put yourself in the shoes of Alice Jones, the executive facing possible severance in our case study.
Develop a ZOPA and BATNA position for Alice, based on your review of her biography and the background information in the case study (located in the Final Project Guidelines and Rubric document in the Assignment Guidelines and Rubrics section of the course). As you develop your response, consider the following:
If Alice were fired, what would be unacceptable options for her in a severance agreement?
What options could Alice offer that could move severance negotiations toward her goal of keeping her position at Netflix?
Then, determine Alice Jones’ best alternative to a negotiated agreement (BATNA), i.e., her “Plan B.” It is important to do this before entering into negotiations to ensure that she does not agree to unfavorable conditions. Questions that can help formulate Alice Jones’ BATNA include:
What do you believe are the interests of the other party, i.e., Sharon Slade and Netflix?
What actions and alternatives are you prepared to consider if you (Alice Jones) cannot reach a negotiated agreement within your Zone of Possible Agreement?
What creative alternatives can be considered based on the interests of the other party (Sharon Slade & Netflix)?
What trade-offs on the standard ZOPA exist that could result in a creative, successful agreement?
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From Alice Jones’ perspective, being fired from Netflix is unacceptable. She has a strong track record and is confident in her abilities. An unattractive severance package would be one that offers minimal financial security and hinders her future job prospects. Ideally, she’d like to keep her position at Netflix. Here, she could propose alternative solutions that address Netflix’s concerns about her performance while demonstrating her continued value. For instance, she could offer to take on a mentorship role for a junior executive or spearhead a specific project to directly address areas flagged in the Performance Improvement Plan (PIP).
However, Alice needs a strong BATNA (Best Alternative To a Negotiated Agreement) to avoid being pressured into an unfavorable deal. Considering Netflix’s desire to streamline operations and reduce costs, Alice should anticipate they might push for a severance agreement. To strengthen her BATNA, she should update her resume and begin networking with former colleagues and industry contacts. Additionally, depending on the specifics of her contract and the details of the PIP, she might explore the possibility of legal action if Netflix terminates her employment without cause. By having a clear understanding of her BATNA, Alice can confidently negotiate for a severance package that provides a financial safety net while she searches for a new opportunity, or even argue to stay on at Netflix in a way that addresses their concerns.