UNIVERSITI UTARA MALAYSIA
OTHMAN YEOP ABDULLAH GRADUATE SCHOOL OF BUSINESS
BSMH 5113Business Negotiation
Article ReviewThe Art of Negotiating
By;PRIDHIVRAJ NAIDU - 814284
Presentation Overview
1. Successful negotiation steps
2. Non Verbal Communications
3. Reasons why deals Fail
Negotiation Steps
1. Recognize
2. Prepare and Plan
3. Establish Rapport
4. Pattern Recognition, mental stimulation and reflection-in-action
Non-Verbal Communications
Reasons why deals fail
1. Interests of parties don’t align
2. Mismanagement of the bargaining process
3. Human Psychology
UNIVERSITI UTARA MALAYSIA
OTHMAN YEOP ABDULLAH GRADUATE SCHOOL OF BUSINESS
BSMH 5113Business Negotiation
Case Study
Developing a Strategic Negotiation Plan:Toyota Highlander
By;PRIDHIVRAJ NAIDU - 814284
The Case
- Miss Michelle and Miss Yale is interested to buy Highlander 4 wheel drive
- Miss Michelle is trading in her low mileage 1992 Honda Accord LX.
- The Lacey’s however, they would be keeping their current car and financing the purchase beyond a $5,000 down payment.
- Manufacturer’s Suggested Retail Price (MSRP)
- no incentives provided to the dealerships for sales of the Highlander model
Q1 Best Nego Strategy
- Dual Concern Model
- Competitive bargaining
Q1 Best Nego Strategy
- Competitive bargaining tactics aim for a large slice of a fixed pie of value
(Amanatullah, Morris & Curhan,2008)
- In the purely distributive case, the interests of
the parties are negatively correlated(Walton & McKersie,1965)
- I win – you lose
Q1 Best Nego Strategy (Cont.)
- Seller seeks the highest price possible and the
buyer hopes to pay as little as possible. (Barry & Friedman,1998)
- Each negotiator presumably has in mind a reservation price, beyond which he or she will not go in reaching an agreement
(Raiffa,1982)
Q2 Nego Process
PHASES
PREPARATION
RELATIONSHIP BUILDING
INFORMATION GATHERING
INFORMATION USING
BIDDING
CLOSING THE DEAL
IMPLEMENTING THE AGREEMENT