hfst 5&6 Flashcards
Describe strategy in 3 points
- Related with long-term
- impact largely on the outcome
- hard to change, once started
Describe tactics in 3 points
- Related with middle-term
- Lower impact on the outcome
- Easier to accommodate
Name the 3 competitive strategies
- promote an agreement close to the sellers point of resistance (which is unknown).
- persuade to the other party to changer their resistance point by influencing the notion from the seller/buyer about the value of the object
- Persuade the other party that “it is the best possible deal”
What are the 4 collaborative strategies
- win-win
- fair- process
- joint problem solving
- transparency and trust
What are the 5 distributive strategy tactics?
- focus on the other party’s BATNA and reservation value
- avoid making unilateral concessions
- be comfortable with silence
- label your concessions
- make contingent concessions
Explain distributive tactic: focus on the other party’s BATNA and reservation value (3)
- in addition to determining your own BATNA and reservation value, it is also important to try to estimate the other parties BATNA and reservation point.
- So you can estimate the ZOPA
- negotiators who focus on the other parties BATNA tend to aim higer and capture more value
Explain distributive tactic: avoid making unilateral concessions (2)
- once each party has made an initial offer, avoid the trap of making another concession before your counterpart has reciprocated with one of her own
- If the other party won’t match you concession, it could be time for you to bow out of the negotiation and exercise your BATNA
Explain distributive tactic: be comfortable with silence (3)
- negotiators often are inclined to make undue concessions or retract their offer when their counterpart seems to be taking too long to respond
- But keep in mind that your partners silence may be strategic, designed to make you uncomfortable and cave in
- When you speak when it’s their turn to do so “you will be paying by the word”
Explain distributive tactic: label your concessions
- humans have an innate tendecy to reciprocate the gifts and concessions we receive from others, so we make one if we get one in a negotiation
- to escape such feelings of obligation, negotiators can undervalue or overlook one another’s concessions
- Draw attention to your concessions by “labeling” them: clarify how costly the concessions will be to you and make clear that you’re giving this value away
explain distributive tactic: make contingent concessions (3)
- To further reduce the ambiguity of your concessions, you might explicitly tie your concessions to specific actions by the other party
- make it clear that you will only make your concessions if the other party meets your expectations.
- contingent concessions can not only secure commitments from your counterpart but also broaden the number of issues up for discussions, perhaps transforming a distributive negotiation into an integrative one, creating value in the process.
Explain comptetive strategy “ promote an agreement close to the sellers resistance point” (2)
- Produces the largest part of the negotiation range for the buyer
- The buyer may try to influence the sellers opinion of the agreements by making extreme offers & small concessions
How do you “pursuade the other party to change their resistance point”
By influencing the notion of the seller/buyer about the value of the object
Explain competitive strategy “persuade the other party that “its the best possible deal” (2)
- Difference between a party believing that an agreement is the best possible deal may seem subtle but it’s not
- It is important the other party feels like they got the best possible deal. Ego satisfaction
What is often just as important as achieving economic goals?
Ego satisfaction
In which collaborative approach do both parties believe the pie can be enlarged
Win-win
