personal experience in negotiation

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Brief It is a real experience that I had in my father’s company. This spring, our company planned to add one floor on the top-storey of their 3-floor office building. Before construction, our Company needed to obtain an inn owner’s permission, as the addition floor will block light shining into some rooms of his inn-- AB Inn, which locates in the other building next to our office building. Therefore, our company had to negotiate with AB Inn regarding the permission and compensation issue. I was not been assigned any works in the process because of my poor experience, but I took part in the negotiation as a minute-taker, witnessing all the details. It is obvious that the AB Inn owner did not permit us adding a floor at the beginning.…show more content…
So the essential issue of the negotiation is the amount of compensation. If we could reach or exceed the reservation point of the other side, the inn owner would like to make an agreement with us. Secondly, the general strategy is to maximize share of a “fixed pie” that is the profits of the adding floor. The area of the adding floor is unchangeable according to the construction drawing, and we earn profits from the floor in the form of leasing. Therefore, the interests of the negotiation is fixed. If we gave the inn owner more, we would get less, and vice versa. What’s more, the relationship of the parties is one time only, since the type of compensation is one-off. According to the earlier cases, the sunshine right compensation only need to be paid one time. Therefore, we didn’t have to keep a long-term relationship with the inn owner. In addition, we kept interests hidden. Just as I mention before, the adding floor is used to lease. So we can get profits from the floor continuously. But in the negotiation, we deliberately shift off this point and confused the concept of profits with the concept of annual profits. As a result, taking account all of the factors above into consideration, I conclude thatwe did not try to expand the” pie ” or share information to each other, but making efforts to maximize ourselves interests. I think it is a
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