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    Decision Making

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    (This is my assignment)

    Part 1 (Group): We are Re-enact a historical negotiation scenario through role play and imagined dialogue of (the US Airline and American West merge)

    1. ( in part 1.. I play the CEO of American West of this change of the American Airlines merge with American West is there any information or views you can help or give me that is a good scenario as the CEO of US airlines)

    Can you help me conduct some background research on the CEO's motives and interests in the negotiation. Could you tell me about the CEO's feelings, motives, and interests, and present them to me so I can study it. What questions would you ask of your opponent. Hide information from your opponent if the party did so in real life. Propose and respond to settlements. Perhaps the party isn't even aware of his or her interests, in which case you can present this lack of awareness by being vague in your dialogue.

    Example dialogue:

    BASEBALL PLAYERS' UNION: The players have decided to strike because they aren't happy with their contracts.

    STADIUM FOOD VENDORS: A strike might force the cancellation of the entire season! This could ruin my business!

    FANS: You already earn extremely large salaries. What more could you want?

    BASEBALL PLAYERS' UNION: Our terms are as follows: [terms X, Y, and Z]

    TEAM OWNERS: Couldn't we finish this season and just keep negotiating?

    BASEBALL COMMISSIONER: I propose the following: [settlement proposal X]

    and so on.

    Using your imagination and being spontaneous how would you view this as the CEO of American West

    Part 2: Analyze the negotiation scenario of the US Airline and American West Merge

    This is the second part I need help with as well. Can you help me answer these questions. Need as much information on this
    1. What were each party's set of interest in this?
    2. Were the parties aware of their interest?
    3. tell me about the Negotiator Overconfidence

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    Solution Preview

    STEP 1
    The CEO of America West should remember that:
    1. US Airways has declared bankruptcy twice. Motivation: US Airways is financially weak and cannot survive on its own, so it must sell.
    2. It has not been able to keep up with the price competition. Motivation: America West has successfully competed with the best airlines on price bases. So America West can turn around. US Airways.
    3. US Airways has high operating costs that make it uncompetitive. Its cost per seat mile cost is more than 10 cents where as industry average is between 7 and 8 cents. Interest: Because of high operating cost US Airways must sell or be liquidated. It is desperate.
    4. US Airways has lost $600 million in 2004 and another $190 million in the first quarter of 2005. Motivation: US Airways cannot survive with these figures, so its sell of price can be hammered down.
    5. US Airways is beyond turning round.
    6. There are severe cultural differences between US Airways and America West. Interest: it will be difficult to keep most of the US Airways employees.
    7. There would be antagonism between the employees of the two airlines. Interest: US Airways would have to be fired.
    8. Synergy is difficult because America West needs a hub in the heart of USA and US Airways does not have one. US Airways' hubs are in Philadelphia and Charlotte and these are in the east. Motivation: US Airways hubs do not meet the strategic objectives of America West so its price should be low.
    9. US Airways acquired PSA a regional airlines in California but later abandoned the route because it could not manage the operations. Motivation: US Airways cannot expand by itself so it needs to merge. ...

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