Concepts and Scenes in the Film Barbarians at the Gate

Barbarians at the Gate
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Barbarians at the Gate
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Concept 1: Endowment Effect

Film scene-brief Description: The scene in the film that best illustrates this is when Johnson and his team of “barbarians” are trying to take over the company. However, Johnson and his team can eventually use aggressive tactics to take over the company (Youtube, 2022). In the movie Barbarians at the Gate, several key concepts are illustrated throughout the film. The first is the concept of a hostile takeover when a company tries to acquire another company through hostile means. It can involve a range of tactics, from making false promises to shareholders to outright intimidation.
Concept: Johnson was the head of Nabisco at the time and led a leveraged buyout of the company. Unfortunately, this often means that employees are the first to go, linked to the Endowment effect (Youtube, 2022).
How Concept is Demonstrated in Scene: The scene demonstrates how a concept known as “the ends justifies the means” can be applied in business. Reynolds and his associates use whatever means necessary to get what they want, even if it means breaking the law. (YouTube, 2022). The endowment effect is a phenomenon that occurs when people value something more highly simply because they own it. In the movie “Barbarians at the Gate”, this is demonstrated by the protagonist, F. Ross Johnson, who becomes attached to the company he heads, RJR Nabisco, and is unwilling to sell it even when presented with a very lucrative offer.
Johnson’s attachment to the company ultimately leads to its downfall, as he spends too much money on a hostile takeover attempt and then refuses to sell when the market crashes. It showcases the power of the endowment effect: even when it is clear that selling would be in his best interest, Johnson cannot let go of what he owns.


Concept 2: Never say yes to the first offer

Film Scene Brief Description: Ross immediately says yes to the offer and starts negotiation with wall street bankers and layers with the offers. However, the confidential offer was leaked in the media, negatively impacting organizational publicity. The concept is white knights, investors who come in and save a company from a hostile takeover. In some cases, white knights are working with the company trying to take over the target company.
Concept: When one focuses on one thing, he can achieve anything. It means that focus is the key to success in any negotiation. One should not say yes to the first offer (Dawson, 2010).
How Concept is Demonstrated in the Scene: This ruthless approach may get results in the short term, but it ultimately destroys relationships and creates an environment of mistrust. The movie shows how not to run a business and emphasizes corporate America’s shocking green (Dawson, 2010). When it comes to big-ticket items, never say yes to the first offer. It is a critical concept in the movie “Barbarians at the Gate” and one that can save much money in real life. The basic idea is that one should never accept the first offer that one receives, no matter how good it may seem. There is always room for negotiation, and holding out for a better deal could save a significant amount of money.


Concept 3: Avoid aggressive negotiation

Film Scene Brief Description: The leveraged buyout was shown from 37:41onward. This scene was purely a contentious negotiation. n the movie “Barbarians at the Gate”, there are many examples of aggressive negotiation. In one scene, a group of investment bankers are trying to buy a company, offering a low initial offer. The CEO of the company they are trying to buy refuses to negotiate and walks away. The investment bankers then raise their offer, but the CEO refuses to negotiate.
Concept: If one is passionate about something, he will work hard to make it successful. Without hard work, the goals might not be achieved. Thinking positively can help to overcome obstacles. It allows people to set the direction with a positive attitude (Dawson, 2010).
How Concept is Demonstrated in the Scene: The concept s demonstrated as the buyer foc...