Negotoations

This introduction talks about Negotiation concepts. BATNA (Best Alternative to Negotiated Agreement) is the last proposal that a person can do before exiting the negotiation. You have to prepare your BATNA before the negotiation to keep in mind what is your alternative solution if the agreement cannot be reach.

At the same time, I also realized that the negotiation partners are not always having the conflict interests during the negotiation. In this case, for some of the issues, we actually have the same goals. So baring this in mind, in the future negotiation case, I would first seek the common goals for both of us first to create a win-win situation.

Negotiations are a part of daily life whether we are aware of them occurring or not. In everything that we do there are preferred end results and the end results are likely to affect more than one person. The goal in this however, is to ensure that all parties are equally benefited from the actions and reactions that occur to create that end result. While some dealings are done in a more subtle manner without a great deal of negotiation per say there are other situations that would warrant more vocalized mutually acceptable compromises. The purpose of this paper will be to effectively explain a situation of which required negotiation on the part of both parties that almost all of us have endured and that would be the process of buying a

Identify the strengths and weaknesses of Fontaine's and Gaudin's negotiating strategy in their deliberations with Reliant Chemical Company. How effectively did Fontaine and Gaudin approach the negotiation?

In Energetics meets Generex negotiation, I was acting as a Chief Operating Officer (COO) for Energetics Corporation and my opponent and my classmate Chace Eskam was acting as a COO of Generex Corporation. In this deal, as a COO I was supposed to sell the Wind energy division of the Energetics to Generex. Energetics Corporation was in desperate need of cash due to bankruptcy. Another hurdle was that I could not sell three different locations of Wind plants individually. My company needed cash within three months with no additional terms added to this deal. My another best alternative was to sell all the assets of Wind Energy division to generate some cash if deal with Generex fails in this negotiation. Our negotiation went on for 15-20 minutes during class time and deal was set in $247 millions. My opponent Chace was very tough in this negotiation to deal. He was very prepared with facts and numbers before he came to the table. My opponent asked me lot questions such as the depreciation of the property, equipment’s life, taxes etc. After having lot of discussion we ultimately came to the conclusion that Generex will pay Energetics $247 million right away in cash to purchase Wind Energy division from Energetics.

1. How did you plan for the negotiation? Explain how you decided on a strategy?

For the Texoil negotiation, I was in the role of the Service Station Owner. As such, my main objective was to sell the station and get the best possible agreement. My BATNA was $400,000, which represented an offer from British Petroleum and my resistance point was $413,000 after tax, which represented the cost of my trip. My target was $488,000, which included an additional $75,000 to help tie me over until I found a job upon my return. This resistance point represents a purely financial alternative. However, there were several other criteria or interests other than strictly financial which could have been satisfied through non-financial means. My underlying interest or reason for selling the station was

Going into this negotiation as the VP of operations my goal was to primarily succeed in buying the restaurant. Prior to starting the negotiation, i identified several certain non monetary concessions that could be made to sweeten the deal such as paying a percentage of travel expenses, and also allowing the restaurant owner

However, Candace was very skilled and duplicitous during the negotiation. While at no point did Candace lie to me. She did make the full entirety of Absentia’s plans for the property. It was later revealed to me, after the formal negotiation, that Absentia planned to develop a high-rise hotel directly behind the Bullard House. This is completely unacceptable to my constituents, however, the deal was already agreed upon by the time I was informed. Candace used the questionable negotiation strategy of deception to ensure she received a favorable deal. She knowingly withheld information that would have impact the terms of our deal. For her, the deal was a success. However, I am left feeling mislead. When I would question her about the types of commercial development that her constitutes sought to pursue, she would make vague references to tasteful additions within the property. The lack of effective question is a failure of mine. I should have begun to ask probing questions, as Lewicki suggests, when I realized that she was not fully disclosing information. Instead I allowed the ambiguous answers to be the basis of my decision

The band members recognized that Agent-town agency possesses the negotiation skills and connections with R-n-R Label’s executives needed to successfully obtain the salary increase. Lewicki et al. (2010) suggested that “clarifying role expectations, agent authority in making agreements, and the constituents’ visibility during negotiations” are key aspects of how an agent can manage constituents and audiences (p. 338). During the talks with Agent-town representative, Jimmy assumed the role of the primary spokesperson, with Tinny and Janice as audience members. Jimmy and the Agent-town representative agreed that this transaction will be an outcome contract, meaning that the agent’s fee will be paid based on the achievement of the band members’ desired salary increase (Lewicki et al., 2010). Jimmy stated that the band members would only agree with a minimum 15% salary increase for all of them, with a two-year deal that includes a European tour. Jimmy, with the concurrence of the other band members in the audience, granted Agent-town the full authority to sign an agreement once the set conditions are met. The other arrangement that was discussed was whether the band members would be present during Agent-town’s negotiation with R-n-R Label’s executive. The Agent-town representative stated that he had a good business relationship with R-n-R Label and that the company’s primary negotiator had made it known in the past that he preferred dealing with one primary

Having analyzed the scoring scheme and weights given to each outcome, I realized that the most important outcome was obtaining a large federal loan from the government. In fact, obtaining a $2 billion loan outcome alone would satisfy the governor’s scoring scheme to support the project. Therefore, before going into the negotiation I realized that this issue would be a pivotal outcome in the negotiation for me. If I succeed in negotiating the right federal loan amount I could be flexible with the other issues in the negotiation but keeping in mind that the higher the score the better the result for the governor. My BATNA was to walk away from the deal where I would still maintain the 30 points in that situation which meant that if the result of the outcome was less than 30 points, I would vote against the deal.

This negotiation consisted of a conversation between the Director of Food and Beverage at the Statler Hotel (me) and the East Coast Vice President of Sales for Anderson Coffee. Our negotiation was fairly short, consisting of only five minutes total. I believe this was because both parties came in with an open, friendly attitude ready to strike a deal together. We also had a great deal of mutual respect for one another, so having an open conversation about limits and potential opportunities within the relationship was much easier. She opened the conversation with the beginning offer, and I followed up with asking her about why the price was where it was at and explaining that while we are excited to talk to Anderson we are also content to

The TexasAgs oil company case study gave us insights on different aspects of a negotiation that can happen in real world scenarios. It elegantly portrayed the importance of having a BATNA, setting target and restriction points, impact of the fluctuating markets on the ongoing negotiations, downside of the emotional behavior, importance of having a third party member or mediator in the negotiation. The case illustrates that the negotiations should be based assumptions as they may or may not be right. Having facts and understanding the other parties true objectives and goals are truly essential in negotiation. It is a typical example of how the current power on one side can dominate and take complete advantage of their position.

I used this setback in our transaction as an opportunity to signal a change in our BATNA. In a conversation with Rong regarding the buyers concerns she asked if I would adjust the property’s sales price. I told her in order for this transaction to move forward she needed to help her buyers move away from assertions back to fact-based statements. I explained to her that unless her buyers could produce evidence of damage to the property I wasn’t prepared to make concessions in excess of a reasonable credit for wear and tear. I expressed my desire to see the sale move forward and but in an effort to signal a change in BATNA told Rong

Negotiating is the art of managing power. "A negotiator’s power may be critical for the quality of his or her success…" (Kim, Pinkley, & Fragale, 2005, p. 799). There are various sources of power as well as various way to control power and its impact in negotiations. In the case of Pacific Oil's negation with its long time Reliant customer, power was significantly unbalanced to the disadvantage of Pacific Oil and its negotiators. This resulted in Pacific Oil making numerous concessions to the advantage of Reliant. However, there were many actions which Pacific Oil could have taken to balance the playing field in their negotiations, but would have required strategic planning far in advance. Pacific Oil failed