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Task 2 Negotiation Analysis

The document discusses two negotiation analyses. The first analysis is of negotiating to purchase a used Volkswagen Jetta. The buyer uses a competitive strategy and offers $3,000 initially. After counteroffers, the buyer agrees to pay $4,500 for the car. The second analysis examines a case study called "Toyonda" about negotiating a transmission repair. The representative wants to resolve the issue cost-effectively while ensuring customer satisfaction. Through discussing interests and making concessions, they agree the company will provide a two-year warranty in exchange for two years of advertising from the customer.

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Siraj Ibrahim
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283 views6 pages

Task 2 Negotiation Analysis

The document discusses two negotiation analyses. The first analysis is of negotiating to purchase a used Volkswagen Jetta. The buyer uses a competitive strategy and offers $3,000 initially. After counteroffers, the buyer agrees to pay $4,500 for the car. The second analysis examines a case study called "Toyonda" about negotiating a transmission repair. The representative wants to resolve the issue cost-effectively while ensuring customer satisfaction. Through discussing interests and making concessions, they agree the company will provide a two-year warranty in exchange for two years of advertising from the customer.

Uploaded by

Siraj Ibrahim
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Task 2 Negotiation Analysis

Students Name

Institutional Affiliation

Due Date

Used Car Negotiation Analysis

In the analysis of the used car negotiation, I used the Competitive Strategy (win to lose Ch. 1.1 P,

18) because I was the buyer whose car was wrecked and who also did a lot of traveling. I'm

searching for a cheap automobile that's easy to drive; the only problem is that I don't have a lot of

money to spend, but I really need a car since I can't afford to keep paying for car rentals, and my

job needs me to have a car, therefore I need a car immediately. I picked the Competitive Strategy

(win to lose Ch. 1.1 P, 18) because I do not know the seller, and he or she may have a terrible

reputation for hard negotiating or dishonesty, so I am defensive in my negotiation, and so I do

not trust the seller. I am not concerned about the seller's relationship, but I am concerned about

the outcome. I only intend to spend $4000 since I do not want to deplete my funds. I had planned

to use the money to take a long-overdue trip. If the seller does not plan to sell it to me for that

price, I will have to stick with my BATNA (Ch. 1.4 P. 40), despite the fact that the Jetta is the

greatest car for me because it is newer, more fuel efficient, and will last me longer. I'd get the

jeep so I don't have to go into my vacation funds. My first offer to the vendor was $3000, which

I thought was fair.


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The response I received was that the price was too low and that he had gotten a better bargain the

week before, so if I wanted the car, I would have to offer a higher price. My next action was to

ask the seller what she thought was a reasonable offer to her. She responded $5000 to seal the

deal. That's when I utilized a Quick Close approach, which indicated that I didn't want to do a lot

of bargaining since I knew what I could accomplish with my money, and I also had a BATNA

just in case because there was an urgency for me to acquire the Volkswagen Jetta, which

included financial restrictions. That's when I upped my original bid to $4000. The seller's

reaction was that she could do $4500, and that was the final answer. We both consented to the

offer, therefore I utilized a Concession technique (Ch. 1.6 P. 66) that I was familiar with. If I

employed this strategy at the last minute after I agreed to the offer, the seller could show some

goodwill to clinch the transaction.


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The Toyonda Case

The Toyonda Stimulation on Chapter Six was primarily concerned with the function of power in

a negotiation. Throughout the stimulation, the two characters (Jesse Nesmith and Chris Jacobs)

had several sources of power that they could use. As Jesse Nesmith, I had the authority (legal

authority) to amend the contract, negotiate with the opponent on my own terms, and provide

other solutions to the problem. Chris Jacobs had the authority to turn down my offers, locate

another firm to rebuild the transmissions, and publicize the problem (network power).

To begin, I learned more about my role in the negotiation and what I could influence. Among the

information I gleaned about the firm, a few points struck out: the company's image is primarily

based on strong publicity and high-quality automobiles. While the firm had every right to deny

talking with Chris Jacobs since the warranty had expired, I understood that it was still important

to negotiate due to the company's reputation. Following the identification of the company's

interests, I proceeded to identify my own. I knew I wanted to handle the problem in a cost-

effective manner while still ensuring client happiness so that I could advance within the firm. I

also understood I had to ensure that the consumer would no longer pursue transmission concerns.
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That way, I could assure that the problem was permanently addressed and that there would be no

further issues. The negotiation range was for me to pay for the transmission and Chris to pay for

installation. This meant that he would never accept a lower offer, and that any offer made to him

would have to be that or something greater. After determining this, I began developing my plan.

All I knew was that Chris Jacobs was dissatisfied with our offer and wanted to bargain. As a

result, I understood I needed to start the negotiation by listening to what his concerns were about

the negotiation.

When the discussion began, I sought to gain an advantage by asking Chris why he was

dissatisfied with such a fair offer. I wanted to make it clear that I had control over him and had

no intention of sharing it. Chris then expressed his dissatisfaction with the offer, stating that he

did not want to pay the installation expenses and that he was a poor college student. I was able to

determine his interests by doing so: maximize the advantages and minimize the expenditures. I

knew I had the right to make him a better deal or to deny everything he asked for. However, I

had to weigh the expense of arguing as well. I understood that transaction costs were not a major

issue since I knew the firm could afford to spend an extra $700. Consumer happiness was a

medium priority since, while reputation was important, the word of one individual would not

have a large impact on the firm. As a result, the impact of the connection and its repetition were

my primary priorities. I wanted to make certain that the matter was resolved in a way that Chris

believed was fair and would not be disputed in the future, as well as obtain greater exposure

because he worked at a radio station. We agreed that limiting the warranty to only transmissions

would be required since it would not be financially effective otherwise.

Returning to the dialogue with Chris, I knew he'd have additional points to oppose mine. I

wanted to bring him back to the circumstances before we were stopped so that he was
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instinctively reminded that I was adamant about him covering some of the transmission fees. I

did so by summarizing what we had discussed. We both realized at this time that in order to

reach an agreement, we needed to sacrifice our interests. In terms of interests vs. rights or

authority, I determined it would be more profitable for me to reach an arrangement that, while it

would cost the firm more, would benefit the company in the long run. As a result, I asked him

what he had to offer if we agreed to pay for the installation. He stated that he would give free

advertising and include my name in it for a year in exchange for payment of the installation fees.

I told him I wouldn't do it. He then threatened to walk away if I did not cover at least half of the

charges and provide a two-year warranty. I recognized that he had reached his breaking point, so

I offered him a two-year guarantee in exchange for agreeing to two years of advertising. Given

that half of the installation cost was $350, I realized that how I phrased things would be critical

in this case. Instead of stating he'd have to pay $500, I told him he'd have to add $150 to the $350

cost. We went ahead and wrote the contract once he agreed. To further establish the contract's

legality, I made certain that I was the one who wrote it and that both of us signed for it.

In conclusion, the Toyonda stimulation demonstrated that diverse sources of power exist

depending on how they are used. In this instance, for example, while I was in a higher position

and had legal authority, my customer also had the ability to reject and network power (through

the radio station). Power can also be readily revoked if the circumstances changes. In the

stimulation, I took away part of my client's network power by informing him that I was

uninterested in his network's impact. For me, the BATNA in this instance was for the customer

to accept the previously agreed agreement in which the corporation paid the whole cost of the

transmission and he paid for the installation


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