Chapter 1 Preparations for negotiations Period 2 Negotiation Planning.pptVIP

3. Presentation 1. Define objectives 1) Ones short and long-term objectives, BATNA , three levels of goals, ZOPA 2) The other partys goals 1. Define objectives BATNA, Minimum target and ZOPA: Company A wants to sell its equipment for cash. Party B wants to buy it for $1,000. 1) When A deals with another potential purchase C, $1,000 is A’s BATNA/ Minumum target/ resistance point/ walk-away price. 2) If C would pay up to $1,300,then the ZOPA is $1000~1300. 2. Define interests Address interests(why), not goals or positions (what). e.g. For a potential computer buyer, Position: to pay no more than 5500 for the computer. Interest: to pay a fair and affordable price for it 2. Define interests Another example: Position-based Interviewer: What were you thinking about as a starting salary? Applicant: I would like $40000. Interviewer: We can only offer $35000. Applicant: That’s not acceptable. Interest-based Interviewer: $40000 is a problem for our company.Can you tell me why you decided you wanted $40000? Applicant: Well,I have lots of education loans to pay off,and I will need to pay for a few more courses to finish my degree.I can’t really afford to pay these bills and live comfortably for less than $40000. Interviewer: Our company has a program to help new employees refinance their education loans.In addition,we also have a program to provide tuition assistance for new courses if the courses you need to take are related to your job.Would these programs help you with your problem? Applicant:Yes! 2. Define interests Understand the other partys interests to achieve your own goals! 1) The other partys substantive and non-substantive interests 2) The two parties complementary, conflictive and different interests 3. Choose a strategy All the five strategies have their context of uses. Question: What factors do you need to consider in choosing your negotiation strategy ? And when may the accommodation strategy come into use? 3. Choose a str