1- Prepare_ Plan Your Negotiation Strategy Flashcards
Which are the 7 basic questions you have to consider before negotiating?
1- Should I even negotiate?2- Is it a position or an interest based negotiation?3- Am I resolving a dispute or making a deal?4- How should analyze it?5- Is it a cross-cultural negotiation?6- What about ethics?7- Should I use an agent?
What are the two factors to consider for deciding wheter to negotiate or not?
1- Do I feel is it worth my time?2- Am I willing to accept the cost of opportunity, that is, do the benefits exceed the risks?
By which other names are position and interest based negotiations known?
Distributive negotiation and creative negotiation. One divides the “pie”, the other attempts to enlarge it by creating a win-win solution.
What’s better: a dispute resolution or a deal making? Why?
A deal making. Because it’s a win-win situation. By searching both parties’ interests, both can be satisfied with and adapted solution.
Which are the 6 processes to resolve disputes, from more to less agressive?
- Sheer power
- Litigation (suing)
- Arbitration
- Mediation
- Negotiation
- Avoidance
Which are the differences between arbitration and mediation?
They both use a third party to help in the process, but in arbitration the third party has the power to decide the final solution.
Which are the four basic option when disputing?
- The power option: force the other thanks to your position
- The rights option: use a third party which deides according to a set of rules
- The avoidance option: let the other win
- The interest option: negotiate an agreement based on each party’s needs
Which are the three tools to analyze and prepare for a deal?
- Initial questions
- BATNA
- Decision trees
What are the initial questions you should ask yourself after you have decide you are going into the negotiation?
- What is the overall goal with this agreement?
- What issues could there be? WHY are they important?
- What’s my BATNA?
- What’s my reservation price, the lowest I will accept?
- What’s the stretch goal, the possible maximum the other would accept?
What does BATNA stand for?
Best Alternative To a Negotiated Agreement. Basically, it means “Plan B”
What happens if you set an stretch goal way too high?
You lose credibility. You can’t ask 10.000€ for a 20€ steak
What does ZOPA stand for? Where is it located?
Zone Of Potential Agreement. In between the buyer’s an the seller’s reservation prices
How does a decision tree look like?
