question archive Write an analysis of the situation and signpost possible steps to negotiate a solution
Write an analysis of the situation and signpost possible steps to negotiate a solution
Subject:ManagementPrice:3.87 Bought7
Write an analysis of the situation and signpost possible steps to negotiate a solution. What kind of conflict do you think this is? Destructive or Constructive? What was the key moment when the conflict escalated?
Nigel Eros and Kathlene Forest had won $5 million in 2010 as the first prize in an international architecture design competition for designing a tiny house for sustainable living. Their award-winning design creatively combined family living, cooking, and entertainment spaces with distinct nooks for each individual family member to pursue their own individual hobbies and interests in a structure that had seamless outdoors-indoors flow.
Instead of splitting the prize money, Nigel and Kathlene, who were fresh architecture graduates at that time, decided to use their windfall to start an architecture firm in West Auckland, specialising in tiny houses. They were totally committed to their new company and drew up an agreement with a clause that neither partner could sell their share of the company without the consent of both parties.
The niche firm called "Little Dreams" was making modest profits but after about five years in the business, Nigel was keen to expand the range of the firm and generate increased revenue by designing standard houses and commercial buildings as well. Kathlene did not want to go into mainstream architecture because she believed that the firm's image and identity was tied to the idea of tiny houses. It was business as usual for four more years although during this period, Nigel and Kathlene had started their own families and had delegated several of the tasks to employees. Nigel had also started, in parallel, a private consultancy of his own in Wellington in 2018 and
Kathlene was spending more time at a sustainable farm in the Waikato for the last year or so but kept a close eye on "Little Dreams" which employed a team of three other architects and six support staff.
When COVID19 broke out earlier this year, Nigel and Kathlene both found it difficult to travel to West Auckland from their respective bases. Seeing this as an opportunity to disengage with "Little Dreams", Nigel asked Kathlene if they could sell their firm and divide the proceeds. Kathlene did not want to sell the firm, saying that the business was tied up with her own identity as a person and as a professional. She was also concerned that the sale of the firm would potentially close options for people seeking professional advice on designing tiny houses, which seemed like a sustainable housing option for the future. Given the small margin of profits made by "Little Dreams" and her own modest savings, Kathlene could not afford to buy Nigel's share.
The conflict has been escalating in the last few months with angry email exchanges between the two. Nigel has been talking to lawyers to begin litigation proceedings against Kathlene's refusal to either sell or change the business direction of the company. He is aware that legal action could be very expensive and has simultaneously been actively lobbying a large architectural company to see if they could come up with an attractive offer to buy "Little Dreams" at a price Kathlene would find difficult to turn down. Kathlene, on her part, has been holding a series of online meetings with the employees of the company and external advisors in a bid to consolidate support for
the company's mission as a specialist architectural design company for tiny houses.
Matters came to a head two weeks ago when Nigel brought up the case at the annual meeting of the Architects' Association of Aotearoa conducted via Zoom, and Kathlene objected to the discussion of a private case at a public forum. The two exchanged verbal abuses at the meeting.
The association is very concerned about the conflict as Nigel and Kathlene are longstanding members of the association and were both elected to the association's executive committee in 2018. The association has asked you to analysis of the situation and signpost possible steps to negotiate a solution.
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
Answer:
In the early stage of their disagreement, Kathlene and Nigel had a constructive conflict, with Nigel wanting to make the business venture on other business like mainstream architecture, and Kathlene disagreeing with him because the business' identity is at stake. Both views are for the good of the business.
However, as the conflict between the two go on after the years, it became a destructive conflict. Both architects became aggressive with each other that Nigel wanted to opt out of the business. They reduced the team morale and both owners doesn't work as a team anymore.
The conflict escalated when the two starts to send offensive email to each other. The conflict went out of hand when they had a fight online on a public meeting during the Architects' Association. Destructive criticism should be settled early on to avoid this kind of scandal between the two business owners.
One of the possible steps they can do is for Kathlene to let go of Nigel as a business partner, and allow Nigel to sell his share to the business. She doesn't have the right to force Nigel to stay in the business where he is not happy and satisfied. Nigel stayed long enough doing what Kathlene wants for the business. Kathlene should also find an interested investor that would support this business since she doesn't have the resources to pay Nigel's share. Maybe she could recruit some architect in their association to partner with her in her business.
But Nigel was also right that the business should grow so Kathlene should not resist change for the growth of her company. She can expand her business to other states, perhaps, or upgrade her tiny house designs to attract more people. Changes should be done in their business in order for it to grow.
Kathlene and Nigel, instead of arguing, should settle their conflict early on. They should consider each other's decisions and preferences and not enforce his/her choice to his/her business partner. In a small business like this, they should promote constructive and not tolerate destructive conflict. There's always a way to honor one's opinions and decisions once negotiated wisely and rationally.
