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Negotiations

Negotiations. 2:30-2:40 Read Ugli Peach Role Instructions 2:40-2:50 Grab a partner (different color paper!) and negotiate Ugli Peach 2:50-3:20 Debrief Ugli Peach. Ugli Peach Negotiation.

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Negotiations

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  1. Negotiations 2:30-2:40 Read Ugli Peach Role Instructions 2:40-2:50 Grab a partner (different color paper!) and negotiate Ugli Peach 2:50-3:20 Debrief Ugli Peach Wendi Adair

  2. Ugli Peach Negotiation • Two different parties (Roland & Jones), each interested in buying a large quantity of Ugli Peaches from 3rd party (Cardoza) • Task for Roland & Jones: Negotiate how you will approach the seller with an offer • 10 minutes to negotiate, then deal or impasse Wendi Adair

  3. Ugli Peach Solutions • Couldn’t reach agreement on anything • Roland will make an offer for all 3000 & Jones will make a competing offer for all 3000 • Roland & Jones will each offer to buy 1500 • Roland & Jones will together offer to buy 3000, Roland will take skin, Jones will take juice Wendi Adair

  4. Distributive Win/lose Positional Claiming value Dividing the pie Goal: individual gain No future relationship Integrative Win/win Interest based Creating value Expanding the pie Goal: mutual/ind gain Long-term relationship Distributive vs Integrative Negotiation Wendi Adair

  5. Why Integrate? • Take advantage of available resources • Potentially more for both parties • Create a deal where there wasn’t one Wendi Adair

  6. Language of Bargaining • Target Price (Aspiration) • BATNA • Reservation Price (Limit) • Bargaining Zone (ZOPA) Wendi Adair

  7. Effective Negotiating • Anchoring: impact of 1st Offer • Role of concessions • Create value by • Discovering trade-offs • Identifying compatible issues • Adding issues Wendi Adair

  8. How to get information to create integrative agreements • Build trust • Ask questions • Give away some information • Make multiple offers simultaneously Wendi Adair

  9. Negotiation Take-Aways • Plan by defining batna, target, & reservation • Look beyond positions to discover underlying interests • Integrate common interests or trade-off different interests to create value • Strategically manage the process (1st offer, gathering/sharing information, concessions) Wendi Adair

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