Reflection Paper: Texoil (from the point of view of the sellers)

My negotiation partner impressed me by setting the price at $33,000, and made me think that he had to charge us at $33,000. This increased my expected level of payment a lot. Before he gave the

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

In this course, I have learned that it is possible to dramatically improve my ability to negotiate. I can improve my monetary returns and feel better about myself and the people with whom I deal. I also learned that there are several ways to test my intuition and approach. The course provided me with an opportunity to assess my “instinctive” bargaining style and provides suggestions for how to further develop my bargaining abilities. The negotiation exercises were a good way to cement several of the concepts from the book and lecture and gave me several opportunities to get to know my classmate more and test some new insights with them.

A skilled negotiator spends enough amount of time in preparation and planning. In the preparation and planning of this negotiation I gathered all the positive points to my advantage and planned how to put them in a sequence so that my opponent could

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

This case particularly resonates with me because it highlights the problems that arise when two individuals have reference points which do not overlap. An impasse was reached between myself (VP of operations for Les Florets) and the Restaurant owner and this was primarily due to the fact that we both had reference points with a ceiling which we felt we could not exceed.

Question to look the motivations on buying or selling can create good insights on the reasons behind the other party. Is always essential to determine interests, which can come down to putting one's self in the other party's shoes. Questions seeking solution are a way to build trust and establish commitment to the negotiated agreement. This type of question allow you to show interest in what the other side(s) want, as well as provides them the opportunity to point out the problems they may have with your proposal.

Entering Les Florets negotiation, I had set for myself rules. Besides my will to buy the restaurant, I had some intermediary objectives to help reach my goal. First, I needed to learn more about the seller’s reasons to sell. This way I could offer her different solutions to solve the situation. Second, I needed to be flexible, despite the limit of $160,000. That meant I needed to maintain a margin in the negotiation around the price, and I decided to start with a price of $140,000, saying since I am not usually in charge of buying new restaurants, I am limited in the money I can spend. This way, I could difficultly raise my offer to $150,000 but negotiate other things, notably that the seller would

On August 06, 2006, via telephone, Partner-D made the initial call to Partner-W as suggested by Goodfriend. Partner-W introduced herself as a licensed mortgage broker, working for Company-C, and that she was successful at finding affordable housing without the use of a real estate agent. Party-W was certain there were plenty of people to rent out any property obtained; that buying in the area required minimum down; a profit would occur within a year and the house would pay for itself. During this event, PartnerW was using interest-based persuasion (Shell et al., 2007) while at the same time, used the power to educate (Ury, 2007). Partner-W started out by identifying Partner-D’s interest and/or purpose for buying property, which was clearly defined (Fisher et al., 1991). And it was further determined, by the use of integrative bargaining, it would be a win-win situation and would create a shared goal for mutual gain (Fisher et al., 1991). Partner-D would be gaining extra income; and Partner-W would gain commission for the sell of the property. Partner-D went to the balcony to think about the information provided (Ury, 2007). Overall, the idea seemed like a good idea and Partner-D felt she was in good hands

in 1998 and had been operating at a 95% occupancy level since its initial rentup. The asking price was

I also learned one thing that I would like to stop doing during the negotiation is letting the other party offer first. I was able to adequately prepare for the negotiation, find the prices I wanted and was willing to accept, and identify different issues besides price to use as bargaining chips since the Statler Hotel had less to offer than the seller. Although I knew that I had taken enough time to prepare for the negotiation, I let fear of inducing a chilling effect keep me from being aggressive with my first offer. I now know I have no need to be self-conscious if I have prepared – although I read this in the book it is different to experience it in practice. I also know, that if I do miss the chance to offer first because the other party happens to be more aggressive than myself it is important to re-anchor the conversation to keep the negotiation on the track I want it to be.

Pre-negotiation preparation is essential for the optimal outcome of a negotiation, as it allows one to design a strategy and plan that can increase the probability of a beneficial agreement. Good preparation means thorough understanding of one’s own and the other party’s relevant information, including interests, constraints, and tradable resources. An effective negotiator should know one’s own best

Last fall, my wife and I put our home up for sale. Our motivation was simple, with the money we would get from the sale of our home we could pay off all our debt and have plenty of money left over to invest, eventually saving enough to buy a bigger home. Emboldened by the allure of liquidity I listed our home for sale and waited for the offers. Indeed the offers did come in, in fact over the next few months we were in and out of escrow three times.

• Making a right negotiation strategy based on Lewicki, Hiam, and Olander’s analysis model. From their model, I think I should deploy a competitive negotiation strategy in this case. This is a win-lose strategy. My purpose is to win at all cost. I should spend time to prepare the negotiation as much as possible. I have no much concern about future state of relationship with seller.