MPV_COMA Communication and Managerial Skills Training Seminar 11, 12 Trainer: Daria Kucharova Agenda  Test information  Exercise 1. BATNA, RP, ZOPA  Exercise 2. Price negotiation  Exercise 3. Multiple-interest negotiation Test information  Assessment criteria:  quantity and quality of theoretical knowledge, understanding the theory  ability to apply gained knowledge  extent of the development of relevant skills Test information  Lectures  Seminars  Two study materials:  Communication Process. Effective Verbal Communication  Basic Communication Skills Test information  Grading:  0-59% not passed  60-68% E  69-76% D  77-84% C  85-92% B  93-100% A Test terms (max 3 terms)  First term: 27.4  Second term: 11.5  Third term: TBA Exercise 1  BATNA – Best Alternative To Negotiated Agreement  RP – Reservation Price  ZOPA – Zone of Possible Agreement  You are preparing to negotiate the sale of your bike with a buyer, Thomas. He responded to an ad that you posted one week ago on web. You don’t have other buyers.  You have to earn at least 4000 from the sale to finance the purchase of a car that you have ordered. You want to keep your bike for a month until you have the new car.  The reasonable value of your bike is 5000 (you checked similar sales on internet).  If you can’t find a buyer willing to pay at least 4500, you will sell the bike to a friend, Nick, for 4000. You know that he will let you keep the bike as long as you need it. Key questions for analysis  What is your overall goal in the negotiation?  What issues are most important to you in reaching this goal? Why?  What is your Best Alternative to a Negotiated Agreement (BATNA)?  What is your Reservation Price (the lowest price that you will accept in this negotiation)?  What is your most likely price?  What could be your offer (stretch price/anchor)? Key questions for analysis  What is your overall goal in the negotiation? Sell your bike  What issues are most important to you in reaching this goal? Why? Price – because you need money to buy a new car, and transfer date – because you need the new car for 1 month  What is your BATNA? Sell the bike to your friend  What is your Reservation Price ? 4500  What is your most likely price? 5000  What is your stretch goal? 6000(?) Key questions for analysis Where is ZOPA? ZOPA Negotiation  Anchor effect  Anchor when you have a strong position  If you are in a weak position or lack information  How much?  Result vs. relationship  Credible Exercise 2. Price negotiation  Adapted from book Negotiation Genius by Deepack Malhotra and Max H. Bazerman Negotiation  Win-Lose vs. Win-Win  Position-based vs. Interest-based  Value distribution vs. Value creation Negotiation 1. Positioning (win-lose) 2. Discover interests (win-win) 3. Generate options (both) 4. Finalize agreement (both) Exercise 3. Multiple-interest negotiation  An Education service scenario Discussion  Self-Assessment  What did you do well?  How can you improve?  Feedback for the Other Side  What did the other side do well?  How can the other side improve? Thank you for attention!