Negotiation Naranja: Teaching Note

(Do not share with students)

In the environmental space, many problems we face are presented as either/or. We often see a ‘business mindset’ as aggressively pursuing what we need to succeed, and using others (collaborators, partners, etc.) as tools along the way. New thinking in business promotes approaching negotiations as looking for ways to “grow the pie”, rather than arguing about ways to divide it up to get larger slices for ourselves.  It’s important to learn that negotiation doesn’t always mean that someone loses, and that asking the right questions is critical to success. This activity offers proof that the mindsets we talk about in the first lesson can win in the business world.

In Negotiation Naranja, students are asked to find a solution for their given challenge, which are high stakes and emotionally charged. They have been informed of animosity between the negotiating parties and so are primed to take a combative posture. Additionally, one party is given more bargaining power than the other. Unbeknownst to each party based on the information provided, there is a win-win solution available: Mr Anderssen’s company just needs the juice from the oranges, and Dr. Helsing’s company needs the skins. 

Split students into pairs with one student as Mr Anderssen and the other as Dr. Helsing. Allow students to negotiate for up to 30 minutes, or until they have reached a deal. Some students may not discern the win-win solution, and may come up with other solutions. Have students share the deals they have struck and how they came to these solutions, with a particular focus on how those who reached a win-win deal got to it.

Negotiation Naranja: Briefing Notes for James Anderssen

Your name is James Anderssen. You are a pharmacologist working for a multinational drugs company, DrugInternat Inc(DI). Your company has discovered a drug that gives protection against a horrible disease, Tintonella. Tintonella is extremely dangerous for women in late pregnancy. It often causes brain damage to unborn children.

Unfortunately, the disease is increasing. There is likely to be an epidemic this summer in the South of the country. The Minister of Health has asked your firm to mass produce the drug to fight this outbreak. Without your drug, hundreds of women will die, and thousands of children will be born with defects.

Interestingly, the drug is produced by a combination of natural products, the main ingredient of which is found in the juice of very special oranges, but only oranges of the old variety, SUNNY, which are still grown in small quantities in rural parts of Sicily.

Your firm has invested a lot of money to develop this drug, which takes four months to produce. Now, you and your firm are about to benefit from your hard work and dedication. You stand at the edge of a golden future as the firm’s leading scientist. Your discovery is almost certain to make you a national celebrity.

After a lot of difficulty, you have found an importer of SUNNY oranges. Ms Carmen Lavista has captured the entire market. She has a supply of 4,000 SUNNY oranges. She is selling them at the very high (but affordable) price of $12,000. You only need 3,000 oranges to make enough of the drug for your campaign.

Unfortunately, when you contact Ms Lavista she informs you that Dr Gudrun Helsing also wants to buy the oranges for her company, Envirochem Inc. Envirochem are competitors of your firm. You have clashed with them in the past. On one occasion, a dispute of a patent led to a long, bitterly fought court case that cost your firm a lot of money.

Your Director has given you complete freedom to negotiate a deal with Dr Helsing. Ms Lavista is happy to go along with any agreement your two firms care to make, as long as she gets her money. You have $25,000 that you could use to buy the oranges that you need.

Last week, Dr Helsing sent you an invitation to meet at her office to sort things out.

Today is the day!

Negotiation Naranja: Briefing Notes for Dr. Gudrun Helsing

Your name is Dr. Gudrun Helsing. You are a biologist working for a multinational chemical company, Envirochem Inc.

Your company has discovered how to manufacture a powerful chemical foam. When sprayed onto chemical spills, this foam neutralizes the toxins and helps the cleaning up operation afterwards. In recent trials the foam showed fantastic potential against a large range of toxins. These included dioxins and the extremely dangerous polytetrahydroxyphenols.

A large amount of polytetrahydroxyphenols have recently been found in the former Soviet Union. This was left over from the chemical warfare programs. The Minister of Foreign Affairs has asked your company to mass produce the new foam. They want to give this to the Russian Government. The Ministry has secretly told you that an old Russian missile silo is in immediate danger of releasing large quantities of the poison into the environment. This will threaten the lives of hundreds of thousands of people in Sibirsk city, and the important Taiga National Park which was recently designated a site of world natural and cultural heritage by UNESCO. You have less than one month to get the foam to this site or else there will be a disaster.

Interestingly, the drug is produced by combining natural and synthetic products, the main natural ingredient of which is found in the skin of special oranges, but only oranges of the old variety, SUNNY, which are still grown in small quantities in rural parts of Sicily.

Your firm has invested a lot of money in developing this foam, which takes only four days to produce. You also hold the patent to the foam. Now you and your firm are about to see the results of your hard work and dedication. You are standing at the threshold of a golden future. As the firm's leading scientist, you are looking forward to being acclaimed a hero by the Russian people.

After a lot of difficulty, you have found an importer of SUNNY oranges. Ms Carmen Lavista has captured the entire market. She has a supply of 4,000 SUNNY oranges. She is selling them at the very high (but affordable) price of $12,000. You only need 3,000 oranges to ensure a sufficient supply of the foam for the current crisis.

Unfortunately, when you contact Ms Lavista she informs you that a Mr James Anderssen is also interested in purchasing the oranges for his firm, Druginternat Inc (DI). DI are competitors of your firm. You have clashed in the past. There was even one matter over a disputed patent that led to a long and bitterly fought court case. This case cost your company a lot of money.

Your Director has given you complete freedom to negotiate a deal with Mr Anderssen. Ms Lavista is happy to have any agreement your two firms make as long as she gets her money. You have $65,000 that you could use to buy the oranges that you need.

Last Week, you invited Anderssen to your office to sort things out. Today is the day!