Negotiation assignment where we are supposed to negotiate with the other party given in the document and close the deal.
MNGT 4720-3 Negotiation and Conflict Resolution (3,0,0) Buyer- No Partner Alternative Please answer the below questions in short form. Use concepts from the text. Ensure you use examples from the fact scenario to back up your answers. 1) The seller informs you they want to finish the sale and transfer ownership before the end of March. How would you respond to this? 2) The seller has offered to decrease the price by $10,000 if you keep the head chef employed. How would you respond to this? 3) The seller tells you that they require $75,000 immediately to buy out their business partner. Otherwise, they will have to go with a buyer who can do the sale immediately. How would you respond to this? 4) You discover that the Landlord has not yet agreed to transfer the lease over to you. How would you use this information in the negotiation? Microsoft Word - Assignment Facts- Buyer Assignment: Formal Negotiation Facts (Buyer) MNGT 4720-3 Negotiation and Conflict Resolution (3,0,0) Buyer Instructions: You are a TRU business student, who is nearing graduation. You are looking to buy a restaurant with your fiancé, who is a chef. Your partner’s specialty is Vietnamese, but also excels with sushi. Having grown up in the restaurant industry, your partner feels very confident in running this kind of business. In fact, your partner’s aunt and uncle still have a restaurant in Salmon Arm. Currently your partner is self employed as a chef doing catering for weddings and other events, earning roughly $60,000 a year. You are working part time for an online company doing customer support, earning roughly $40,000 a year. A few years ago, your grandmother left you an inheritance of $60,000 that you are saving as a down payment for the business. Location is very important to you. You want to buy in a smaller community, that is close to the water. You also want to buy a business that is successful and has a good reputation. You see the ad for Royal Wok, Asian Buffet in Salmon Arm and decide to reach out. Mr. T responds that the seller is offering the restaurant for $198,000 including all cooking equipment. The location is a rental costing $2800 per month. The location is off a main highway that has considerable traffic. You don’t officially graduate until May of 2020. As a result, you want a long closing on the deal so you have time to finish your studies before moving. Please review the kijiji ad: https://www.kijiji.ca/v-other-business-industrial/kamloops/buffet- business-on-tanscanada-hwy-super-busy-spot-for-sale/1473226589 The ad and photos are also available in the ‘Joint Information’ file. Shruthi's pc Cross-Out Format: Part 1: The first step in any negotiation is to prepare a plan. Draft a 2-3 page document as per the process outlined in PPT slides of chapter 4. Part 4: complete a short reflection on the entire process. In this reflection, discuss the other learning components which impacted your negotiation. For example, power, emotion, hardball tactics, cross-cultural elements, or communication issues. Your reflection should be 2-3 pages. Submission: This assignment is to be drafted in Times New Roman, 12 font, with 1 inch margins and double spaced. Please use APA. Chapter 4 Chapter 4: planning & strategy Goals Direct Effect of Goals Wants are not goals, especially in negotiation. Goals are often linked to the other party’s goals. Goals must be attainable. Effective goals must be concrete, specific, and measurable. In other words, goals are deliberate and actionable. 3 Types of Goals substantive goals (e.g., money or a specific outcome), intangible goals (e.g., winning, beating the other party, or getting a settlement at any cost), and procedural goals, such as shaping the agenda or simply having a voice at the table. 4 Managing Goals list all goals they want to achieve in the negotiation, determine the priority among these goals, identify potential multi-goal packages, and evaluate possible trade-offs among multiple goals Use SMART process. 5 Intangible Goals How do you want to show up? What skills and tools do you want to use? What will success look like? Consider what you can control*** 6 The Planning Process TOPICS TO CONSIDER Setting the stage: defining the issues assembling the issues and defining the bargaining mix defining interests defining limits and alternatives setting objectives (targets) and opening bids (where to start) assessing constituents and the social context in which the negotiation will occur analyzing the other party planning the issue presentation and defence defining protocol—where and when the negotiation will occur, who will be there, what the agenda will be, and so on 8 1: Determine the Issues What are issues? Any matter that requires discussion or consideration in the negotiation; Need not be a interest or goal of either party, but must be discussed and decided; Eg. time of day of the closing date, how documents will move between the parties, how you will resolve any disputes. 9 1: Determine the Issues an analysis of all the possible issues that need to be decided previous experience in similar negotiations research conducted to gather information (e.g., reading a magazine article on how to buy a house) consultation with experts in that industry (real estate agents, bank loan officers, lawyers, accountants, or friends who have bought a house recently) 10 2. Prioritize the Issues Determine which issues are most important and which are less important. Ranking or scoring methods; Consider tangible and intangible interests. Determine whether the issues are linked or separate. 11 3. Defining Interests Positions are what a negotiator wants. Interests are why he or she wants them. 12 Interests May Be: substantive, that is, directly related to the focal issues under negotiation process-based, that is, related to how the negotiators behave as they negotiate relationship-based, that is, tied to the current or desired future relationship between the parties Intangibles, like principles or values. 13 4. DEFINE LIMITS AND ALTERNATIVES A resistance point is the place where you decide that you should absolutely stop the negotiation rather than continue. Alternatives are very important in both distributive and integrative processes because they define whether the current outcome is better than another possibility. In any situation, the better the alternatives, the more power you have because you can walk away. 14 2 key points: the specific target point where we realistically expect to achieve a settlement, and the asking price, representing the best deal we can hope to achieve. 5. Set targets & opening offer 15 Considerations in Target Setting 1. How can you package issues and objectives to achieve results on multiple fronts? 2. What can you use as trade offs & throwaways? 16 6. Assess Constituents and Social Context First, consider who is at the negotiation table, and how they interact. Second, negotiators also have constituents—bosses, superiors who make the final decision, or other parties who will evaluate and critique the solution achieved. Finally, negotiation occurs in a context of rules—a social system of laws, customs, common business practices, cultural norms, and political cross-pressures 17 Field Analysis Who is, or should be, on the team on your side of the field? (co-negotiators, lawyer, accountant etc.) Who is on the other side of the field? Who is on the sidelines and can affect the play of the game? (Boss, owners and managers? Who is in the stands? Who is watching the game, is interested in it, but can only indirectly affect what happens? (Shareholders, family members, the media) What is going on in the broader environment in which the negotiation takes place? (political context, market conditions etc.) 18 7. Analyzing the Other Party What is the other party’s: resources, issues, and bargaining mix interests and needs resistance point and alternative(s) targets and objectives reputation and negotiation style**** constituents, social structure, and authority to make an agreement likely strategy and tactics 19 A Note on Reputation It impacts: Opportunities, Degree of openness & honesty, Professional standing, Likelihood of complaints etc. Obtain less value. 8. Planning Issue Presentation & Defence What facts support my point of view? What substantiates or validates this information as factual? Whom can I consult or talk with to help me elaborate or clarify the facts? What records, files, or data sources exist that support my arguments? Have these issues been negotiated before by others under similar circumstances? Can I consult those negotiators to determine what major arguments they used, which ones were successful, and which were not? 21 What is the other party’s point of view likely to be? What are his or her interests? What arguments is the other party likely to make? How can I respond to those arguments? How can I develop and present the facts so they are most convincing? What visual aids, pictures, charts, graphs, expert testimony, and the like, can be helpful or make the best case? 22 9. Define the Protocol What agenda should we follow? Where should we negotiate?*** What will be the length of the negotiation? What might be done if negotiation fails? How will we keep track of what is agreed to? How do we know whether we have a good agreement? 23 Planning to Action Strategy Development Once negotiators have completed the planning process, they then move to the important next sequence: selecting and developing a strategy. 25 Strategy vs. Tactics Strategy as “the pattern or plan that integrates an organization’s major targets, policies, and action sequences into a cohesive whole.” Tactics are short-term, adaptive moves designed to enact or pursue broad (or higher-level) strategies, which in turn provide stability, continuity, and direction for tactical behaviours. 26 What is the difference? If your strategy is: (eg.) integrative, designed to build and maintain a productive relationship with the other party while using a joint problem-solving approach to the issues. Then your tactics would be: (eg.) describing your interests, using open-ended questions and active listening to understand the other’s interests, and inventing options for mutual gain. Tactics are subordinate to strategy; they are driven by strategic considerations. 27 Unilateral vs. Bilateral strategy Unilateral: Based on your own position alone. Bilateral: Including consideration of the other parties position and strategy. 28 Dual Concerns Model The dual concerns model can form the basis for strategy: Avoidance Competition Accommodation Collaboration 29 Dual Concerns Model: Selecting an Approach 30 Wednesday