Exercise | September 2003 (Revised May 2005)

RetailMax: Role for Cam Archer

by Kathleen L. McGinn and Dina R. Pradel

Abstract

This exercise requires students to enact an internal salary negotiation, taking on the roles of Cam Archer, a star employee, and Regan Kessel, a VP trying to attract the MBA into his department. The exercise presents a one-issue, distributive negotiation that challenges students to think about evaluating and developing best alternatives to a negotiated agreement (BATNA). It illustrates tactics for claiming value and introduces the use of decision trees for calculating reservation prices and the establishment of bargaining zones.

Keywords: Negotiation; Compensation and Benefits; Management Practices and Processes; Retail Industry;

Citation:

McGinn, Kathleen L., and Dina R. Pradel. "RetailMax: Role for Cam Archer." Harvard Business School Exercise 904-024, September 2003. (Revised May 2005.)