...1. What was your final outcome? We closed the deal at $200,000 as an advance for the author. 2. Do you consider your outcome to be win-win? Why? I consider this to be a win-win for both the parties. As a publisher, my cap is $350,000 and the deal closed at $200,000 which is far less than the amount allotted to me. For the agent also this would be a win situation as $200,000 is a very high amount for a first time author. 3. Briefly describe the strategies you both used? Summarize your discussion in less than 100 words Both the parties based their discussion on Anchoring. MESO was also used at some point in the negotiation. Here are some of the strategies used by both the parties. Agent: 1. Started with a figure which is very higher than what was actually deserved by the author. 2. Stressed the fact that author might not be interested to write the book which made the publisher think twice about his price as the publisher was really impressed with the author. 3. Used the author's technical expertise and the proposal as a good leverage to influence the publisher. Publisher: 1. Counter Anchored the Agents figure with a number which is far lesser than what the agent quoted and then kept on increasing the amount in small amounts during the negotiation. 2. Used the company's reach into the mass media as a leverage to influence the agent's decision. 3. Offered to give the Agent's other authors also a good chance if this deal goes through. 4. Used a bluff that the author...
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...salesperson on FirstAmerica Bank's trading floor is assisting a top salesperson, Linda, on a deal to finance the construction of a new cruise ship for Poseidon Cruise Lines. While the terms of the deal are being worked out, he realizes Linda has taken advantage of the Poseidon executives' unfamiliarity with complex financial structures to build an outrageously high profit margin into the deal. When the executives become suspicious of the prices FirstAmerica is quoting, Linda asks the protoganist to send them an intentionally misleading fax so that the deal will not be held up. Holding the personal belief that "before a blind man you shall not put a stumpling block," he does not know if he can bring himself to send the information. Back ground: One guy ( Mr. Big as assumed name ) had been worked on the FirstAmerica Bank’s main trading floor in New York, Specialized in cross-currency interest rate swaps as an assistant manager. March 1986 At work he worked with 3 vice president and especially Linda who has a extremely volatile and hot temper, but she was good at her work to pursuing new business, close the deal and ensuring that she received full credit for any profitable transactions. On September 1986 he start working with Linda and get use to her style. Then start working with Poseidon Cruise Lines that deal with FirstAmerica’s Bank, mostly 20-30 million transaction. But the new deal to build the most luxury French cruise. The cost of Poseidon Cruise will be 700 million...
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...The Joint Comprehensive Plan of Action (JCPOA), or Iranian Nuclear Deal in vernacular, that was signed earlier this year is the culmination of a decades-long diplomatic arm wrestle between Iran and the United Nations. Iran, the European Union and the permanent members of the UN Security Council collectively referred to as P5+1 (United States, United Kingdom, France, Russia, China and Germany), reached a final agreement on July 14, 2015 in Vienna after many rounds of negotiations. The deal is meant to curb Iran's nuclear program, which has been a prolonged international safety concern, in return for incremental relief from the UN sanctions that have economically isolated Iran for years. The JCPOA requires that Iran cut its stock of enriched uranium by 98%, enrich uranium up to only 3.67%, and eliminate 2/3 of its current centrifuges. Iran cannot build new uranium-enrichment facilities, and nuclear activities will be restricted to one facility. Additionally, Iran has given the International Atomic Energy Agency (IAEA) extensive access to its nuclear facilities for inspections. The physical requirements will last 15 years, while monitoring parameters will be in effect for 25 years. As Iran is confirmed to be in compliance with the deal, sanctions will be lifted and Iran will receive $100 billion of its frozen assets. Hassan Rouhani, the current Iranian president, and his administration hope the agreement will revitalize the country's economy. In exchange, the other parties predict...
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...supplier relationships. These practices represent a reasonably comprehensive (though certainly not exhaustive) approach to maximizing value in important supplier relationships. While not a recipe for guaranteed success, these practices comprise a roadmap for systematically negotiating and managing key supplier relationships more effectively. Today’s sourcing and procurement professionals face a multitude of negotiation challenges: from internal negotiations with business units around sourcing strategies; to negotiating agreements with single and sole source suppliers; to ongoing negotiations over individual statements of work, change orders, issues of scope, and the like. This excerpt describes the four best practices related to negotiation and offers some practical ideals about how to implement them. About the study The study was based on data collected from sourcing and supply chain executives at more than 100 companies about relationship management practices with their key suppliers, across six fundamental areas: Evaluation and Selection Negotiation Post-Deal Relationship Management Termination Performance Monitoring Portfolio Governance and Management One hundred fifteen survey respondents were asked to answer scaled questions on specific practices, as well as open-ended questions about their company’s overall approach to supplier relationship management. The bulk of the study details specific findings about each practice, including a...
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...Negotiation techniques- types of negotiations Distributive negotiations are negotiations that usually take place between people or companies that have not done business before and it is usually a one-time deal and one person is going to get a better deal than the other. This kind of negotiation could include selling a car or a house or buying something and bargaining the prize down. In this type of negotiations each person has their own interest at heart and tries to get the best deal possible and is not thinking about the other person and since this is a one-time deal with a stranger the way the other person sees him does not really matter. When you enter into a distributive negotiation it is important to try to make the other person make the first offer and then you can counter offer, also not to give out any information that could help the other person get leverage over you and therefor get the better deal. Integrative negotiations are negotiations that take place between one or more individuals and/or company’s. It usually involves dealing with many issues instead of just one like in distributive negotiations. In these kinds of negotiations everyone is going to benefit from the deal and the people involved try to find a solution that will be good for everyone, of course one can have more strength and therefor walk away with the better end of the deal but the purpose of this negotiation is to find mutual grounds that they all can agree on. These kinds of negotiations could...
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...NEGOTIATION S P E C I A L R E P O R T Program on Negotiation at Harvard Law School Helping you build successful agreements and partnerships Business Negotiation Skills 5 Common Business Negotiation Mistakes In this Special Report, the experts and editors from Harvard’s Program on Negotiation offer advice from past issues of the Negotiation newsletter to help you avoid common pitfalls and build better relationships and agreements with your colleagues, clients, and those closest to you. You will learn to: ■ Identify opportunities to expand the pie of resources. ■ Take steps to ensure you don’t overvalue your assets. ■ Guard against a backlash from less powerful parties. ■ Gain a keener understanding of what you really want. ■ Avoid being hurt by overcommitment to a deal. www.pon.harvard.edu $25 (US) Program on Negotiation at Harvard Law School Negotiation Editorial Board Board members are leading negotiation faculty, researchers, and consultants affiliated with the Program on Negotiation at Harvard Law School. Max H. Bazerman Harvard Business School Iris Bohnet Kennedy School of Government, Harvard University Robert C. Bordone Harvard Law School John S. Hammond John S. Hammond & Associates Deborah M. Kolb Simmons School of Management David Lax Lax Sebenius, LLC Robert Mnookin Harvard Law School Bruce Patton Vantage Partners, LLC Jeswald Salacuse The Fletcher School of Law and Diplomacy, Tufts University James Sebenius Harvard Business School Guhan Subramanian Harvard Law...
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...1. Negotiation Trap: I must analyze what type of bargainer I am. Identifying my type helps me avoid fall into the negotiation trap. 2. BATNA: I must analyze what my BATNA is. This is my reference for the negotiation. 3. Focus on Interest: I will approach the negotiation with a focus on interest of the other party. Identifying the possible interest of other party involved in negotiation will help me analyze the possible ways of expanding the pie (creating more value). 4. Integrative Bargaining: Focus more on Integrative bargaining. Analyze multiple issues and interest, creating and claiming value and cooperative problem solving. Consider possible trade-offs to avoid conflicts and have a win-win situation. 5. Bargaining Zone: I must analyze my bargaining Zone. The zone where the buyer’s and supplier’s negotiation ranges overlaps. 6. Reservation Price: I have to write down my reservation price. This determines when to expand the pie create more value and when to walk away from negotiation. 7. Identify the power in negotiation: Identify exactly the type power in negotiation and analyze the persuasive skills required to move from perceived power to realized power. 8. After striking with the initial deal, I will have to keep my options open for re-anchoring. Negotiation Trap: * Identifying the type of bargainer helps to identify the potential traps. * Soft bargainers agree on deals worse than the BATNA and they fail to achieve best...
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...Personality and Communication in Negotiations BUS / 445 September 1, 2014 Professor Kerri Buie Negotiating the Purchase of Our Home Negotiations are constant in life and happen to anyone who interacts with other people every day. Everything from how to a project at work is handled to negotiating the chores with your spouse is handled by negotiation. Whether we are aware of this happening or not, it is a significant part of how we interact with almost everyone. With the amount of time we spend negotiating it is surprising on how little time we spend analyzing and perfecting our negotiating skills. Communication and personality are key components of any negotiation and will be the keys in a successful outcome for everyone involved. I recently was involved in intense and long term negotiations in the fall when I purchased my first house. The Personalities In the beginning phases, all of the parties that would take part in the negotiation were acquainted by various means. The real estate agent that we chose was a friend of one of my wife’s work colleagues. His wife was a mortgage broker that was to assist us with the acquisition of our loan and the eventual purchase of our home. Throughout the process, however, we switched mortgage brokers due to a colleague of mine recommending a broker who turned out to be able to acquire a better rate. The other side of the negotiation included the real estate broker for the seller...
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...(being realistic) in terms of selling your content or product, if this deal fell apart. For the buyer, it's what you think you could do in terms of replacing the content or product, and the price involved, if the deal fell through. RESERVATION PRICE = the maximum or minimum--depending on whether you're the buyer or seller--at which you would be indifferent between doing the deal, and not doing the deal If you are the seller, this is the minimum price that you'd take; it's one at which you're indifferent to whether the deal gets done. If it's a dollar less, you'd prefer to walk; if it's a dollar higher, you'd do the deal. If you're the buyer, it's the maximum price you'd pay, and you'd be indifferent to doing the deal at that price point. Again, if it's a dollar 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...
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...Negotiation Skills By: Kunal Samani President-Business Development Rolex Lanolin Products Ltd Why Negotiation? • Negotiation is needed to resolve intra-person or inter-person conflicts / disagreements / clash of interests. • Negotiation is something that we do all the time and is not only used for business purposes. The aim of negotiation is to explore the situation, and to find a solution that is acceptable to both the sides. • Only man negotiates; animals do not; when faced with larger predator, they do not ask for negotiation or justice rather just run away. • Negotiation is one of the most difficult jobs a person can do. It requires not only good business judgment but also a keen understanding of human nature Negotiation Interperson Negotiatio n Unplanned Negotiatio n Integrative Negotiatio n Hard Negotiatio n Soft Negotiatio n Planned Negotiatio n Distributiv e Negotiatio n Principled Negotiatio n Intra-person Negotiation Hard Negotiation • Hard negotiation involves the negotiation of positions, rather than interests. • It is highly competitive, seeing victory as the number one goal. • Hard bargainers, see the participants as adversaries. They distrust the other side and play sneaky games to try to gain the negotiating advantage. • Hard bargainers refuse to make concessions and demand onesided gains as the price of an agreement. • When confronted with a softer opponent, hard bargainers almost always will win. When confronted with another hard bargainer, however, it...
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...A Reflection on : A Business Negotiation between Riggs and Vericomp By Rudolf Kennedy Khyriem [17937261] Business Marketing M.Enjeti This paper is going to inspect my own behaviour and present awareness, and demonstrates a reflection of my individual part with this experience. Before I emphasise or talk about my individual performance, I would like to explain and summarise the whole experience and situation. Before the actual preparation I had learnt that there are three stages of negotiation. 1) Build up criteria. Figure out precisely what the other team anticipate that we will do. Figure out what they need. Tell the other team what we are willing to do. 2) Acquire information about the other team. Never assume. 3) Reach a tradeoff that is satisfactory to both parties. Before the Negotiation we had a thorough plan to discuss and analyse the deal between Riggs and Vericomp. We did our research and prepare for the coming negotiation. Research and preparation is crucial in this matter as without proper preparation either team could lose track of the goal and end up making bad decisions or deals that might jeopardise the negotiation. This is a Negotiation not a contest where the best team wins. We were hoping to make a deal with Vericomp in such a manner that both parties come out of this deal satisfied. We were not going to swindle the other party over neither were we prepared to lose our goals. In order to prepare and be ready for any outcomes, I developed a clear...
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...Negotiation Closing Deals, Settling Disputes, and Making Team Decisions David S. Hames University of Nevada, Las Vegas @>SAGE Los Angeles | London | New Delhi Singapore | Washington DC • •-*» •• • i ' w ' t * • * 5s" i- . •> - • • y . » " •• is • Acknowledgments Preface PART I: THE FUNDAMENTALS 1 The Nature of Negotiation: What It Is and Why It Matters Intended Benefits of This Chapter The Essence of Negotiation What Is Negotiation? 5 6 6 When Do People Negotiate? Technology 6 4 3 xvii xix 1 3 Why Has Negotiation Become a More Important Skill? The Workplace 7 8 9 10 11 How People Negotiate: The Dual Concerns Model The Pros and Cons of Negotiating The Shadow Negotiation 10 What Does a Negotiation Look Like? Conclusion and Implications for Practice READING 1.1 - ONLINE DISPUTE RESOLUTION: DO YOU KNOW WHERE YOUR CHILDREN ARE?, 8Y DAVID A . LARSON 1 3 19 READING 1.2 - BALANCING ACT: HOW TO MANAGE NEGOTIATION TENSIONS, BY SUSAN HACKLEY Preparation: Building the Foundation for Negotiating Intended Benefits of This Chapter The Essence of Preparation 23 23 23 The Preparation Process, or How to Make I t All Happen Strategic Planning: Establishing the Framework Defining the Situation Setting Goals 29 30 25 25 25 Determining Your Strategy Strategy Implementation: Operationalizing the Plan 30 The Component Parts of the Situation 30 Best Alternative to a Negotiated Agreement (BATNA) Reservation Prices or...
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...MGM 316-1404B-08 International Business Communications Professor Robert Dunoskovic This task was originally submitted during MGM316-1403B-03 with Asefaw Indrias 1. One should understand the culture of each to make both parties feel more comfortable when negotiations take place. Understanding the culture will give one the edge to better negotiation and also give you the insight as to what is acceptable and what is not. Although minor mistakes are permissible misunderstandings may lead to dismissal of negotiations. One should be aware of the attire that needs to be worn for each country. For example, suits that are of the dark nature are acceptable in Japan whereas in China a more subtle look for casual look is appropriate. The discussion of profits is not a common practice of these countries. As a matter of fact they don’t discuss their company’s profits at all in negotiations. One should understand that these countries rely heavily on respect and making people feel comfortable and showing appreciation. One must understand what each action of the business people in these countries mean and how to handle each one or what to do in each case. One must understand the way each country communicates and what is an acceptable form of communication and what is not an acceptable practice, when to use non-verbal communication and when not to. 2. The Asian countries view contracts as just an agreement between two companies. In Japan, the contracts are very detailed but in...
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...Ethics in Negotiation: 1. Define Ethical Negotiation. Why do ethics matter? How would you apply ethics within the context of your Negotiation Final Project for this course? Ethics are the social principles or gauge whether some body is following the set social standards or not. The role of these social or ethical standards is very important in any type of negotiation for both parties. This gives the chance for both parties to know the tactics which are being used are deceptive, ethical or unethical and then help them examining the ethical tones and aid them in decision making. This also help both parties distinguish among different criteria, or standards, for judging and evaluating a negotiator’s actions, particularly when questions of ethics might be involved. In my final project, I will choose and react to the other party by keeping in mind the following mix of approaches. • Choose a course of action on the basis of results I expect to achieve (e.g., greatest return on investment). • Choose a course of action on the basis of my personal convictions (e.g., what my conscience tells me to do). 2. What motivates unethical behavior in negotiations? What are the potential consequences? How can negotiators deal with the other party's use of deception? When one party or individual want to secure his own establish outcome ignoring other party interest motivates unethical behavior. The unethical behavior outcome also depends on how high are the party stakes, competitiveness...
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...Article Analysis By Edward Ryan MGT/445 In the world of negotiations there is no one decision that does not affect the lives of others in some way. Some groups of people may believe that our decisions are interdependent on each other. In a negotiation there never may be a best outcome for just one person, but if each side of the negotiation puts their best efforts forward then the entire process is usually always better for both sides because each side can usually succeed in getting more if they work together. Many cultures such as the Chinese culture believe in working together so that both sides of the negotiations more of what they need. According to Jehn, K. & Weigelt, K. this belief is not new, but just the method of how it is applied is new. Game theory is the process where each party in the process attempts to maximize their outcome with highest payoffs possible. Each side also accepts the situation that are at with their resistance points and each side plays by the known rules and that there is a level of trust between the two in that each side is offering the best that they can offer,(oregonstate.edu). The part of the process that is not new is how the Chinese have an emphasis on how they should know the situation that they are going in to. In other words it’s best to prepare because it is those that prepare by not only knowing how they will act but also how will the other side will act. The issue is that if you know only how you...
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