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Negotiation: Terms and Theories from Negotiation , a Harvard Business Essentials book

Negotiation: Terms and Theories from Negotiation , a Harvard Business Essentials book. Randy Richards St Ambrose University Monday 5.16 – Session Two 2:00 to 4:30. Reviewing the theory through terms: Get out your glossary downloads. At the negotiation table, which fork do you use?

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Negotiation: Terms and Theories from Negotiation , a Harvard Business Essentials book

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  1. Negotiation:Terms and Theoriesfrom Negotiation, a Harvard Business Essentials book Randy Richards St Ambrose University Monday 5.16 – Session Two 2:00 to 4:30

  2. Reviewing the theory through terms: Get out your glossary downloads At the negotiation table, which fork do you use? Without a BATNA, you could get hosed! Do you have a reservation? Just between the two of us, would you show me your ZOPA? Creating value in a deal, like a painting, is a work of art. The rest.

  3. When do we negotiate? • Generate ideas from the class.

  4. At the negotiation table, which fork do you use? Distributive Strategy Integrative Strategy

  5. Distributive Negotiation • Competitive • Win-Lose • Zero-Sum • The Pie • Buyers = as low as possible • Sellers = as high as possible • Long term relationship not important • Claiming as much value as possible in the negotiation

  6. Integrative Negotiation • Cooperative • Win-Win • Expanding the possibilities • The Pie • Buyers and Sellers work together to get more • Long term relationship is important • The value of the relationship • Creating Value in negotiation

  7. Without a BATNA, you could get hosed! • Best Alternative to a Negotiated Agreement • In the absence of a deal, what will you do? • Tells you when to say “No.” to an unfavorable deal! • Stronger BATNA means better deals • Weaker BATNA means worse deals • BATNA examples from class

  8. Increasing your distribution share(More pie for you!) • Never enter a deal without BATNA analysis • Why? • BATNA tradeoffs • Identifying your BATNA, pull out BATNA Analysis Handout • Improve your BATNA • Think of ways of get a better deal elsewhere • Identify the other side’s BATNA • Knowledge is power • Do your research! • Weaken their BATNA

  9. Do you have a reservation? • The reservation price or the walk away price • Lowest price you will take, highest price you will pay • Connected to BATNA, but not same

  10. Just between the two of us, would you show me your ZOPA? Zone of Possible Agreement The space between each person’s reservation price. 300 Litas 500 Litas ZOPA Seller’s Reservation Price Buyer’s Reservation Price Hiding your reservation price / knowing their’s.

  11. Creating value in a deal, like a painting, is a work of art. • How can we create more value for both us through negotiating? • Can we exchange something we value little but the other person values highly? • Or low cost to us but high value to them • Some examples • Delivery times • Guarantees • Unused equipment • Payment periods

  12. What else? • Review the remaining terms from the Glossary

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