Case Bear Sterns: Stakeholders and Negotiation
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The document summarizes the evolution of stakeholder analysis theories and their application in negotiations, using the Bear Stearns case as an example. It discusses early stakeholder analysis models from the 1930s to the 1980s and how later theorists combined these approaches. When applying the theories to the Bear Stearns negotiations in 2008, key stakeholders included Bear Stearns management, potential buyers, shareholders, and the government. A qualitative analysis of stakeholders' interests and emotions was most important when seeking an agreement to sell Bear Stearns to JPMorgan Chase.
Case Bear Sterns: Stakeholders and Negotiation
- 1. Stakeholder analysis Make sure they are in on it. What ever it is. George Wendt | Stephan Hufnagl | Gabriel Porlan | Edward Lindqvist HARVARD UNIVERSITY
- 2. Evolution of Theories Negotiations Bear Stearns Applying theories HARVARD UNIVERSITY
- 3. Theory evolution - the business processes Preston Studied GE in 1930s Key stakeholders Limited analysis Freeman Power Based Stakeholder Analysis Some actors are more importnt than others Grimble and Wellard Predictive tool Looks at Objectives and relevant actors Evolution of Theories |Negotiations | Bear Stearns |Applying theories HARVARD UNIVERSITY
- 4. Policy and Political Science Laswell Power Structures are key Lump groups by interest Benson Organizational Understanding requires Internally and Externally Sometimes considered the 鍖rst modern stakeholder analysis structure Lindblom Incrementalist approach to process Numerous agreements Evolution of Theories |Negotiations | Bear Stearns |Applying theories HARVARD UNIVERSITY
- 5. Combining models to achieve agreements Fisher and Ury Mnookin Getting to Yes Applies Fisher/Ury to Interests not positions stakeholder analysis Power dilemmas Maps Power Structures Comprehensive Getting past No /Power of analysis including who Positive No listens to whom Emotions play important role in decision making Qualitative analysis is superior to quantitative Evolution of Theories |Negotiations | Bear Stearns |Applying theories HARVARD UNIVERSITY
- 6. How to negotiate in practice Structural Strategic Behavioral Processual Integrative Evolution of Theories |Negotiations | Bear Stearns |Applying theories HARVARD UNIVERSITY
- 7. How to negotiate in practice Reduce Transaction costs Improve Results Dont bargain over positions Adversial vs. Problem-solving approach Evolution of Theories |Negotiations | Bear Stearns |Applying theories HARVARD UNIVERSITY
- 8. Practicing negotiation theories Identifying interests People Alternatives / Options Objectivity Communication Evolution of Theories |Negotiations | Bear Stearns |Applying theories HARVARD UNIVERSITY
- 9. Practicing negotiation theories Balancing stakeholder interests When to negotiate Selective alliance building Preparation Understanding participants Suf鍖cient time Evolution of Theories |Negotiations | Bear Stearns |Applying theories HARVARD UNIVERSITY
- 10. Bear Stearns taking the lead to a bears market US$ 174 13 months 9 years US$ 4 Rumors of liquidity problems - US$170/share < US$4 Triggering the 鍖nancial crisis in March 2008 Evolution of Theories |Negotiations |Bear Stearns |Applying theories HARVARD UNIVERSITY
- 11. Bear Stearns taking the lead to a bears market Business Structure Risky structure being a seeling bond bank Rumors Liquidityproblems from August 07 - March 2008 Slow decisions More than $18 Billion in reserve S.E.C. Investigation show a bear raid Evolution of Theories |Negotiations |Bear Stearns |Applying theories HARVARD UNIVERSITY
- 12. Alan Schwartz, CEO Bear Stearns Jamie Dimon, CEO J.P. Morgan Buyers offers 28 days Ambivalent CEOs FED and J.P. Morgan Seeking positive press Evolution of Theories |Negotiations |Bear Stearns |Applying theories HARVARD UNIVERSITY
- 13. Identifying the stakeholders Bear Stearns Alan Schwartz and Sam Milinaro Helping banks J.P. Morgan, Lazard Bank Possible buyers Goldman Sachs, Credit Suisse and Deutsche Bank Shareholders Government FED Media CNBC Evolution of Theories |Negotiations |Bear Stearns |Applying theories HARVARD UNIVERSITY
- 14. Time to let the bear fall Loosing con鍖dence and not capital Poor management performance made it worse Share-price reduction Decision to let Bear fall Evolution of Theories |Negotiations |Bear Stearns |Applying theories HARVARD UNIVERSITY
- 15. Identifying the most important stakeholders Bear Stearns Alan Schwartz and Sam Milinaro Helping banks J.P. Morgan, Lazard Bank Possible buyers Goldman Sachs, Credit Suisse and Deutsche Bank Shareholders Government FED Media CNBC Evolution of Theories |Negotiations | Bear Stearns |Applying theories HARVARD UNIVERSITY
- 16. Lump stakeholders by interest Potential buyers Protectors Collaterals Evolution of Theories |Negotiations | Bear Stearns |Applying theories HARVARD UNIVERSITY
- 17. The qualitative analysis is the most important - Emotions play an important role (Fisher and Ury) - Board members Evolution of Theories |Negotiations | Bear Stearns |Applying theories HARVARD UNIVERSITY
- 18. Applying theories in practice Balance stakeholders interests FEDs concern Prepare The calculations Evolution of Theories |Negotiations | Bear Stearns |Applying theories HARVARD UNIVERSITY
- 19. "Praeparatus supervivet" - The one prepared survives