Capital Mortgage Insurance

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To achieve their goal to get broker services as good as Merrill Lynch’s they have to acquire a good broker service provider as good as Merrill Lynch’s got Kendall has to consider approach of ‘Collaborate’. Because this acquisition will definitely will give profit to both party so they should creatively problem solve so both parties win and together they can compete with Merrill Lynch’s.

In this case they was collaborate with the Metropolitan Realty Network which is they build strong relationship to get profitable outcome. Strategy also can be apply in acquire employee relocation services. In order to acquire CTS ‘Competitive’ strategy would be best alternative to CMI as they have high concern in outcome and lower for relationship it is because they want to be fully owner and got fully control of CTS and being competitive they would be able to achieve the goal.

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Figure 1: Negotiation strategies: Alenxender Hiam and Roy J. Lewiki (1996)

4.2 SWOT Analysis

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Figure 2: SWOT Analysis: Albert Humphrey (1970s)

Identification of SWOT is important because it would help party to understand what step in planning to achieve the goal. In SWOT analysis Kendall need to answer question that generate meaningful information for each category (strengths, weaknesses, opportunity and thereat) to make analysis useful and win their negotiation. Below list SWOT for CMI, after Kendall successfully analysis all this information they can start proceed with the plan to grab opportunity and to create possibility to win their negotiation.

Strength

Weakness

- Acquisition with Norwest granted them with management and financial support

- Already got good relationship with the local banker, realtor, saving and loan and other company.

- Didn’t have link with any broker services provider.

- Never involved in any employee relocation services industry.

Opportunity

Threat

- Acquisition with the Metropolitan Realty Network.

- Rising of industry of employee relocation service.

- Merrill Lynch relocation management and services were getting larger and larger share of their referral fees

- Conflict of interest and need with CTS for acquisition.

5.0 Evaluating Alternative

5.1 Pros and Cons - Collaboration Strategies

Pros

- Both sides can win, when both parties do for collaborating, this will certain give them advantages to get win-win negotiation advantages.

- Personal relationship can improve because you both care enough to try and make each other happy. This will help them build long term business relationship which will guarantee this negotiation benefit to both parties.

- Can redefine the outcome, both parties can be more cooperating in making decision to get beneficial outcome from negotiation.

Cons

- One Party is motivated only to accomplish its own end. Even though with collaborating but every party will have their own objective to achieve and this lead to action to achieve the goal and will jeopardize their negotiation relationship.

- One party expects the other to be competitive and prepares for negotiation based on this expectation

- Can take a long time as their need to get understanding and doing decision that will give benefit to both parties.

5.2 Pros and Cons’ - Competitive Strategies

Pros

- Take less of time as one party will only focus into outcome rather than the relationship with other party. This can lead motivation to win the negotiation only.

- It can lead to automatic victory if you have more power than the other person. It is because you can influence other party to accept you decision.

- Maximize outcome from negotiation.

Cons

- The other side can become resentful. This negotiation only focuses to outcome only rather than relationship with other, this will causing other party to felt unsatisfied with the outcome and create negative relationship.

- Forcing can lead to stalemate if both sides try to do it. When to party refuse to back off from negotiation and fight to make sure their own interest and needs will be fulfill and this is will lead to stalemate.

- Costly and time consuming in forcing other party to follow out own needs and interest.

5.2 Pros and Cons – SWOT

Pros

- It gives us a systematic way to analyze a complicated situation

- It prompts us to find ways to build on our strengths, deal with our weaknesses, take advantages of opportunities and prepare for threats

- It’s fairly simple to understand and use.

Cons

- We may have a tendency to overemphasis our strengths. Critical thinking to make sure strengths are capable to make genuine difference to your business’ competitiveness

- Analysis paralysis is a real risk – don’t get bogged down with it – the trick is finding a balance between what you need to know and what you don’t.

- It’s fairly simple to use – but that opens it up to the risk of people using it without much thought, in which case it is useless.

6.0 Selecting Best Alternative

Negotiation it essential skill not only to business person but also for everyone and if we aware to use this skill we will be able to grab opportunity to negotiate strategically and will get maximum outcome that profitable. All alternative will be best alternative if one parties can use it in best way, it