Premium Essay

Luna Pen

In: Business and Management

Submitted By edelichleviking
Words 1024
Pages 5
Kim Chiang
Luna Negotiation Case Analysis

Deutsche Grusskarte Gesellschaft (DGG) and Global Service BATNA
The Luna Case served as a dynamic negotiation process as it surfaced gender, cultural, and geographical barriers. In William Ury’s book Getting Past No, each of the five barriers to cooperation was touched upon: your reaction, their emotion, their position, their dissatisfaction, and their power. Realistically, there were many plausible negotiation strategies that Erika Graeper could have pursued, but in my opinion DGG’s strongest BATNA was to open up communication with Mr. Feng via formal letters and phone calls and demand compensation from Global Services for past and future sales (15% royalties with proof of monthly income). In bridging partnership, DGG would grant Global Services full permission for Luna pens to be sold in the Southeast Asian market. Global Service’s BATNA would be to continue to expand the market of pens and be granted fully autonomy of the Luna pen without being pressed for legal action.

DGG [Represented by Erika Graeper] and Global Service’s Interest
DGG’s current interests are not to revamp the production of the Luna pen, but they are interested in receiving royalties from Global Services for past, present, and future sales. In the negotiation process, DGG must remember that their company discontinued manufacturing and selling the pen years ago and any type of compensation should be recognized as a triumph. Alternatively, Global Services’ interests are to possibly expand the pen considering its current success and to stay away from any types of litigations. In order to deter from legal action, Global Services are interested in negotiation with possible agreement to pay royalty and licensing fees.

Erika’s Approach to the Negotiation
Erika approached the Luna negotiation fairly effectively, but there are areas where she could…...

Similar Documents

Premium Essay

Luna

...Josh Gatti 4/12/12 Wri 118 Luna Negotiation Case Analysis In the Luna case that involved the companies DGG and Global Service, DGG was trying to receive payment for trademark infringement of a pen that Global Service was currently producing. In the negotiation, Erika did not have a very strong BATNA, which was getting another company to manufacture the Luna pen after a potential lawsuit that would likely only force Global Service to cease production. DGG's interest was simply to receive money for the use of the trademark because they had no intentions of resuming the Luna pen part of their business but still wanted the payment for its use or a potential partnership that would benefit both parties. However, Global Service's interest was simply to keep manufacturing and distributing the Luna pen as it represented 25% of the company's revenue. If Global Service could not negotiate with DGG and possibly be forced to stop producing the pen in a lawsuit, Global Service would have only one BATNA, which is to find another pen to manufacture instead of the Luna pen. While I liked many of Erika's approaches in negotiating, I still would still have changed many things. I strongly agreed with her first two approaches in dealing with Mr. Feng as she displayed a very polite and accommodating attitude in her first message to the CEO and then properly asserted herself when the CEO was clearly brushing her off. In the first message she sent, I thought it was a great idea to be very courteous...

Words: 887 - Pages: 4

Premium Essay

Luna Pen

...Maria Arzola WRI 118 April 10, 2012 Luna Negotiation Case Analysis After reading the Luna Pen case, I did not think that Erika’s approach was the best one. All of her actions, although I know were strategic and worked best for her, were somewhat unwise. For example, I though that the first mistake she made was in the very first situation, when she initially decided to contact Feng. She made the decision to start with an open approach, but she failed to realize that there might be cultural barriers. Although her tone was neutral, by giving him a lot of information through fax, I think that she limited herself from a strategic point of view. Some of the things she mentioned in her fax, I feel, should have been spoken about in person. Tones and emotions can often be misinterpreted: Even the simplest sentence can sound like a threat if the opposing party is in the wrong mood. This move, overall, gave Feng the upper hand on the situation, because it gave him time to think his strategy over. The second mistake that I think Erika made in her approach came in situation 2, her move right after Feng responded to her initial fax. Erika gave into her emotions and lost her temper a bit. She wrote Feng notifying him of the company’s intent to sue and told him of their attempt to find other potential business partners for a Luna venture. Once again, I think this gave Feng the upper hand. Not only did he write to the president of Erika’s company, but he now had the upper hand......

Words: 1090 - Pages: 5

Free Essay

Luna Pen

...Alza en nota de México generará confianza para invertir * La calificación crediticia de México se apoyó en factores relacionados con las reformas estructurales El Centro de Estudios Económicos del Sector Privado considera que los resultados de las reformas estructurales aprobadas en los últimos meses comenzarán a mostrar resultados en 2015. CIUDAD DE MÉXICO (09/FEB/2014).- El aumento en la evaluación que hizo Moody's  a la calificación soberana de México es una buena señal que generará confianza sobre la economía como un destino seguro y atractivo para invertir, pero hasta el momento estas son sólo expectativas. Así lo consideró el Centro de EstudiosEconómicos del Sector Privado (CEESP) al afirmar que los resultados de las reformas estructurales aprobadas en los últimos meses comenzarán a mostrar resultados en 2015. Será a partir de entonces, anticipó, cuando habrá posibilidades de corroborar si lo que se apruebe como leyes secundarias fue lo necesario para que el país se consolide como un importante atractivopara la inversión. De lo contrario, simplemente habrá que seguir creciendo inercialmente y volver a los niveles de calificación equivalentes a ese entorno, advirtió en su reporte semanal "Análisis económico ejecutivo". Pensar en un ritmo de crecimiento mucho más alto y mayores niveles de empleo y bienestar, son hasta ahora un buen deseo en tanto no se aprueben las leyes secundarias y se corrija el desequilibrio fiscal. "Lo importante en estos momentos...

Words: 630 - Pages: 3

Free Essay

Innovation of the Pen

...Evolution Of the Pen Regg Penn MAN 4054 Final Paper Professor Marcelo Alvarado-Vargas Where did the Pen come from? I can argue that everything that you and I know is majorly because of the existence of writing equipment and the pen. It’s clear that most of the fabric of history, was recorded by some previous form of the pen, along with some kind of paper. Pens were not always around however the concept of writing and recording images and symbols has been around since the beginning of time. Take the caveman for example; there are thousands of ‘cave paintings’ or drawings that have been either preserved or recorded so that curious individuals could see them. Those drawings were probably drawn with rock at first, then later on chiseled, which I would imagine was very time consuming. I remember learning in a History Course that Ancient Romans carved documents onto wax sculptures. As the progression and the knowledge of human beings expanded, new writing equipments became available. With invention of paper or papyrus, the pen came into existence. According to Maxfield Carroll, “The word "pen" is derived from "penna," the Latin word for a feather or plume. And that is exactly what the early pens were---quills or reeds with the tip carved to form a nib” (Carroll). The Quill was basically a bird feather being dipped into ink. The Quill pen was first used in Western Europe for writing church documents. This was sometime around 6AD. This is usually the pen that is seen in......

Words: 2450 - Pages: 10

Premium Essay

Paint-Pen

...Case Background Paint-Pen, Inc. is a company that manufactures and distributes liquid paint dispensed in ball-point tubes. The product is sold under the registered trademarks “Paint-Pen” and “Liquid Embroidery”. Aside from bearing the Good Housekeeping Seal of Approval (awarded in 1973), Paint-Pen distributes its products under the home party plan with exclusive franchise agreements with its distributors. On April 19, 1997, the company was offered for sale to Mr. Warren G. Hamer. Provided with the exhibits that contain the summary of Terms and Conditions of Sale, audited Income Statements and Balance Sheets, and Company History, Mr. Hamer needs to decide whether or not to place a bid, which is due on April 24. However, Mr. Hamer was apprehensive about the deal. Analysis To be able to arrive at a decision, Mr. Hamer needs to assess the value of the synergies the acquisition would offer. Operating Synergy Operating synergies can affect margins, returns and growth. However, in the case, we could not identify the operating synergies of the combined firm. Reason for this is that we do not know the details of Mr. Hamer’s company and to which industry it belongs in. If Mr. Hamer’s firm is also under the crafts and hobby industry, the acquisition would definitely have value by the following possibilities: economies of scale, greater pricing power, positive effect of combining functional strengths, and higher growth in existing markets. For this case, we determine the value of......

Words: 683 - Pages: 3

Premium Essay

Patriot's Pen

...Patriot’s Pen- What I Would Tell America’s Founding Fathers Founding fathers are the male participants of some historical events like the signing of the Declaration of Independence, the Bill of Rights, and the U.S Constitution. Some of the founding fathers that I hear most about are Benjamin Franklin and Thomas Paine. Only 39 individuals signed the constitution. Various people signed the U.S Constitution ranging from ages as young as 26 years old all the way up until 81 years old. The founding fathers include multiple parties with two of them being federalist and even past presidents. Some people that did not attend includes: Thomas Jefferson, John Adams and John Hancock. In my own opinion I would tell the Founding Fathers that they did a great job fighting for America. If it wasn’t for the founding fathers we wouldn’t even celebrate the simplest holiday Independence Day. We as youth wouldn’t have as many opportunities and freedom as United States citizens. Also I would tell the founding fathers that I am thankful and happy for everything they’ve done because they did not have to sign any documents, they wanted to. Those whom participated made the right decisions to put America as a whole on track and maintain structure. Have you ever thought about how it felt to live in the olden days with the Founding Fathers? Would you have made an executive decision to sign your signature for a better America? Just like in today’s society they say when you vote every vote counts. I......

Words: 317 - Pages: 2

Free Essay

Heneral Luna

...Heneral Luna: Reflection Paper Unlike most films about heroes, this one manages to tell a compelling story about the brilliant and fiery general. In this film, Antonio Luna is depicted as a real human being, full of virtues as well as faults. It stimulates a special kind of reflection we need in rethinking our own state of patriotism and sense of nationalism and nationhood. This film enables us to understand not just the life of Luna but also the historical context of his struggle and heroism. The Choleric Filipino General Antonio Luna as what I have perceived from the movie has this notoriety of being a “hot-headed” individual but he is beyond than that. I find Antonio Luna as powerful, passionate and resilient. He is fierce and is not afraid to go after what he wants. He has a very complex personality he is extremely powerful and capable but is also highly emotional. I would see him if he is in the right people that surrounds him as a very capable General and able to accomplish anything. But when he goes dark side (his demons) and out of balance he can become a terrible tyrant, equally capable of using power for destruction and manipulation. He is fearless in any conquest and will not back down to anyone. He doesn’t take no from anybody. On the outside I see him as tough, mysterious and unable to be broken. Deep down, he is quite fragile and complex. He has this deep wisdom but often comes with it are resentment and contempt for the common man. He only really respects......

Words: 344 - Pages: 2

Free Essay

Heneral Luna

...Jamilla, Krizza Mae P. Filipino BSTM 1-3 HENERAL LUNA Noong panahon ng Pilipinas-Amerika war, sinusndan ni Heneral Luna ang pinaka magandang kasaysayan ng bansang Pilipinas sa pamamagitan ng matatalinong military n gating bansa. Si Heneral Antonio Luna ay sinubukan na pamunuan ang kanyang mga tao sa bansa laban sa oinunong kolonyal nab ago at luma para makaangaat sa sarili nilang hangganan pagtatalo para tuparin ang pangako sa bansang Pilipinas na Rebolusyon. Si Heneral Luna ay pinaglaban ang kalayaan ng ating bansa o ang Pilipinas ngunit may mga miyembro na nasa mataas na posisyon ay pilit na mas pinili na lang na makipagsundo sa kabilang bansa ang United States of America. Ang paglalaban na naganap ay napaka bayolente sa bagong miyembro na taga bigay payo ng gobyerno pero si Heneral Luna at ang kanyang mga taga sunod na tao ay kumls agad kahit ang desisiyon ng kanyang mga military ay pinipigilang makipaglaban sa mga kawal na nirerespeto o sinusunod lang ang kanilang presidente na si Aguinaldo. Sa kasalukuyan, ang heneral ang madalas kilala sa kanyang pagpipigil ng galit at may respeto sa kanyang sarili kaya ito ay nauwi sa kanyang kamatayan. ANg grupo ng tagapamahala ng nagbabantay ay papatayin siya dahil sa pulitikang dahilan na may kinalaman sa maraming bagay. Habang ang mga Amerikano ay mabilis na sinisi ito kay Aguinaldom Ang misteryo ay hindi kailanman......

Words: 422 - Pages: 2

Free Essay

Luna

...Heneral Luna ("General Luna") is a 2015 Filipino historical biopic film depicting General Antonio Luna's leadership of the Philippine Revolutionary Army during the Philippine-American War. It opens with the beginning of hostilities with the American colonizers, and ends with the assassination of Luna on June 5, 1899 - a period in which Luna served as Supreme Chief of the Army under the First Philippine Republic. Directed by Jerrold Tarog and produced by Artikulo Uno Productions, the film received critical acclaim from critics and audiences alike, praising its cinematography, writing, acting and plot. The film has been selected as the Philippine entry for the Best Foreign Language Film at the 88th Academy Awards. With a production budget of 80 million pesos, it is one of the most expensive Filipino epic historical films ever released. On September 29, 2015, it broke previous record of ₱160 million to become the highest grossing Filipino historical film of all time. Despite a 50% discount offered student viewers, by the beginning of its fourth week the film was well on its way to reaching the ₱200 million gross ticket sales it needs in order to break-even, after cinema screening costs. It has been said that a film is a characterization of diverse emotions and motions of a society (Santillan, 1998, 155, as cited in Navarro, 2008, 133). Although History and Film have their own characteristics and potencies as disciplines and fields of knowledge, there are times......

Words: 376 - Pages: 2

Premium Essay

Clique Pens

...For the exclusive use of K. Larsen, 2016. 9-914-525 DECEMBER 16, 2013 FRANK V. CESPEDES JAMES KINDLEY Clique Pens: The Writing Implements Division of U.S. Home A fierce thunderstorm had just brought brief relief to the sweltering mid-August temperatures in Tampa, Florida, as Elise Ferguson, president of the writing implements division of U.S. Home, Clique Pens, stared at the notepad in front of her. She had jotted some thoughts about just whose needs were more important for Clique to satisfy—its retailers or its consumers? Fortunately, the 2013 back-to-school sales of her core writing implements product lines appeared to be on goal for a 3% increase over 2012. These sales were not without a cost, however, as various discounts, allowances, and other off-invoice deals had pushed gross profit margin down from 42% in 2010 to just over 36% in 2012. (See Exhibit 1.) Another one of Ferguson’s primary goals for Clique was to stop this decline in gross profit margin percentage and grow its overall gross profit by 4%. She hoped to accomplish this by growing revenues and increasing the gross profit margin. At this point, she felt it was unlikely that the latter would happen this year (2013). Ferguson wondered, were all these “giveaways” to retailers necessary? If so, couldn’t the monies be shifted to a form referred to generally as Market Development Funds (MDF), which would in theory allow Clique to have more control over their use in driving sales of its......

Words: 5477 - Pages: 22

Premium Essay

Classic Pen

...overall profitability of Classic Pen company goes down despite of the introducing of its new two products, RED and PURPLE pens, which show more profitable than the traditional BLUE and BLACK product. These two new products are expected to be sold at premium selling prices about 3% and 10% respectively in the order and the new line, particularly PURPLE, in fact, showed much higher margin over the others. The problem was addressed is that the production technology required for the RED and the PURPLE pens demand specifications. Especially, making the RED color needs more changeovers, which leads to waste lots of time on purchasing and scheduling and management activities as well as money. In order to come up with a management decision under this situation, the controller is considering of using the activity-based costing (ACB) system to create the financial statement instead of using the traditional, job order costing system. Unlike the job order costing which maintains records and allocate cost on top of direct labor, ABC focuses on activities. Therefore, it leads more cost pools to be used to assign overhead costs to products. Four cost drivers which directly related to activity cost pools to assign overhead costs could be used for this case. As a result, costs are assigned more directly on the basis of the cost drivers used to produce each product. II. Strengths, Weaknesses, Opportunities and Threats 1. Strengths and Weaknesses Classic Pen Company has a production......

Words: 484 - Pages: 2

Free Essay

Classic Pen

...1. ABC revised product costs for 4 pens: Indirect labor (3 activities) ($20,000) a. .50 scheduling/ handling production runs= b. .40 physical changeover= c. .10 maintain records on 4 products Operate. Computer systems: ($10,000) a. .80 included in production run activity b. .20 keep records on 4 products Machines ($14000) a. Machine depreciation b. Machine maintenance c. Energy to operate machines Direct labor= 20,000+8000 (fringe benefits) = 28000 Indirect labor= 20,000+8000 (fringe) =28000 See Excel file for product costs calculations and new profit margins Comparing two profit margins Traditional vs. ABC Blue Black Red Purple Total Traditional 13.6% 13.3% 14.8% 18.2% 13.5% Profit Margin ABC 21.6% 22.67% -44% -200% 14% 2. Looking at the new product costs per unit (using ABC) the cost per unit for each product is much different then found under traditional. The cost per unit found under the ABC method was different than what the unit price for each product was being sold for. For blue and black pens the company was making a profit on each pen there were selling (comparing $1.18 product cost for blue and $1.16 for black which were each being sold for 1.50). Red pens cost $2.23 each to make and were being sold for 1.55 each which resulted in a loss. Purple pens were losing the company even more money with costing 4.95 to produce but were only being sold for 1.65 per pen. Under further calculations using the ABC method it was found that blue was......

Words: 693 - Pages: 3

Premium Essay

Luna Pen Case Study

...Immersion Program: Case Analysis (Winter 2011) Luna Pen Key issues The most important issues are that the Luna pen contributes the major sales of Global that reached to one fourth of total sales and Global is ready for a major expansion. It showed that there is already a good base of customers in Asia for the Luna pen, and it would be detrimental if Global were to lose the product. Whereas Luna pen produced a lot of profit to Global, DGG doesn’t want to be in the fountain pen business which weakens their lawsuit. Also, the company doesn’t have any real damages. The lawsuit would be expensive, there is not enough corporate support to pursue a lawsuit, and there is no guarantee that they will not be responsible for the costs of both parties in the lawsuit. A cooperative strategy is the only way DGG and Global can productively do business together. Global cannot do business in the American or Europe without an agreement with DGG. DGG cannot realize a benefit from Luna without an agreement with Global. The negotiation should be agreed on collecting past revenue, collecting future revenue, and selling or licensing the Luna name. An agreement for a percentage of profit will directly influence the compensation DGG receives. However, Mr. Feng will probably not be interested in a relationship unless a mutually beneficial agreement can be arranged. Alternative Strategies There’s a conflict situation showed here, for Erika, she doesn’t have much time to play...

Words: 1647 - Pages: 7

Free Essay

Luna Pen

...9-396-156 REV: FEBRUARY 7, 2005 KATHLEEN MCGINN MICHAEL WHEELER Luna Pen (A) A Puzzling Request Erika Graeper absently twirled the Luna in her fingers. It was not as massive as the Mont Blanc’s Meisterstück or the most expensive Pelikans, but the Luna had a comfortable heft and balance. It was handsome, as well. The pen’s midnight blue barrel was accented by a gold clip, and an elegant crescent moon was inlaid at the top of the cap. Erika smiled to herself, as the Luna tripped memories of both pleasure and small embarrassment. It had been given to her by her grandmother a dozen years ago when she had been about to start university. Erika had promptly used the pen to write a thank you note on crisp white stationery and had solemnly said that it would be a great help in her studies. Once at school, however, she had reverted to ball point pens and mechanical pencils. Since then, the Luna had been tucked, unused, in the back of a desk drawer. The gift certainly would still have been forgotten had not an odd letter happened to come to her desk at DGG the first month she started to work for that company. Judging by the notes that had been scribbled on it, the letter had gone past three other people before being forwarded to her. Her immediate boss, Wilhelm Mann, had scribbled a cryptic instruction that said in its entirety: “Please respond—Luna out of production for years.” Mann was out of the office and was unavailable to provide more information, so Erika...

Words: 5196 - Pages: 21

Premium Essay

Luna

...Kim Chiang Luna Negotiation Case Analysis Deutsche Grusskarte Gesellschaft (DGG) and Global Service BATNA The Luna Case served as a dynamic negotiation process as it surfaced gender, cultural, and geographical barriers. In William Ury’s book Getting Past No, each of the five barriers to cooperation was touched upon: your reaction, their emotion, their position, their dissatisfaction, and their power. Realistically, there were many plausible negotiation strategies that Erika Graeper could have pursued, but in my opinion DGG’s strongest BATNA was to open up communication with Mr. Feng via formal letters and phone calls and demand compensation from Global Services for past and future sales (15% royalties with proof of monthly income). In bridging partnership, DGG would grant Global Services full permission for Luna pens to be sold in the Southeast Asian market. Global Service’s BATNA would be to continue to expand the market of pens and be granted fully autonomy of the Luna pen without being pressed for legal action. DGG [Represented by Erika Graeper] and Global Service’s Interest DGG’s current interests are not to revamp the production of the Luna pen, but they are interested in receiving royalties from Global Services for past, present, and future sales. In the negotiation process, DGG must remember that their company discontinued manufacturing and selling the pen years ago and any type of compensation should be recognized as a triumph. Alternatively, Global......

Words: 1024 - Pages: 5

Captulo 62 de Dragon Ball S | saison 8, épisode 8 - Un chien disparaît | Komedije