Premium Essay

Frasier Case

In: Business and Management

Submitted By guoxs98
Words 8415
Pages 34
For the exclusive use of X. Guo, 2016.

9-801-447
REV: JUNE 13, 2002

GUHAN SUBRAMANIAN

Frasier (A)
Just one day into his new job at the National Broadcasting Company (NBC), and Mark Graboff had a problem. Graboff was leading the team that was responsible for renegotiating the rights to
Frasier, a popular television show that would play a critical role in NBC’s fall 2001 programming lineup. While Paramount, the owner of the show, seemed to be demanding $8 million per episode in the press, NBC had calculated that it would have to pay under $5 million in order to make a profit on the show. Multiplying by 24 episodes per season, and multiplying again by the three-year term that
Paramount was insisting on, the gap seemed insurmountable.
Making matters worse, the most likely other bidder for the show was the Columbia Broadcasting th System (CBS), a rival network to NBC and Graboff’s former employer. “On November 13 [2000], my last day at CBS, I was putting the finishing touches on CBS’s contract extension to Everybody Loves
Raymond,” recalled Graboff. “And I was thinking, ‘Thank goodness this deal is almost done.’ The next day I began at NBC, and I was faced with an equally arduous negotiation.” Graboff watched the sun set over the Los Angeles skyline as he began familiarizing himself with the background documents on the negotiation.

Industry Background
Behind the glitz and the glamour, the stars and the scandals, Hollywood is, at its core, a business.
Studios, such as Warner Brothers Television, Paramount Television Group, and Twentieth Century
Fox Television, make television shows and license them to networks, such as NBC, CBS, and the
American Broadcasting Company (ABC), for a specified period of time.a Networks, in turn, generate revenue by selling airtime that companies use to present advertisements. The higher the ratings for a…...

Similar Documents

Premium Essay

Case

...CPET 575 Management of Technology Technological Innovation Case I-1 Elio Engineering, Inc Lecture Note & Summary by Professor Paul I-Hai Lin Pages 13-31 of Text Book: Robert A. Burgelman, Clayton M. Christensen, and Steven C. Wheelwright, Strategic Management of Technology and Innovation, 5th edition, McGrawHill, 2009. Case I-1 Elio Engineering Inc. 1 Outline       Origin of Elio Engineering Seat Mechanism Technologies Industry and Regulatory Environment Technological Barriers and Risks Capabilities Requirements for Players in Automotive Seats and Comparative Company Profiles Decision Time Case I-1 Elio Engineering Inc. 2 1 Origin of Elio Engineering Paul Elio  Hari Saknkara   Technical Capabilities • JCI Benchmarking Department • JCI Structural Design and Analysis Department 1996 -1998 • A patent: revolutionary bike design • Failed venture   Technical Capabilities: 1988 – 1997, JCI’s Structural Design & Analysis Department MBA training 1998 Summer Intern at Booz Allen Hamilton, a management consulting firm  Feb. 1998 • A new seat design “No Compromise”  Feb. 1999 Case I-1 Elio Engineering Inc. 3 Origin of Elio Engineering 1998  First venture meeting: Paul & Hari, at Venice, CA  Agenda • ABTS (All-Belts-To-Seat) • Announcement & comments  A cost effective new seat design - a special class of ABTS Utilizing new technology Resulting structure: Low cost, Light weight, Strong • Features ...

Words: 3130 - Pages: 13

Premium Essay

Negotiations Case Study

...Negotiations Frasier case A. Who are the parties in the Frasier negotiation and what are their interests? (Viacom, CBS, Paramount, Kelsey) – (NBC, NBC West Coast ((Graboff)), ABC) The parties involved in the Frasier negotiations consist of NBC, Paramount, and actor Kelsey Grammar. Paramount and Kelsey had personal interest to extend the show 3 years. Kelsey Grammar wanted to rank in history as being an actor with having the record for the longest-running primetime television character in TV. Without Kelsey Grammar (Frasier), Paramount, and NBC would not have a TV series. NBC did not view the show Frasier as having another 3 years of life and did not want to invest in another 3 years. Additionally, NBC deemed Paramount’s price per episode to high and wanted to minimize what they saw as a loss of revenue. B. What is Paramount’s BATNA? What is your estimate of their reservation price? Paramount was banking on the fact that Frasier was the flagpole show of NBC and its success in the time slot. If they quit NBC, both Paramount and NBC would suffer while Paramount would have suffered the most. Paramount best alternative would have been to shop the show around to other networks in the case that the negotiations with NBC broke down. Paramount however was limited in networks to promote the show to due to the shows high overhead cost and industry consolidation. Due to these circumstances I would estimate Paramount’s reservation price around 5.25 million as......

Words: 567 - Pages: 3

Free Essay

Frasier

...Who are the parties in the Frasier negotiation, what are their interests? How can thevarious parties influence the negotiation process and its outcome?Answer:The parties in the Frasier negotiation are the National Broadcasting Company (NBC) andParamount, the owner of the show. While the National Broadcasting Company (NBC) wants topay under $5 million in order to make a profit on the show, Paramount seemed to bedemanding $ 6 million per episode. Paramount came down to $5.5 million later.Q.2. What is NBC's BATNA? What is Paramount's BATNA? What is your best estimate of theirrespective reservation prices? Is there a ZOPA?Answer:NBCs BATNA: The fact that Paramount didnt have a BATNA. If they switch networks the showwould lose viewership, which will affect the studio as well as the network to which they move.So whatever NBC was offering them was the best deal they can get. And Graboff knew the CBSnetwork pretty well and was pretty sure they wouldnt buy Frasier at such a high cost.Moreover this might kick off a price war that will ruin the networks industry and people mightreconsider getting shows from paramount for their bad dealing.Paramounts BATNA: It didnt have one. But they were relying heavily on the fact that Frasierwas the flagpole show of NBC. But if they quit NBC, both the parties will suffer, whileParamount will suffer the most.ZOPA: The ZOPA would be something that NBC had offered, the creative bonus offer based onratings. If Paramount things their show is good...

Words: 284 - Pages: 2

Premium Essay

Case Study

...higher, you walk; if a dollar lower, you'd take the deal. ZOPA (ZONE OF POSSIBLE AGREEMENT) = When the parties are "in the same ballpark" with respect to terms and pricing. Final Assignment We're going to analyze a real, albeit slightly older, deal here from the perspective of the main players (and there are several). Hopefully those players (at least their companies) and the property is familiar to you; this deal negotiation took place in 2001. The case in question is on the Harvard Business School Press site; access it (at a cost of $3.95) using this link. Here are the topics I want you to address in your analysis of this deal negotiation; I'm going to introduce into our work here a couple of new-ish concepts (although they were touched on in Getting to Yes) that I want you to explore on your own. I will include a definition for them in RESOURCES, but make sure you understand what they mean before you attempt to address. So here are the topics/questions you need to speak to: 1) Who are the parties in the Frasier negotiations, and and what are their respective interests? How can the various parties influence the negotiation process, and the outcome? 2) What is NBC's BEST ALTERNATIVE TO A NEGOTIATED AGREEMENT (otherwise known as BATNA, ie, what they'd do if they can't reach agreement)? What is Paramount's BATNA? 3) What is your best estimate of the parties' RESERVATION PRICES (ie, the maximum or minimum--depending on whether you're the buyer or......

Words: 617 - Pages: 3

Free Essay

Case

...case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case case......

Words: 3640 - Pages: 15

Premium Essay

Case

...Join now! Login Support Other Term Papers and Free Essays Browse Papers Business / Timbuk2 Case Study Timbuk2 Case Study Term Papers Timbuk2 Case Study and over other 20 000+ free term papers, essays and research papers examples are available on the website! Autor: santhanam.vikram 09 December 2013 Tags: Words: 723 | Pages: 3 Views: 86 Read Full Essay Join Now! CASE STUDY: TIMBUK2 1.) Consider the two categories of products that Timbuk2 makes and sells. For the custom messenger bag, what are the key competitive dimensions that are driving sales? Are their competitive priorities different for the new laptop bags sourced in China? Some of the competitive advantage which are the key factors of Timbuk2 bags are:-  Quality  Durable  Reliable  Not prone to defects  Custom made bags for each of the customers  The quick delivery of bags  The rave review which the company gets for its bags i.e. it basically carries a good name in the market  For its laptop bags, even though they are manufactured in china, the designing is done in San Francisco. so the exclusivity remains  Cost effective manufacture of laptop bags in china  Being able to adopt to changes in demand and fashion By manufacturing the bags in china the company saved the manufacturing cost but lost their niche of manufacturing and selling in America itself. The general perception of it being a Chinese product led to customers felling......

Words: 564 - Pages: 3

Premium Essay

Case

.../InstructorResourceManual.pdf‎ The case was prepared by Mark S. Beasley, Ph.D. and Frank A. Buckless, Ph.D. of North Carolina State University and .... Case 1.1: Ocean Manufacturing, Inc. Ocean Manufacutring Inc The New Client Acceptance ... www.studymode.com/.../ocean-manufacutring-inc-the-new-client-accept...‎ Ocean Manufacturing, Inc.: the New Client Acceptance Decision: Case 1.1 Ocean ... Problem Solution: Harrison-Keyes Inc. Ayodeji Ajayi University of Phoenix ... Ocean Manufacturing, Inc.: The New Client Acceptance ... www.freecasestudysolutions.com/case-study-Ocean-Manufacturing-Inc-...‎ Case 1.1 Ocean Manufacturing, Inc.: The New Client Acceptance Decision Ocean Manufacturing, Inc. is recommended as a ... ORDER NEW SOLUTIONS ... Solution Manual for Auditing Cases An Interactive Learning ... testbanksfor.com › All test banks and solution manuals‎ Download Solution Manual for Auditing Cases An Interactive Learning Approach 5th Edition by Beasely. Solution Of Ocean Manufacturing Inc Free Essays 1 - 30 www.papercamp.com/group/solution-of-ocean-manufacturing.../page-0‎ Free Essays on Solution Of Ocean Manufacturing Inc for students. ... ACCT 805AE Case 4 Ocean Manufacturing, Inc The Osprey Group Feb 21, ... Auditing: r c aSe S t h at diSc uSS topicS rel ated to thiS Section 1.1 Ocean Manufacturing, Inc. . Case 1 1 Ocean Manufacturing Inc Free Essays 1 - 30 www.papercamp.com/group/case-1-1-ocean-manufacturing-inc/page-0‎ Case 1.1 Ocean Manufacturing, Inc.:......

Words: 447 - Pages: 2

Premium Essay

Case to Case

...CASE STUDY 2 I. THE ARALIN TEACHER Mrs. Boots De Vola was assigned to teach the first section in third year level. She assumed that she is an effective and efficient teacher in Araling Panlipunan because of that. There are many teachers qualified and much deserving to teach the star section. Now, the students are complaining of the expenses regarding projects, special projects and the way she behave in classroom. II. HISTORY AND BACKGROUND OF THE FACTS Mrs. Boots De Vola have underwent the process of being LSB teacher, PSB teacher, before she was declared as regular teacher in Banana National High School. It has been five years that she handled Aralin in section one. There are congruency on each year complaint but since the students are afraid of failing her subject they remained quiet. I seldom hear news about her projects and the money she collected from her advisory class. Every single mistake has an specified amount to be collected as fine, but the students don’t know where these money will be spent. Another concern about Mrs. Boots De Vola is the way she handled and treated her students. She always nag and shout to students, for her it’s the way of disciplining her students. Some of the students chose to dropped schooling because they felt being degraded and they do not have money for everyday fine. Lately, a mother asked her about the special project of her son amounting one hundred thirty pesos. The project was properly discussed, but we found out that......

Words: 699 - Pages: 3

Premium Essay

Havard Business School Case Study Fraiser (a)

...HBS Case Study- “Frasier” Tamika Hernandez Khadijah Holley Course Number: 0204 – 689-102 Negotiation for the Business Professional The Art of Persuasion & Negotiations November 18, 2014 Professor: Neil Halloran Frasier Case Study 1) Who are the parties to the “Frasier” negotiation, and what are their interests? How can the various parties influence the negotiation process and its outcome? The parties involved in the Frasier negotiations are; Paramount Television Group, National Broadcasting Company (NBC), and the actor Kelsey Grammer (Owner) . Marc Graboff (ExecutiveVice President) led the NBC negotiation team which included Scott Sassa (President of NBC West Coast) and Jeff Zucker (President of NBC entertainment). Kerry McCluggage (Paramount’s Chairman) led the negotiation team for Paramount and was sometimes joined by Gary Hart, president of Paramount. 2) What are NBC’s BATNAs? What are Paramount’s BATNAs? Of these BATNAs, which is the best option for each entity? NBC had two BATNA’s: keep Frasier regardless of the increased cost (take a financial hit) in hopes to keep it as a “tent pole” to draw in its viewers to the new shows line-ups after Frasier, or buy a comparable comedy show from another network (such as Dharma and Greg) that will bring in the same audience group 18 to 49. The only downfall was that could cause a bidding war that could increase programming expenses. Paramount’s BATNA’s were to either sell the sitcom to CBS......

Words: 408 - Pages: 2

Premium Essay

Frasier Case Study

...Negotiations Frasier case A. Who are the parties in the Frasier negotiation? (Viacom, CBS, Paramount, Kelsey) – (NBC, NBC West Coast ((Graboff)),   ABC)  The parties involved in the Frasier negotiations consist of NBC, Paramount, and actor Kelsey Grammar.   Paramount and Kelsey had personal interest to extend the show 3 years.   Kelsey Grammar wanted to rank in history as being an actor with having the record for the longest-running primetime television character in TV.   Without Kelsey Grammar (Frasier), Paramount, and NBC would not have a TV series.   NBC did not view the show Frasier as having another 3 years of life and did not want to invest in another 3 years.   Additionally, NBC deemed Paramount’s price per episode to high and wanted to minimize what they saw as a loss of revenue. 4. NBC’s BATNA: The fact that Paramount didn’t have a BATNA. If they switch networks the show would lose viewership, which will affect the studio as well as the network to which they move. So whatever NBC was offering them was the best deal they can get. And Grab off knew the CBS network pretty well and was pretty sure they wouldn’t buy “Frasier” at such a high cost. Moreover this might kick off a price war that will ruin the networks industry and people might reconsider getting shows from paramount for their bad dealing. Paramount’s BATNA: It didn’t have one. But they were relying heavily on the fact that “Frasier” was the flagpole show of NBC. But if they quit NBC, both......

Words: 317 - Pages: 2

Free Essay

Frasier Negotiation Case

...Rapport Management in Thai and Japanese Social Talk during Group discussions Ataya Aoki Abstract According to Hofstede’s (2003) often quoted survey, Japanese and Thai cultures rank high on the collectivist scale and both cultures attach the greatest importance to group harmony. Accordingly, we should see similar characteristics in Japanese and Thai speakers during discussions within their respective social groups. However, this is not the case. This paper examines social talk during the task-oriented interaction of Japanese and Thai speakers. The analysis focuses on how the speakers of Japanese and Thai present themselves and construct rapport in casual group talk. Using the concept of consciousness deployed in ‘idea units’ (Chafe, 1980, 1994) and some semantic considerations, I identify three major differences in rapport construction between Japanese and Thai speakers. First, Japanese participants prefer to build common ground through discussion of communal topics and through dealing with the comprehensiveness and the orderliness of the situation, whereas Thai participants incline toward individual-oriented topics and independent styles of talk. Second, the Japanese show a preference for using softening devices and conventionalized expressions in group discussion while the Thais tend to use intensifiers and spontaneous expressions to indicate involvement and create a friendly and fun atmosphere. Third, the Japanese like to demonstrate the minimization of self and......

Words: 11755 - Pages: 48

Premium Essay

Case

...Assignment Questions for Harvard Cases 3. Hilton Manufacturing Company In Exhibit 3 of the case, change the description for estimating variable portion of "Compensation" and use 5% of direct labor cost rather than 5% of direct labor and indirect labor cost as indicated in that Exhibit 3. Again, DO NOT USE 5% of DL and IDL costs. A product cost is itself a product of a cost accounting system. To use product cost information in decision making, a manager must understand the nature of the cost measurement system that has been used to estimate a product cost and be able to evaluate whether or not the product cost at hand is appropriate for the decision which is about to be made. A second objective is to provide practice in considering whether or not assumptions about cost behavior are critical to decisions and to expand the notion of contribution beyond the simple idea of price minus variable cost per unit. A third objective introduces the concept of breakeven analysis, not by focusing on the point where no profit is earned but rather as a tool to consider whether or not one of two price points might be preferred. Finally, the last assignment question invites you to consider factors that lead to profitability. You begin your analysis by focusing on two issues raised in the assigned questions. The first is whether the decision not to drop Product 103 as of January 1, 2004 was wise. In addition, you are asked to analyze what would have been the impact on......

Words: 1312 - Pages: 6

Free Essay

Case

...A few tips from Bain & Company: • • • • • Don't get thrown by the interviewer's questions. The interviewer is your ally and uses questions to get a better understanding of your thought process--not to stump you. Be concise. If asked for the top two issues, confine your response to two items. Provide logical back-up for your answers. Be sure to explain what case facts led you to a conclusion, and how you reasoned from those facts to your conclusion. Don't be afraid to ask clarifying questions. If you don't understand the case facts, it will be tough to ace the interview. Relax and have fun. You should learn a lot about yourself through the case interview process. A few tips from Mercer Management: • • • • There is no "right" answer. We are not looking for a specific answer. We are trying to gain some insight on your thought process. Ask questions. We do not expect you to know anything about the industry presented in your case. We do expect you to ask good questions. Think out loud. The point of the case interview is to understand how you think. Structure your answer. We're looking for an organized pattern of thought to attack the problem, not a disparate set of ideas. Help us see how you order your thoughts and ideas, moving from one to the next in order to address the question. While use of a framework may be helpful in this area, be careful if you use one. We want to understand your thought process, not see that you've memorized someone else's framework. (And never use a......

Words: 382 - Pages: 2

Premium Essay

Case Case

...Case Analysis - FPL Energy FPL Energy is one of the nation’s leading independent generators of electricity. Dedicated to generating clean energy, 80 % of its capacity is fueled by clean and renewable resources. The United States is the nation with the largest generator of wind energy, and it operates the two largest solar fields in the world. FPL Group, with annual revenues of more than $8 billion, is one of the nation's largest providers of electricity-related services. Its principal subsidiary, Florida Power & Light Company, serves approximately 3.9 million customer accounts in Florida. FPL Energy, LLC, and FPL Group energy-generating subsidiary, is a leader in producing electricity from clean and renewable fuels. 2. Historical Overview FPL Group is a far different company today than the one Jim Broadhead joined in January of 1989 when he became president and chief executive officer. FPL Group was then engaged in a number of businesses unrelated to its core electric skills, including insurance and financial services, real estate, cable television, and agriculture. The company's principal subsidiary, Florida Power and Light, was considered a well-managed utility with an emphasis on quality. However, the utility's spiraling costs had resulted in electric rates among the highest in the Southeast. Today, FPL Group is nationally known as a high quality, efficient, and customer-driven organization focused on energy-related products and services. With a......

Words: 3471 - Pages: 14

Premium Essay

Candela Corporation Case

...Candela Corporation Case Desmond Steele ACC/230 June 5, 2011 Axia College of University of Phoenix Summary Analysis 2004 A $ 2,154,000 net loss was occurred by the Candela Corporation. The accruals method was used to calculate the figure. The non-cash expenses were added back into the statement in order to obtain the proper cash flows. Notional interest on stock warrants and discounted operations were the additions that are the most important. In respect to the important additions there are also important subtractions as well and those subtractions are the currency exchange rate difference and deferred taxes. The working capital analysis showed that there was a significant increase in the inventory, receivables, and tax payables. The working capital also showed that the Candela Corporation’s payable accounts, warranty costs, and other company assets decreased at a small margin. There was a gross outflow of cash that was a result from the adjustments of the working capital and it caused the outflow of cash to be in the operating activities. As it pertains to the financing activities, the Candela Corporation tried to bring their outflow under control by borrowing small debt and using share issue but because of commitments the company had already made, it had to pay back the company’s existing debt and buy the stock back. Because of this the company had an outflow of cash again, but this time with financing activities. As it pertains to investing activities, the......

Words: 787 - Pages: 4