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