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Distributive bargaining is competitive
Introduction, Distributive and Integrative Bargaining
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Negotiating
The Situation: I am trying to sell my 1998 Volkswagen Jetta GL so that I can put a down payment on a new Subaru I have already agreed to buy. In fact, I am supposed to go and pick up the new Subaru tomorrow morning. If I am unable to sell my Jetta by tomorrow, I will have to borrow the money for my down payment at prime plus 5% interest. Needless to say, I would like to sell the Jetta today for no less than $4,700, which is what I need to put a down payment on the Subaru. If I am unable to sell to the party I am negotiating with, the Subaru dealer said he would buy it for $4,400, but I think I can get more than that.
Negotiation Arrangements: The buyer I am negotiating with is Carole Meriwether. We have agreed to negotiate at 6:30 pm in BAH because it is neutral territory. We both felt that it would be in our best interest to negotiate somewhere where we both felt equally comfortable.
Strategy: I am going to pursue a strategy of active-engagement. I will be as competitive as possible because I see this as a distributive bargaining situation where the more I win, the more she looses.
Planning and Preparation: I am going into the negotiation with an idea that I am going to drive a hard bargain. After researching more about the car on Consumer Reports and reading reviews, I believe that the car is worth more that $4,700, and I plan on obtaining more than that. My strategy will be to start out higher than one might expect at $7,800. After all, studies show that negotiators who have an exaggerated first offer tend to get better results. I am planning on Carole thinking this value is way to high, so I will be prepared to argue why I priced the car at that price point. Things I will mention will be the ...
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...te frankly, $100 dollars is not worth the hassle of dealing with it. She recognized this and offered $4,550 for the sake of haggling and I told her I would not sell for anything less than $4,600. So, she agreed and I sold her the car for $4,600.
We did reach an agreement and I am marginally satisfied with the result. I say marginally because I went into the negotiation with such high expectations and I ended up not even getting my resistance price. I did however get more than the Subaru dealer would have given me and I was able to bring Carole up to $600 above what she said she could spend. I feel like I won the exercise because I gave in less when it came to our resistance points. Carole's resistance point was $4,000 and she paid $4,600. My resistance point was $4,700 and I got $4,600. So she paid 600 more than she wanted and I got 100 less than I wanted.
I was assisting Vince in a deal with a new potential buyer. He offered a structured deal stating that he would authorize his company to pay a higher price, if we report selling the product for a lower price. I don’t want to get caught doing this, because I know it is unlawful. Vince reassured me it was not an uncommon deal, and that the product would still be going for a good price. We even had a solid plan on what to say in the event that people suspected us of doing such a thing. The buyer could get half the money, Vince and I could split the other half and no one would ever know.
The negotiation proceeded very well with what I perceived as minimal attempts to misrepresent or conceal information.. While Robust Routers would have preferred I work from their Silicon Valley location my willingness to travel there on a monthly basis as well as cost savings they would achieve by not allocating office space or support staff, along with my concession of their location bonus made the alternative solution of my residence being in Nashville quite viable. I was very pleased with the outcome of the negotiator as was Robust
Knight. Though it was integrative negotiation, Petersen gained strong lead by opening formula price reduction, TexasAgs could have dampened the “first offer effect” by introducing new negotiator (Lewicki, Saunders, Barry, 2011, p. 41).
However this negotiation was totally different from the other ones as our goals were completely different. My counterpart was looking for fund for his boss' campaign whereas I was looking for a buyer for my dam projects. In such a case it's difficult to negotiate as we are not looking for the same things. Thus, we need to communicate effectively to understand the other part will and then be creative in order to offer the best solution regarding both parties interests.
Lewicki, R. J., Saunders, D. M., & Barry, B. (2010). Negotiation Readings, Exercises and Cases (6th ed.). New York, NY, US: McGraw-Hill.
In the first negotiation exercise, Arak and Barkan, I went into the negotiation unconsciously forgetting the “big picture” and started negotiating details on how to divide Area I based on getting as much points as possible. My perception of fixed-size pie and detailed thinking resulted in a competitive negotiation with no information exchange. As a result, we only realised towards the end that both Arak and Barkan have been tasked to reach the same total points and it was basically not enough points to reach win-win solutions just on Area I. After quick adjournment, in order to avoid war, we settled for equal points in Area I of 124 ...
In this case, Tommy would prevail against the car dealer. Tommy is a minor by the time he bought the car. According to the law, minor cannot enter a contract obligation. Because their contract are voidable, minors have the right, until a reasonable time after reaching the age of majority, to disaffirm or void their contracts (Kubasek 361). Therefore, Tommy can return the car to the car dealership with its present state and the car dealer should refund Tommy’s full payment. If the car dealer does not agree to refund the car payment, Tommy can file a complaint against the car dealer to recover his money. On the other hand, I think it’s unethical to return a car that was used for six months, has eight thousand miles, wear off tires and bent front
Lewicki, R. J., Saunders, D. M., & Barry, B. (2010). Negotiation: Readings, exercises, and cases. New York: McGraw-Hill Irwin
Planning for this negotiation was more difficult than the first negotiation in class. The first negotiation had a point system; therefore I knew what the maximum, minimum and average amount points were. Not only does the Texoil negotiation not have a point system, but there were two people on my side (sellers) and only one on the other side (buyer).
Lewicki, R., Saunders, D.M., Barry B., (2010) Negotiation: Readings, Exercises, and Cases. 6th Ed. McGraw-Hill Irwin. New York, NY
During this course, I have learned a lot about negotiating. We learned about almost every negotiating technique there is. We learned about cross-cultural negotiations, body language, Best Alternative To a Negotiated Agreement (BATNA), variables in negotiating, and many more. Before this course, I did not know that much about negotiating. I thought that negotiating was just about trading or convincing someone to give you what you want and you did not care about the other side, resulting in a win-lose. I now know that negotiating is about getting what you want, but also giving the other side what they want as well to result in a win-win. This paper is about how I am going to improve my negotiating skills over the next six months. In order for me to improve my negotiating skills, I believe I need to improve the following skills- my body language, communication, planning, and my interpersonal communications. By improving those skills, I can become an effective negotiator.
...s in stone. Rather, I will work towards a beneficial compensation package, if not a pay increase, then perhaps a higher title with concessions. The outcome of this negotiation should leave both sides satisfied. I will also research the department’s policy on compensation as well as reviewing my job description. Both of these are attainable in the Human Resources department. Furthermore, I will check websites that have listing of salaries and job descriptions to make sure my compensation is commensurate with my work. The scholarly article I will use to help plan out my tactics in my negotiation is “Dealcrafting: The Substance of Three-Dimensional Negotiations by David A. Lax, and James K. Sebenius”. This article explains that our understanding of negotiations are one dimensional. However, this new approach for a three dimensional negotiation can work in my favor.
Any negotiation challenges the parties involved in a variety of ways, but parties with conflicting interests face important additional difficulties when attempting to negotiate an agreement across culture lines. Not only will the difficulties arising from the known similarities and differences of opinion be more pronounced, but also unsuspected factors could easily enter the picture and condition perceptions of the situation. In cross-cultural negotiations, a reasonable second acknowledgment should be that the hidden factors that are always at work are more likely to interfere with reaching an agreement. It is especially important that this acknowledgment be understood to apply not only to the dynamics of interactions across the table, but those of individuals on the same side of the table. [At times, it may be tempting to attribute the outcomes of negotiations to a single variable (such as the culture or the relative power of a country).] The term culture has taken on many different meanings but basically it reflects the shared values. Culture affects negotiations in different ways. In this paper, we are going to discuss the American and Jap...
Jeremy, G. T. (1989). How to negotiate better deals. London, UK: Gold Arrow Publication Ltd.
Negotiation approaches are generally described as either distributive or integrative. At the heart of each strategy is a measurement of conflict between each party’s desired outcomes. Consider the following situation. Chris, an entrepreneur, is starting a new business that will occupy most of his free time for the near future. Living in a fancy new development, Chris is concerned that his new business will prevent him from taking care of his lawn, which has strict requirements under neighborhood rules. Not wanted to upset his neighbors, Chris decides to hire Matt to cut his grass.