Negotiation Planning Exercise
Instructions:
Read Chapter 2 and familiarize yourself with key concepts about negotiation planning.
Then, you will plan for a real or realistic negotiation that you either are or could plausibly be involved in. This could include selling a car, buying a house, asking for a raise, merging 2 departments, closing a business deal, etc.
To do this preparation, you should complete the negotiation planning form provided below. This form requires you to think about the key negotiation concepts that you will have read about in the textbook, and apply them to this real-world situation.
Since this is a Word document, you should type your answers in the spaces provided in the form.
You may earn up to 100 points for this exercise. Your grade will depend on the completeness and quality of your answers to each of the questions on the form below.
Upload this completed form to Blackboard no later than Fe
uary 17.
Key negotiation concepts for this exercise:
BATNA
Best Alternative To a Negotiated Agreement (BATNA)
Negotiators should be willing to accept any set of terms superior to their BATNA and reject outcomes that are worse than their BATNA
BATNAs and reality
A BATNA is not something that a negotiator wishes for; rather it is determined by objective reality
BATNAs are time-sensitive
Negotiators should constantly attempt to improve their BATNAs so they constantly have a viable set of alternatives if cu
ent options come at too high a price or have to be eliminated
Do not let the other party manipulate your BATNA
The counterparty has an incentive to minimize the quality of your BATNA and will be motivated to provide negative information vis-à-vis your BATNA
Reservation Point
Reservation point is a quantification of a negotiator’s BATNA
A negotiator’s reservation point has the most direct influence on his or her final outcome
Failure to assess reservation points can lead to two unfortunate outcomes:
Negotiators may agree to an outcome that is worse than their BATNA
Negotiators may reject an offer that is better than their BATNA
To avoid both of these e
ors, we suggest that the negotiator follow the steps
outlined in EXHIBIT 2-1
Focal Points
Focal points are salient numbers, figures, or values that appear to be valid but have no basis in fact
Sunk Costs
Sunk costs are monies that you have invested that is, for all practical purposes, i
ecoverable.
Target Point versus Reservation Point
It is imperative to distinguish your target point from your reservation point.
Negotiation Issues
Single-issue negotiations are purely fixed-sum
By identifying other issues, negotiators can expand a single-issue negotiation into segments and thus create integrative potential
Issue Alternatives
Once a negotiator has identified the issues to be negotiated, it is a good idea to identify several alternatives for each issue
Multi-Issue Proposals
Determining a variety of different combinations of the issues that all achieve the same target point
Identifying packages of offers does not make you appear to be a positional negotiato
perspective-taking
A key threat to the ability of negotiators to take the perspective of the counterparty is egocentrism or the tendency to focus on one’s own interests and priorities
Counterparty
Hidden table
Are the parties monolithic?
Monolithic refers to whether parties on the same side of the table are in agreement with one another concerning their interests in the negotiation
Counterparties’ interests and positions
A negotiator should do as much research as possible to determine the counterparty’s interests in the negotiation
Counterparties’ BATNAs
situationAL aWARENESS
One-shot versus long-term
Transactions versus disputes
Linkage effects
False versus sincere negotiations
Is it legal to negotiate?
Ratification
Time constraints
Negotiation Planning Form
Your Name: ___________________________________________
Describe the problem. Who are the parties and what will be negotiated?
Describe the relationship between the parties.
Describe the contextual or situational factors will affect the negotiation.
Describe the issues that are important to you and the issues that are important to the other party.
Describe your goals, i.e., what is you want and what is the least that you will accept?
Describe or bottom line. What is the least amount on each issue that you will accept without walking away from the negotiations.
What are your interests that underlie your goals? What are the other parties’ interests?
What are your alternatives to reaching and agreement (BATNAs) and how can you improve them?
How will you get more information about the other party’s goals and interests?
Summarize the arguments that you will use to convince the other party.
Describe your intended strategies, tactics, and the tone that you will use for the negotiation.
Describe how you will initiate the negotiation process (timing, initial offer, tone, etc.).
Describe possible actions by the other party and how you will respond.
What will you do to reach closure, i.e., how will you “close the deal?”
How will you make sure that the other party will comply with or follow through with the agreement?
What will you require in the form of guarantees, safeguards, contracts, etc?
Negotiation Planning Exercise
Instructions:
Read Chapter 2 and familiarize yourself with key concepts about negotiation planning.
Then, y
ou will plan for a real or realistic negotiation that you either are or could plausibly be
involved in. This could include selling a car, buying a house, asking for a raise,
merging 2
departments, closing a business deal,
etc.
To do this preparation, you
should complete the negotiation planning form provided below. This
form requires you to think about the key negotiation concepts that
you will
have read about in
the textbook
,
and apply them to
this
eal
-
world situation.
Since this is a Word document, y
ou should type your answers in the spaces provided
in the form.
You may earn up to 100 points for this exercise. Your grade will depend on the completeness
and quality of your answers to each of the questions on the form below.
Upload this completed fo
m
to Blackboard
no later than
Fe
uary 1
7
.
Key
negotiation concepts
for this exercise:
A.
BATNA
1.
B
est
A
lternative
T
o a
N
egotiated
A
greement (BATNA)
a)
Negotiators should be willing to accept any set of terms superior to their
BATNA and reject
outcomes that are worse than their BATNA
2.
BATNAs and reality
a)
A BATNA is not something that a negotiator wishes for; rather it is
determined by objective reality
3.
BATNAs are time
-
sensitive
a)
Negotiators should constantly attempt to improve their BATNAs so they
constantly have a viable set of alternatives if cu
ent options come at too high
a price or have to be eliminated
4.
Do not let the other party manipulate your BATNA
a)
The counterparty has an
incentive to minimize the quality of your BATNA
and will be motivated to provide negative information vis
-
à
-
vis your BATNA
B.
Reservation Point
1.
Reservation point is a quantification of a negotiator’s BATNA
Negotiation Planning Exercise
Instructions:
Read Chapter 2 and familiarize yourself with key concepts about negotiation planning.
Then, you will plan for a real or realistic negotiation that you either are or could plausibly be
involved in. This could include selling a car, buying a house, asking for a raise, merging 2
departments, closing a business deal, etc.
To do this preparation, you should complete the negotiation planning form provided below. This
form requires you to think about the key negotiation concepts that you will have read about in
the textbook, and apply them to this real-world situation.
Since this is a Word document, you should type your answers in the spaces provided in the form.
You may earn up to 100 points for this exercise. Your grade will depend on the completeness
and quality of your answers to each of the questions on the form below.
Upload this completed form to Blackboard no later than Fe
uary 17.
Key negotiation concepts for this exercise:
A. BATNA
1. Best Alternative To a Negotiated Agreement (BATNA)
a) Negotiators should be willing to accept any set of terms superior to their
BATNA and reject outcomes that are worse than their BATNA
2. BATNAs and reality
a) A BATNA is not something that a negotiator wishes for; rather it is
determined by objective reality
3. BATNAs are time-sensitive
a) Negotiators should constantly attempt to improve their BATNAs so they
constantly have a viable set of alternatives if cu
ent options come at too high
a price or have to be eliminated
4. Do not let the other party manipulate your BATNA
a) The counterparty has an incentive to minimize the quality of your BATNA
and will be motivated to provide negative information vis-à-vis your BATNA
B. Reservation Point
1. Reservation point is a quantification of a negotiator’s BATNA