Fiji versus FIJI: Negotiating Over Water

Authors: Gino, Francesca; Toffel, Michael W.; van Sice, Stephanie
Source: Harvard Business School
Year: 2012
Company Name: FIJI Water
Number of pages: 18

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Abstract:

This case examines negotiations between a company and government over natural resources. The Fijian government proposed a substantial increase in its water extraction tax that would only apply to large extractors, and thus to FIJI Water and not to its competitors. FIJI Water responded by calling the increase "discriminatory" and threatening to shut down its operations, but in the end its negotiations resulted in its agreeing to pay the tax increase.

The case can be taught in MBA and executive level courses on negotiation or conflict resolution to highlight any of the following issues: negotiating over scarce resources in multi-party negotiations, ethics in complex negotiations, and establishing trust in long-term relationships involving negotiation. An analysis of the negotiations and the position of each of the parties allow students to reflect on issues of power, trust, strategic decisions and ethics in negotiations and conflict resolution.