MAYOR UNIVERSITY OF SAN SIMON

FACULTY OF ECONOMIC SCIENCES

FINANCIAL ENGINEERING
COCHABAMBA - BOLIVIA

Practice 20%

STUDENT GOMEZ TICONA LUZ MARIANETH

MATERIAL Business Legislation
TEACHER MABEL RODAS ZURITA, LICENSEE
CAREER FINANCIAL ENGINEERING
MODE NORMAL
GROUP 07

Cochabamba - Bolivia
 The Power Screen Problem

1.- History of the conflict (summary)

I am a negotiation consultant for Stanley Star, and I need to prepare for

compete against the consultant Allen Hacker.
Attorney Dale Levinson from Hacker Star Company called me a few weeks ago.
to refer to my client named Stanley Star.
As a consultant, I had a meeting with Stanley Star. In that meeting, Mr. Stanley Star
I found him to be a serious, direct, and honest person. He gave me a brief summary of the conflict.
from his perspective, that data should be used in the meeting with Allen Hacker's advisor.
Stanley Star, president of 50% of the Hacker Star company, has always had an interest in the
computer science, both for hobby and in its application for tracking the record of your
dental clinic. That is why, 6 years ago, when he met Allen Hacker, and counting
with an initial capital, he decided to sponsor the launch of his company (software).
At that time, Allen seemed to him a partner, who enjoyed a good professional reputation.
and had a stable client, experience in the industry, and a good product in hand.
The financial estimates presented by Allen, both the market and the projection were
impressive. However, there was a concern from Star that Hacker would have the
business experience and the ability to carry out the necessary management to make your dreams come true
projects. Nowadays those concerns were true since those same concerns
they would generate this conflict among the partners.
In the first conversations about the design of Hacker Star Inc., your client had
it is suggested that the company hire a sales manager, as well as someone specialized in
advertising. A hacker did not like the idea out of personal pride or conviction. Without
embargo, Hacker proposed that the money be invested in advertising, as he could make it
position in administrative matters.
Star did everything possible to convince that it would be better to bring in a young and intelligent, newly
Graduating wouldn't cost much; but Hacker insisted that publicity would be better for
new products. In the end, your client accepted that a sales manager would be better once
that the company gets underway.
The first year of Hacker Star was not a success, it made some money, but for Star it said that
it is not usual in a startup company. But sales were less than half. Throughout
Hacker wanted to invest more money in advertising, suggesting taking a loan if it was
I need to, but I was not able to prove.
In this situation, Hacker told your client that he wanted to focus on developing a new
program. Their argument was that they should have a line of new products to have
a better reception at the distributors. Even when your client considered that it was better
strengthen your sales systems of current products before designing new ones
programs.
This is how he suggests the idea of hiring a sales manager again, but Hacker
he stubbornly maintained his position, as he wanted that money to be for the
advertising. Your client agreed to the forefront of Hacker's proposal to develop a new product,
fearing that if he didn't do it, he would withdraw from the company.
At the beginning of the 4th year of operations, the sales of the resource controller and the new
Porta Word product sales were far below expectations. Despite that, Hacker
proposed returning to the development of another product, your client firmly responded to him, saying that he
Be responsible for the advertising and increase of sales of existing products.
At first, he thought Hacker had an idea; however, shortly after, your client...
he found out that Hacker had continued developing a new program without telling him anything.
Sales increased in the 4th year, but they were still far from Hacker's projections.
decreased in the 5th and 6th year.
When Hacker finally finished, he presented the finished product to his client, called
Power Screen, Star stated that it seemed esoteric to him and he did not give it importance. In front of it
which hacker chose to take the product to some friends who have a company called
(Gates Inc.) who will support him in his product.
Upon learning that your client had a conversation with the company (Gates
Inc.), called a meeting with Hacker and they had a bitter argument. Star has no doubt about quality.
of Power Screen, as well as its potential market, however, believes that it is not the
time to market it. Also, your client considers that the product is their property.
from the company and that the product should not be presented to third parties (Gates). Even though it
was done without his consent, considers it to be the property of Hacker Star, since his
development meant time and effort that Hacker could spend on strengthening sales of
the existing products, and the fact that Hacker is contractually prohibited from
compete with the software development company.
On his part, Hacker says that the program belongs to him, as your client rejected him.
various occasions that the development in their free time.
Just like my client, I do not let myself be fooled by the story of Hacker; I use my time on the
free rats. Since the Power Screen program required immense effort, it will be much
better for someone like a Hacker, than to dedicate oneself to selling an old idea. There is no doubt that
what Hacker has wasted hours distracted in this development instead of dedicating himself to selling
the existing products.
The hacker himself admits to having used the powerful and sophisticated PC simulator on the mini.
company computer to debug your program, although there are no records or
documents that say that a hacker made use of the equipment, and Stanley Star believes that in this
money was used in the program.
According to Star, Hacker's argument that Power Screen is solely his property, after
of everything. The employment contract of Hacker states:
By this act, the manager agrees to dedicate all his time, energy, knowledge and
capacity, to management, management and development of the company's business, and must
to perform all acts and obligations consciously and diligently, and to comply
punctually with all the responsibilities entrusted to him in his capacity as manager
general
Star understands that, in the initial conversations, in exchange for her support, Hacker
He would dedicate his time, his creativity to Hacker Star, which should not count with time.
to develop your own product.
The drafting of the contract, although it seemed unclear to you, you sent it for review with a
lawyer who is your friend, who gave his opinion, that Star has weight in judicial process,
but it was far from an easy victory, as his contract could go in both directions,
Star feels strengthened since Hacker used the company's equipment and wasted his time.
in development on a new product and I did not help with the current products.
The legal report states verbatim: 'Star could start at the end to execute the contract of '
employment with unpredictable results. According to the state status of the corporations.
The dissolution would involve each party declaring income and interest rates.
long-term capital" reported that a legal process with professional fees of
The lawyer's fees would fluctuate between $30,000 and $80,000.

You also did some research in the software industry, determine it.
next
Micro Power, a software leader, imposes contracts without rights on employees. Buy
contractor software, offering 5-20% of sales. Freelance programmers
you can rent processors for $30/hour. In the professional realm, they access machines
advanced for $20/hour. Joe sold his first program for $60,000 and a 5% royalty.
Harry sold his second product for $15,000 plus a 20% share in sales, and
then received a job offer for $52,000 a year. Successful programmers earn the
double the price and sales participation for their following products.
Star regrets not having shown initial interest in the Power Screen and is willing to
apologize, although he maintains his opinion. He believes that Hacker does not value his opinion and only seeks
money. Earlier, Star proposed an assistant program for the company, but Hacker rejected it.
ignored. Hacker's management in the development of the Power Screen reinforces this perception. Star
wants Hacker to recognize that the Power Screen is the property of the company and seeks a
solution to handle sales adequately. Star is frustrated because Hacker seems
not taking their ideas and decisions seriously. The lack of effective communication and mutual respect
creates tensions between them. Star wants a more equitable collaboration and for Hacker to
commit to the company's decisions. Star seeks an understanding with Hacker to
to be able to move forward and make the company thrive without conflicts.
Stanley Star wants to keep the company respectable and maintain control. Despite the
financial difficulties, is committed to the business. To solve problems with
Hacker, Star seeks for this to adopt a more mature and professional attitude. It considers that the
Emotional behaviors of hackers are not appropriate for the business environment. Star
insist that Hacker must behave reasonably and avoid offensive language. If
The hacker does not change his attitude, Star is willing to take legal action to protect his
interests and prevent them from taking advantage of him.

2.- Identification of the actors

Allan hacker and his advisor

Stanley Star and his advisor (me)
Customers of the products
Gate Levinson
Gates INC and other competitors
MicroPower
Hacker Star
Trial Lawyers
David Marks, Advertising Agency

3.- The 7 elements

Alternatives

Hire a new product development specialist and continue with the

demand a hacker
Collect the compensation for the product made "PowerScreen" and for the
breach of contract by the hacker towards the company Hacker Inc
The capitalist partners supporting Hacker establish a
trust relationship with the company HackerStar Inc., with
the aim of promoting your interest in investing in the
product created by Hacker and achieve the feasibility of commercialization under the
supervision of the company.

MAAN (Own):
Offer the position of head of research and product development, in which we
to give freedom to create new and better products, as well as to hire a
sales and advertising specialist.

MAAN (Assumption):
Obtain ownership of product rights in favor of the company HackerStar
Inc., jointly with the inclusion of a new capital partner for development and
marketing of the PowerScreen product.
Interests

Mine (ours)

A) Keep Hacker Star

profitable and thriving
B) Improve the system of
sales and marketing to increase
the company's sales, for
that is looking to hire a
sales manager and of
advertising trained to
take charge of the
company.
C) We want it to be fulfilled
with the contract and that Allan
I left as property of the
the program that the company
developed (PowerScreen), at
just like future software
D) Recover the money
inverted and increase our
utility
A) Maintain Hacker Star
profitable and prosperous
B) Improve the system of
sales and marketing to increase
the company's sales, for
they are looking to hire a
sales manager and of
advertising trained to
that takes charge of the
company.
C) We want it to be fulfilled
with the contract and that Allan
I left as property of the
 company the program that
developed (PowerScreen), to
just like future software
D) Recover the money
inverted and increase our
utility
Keep Hacker Star profitable and prosperous
Improve the sales and marketing system to increase the company's sales, for that
a sales and advertising manager is sought to be hired and trained to do so
company position.
Stanley Star from the beginning sought the economic progress of his company.
I considered that hiring a sales agent was essential for this progress.
Moreover, his main concern was to ensure that the new program created
by Allen outside the company's property, as it was developed during working hours
labor and with the company's resources. Its goal was to solve the problems with
All hackers to ensure the continuity of the business, regardless of the
economic situation.

Allen Hacker's main interest lay in advertising to increase sales.

their products. He proposed the creation of more programs and to continue investing in
advertising, even considering the possibility of requesting a loan to finance
these initiatives.

Allen becomes a crucial factor, as his new program is the subject of

dispute. The company wants Allen to admit that the program belongs to the
company, since it was created during working hours and using the resources
provided by the company.

We want the contract to be fulfilled and for Allan to leave as property of the
the company the program it developed (PowerScreen), as well as future software
Recover the invested money and increase our profit
 Of them

To earn profits from the products you make and to be heard by Stanley
Invest money in your programs, without hiring external agents and managing it yourself.
same sales and advertising.
Develop a greater variety of programs and provide more options to the market
Make the program you developed (PowerScreen) your own, in addition to future ones.
programs that I did on my own

From others

Lawyer wants the trial to be formulated in order to defend a separate party and
earn your fees.
Gastes Inc. wants Allan to keep the program and provided it to them.
the possibility of trading it.
MicroPower, I would like the company to completely disintegrate in order to have
greater market power.
Clients want more and better products to be launched on the market than
cover their needs

Options

OUR MAAN
Necessary capital to finance
any
project.
The necessary equipment and software
for
develop the program.
Future funding will come from
of
Stanley
OUR MAAN
Necessary capital to finance
any
project.
The necessary equipment and software
for
develop the program.
Future financings will come from
of
Stanley
OUR MAAN
Capital needed to finance any project.
The equipment and software needed to develop the program.
Future financing will come from Stanley.

Options (on the table)

Hire an advisor for Hacker, who will take care of the administrative part.
(sales and advertising) to improve the results so that Hacker can dedicate time to it
most of the time on developing new programs or improving what
we already have. Legitimacy Criteria that support my option: The states
financials show that not even half of the
expected sales have even decreased.
hire a consultant for Hacker, who will
take charge of the administrative part (sales and
advertising) to improve the results and that
Hacker can dedicate most of the
time for the development of new programs or
improve what we already have.
Legitimacy criteria that support my
option: The financial statements show that
Not even half of the sales have been reached.
expected and even have decreased.

FROM THEM (Identify their MAAN)

Technical software knowledge and programming experience for
develop programs

Options (on the table)

Giving a hacker a minimum of one year to develop each product is
to say, in that year only one product can be dedicated to, which will be patented
as part of the company and have a range of money that can be used
Legitimacy Criteria that support my option: The contract establishes
that they cannot use equipment or sell to the competition, since they already
they stated that they want the program because they know that a product
potentially good to launch it to the market and that can generate great
income
Give a hacker a minimum of one year
to develop each product, that is, in
this year can only be dedicated to one product,
what will be patented as part of the company
and have a range of money that you can use
Criteria of Legitimacy that support my
option: The contract states that no
you cannot use equipment or sell to the competition,
since they have already expressed that they want the
program because it knows that a product
potentially good to launch it to
market and that can generate large
income

How to worsen their MAAN

You have the technical knowledge, but I have the necessary capital to
buy equipment and necessary items to develop any program.
You have the skills, but not the knowledge to develop a
a company nor to generate enough sales to make it profitable
 You have the knowledge, but you also have a contract that limits you.
prevents developing products with the company's equipment or capital that only you
benefit to you
You have knowledge, but you are not the only one who has it. There are others.
programmers with the same knowledge in the market.

Options (on the table)

Rewriting the contract for

correct and
establish clear rules in limit
the
actions and behaviors of
both.
Removed any type of
ambiguity and
leaving everything very detailed so that
does not exist
no type of misunderstanding.
Legitimacy Criteria that
they support me
option: The lawyer determined that the
contract
it is somewhat ambiguous and can generate
conflict of
interests because it can be
interpreted from
different forms
4) Hire an external mediator that
determine parameters for the
launch of
each product as time and money.
Legitimacy Criteria that
they support me
option: The contract does not include
they specify these
terms and the lawyers stated
what is
necessary to determine parameters more
precise
Rewrite the contract to correct and establish clear rules to limit the
actions and behaviors of both. Eliminated any type of ambiguity and
leaving everything very detailed so that there is no type of misunderstanding.
Legitimacy criteria that support my choice: The lawyer determined that the contract
It is somewhat ambiguous and can generate a conflict of interest because it can be interpreted
in different ways
Hire an external mediator to determine parameters for the launch of each.
product like time and money.

Criteria of Legitimacy that support my option: These are not specified in the contract.
terms and the lawyers stated that it is necessary to determine more parameters
precise

Legitimacy

Achieve a mutually beneficial agreement

Use the impartiality of the process to persuade
Show the other party an attractive way to explain their decision
The agreement was written, both parties signed.

Commitments

Agreements

1.-Establish a plan for

the
program development: Consists of
conduct a preliminary study on the
development
of a program and justify in front of
all stakeholders the plan.
Thus,
Everyone can give their opinion and make better decisions.

decisions. Here it is necessary to use

a
mediator who listens to the pain
parts
2.- Hire a marketing consultant
who is in charge of the sales area and
of
advertising, in search of increasing
the
sales and achieve better
results.
The contract with the agency is coming to an end.
external advertising and Allan can
spend more time on planning and
program development.
3.- Split the royalties only
of
Power Screen at 85% for the
company and
15% for Hacker. The futures
programs
they will always be part of the company
for
complete
4.- From the 85% of profits obtained from
Power Screen by the
company
30% will be allocated for marketing and
sales, 5% for Research and
development and 5% to settle the debt.
5.- Review the contract to improve it
y
establish clear clauses and of
agreement
loan.
1. Establish a planning for the development of programs: It consists of carrying out a
preliminary study before the development of a program and justify to all parties
interested in the plan. This way, everyone can give their opinion and make better decisions. Here it is
It is necessary to use a mediator who listens to both parties.
2. Hire a marketing consultant who is in charge of the sales and advertising department,
in an effort to increase sales and achieve better results. It ends the
contract with the external advertising agency and Allan can dedicate more time to the
planning and development of programs
3. Divide the royalties only from Power Screen at 85% for the company and 15% for
Hacker. Future programs will always be an integral part of the company.
4. Of the 85% of profits obtained from Power Screen by the company, it
30% will be allocated to marketing and sales, 5% to research and development, and 5% for
settle the debt.
5. Review the contract to improve it and establish clear and mutually agreed clauses.

Agreed times

Immediate application, which must be carried out in all future activities.

Depending on the mediator, each product will have its development time.
planning
The recruitment and selection process can take up to two months.
trained.
3. The procedures will begin immediately and everything is expected to be ready at most in a
month. From then on, this agreement will apply while Power Screen is in the
market, extracting the royalties on an annual basis
4. From the first year of sales, when royalties will already be available, start dividing.
these resources and redistribute percentages each year according to needs.
In 6 months, with the help of lawyers, experts in the subject.

Responsible

The mediator, Allan Hacker and Stanley

 2. Stanley Star, Hacker and marketing and sales advisors
3. Allan Hacker and Stanley. Sales manager, will divide the royalties
4. Allan Hacker and Star, in addition to being sales manager
5. Allan, Stanley and Lawyers

At the end of the negotiation, the following agreements were reached:

Both parties commit to make the respective apologies to carry out a

new relationship for the future that allows both individuals and especially the company a
continuous, joint and stable development.

Name Actions
A. Hacker 45%
S. Star 45%
3rd investor 10%
TOTAL 100%

Allow the entry of a third investor, who will hold 10%

participation in the company, this new investor in addition to contributing with fixed assets
(money) will contribute with a third vote. Leaving 90% that will be divided into parts.
equal for Hacker and Star (45% respectively)

Create 3 new departments:

Innovation, development and technology.
Marketing.
Sales and promotion.
Hire a general manager to plan, organize, direct, and control the different
departments, ensuring that each of them achieves their established goals.
The new product 'Powerscreen' will be marketed under the brand 'Hackerstar' and
The profits will go directly to the implementation of the innovation department.
development and technology.
- A minutes book will be added. So that all agreements reached in
Future meetings should be documented and specified to avoid future conflicts.

Communication

The process of the dialogues or negotiations between both parties took place with the
objective of concluding the conflict including only one of the team members
negotiator of each party.
The lack of communication between partners, Stanley Star and Allen Hacker, was an obstacle to
the success of the company. If they had shared their ideas and had supported each other
mutually, the company could have thrived and avoided conflicts. The lack of
collaboration and effective communication were a crucial factor in the negative outcome for the
company.
 Relationship

The final result was achieved in two sessions with the preparation and signing of the agreements via a
private reconciliation document
With this result, a new stage of the dialogue process opens in which the discussion is held.
possibility of adjusting the agreements; to consider future objections.

Stanley Star decided to continue with the company alongside his partner Hacker, but with the condition
That hacker change his attitude, take into account Stanley's opinions and avoid offending him.
Stanley has made it clear that if this condition is not met, he will take legal action to
avoid feeling exploited.

Argument

The company Hacker Star was the product of the collaboration between two creative minds: Allen
Hacker and Stanley Star. However, despite their initially shared visions,
Significant disagreements arose that led to a series of conflictive events.
inside the company.
The fundamental disagreement between Allen and Stanley lies in their business strategies.
opposite. Allen, passionate about advertising, decided to partner with the agency 'David Marks'
to promote Hacker Star's products. On the other hand, Stanley was convinced that
that the path to success lay in hiring a sales agent who could
to boost sales effectively. This difference in strategic vision created a
constant conflict since the early days of the company.
The tensions between the partners intensified during the first year when the profits
did not meet expectations. Stanley, concerned about the financial viability of the
company insisted on rethinking its approach and focusing on improving sales of the
existing products. Despite these warnings, Allen remained steadfast in his belief
in advertising and continued investing resources in this direction.
The true turning point came in the fourth year of operations for Hacker Star.
Sales decreased significantly, which left Stanley deeply worried.
for the future of the company. It was at this moment that Stanley vehemently reiterated
the need to consolidate its existing products instead of diversifying. Despite
these concerns, Allen chose to move forward with his own project: the creation of
Power Screen, a new program developed without consulting Stanley.
The situation worsened when Allen decided to take Power Screen to the competition, Ganes, without
Stanley's consent. This unilateral action caused an explosive confrontation between
the partners, further exacerbating the lack of trust and collaboration in the company
shared.
The conflict currently at play has led to a business crisis. Allen's shares
they have undermined the integrity of the association, and Stanley, feeling betrayed, now seeks
a solution. As a consultant for Stanley Star, your role is crucial at this moment. You must
to seek a deep and complete mediation among the partners to restore harmony
loss. This will involve not only negotiating the current differences, but also redefining the
roles and responsibilities of each partner to avoid future disagreements and maintain the
stability in Hacker Star. Your goal is not only to resolve the immediate dispute, but also
lay the foundations for a collaborative and prosperous future for the company and its founders.

Certainly, the breach of contract by Allen Hacker was a series of

events that deeply undermined the commercial relationship with Stanley Star. In first
place, by failing to fulfill his duty as manager according to the agreement in the contract, Allen
decided to dedicate his time and energy to the creation of new programs instead of
manage the business properly. This significant deviation from its
the agreed responsibilities not only constituted a clear violation of the agreement, but also
it also undermined the stability and progress of the business, thus compromising expectations
and the trust placed in him.

Secondly, Allen's action of presenting the Power Screen product to another company,
Ganes represented a flagrant violation of the contract and business ethics. This action
not only showed an alarming lack of loyalty towards the company she worked for, but
which also called into question his integrity as a business partner. This competition
directly undermined the trust relationship between the parties, generating a conflict
which not only affected the professional relationship but also put the reputation and the
credibility of Stanley Star's company.

This pattern of irresponsible and unfair behavior by Allen Hacker undermined trust.
essential mutual in any business association, leaving Stanley Star in a position
vulnerable and negatively affecting the future course of the business. The violation of these
contractual clauses not only had financial implications, but also undermined the
integrity of the business relationship, raising serious questions about ethics and the
professionalism of Allen Hacker in the business world.

Solutions

1. Power Screen Property Demand:

 The insistence of your client that Power Screen be recognized as property
The company's foundation is based on a series of crucial elements. The creation of the program
it occurred within the company's facilities, using resources and time that were
specifically assigned for business activities. This circumstance underscores that the
the development of the program was intrinsically linked to the company's objectives.
Furthermore, it should be noted that Allen Hacker, as manager, had the responsibility to devote his
time and effort to activities that would benefit the company as a whole. The
demand, therefore, seeks not only to secure the legitimate ownership of the program, but
also ensuring that the terms of the initial contract are respected, thereby protecting the
interests and the integrity of the company Hacker Star.
2. Proposal for Continuous Collaboration:
The collaboration proposal submitted by your client, Stanley Star, reflects his
desire to resolve differences in a constructive manner. Stanley is willing to support
the program ideas of Allen Hacker, recognizing his experience and skills in this
scope. In return, he expects Allen to also accept Stanley's decisions and guidelines.
This collaboration is based on trust and mutual recognition of strengths.
Individuals aim to create synergies within the team, maximizing talents.
of both partners. The idea is to establish a balance in which both parties contribute.
significantly to the continuous success of Hacker Star, thus creating a working relationship
harmonious and productive.

3. Possibility of Legal Measures:

The mention of the possibility of taking legal action underscores the seriousness with which you
client, Stanley Star, takes the protection of the company's interests. This option is
presents as a last resort in case negotiations and collaboration do not
they managed to resolve the dispute satisfactorily. The idea of paying a reasonable amount to
Allen Hacker for his contribution to Power Screen demonstrates Stanley's willingness to
recognize Allen's work, even in the midst of a conflict. However, this
compensation would be limited by the clauses of the original contract, thus establishing a
clear limit for any legal resolution.
These detailed measures and proposals aim not only to resolve the immediate conflict, but also
also establish a solid foundation for future collaboration between partners. The approach
your client's strategy shows a combination of firmness and flexibility, with the aim
in order to preserve the integrity of the company while seeking a fair resolution
equitable for both parties involved.