MGT491 Final Flashcards
What is the best alternative to a negotiated agreement.
BATNA
What is the value at which you would be indifferent between entering into or not entering into or not entering into an agreement, the bottom line
Reservation Price
What is the range if one exists, between the parties reservation prices, the bargaining range.
ZOPA
What dose ZOPA stand for?
Zone of Possible Agreements
What is the following?
- What is the second best alternative
- It is not your bottom line
- It is your next best alternative and helps determine your walk away point.
- It takes into account all your various interests.
BATNAs
What dose BATNA
Best Alternative to a Negotiated Agreement
What are quite useful when a negotiator wants to maximize the value obtained in a single deal and when the relationship with the other party is not important.
Distributive Negotiations, Distributive bargaining strategies and tactics
What is the following:
*Be strategic with your information. Use your information to influence your opponent’s perceptions of you
*Strategic communication is coded and complex.
Protecting your own information.
What is the other party’s resistance point will vary directly with his or her estimate of the cost of delay or aborting negotiations.
Propositions
What is the following:
- convince your opponent you are patient, willing to wait, and will abort negotiations if necessary.
- convince your opponent that his or her costs of delay/ abort are high.
Propositions
Happens during the following phase:
- Ask open ended questions not yes/no questions.
During the information phase
The following dose what:
- Important variables:
- The value the other attaches to a particular outcome.
- The cost the other attaches to delay or difficulty in negotiations.
- The costs the other attaches to having the negotiations aborted.
Influencing the other party’s resistance point
What is a resistance point will vary directly with the value that outcome.
Propositions
What is the following:
- Convince your opponent that the present bargaining position is unattractive
- Convince your opponent that your position is set in stone.
Propositions
What phase principled offers and concessions
The Competitive Phase
What is the following:
- Direct action to alter impressions
- threats and promises
- Aggressive techniques
- agent and unreasonable client
- Direct action to alter impressions
- Aggressive Techniques
- Manipulate the actual cost of delay or termination
Tactical Issues
The following tactical issues are examples of what:
- selective presentation
- explain/present/frame known facts
- interpret/ describe likely undesirable outcomes
- Silence and patience
Direct action to alter impressions
What is the type of bargainer is the most difficult to deal with because they effectively refuse to participate in the negotiation process and negotiators must force the person to negotiate and never allow them to alter their planned strategy.
Belly-up
The following is the cost of what action:
A. Disruptive action
B Alliance with outsiders
C Schedule manipulation
manipulate the actual costs of delay or termaination
The analytical structure of this approach is based on assessments of three key sets of information:
- Each party’s alternative to a negotiated agreement
- each party’s set of interest
- The relative importance of each party’s interests
With the information in hand what will be prepared for the two primary tasks of negotiation
- creating
2. claiming value
What is it when the reservation points of the two parties do not overlap is
negative bargaining zone
What is it when it is optimal for the negotiators to reach a settlement
positive bargaining zone
What is the though the process of identifying and adding issues, the parties have the potential to create value, increasing the amount of total benefit available
creating value in negotiation
The following are what:
- building trust and share information
- ask question
- strategically disclose information
- negotiate Multiple issues simultaneously
- Make multiple offers simultaneously
- Search for post-settlement settlements
The tools of value creation
What tool of value creation is the easiest way for parties to create value is for the two negotiators to share information with each other about their preference.
Build trust and share information
What tool of value creation is full information sharing will not always be to your advantage, information that will work against your if the other party obtains it, the other party also may be unwilling to fully disclose confidential information.
Ask question
What tool of value creation is not having a trusting atmosphere, and the other party is not answering your questions in any useful way, in the problem you have to give away some information.
Strategically disclose information
What tool of value creation is critical to get the most important issue resolved in the beginning
Considering pagers of issues: package offers help the other party isolate aspects of the offer that are particularly problematic and propose counter-offers that signal flexibility on some issues while making demands on others.
Negotiate multiple issues simultaneously
What tool of value creation is when the negotiators they to put an offer on the table early to anchor the discussion.
- Since the anchors have such a strong impact, they can overshadow subsequent discoveries.
- allows you to come across as a flexible negotiator.
- signals that you are willing to be accommodating and that you are interested in understanding the other party’s preferences and needs.
Make Multiple offers simultaneously
What tool of value creation is when the negotiators continue to seek out ways to increase the size of the pie.
Search for post-settlement settlements