Essar Shipping Limited. · NSE:ESSARSHPNG
Essar Shipping — Investor Presentation (January 2009)
25 slides from Essar Shipping's investor presentation, January 2009
Slide 1: Major Prerequisites to Strategy Formulation
Major Prerequisites to Strategy Formulation 1. Situation Analysis 2. Assumptions 3. Missing or faulty data 4. How missing data comes to be missing a. Missing information b. Excessive cost of information c. Not knowing how to obtain the information d. Not understanding what information was required e
Slide 2: Negotiators Abilities
Negotiators Abilities A negotiators abilities to exert influence depends upon combined total of verities of factors. Knowledge about People Interest involved A good working relationship Having good alternative to a negotiated settlement.
Slide 3: Good Input for Good Strategy
Good Input for Good Strategy Good Input - the Foundation of Good Strategy
Slide 4: Value of Perfect Data
Value of Perfect Data Value of perfect data - optimizing cost/time vs. perfection • Identify all missing data and either obtain it (if possible) or attempt to make reasonable presumptions. • Identify all presumptions and determine appropriateness of making presumptions at these specific places. • Gi
Slide 5: Strategic Steps
Strategic Steps Strategic Steps that could help your functions Evaluate your function Make Choices Establish Priorities Develop Action Plan Implement Action Plan
Slide 6: Tactics Vs Strategy
Tactics Vs Strategy We need to understand the current environmental situation from a tactical standpoint. But from a strategic standpoint what we need to understand is the future environmental situation.”
Slide 7: Ignorance Vs Knowledge
Ignorance Vs Knowledge Ignorance is dangerous, but it is far better to be knowingly ignorant than to have false knowledge. The truly wise person is always willing to say “I don’t know.”
Slide 8: Great people, not Great Strategies are what made it all work
Great people, not Great Strategies are what made it all work Jack Welch GE
Slide 9: Evaluate the ZOPA
Evaluate the ZOPA Zone of Possible Agreement (ZOPA): The space between the seller’s reservation value and the buyer’s reservation value. ZOPA Min Willingness to Accept Max Willingness to Pay Seller’s Res. Price Buyer’s Res. Price
Slide 10: Capturing Value in Negotiation
Capturing Value in Negotiation Assess the ZOPA Change the ZOPA Take the ZOPA
Slide 11: Capturing Value in Negotiation: Should you make the first offer?
Capturing Value in Negotiation Should you make the first offer?
Slide 12: Anatomy of aggressive first offers
Capturing Value in Negotiation Anatomy of aggressive first offers: High Aspirations Aggressive Opening Offers Better Final Outcomes
Slide 13: What should your opening offer be?
Capturing Value in Negotiation What should your opening offer be? Factors to Consider The ZOPA The Justification The Relationship The Context
Slide 14: What should you do if the other side opens aggressively?
Capturing Value in Negotiation What should you do if the other side opens (aggressively)? Separate Information from Influence Ignore their anchor Re-frame and re-anchor The person who defines the negotiation, often wins the negotiation
Slide 15: Capturing Value in Negotiation
Capturing Value in Negotiation What if the other side makes the first offer… and you love it! Any time you are surprised in a negotiation, you should begin to investigate! Manage your outcomes and their satisfaction… it is possible to get a good deal and a good relationship OR a bad deal a
Slide 16: Capturing Value in Negotiation
Capturing Value in Negotiation Should you make the first offer? What should your opening offer be? What should you do if the other side opens (aggressively)? What if the other side makes an offer… and you love it! Manage your outcomes and their satisfaction
Slide 17: The Virtue of Efficiency
The Virtue of Efficiency One of your goals in every negotiation should be to reach an efficient agreement. An agreement is efficient if no party can be made better off without making another party worse off. This is not the same as “win-win”… The virtue of efficient agreements is that you do
Slide 18: The Benefits of Contingency Contracts
The Benefits of Contingency Contracts Contingency contracts allow negotiator to diagnose the honesty of the other side (are they lying to you?) and to solve problems of trust. Contingency contracts allow negotiators to leverage their differences. Don’t argue over the future. Bet on it.
Slide 19: Trading on Differences to Create Value
Trading on Differences to Create Value Differences in valuations and priorities Trade issues you value less than the other party for issues the other values less than you. E.g., quality vs. price, authority/control vs. compensation Differences in assessments of the probability of future even
Slide 20: Value Creation!
Value Creation! A great idea… but how do we get there in practice?
Slide 21: The Key to Creating Value
The Key to Creating Value 1. Add issues to the negotiation and negotiate multiple issues simultaneously. 2. Look for differences in priorities and valuations. 3.Trade on Issues: “logrolling” Information exchange is critical… But information exchange is not always easy!
Slide 22: Creating Value in Negotiation
Creating Value in Negotiation Remember: You Win ≠ They Lose Focus on what you don’t know… exchange information Explore all the ways in which they can create value for you Find out all the ways in which you can create value for them Add issues Negotiate multiple issues simultaneously Ex
Slide 23: Ways to Resolve Disputes
3 Ways to Resolve Disputes Rights Based Approach: Who is right, and who is wrong? Who has the legal right in this dispute? Who is likely to win in court? Who has the moral high ground? What is a third-party likely to decide? Power Based Approach: Who has a stronger BATNA? Who is in
Slide 24: Interests, Rights, and Power
Interests, Rights, and Power Most disputes require a combination of approaches. Power and Rights determine & strengthen your BATNA. Understanding underlying Interests helps to create value and to achieve agreements that are better than your BATNA. However, the Interest Based Approach is ofte
Slide 25: Interest-Based Negotiation
Interest-Based Negotiation Pre-Negotiation Recognize that everyone has different info. & a different perspective: conflict is natural Understand the consequences of impasse – What is your BATNA? What is theirs? Help them understand the consequences of impasse Use power (as needed) to bring
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