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Creative Works Limited Case Study Solution

Creative Works Limited Case Study Solution – Company Analysis

  1. Time Context

The time definition of the case study originates from the events of the ongoing discussions, which is during a time when the Success Inc. required engaging a new supplier. It is not clear on the specifics of the actual date and year of these proceedings.

  1. Viewpoint

Creative Works Limited case study takes the perspective of the case from the managing director’s position, as he is involved in the negotiations as the highest company official.

  1. Central Problem

In the negotiations, it is clear that the relationship that Creative Works Limited has with the several named Creative Works Limited Case Study Solutioncompanies is not defined and it appears to confuse even top company officials such as the managing director and the director. Complex relationship without a definite structure on how the managing director of Creative Works Limited obtains the proxy status over the individual companies presents a challenging negotiation beginning. In analyzing the Creative Works Limited structure and its authority over the other companies, it is difficult to generate the responsibility and liability that the Creative Limited would assume in the transaction. In standard corporate practices, several players must have clear engagement terms for use in determination of the roles played in business context. This aspect is conspicuously absent from the explanation given by the managing director and the director involved in the negotiations.

  1. Statement of Objectives  

    a) Must Objectives
  • Creative Works Limited must be prepared to present a professional team capable of performing negotiations on behalf of the alleged partnership. Comparing the compilation of the negotiating delegations, Creative Works Limited team appears to be inferiorly put together.
  • Assuming that the different companies exist as individual companies but cooperate with Creative Works in certain respect, creative Works must provide the scope of their business interactions.
  • Availing the financial records of a corporation is paramount in acquiring business deals and Creative Works Limited must always provide such information as and when needed.
           b) Want Objectives
  • Creative Works Limited could be losing further in business in the future for associating with the other companies as amorphously as presented in the case. Revelations of the status of some of the companies such as business inexperience based on the time of formation of Happy Eyes Pty, business incompatibility with Trust Me Pty as well as bankruptcy issues with Coughing Bear Limited could pose problems. It would be important if Creative Works dissociated itself from these companies or considered their complete takeover.
  • Creative Work Limited presentation appeared compromised perhaps due to improperly conducted assignment and a request of more time would perhaps be important in the ongoing negotiations. Despite the fact that a delaying tactic would be unfavorable to business and earnings, it is perhaps better to delay and protect the image of the company and secure business assignment than hurriedly conducted negotiations failing to bring positive results.
  1. Areas of Consideration

a) External Environment
  • Threats

Creative Works Limited faces a threat from companies with a simple structure that does not act as a baggage in explaining the complex partnership structure (Cohen 4). Alternatively, the threat of falling into the problems of the partner companies such as Coughing Bear Limited bankruptcy related issues is potent.

  • Opportunities

There are untapped opportunities that Creative Works must consider in the imperfect partnership with the ten companies. Firstly, the strength of performing mergers and closer ties than the erratic and amorphous arrangement would ensure better results. Working together would have been a unique strength if Creative Works Limited considered appropriate exploitation. Secondly, a unique opportunity presents in the form of concentrating in business as a single entity and delinking from the other companies that have productivity issues.

b) Internal Environment
  • Strengths

A wide coverage of the market through a number of affiliates enable the company to target the market from a larger context than when conducted alone. Additionally it would be considered that the many partners accept to cooperate with Creative Works Limited due to its apparent stronger status that allows it to assume the negotiator.

  • Weakness

Management approaches adopted by the Creative Works Limited prove to be out of touch with the expected business ambitions. As an illustration, the role of the managing director and the director present at the negotiation table are presented to be unaware of the most basic structure fact of explanation their organization. In addition, associating with the questionable companies raises questions of the ambitions of the company for future operations.

  1. Alternative Courses of Action

Alternative 1

Composing a stronger negotiations team with a legal representative capable of anticipating expected responses and satisfy the clients. Satisfying clients may require application of extra negotiation skills, which should be considered in the composition of the team.

Advantages and Disadvantages  

Accurately composing a negotiation team enables presentation of the best possible case that the client would be looking for.

The disadvantage of expertly composing the company’s negotiation team may be expensive and not meet the exact requirement of the client.

Alternative 2

Creative Works Limited might consider merging with the partners and simplify the structure in order to reduce related complications in dealing with third parties.

Advantages and Disadvantages

Merging the companies together may be advantageous in facilitating the presentation of the negotiation as a single case and hide negative images of smaller companies under the success of the Creative Works Limited. One conspicuous disadvantage of merging the companies is the transfer of negative attributes of underperforming companies, which may reduce the competitive image of the company.

Alternative 3

Asking for more time to present the required information would be admissible during the negotiation if the Creative Works Limited negotiating team was prepared to undertake such an option to satisfy the client.

Advantages and Disadvantage

The advantage of appealing for more time to deliver the expected answers would allow extra time to research on unknown facts on the business question raised. In addition, it is important in raising the confidence of the negotiator by delaying grilling to another time when answers can be found. The disadvantage of asking for time is impatience of the client, which may lead to cancellation of business assignment (Freud 336).

  1. Final Decision

Decision 1

The initial decision for the rectification of the problem witnessed in the negotiations will be reorganization of the negotiation team to comprise of the most competitive negotiators.

Advantages and Disadvantages

The advantage of this decision will be to rectify the incompetence in answering and quelling the client’s concerns. The disadvantage of this move will be the apparent belittling of the authority of the managing director and the director in the negotiations.

Decision 2

Availing a structure of the relationship between the companies must be forthcoming in order to secure the image of the business in the negotiation.

Advantages and Disadvantages

Providing the outline of relationship held with the partner companies acts in building the confidence of the client in engaging Creative Works Limited. The disadvantage of this decision would be disclosure of the actual relationship with under performing companies may lower the client’s confidence in dealing with Creative Works Limited.

Decision 3

Making the accurate statement on behalf of the company even if the statement adversely affects the image of the company or partner companies during the negotiations is important.

Advantages and Disadvantages

The advantage of stating the truth during the negotiations is important in generating trust, which is severely damaged when revelations later deliver inconsistencies. The main disadvantage of stating the truth is to expose the weaknesses of the company when it could be immaterial for future performance of the business.

  1. Detailed Action Plan

a) The Activities
  • Research on the company and its partners
  • Research on client’s expectations
  • Working on the structure of relationships and responsibilities
  • Composing the negotiation team
  • Planning for the negotiations
  • Initiating contact with the clients

b) Timetables of programs,

c) Action officers responsible for implementing the plan

d) The budgeted costs

(Timeline for the programs will be given a one-month duration)

Activity Timeline Official Budgeted Cost
Research on the company and its partners Day 1-5 Lawyer $ 1,000
Research on possible requirements of the client Day 6 Lawyer $600
Working on the structure of partners’ relationships and responsibilities Day 7-15 Lawyer $ 4,000
Composing the negotiation team Day 10 Human resource manager $3,000
Training the negotiators Day 11-12 Lawyer $3,000
Planning for the negotiations Day 13 Purchases Manager and lawyer $500
Initiating contact with the clients Day 14 Lawyer $50
Negotiations From 17 to 30 Team (Lawyer, Purchases, Director, Managing director ) $10,000
Total  $22,150
Works Cited;
  • Cohen, Steven. Negotiating skills for managers. New York, NY: McGraw-Hill Companies, Inc., 2002. Print
  • Freud, James C. Anatomy of a merger: Strategies and techniques for negotiating corporate acquisitions. Ne York, NY: ALM Publishers, 1976. Print

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