Cementownia Odra

Tailan Chi 3/29/11 Cementownia Odra Tomasz Budziak and Hans-Hugo Miebach are two authoritative representatives of their respective parties currently involved in a decision to accept a major financial transaction. Miebach has offered a deal to Budziak that was the highest bid on a company owned by a ministry of Poland. This bid, however, contains high risk that could damage the benefits of the transaction and cause Poland to suffer drawbacks if certain events were to occur.

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The outstanding issues of this deal is very important to both Miebach and Budziak. Team leader Tomasz Budziak works for the ministry of privatization and is responsible for the sale of Cementownia Odra. This company deals with making cement and a German company representative, Hans-Hugo Miebach has elected to pay a substantial amount for purchasing the company. With the decision to purchase, however, he has set forth criteria that are to be accepted by Budziak in order for the high price purchase to go through.

This criteria includes land for quarry expansion, a Tax Holiday, Financial Warranty, and BRAM importation. As the representative of Poland in this scenario, it is very important for Budziak to consider the risks this deal would cause the government of Poland if Miebach’s offer is accepted. These issues are not all valued equally between the two parties but the decision to import BRAM fuel greatly affects both parties in this dilemma.

There is a major benefit if Miebach is allowed to import BRAM fuel from Germany since he will get paid to do so but will be a significant issue for Budziak since it was determined that there is only a 10% possibility of that being allowed and thus a 90% chance of having to divvy up 3 million DM. Budziak clearly has more knowledge on the matter since he has resources that he has utilized to determine the probability of each issue occurring between the transaction causing the ministry of privatization to have to pay some ees. This allows him to gain a significant perspective on accepting this deal over any others. With this advantage, Budziak should be able to talk with Miebach in order to possibly offer him a discount on his bid but in turn not accept a liability of certain issues such as the impossibility of importing BRAM fuel in the country. The best feasible negotiation outcome between these two parties revolves around the probability of each issue turning up for Budziak.

I believe the best feasible outcome for these two parties is to adjust the fees incorporated with the issues revolving around the deal. Budziak needs to counteroffer Miebach accepting a lower bid than the one already placed but canceling the fee charged with the issue of importing BRAM. All other factors are negligible on the major impact of the financial transaction since there is a low probability of all the of the issues being negated. If Budziak and Miebach do not reach an agreement on the importation of BRAM, then he should decline his offer and accept the next highest bid.


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