a fresh and
last round of formal negotiation with Spitzer and Bob Howards to showcase their
genuine efforts of negotiating this contract for the mutual benefits of both parties.
 Peter Welz should show his leadership skills and should remove the archetype in his
mind and convince his firm his team members of the new fresh beginning which is
waiting outside of this negotiation is not going to conclude.
 They must examine the short term and long term losses and gains if this negotiation
is going to accomplish as per the terms and conditions of BPV. BPV being the single
largest customer, could apply more pressure even after concluding the contract,
which could be more harmful to iSxure’s financials and disturbs the performance
and relationship in future.
 Peter Welz and his team also can detach from the negotiation process for some time
till Spitzer started to understand that a better offer and opportunity is vanishing
away. Peter Welz should purposely walk out of the negotiation to show disinterest.
Also, the improvement with technical arrangement team can be stopped
temporarily resulting in to put a pressure on Spitzer for reaching to an agreement as
early as possible. This strategies should help iSxure to get more concessions from
BPV.
 First of all Peter Welz should work in strengthening his BATNA, then he should
provide a final deadline strategically for this negotiation process and reveal his
BATNA to BPV .

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