lundi 25 septembre 2017

Resume negociation situation :The two dollar game


The two dollar game: 2 people found at the same time 2$ in the street. 
With secret instructions we had to get as much as we can of these 2$.

Round 1: 



Personally, I had to get at least 50 cents to get the bus to get back home, otherwise I will have to walk more than one hour and it will be dark and cold out where I live. We started to both wanted the 2$. My partner need to have at 1$ to buy the CD she likes. First, she started, saying we are friend and I can give her all the money. She used emotional and sentimental arguments. I replied that a need this money for more vital need to get home, for it was more important than the CD and I used security and life argument. She offered me to drive me home, but I said that I had first to buy bread. It was a mistake because she asked me how can I buy bread if I can buy a bus ticket. So, to bypass the reflexion I said I had to visit my grandmother who can give me the money. I had to be careful because I started to found to many different arguments which can be in contradiction. Caroline, used again emotional argument and said that it would be a pleasure for her to drive me and I answered I won’t go with her because she is driving bad because she only had her licence since a few months. Then I had to apologized because she said she had it for a longer period, and to cut the negotiation I suggest share equally. Its was our best BATNA for both because each party were winning in the bargaining. I get more than what I needed and she get her reservation price.
The good points of my partner were her ability to use emotional factor and create a context to touch the other party but she was not very powerful for convincing. I was lucky to get a win/win approach because I used more objectives arguments related to basically needs, I get more money and my partner was easy to convince one time the agreement founded. But I need to be careful to develop my arguments and not try to find a lot to avoid contradiction.

Round 2 :

For this 2nd round I was supposed to talk the less as I can, listening to my partner. It was pretty difficult at the beginning because my partner was only asking questions. This round was for me easier because I knew which working arguments I can used. This is why I take the bus ticket excuse again. We also started wanted the 2$ both of us.  But this time my partner was more difficult to convince because she also used objective arguments: she told me that if somebody found money in the street, they have to go to declare it to the police, that way if the person who lost the money called for a lost the police can give her the money back. Using the legal aspect was a very good idea and make her more competitive because she was trying to afraid me. I didn’t really have an opposite argument and I answered with generalities: nobody is doing it, if we get the money back none of us will have money so better we share. After she used a less persuasive argument: she told me she needs this money to buy medicines for his dog who is dying. I told her that this not with this 2$ that she can them. She was exaggerated the situation, trying to put me in a sentimental context. Like my previous partner, she used emotional argument. She was lying on her BATNA and here I saw a way to weaken it and improve my position and reach more favourable interests. She was not willing to share equally because for her her dog was more important than me. Here she was trying to improve her position by creating the values at her disposal. We negotiated the price until one of us reach its reservation price but I was aware to get as much as I could. At the end, we find a common zone of possible agreement (ZOPA): this time she gave me more than the average and I will invite her another day for a coffee. It was a win/win negotiation again, successful for me because I get more money and my partner didn’t feel bad at the end of the negotiation.

Comment reading : Four Key Concepts

              Comment about the reading :                                       25/09/17    
 Four Key Concepts 

To have a successful negotiation 3 steps must be followed. It is necessary to have alternative to negotiation, a threshold for the negotiated deal and some flexibility. For this, 3 concepts were developed: Best Alternative to a Negotiated Agreement (BATNA), a reservation price and a Zone of Possible Agreement (ZOPA).
First of all, the BATNA a is concept created by Roger Fisher and William Ury to refer to what happened in the absence of deals. BATNA determines the point at which one of the party can say no to a proposal he judges unfavourable for him. If its strong, the negotiation can continue to reach more favourable terms. A weak BATNA put the party in a weak bargaining position with a very little power to negotiate. To strengthen a weak BATNA, 3 alternatives are possible: improve the BATNA, identify the ones of the other party and try to make it weak. For this you can make some research on the company by contacting sources within the industry or check business publications or former reports. Many of the business situations involve external factors, incomparable and unqualifiable, and personal factors which influence the value of the BATNA. This is why it is very important to be as objective as possible in negotiation.
Then, the reservation price is the least acceptable point at which one party accept a deal, it is derived and approximately equal to the BATNA.
Moreover, the ZOPA is the zone of possible agreement in which the deal can satisfies both parties. Each party is trying to find a compromise related with its BATNA.
Finally, the value creation through trades. Negotiation parties can improve their positions by trading the values at their disposal in the context of integrated negotiations. This is possible when a party try to sell something that she values less than the other one.