Accéder au contenu principal

FOUR KEY CONCEPTS : The First Reading

BATNA is a concept developed by Roger Fisheer and William Ury, this acronym stands for Best Alternative to a Negotiated Agreement.

The text teaches us that no negotiation method is able to completely overcome substantial differences in power. However, there are ways to protect the weaker party against a poor agreement, and to help the weaker party make the most of their assets.

In many situations, we can note that negotiators will establish a "bottom line" in an attempt to protect themselves against a poor agreement. The bottom line is what the party anticipates as the worst acceptable outcome. Negotiators decide in advance of actual negotiations to reject any proposal below that line. Because the bottom line figure is decided upon in advance of discussions, the figure may be arbitrary or unrealistic.

The watchword is « always know our BATNA » before entering any negotiations. Thanks to this, we will have options and our level of risk-taking will be less important. Constantly, we must be focused on our own BATNA and try to improve it.
Analyze the other side's BATNA is also essential. The perfect strategy would be to put into practise a SWOT analysis in order to highlight the strenghts and the weaknesses of the other party.

Otherwise, the Reservation price is the price at whch the rational negotiator will walk away.

We also the have the Zone of Possible Agreement (ZOPA) that describes the intellectual zone in sales and negotiations between two parties where an agreement can be met which both parties can agree to. Within this zone, an agreement is possible. Outside the zone no amount of negotiation will yield an agreement.


Commentaires

Enregistrer un commentaire

Posts les plus consultés de ce blog

EuroMouse Project - Negotiating Across Cultures

This negotiation opposed the Mouse company (An American Multinational Company) and the mayors of 4 towns : Bailly, Coupvray, Magny and Chessy. The Mouse company and the French government signed the Master Agreement to allow Mouse to build Euromouse : a huge amusement park in Marne-La-Vallée. But due to very bad relationships between Mouse and 4 towns involved into the project a negotiation was organized to find solutions and settle the disagreements between the two sides. In this role-play, I played the role of the government official in the Ministry of International Trade. I was very proud of the Master Agreement, this project will increase the influence of the country through the world. The press has been a problem so I am looking for good press releases. Definitely, I felt much more comfortable in this role-play than all the others. I applied more active and effective listening. Moreover, I learned to be less aggresive and more accomodating. During the negotiatio...
Enregistrer un commentaire
Lire la suite

Chestnut Drive Negotiation

CHESTNUT VILLAGE ROLE PLAY Chesnut Drive is a short, dead-end residential street in Bunyonville.  Many Families live in Chestnut Drive. Few weeks ago, a construction of a 77-unit condominium complex on an eight-acre plot at the end of Chestnut Drive started. The only access to the construction site is by Chestnut Drive. The problem is that there were some accidents involving kids. Moreover, employees drive fast in this street, there is a lot of noise and the street is full of dirt. The neighborhood representatives finally succeeded in obtaining a meeting with the general counsel and members of Bunyon Construction. My role during this negotation : I am the Shopkeeper of the Chesnut Village. I am a small businessperson owner of a clothing store on Off Broadway and of two-family house on Chesnut Drive. Actually, I am quite pleased with this construction project but it is not possible to tell it to my neighbors. I had to use manipulations technics to avoid them knowing it. ...
Enregistrer un commentaire
Lire la suite

Negotiation Analysis, an Introduction

Second lesson, my enthusiasm still present despite the amount of work that is increasing day by day in the others subjects. Before I introduce my reading summary, I wanted to share a little project with you. When I was studying Sales and Marketing in the IUT Paris-Descartes, I had to imagine, write, create and film a short-movie about business negotiation. This project was exciting ! In fact, it gave me the opportunity to mix my passion for cinema and my growing interest in business strategies. Thanks to my network in the audiovisual field, I was able to contact a film crew, who agreed to film our short film for free. In this film I play the role of a trading sales professor. Enjoy your watching : https://youtu.be/OxRiFhaVDGg?t=4m46s We wrote all the plot of this movie. Our main objective was to illustrate a win-to-win negotiation. We can see two sellers from Randstaad France and two buyers from La Parisienne de Mutuelle. It was very interesting to define the psychological...
1 commentaire
Lire la suite