Tuesday, May 28, 2013

Negotiating Social Value - Crisis at Fuel Safe (parts A, B and C)

FALCAO Horacio, SAINT LEGER Gillian, DELICADO Nuno 
©2013 INSEAD Case Study

In this two-party negotiation, a large oil company accuses a social venture supplier of overcharging and threatens to take its business to lower cost for-profit competitors. The two parties need to rekindle their collaborative relationship and re-establish the commercial logic to continue working together. The case casts the oil company in an aggressive role and puts the social entrepreneurs on the defensive to surface the stereotypes in the relationship.

Pedagogical Objectives: 1. Measuring social value – How to measure the intangible contribution of a social venture? 2. Partisan perceptions – What perception social and for-profit venture personnel have of each other? 3. Social value as a competitive advantage – Besides measuring social value, how to use it as a competitive advantage against for-profit competitors 4. Mending broken relatioinship – How to restore broken trust? 5. Value creation/option generation in multi-issue negotiation while separating relationship and substance