Macys And Hudson Bay Negotiation Case

Hudson Bay, the Toronto and New York Company Lord & Taylor and Saks Fifth Avenue, has made an offer to buy Macy’s. Hudson Bay is a Canadian retailer that owns and operates throughout United States, Canada, Germany, and Belgium. In the past, these two retailers were part of the same company, which was known as Federated at the time, but in 2006 Lord & Taylor was sold to the private equity group NRDC. Then in 2008, NRDC bought Hudson Bay. There has been many rumors of Macy’s future however, it is a fact that the brick and mortal retailer has been struggling. Macy’s plans to close 68 stores and cut more than 10,000 jobs this year due to the poor sales during the holidays. Additionally, Macy’s stock doesn’t look pretty either it has increased only

In this negotiation, the first characteristic satisfies the article because Macy’s and Hudson Bay are the two parties. The second characteristic of a negotiation is that there’s a conflict of needs and desires. In this negotiation, Hudson Bay is interesting in buying Macy’s, in order to increase and make their business more profitable. On the other hand, Macy’s is considering in selling their company or making it private, but it all depends if they encounter with an acceptable agreement. Also, considering that Macy’s have tried so hard to compete with other retailers and has even decided to change CEOs. Additionally, Hudson Bay and Macy’s need to negotiate over other things such as the acquisition price, any dispute if Macy’s name will remain the same, any escrow to ensure seller’s obligations, or how the agreement can be terminated. The third characteristic of a negotiation is that the negotiation happens voluntary or parties negotiate by choice. In this case, it is evident that both parties are negotiating by choice. Hudson Bay is willing to buy Macy’s, because it’s evident that they desired to grow their business by expanding in the United States. On the other hand, Macy’s is considering their offer because they think is the best solution for their business that is struggling. The fourth characteristic of a negotiation is that it is a give and take process. It is clear that Hudson will have to modify their opening position, because there are other bids that Macy’s has received, therefore it is most likely that the retailer will have to adjust to reach an agreement. The fifth characteristic of a negotiation is that is a born outcome, meaning that parties would rather negotiate and search for agreement than to fight openly. In this negotiation, it’s most likely that Hudson Bay and Macy’s will create their own set of rules of what they want for example deciding how long their agreement