Description
This is a presentation on the situations where distributive bargaining situations arise.
Strategy and Tactics of Distributive Bargaining
1
? ? ? ? ?
Goals of one party are in fundamental,direct conflict to another party Resources are fixed and limited Maximizing one’s own share of resources is the goal When the relationship with the other party is not important When they are at the claiming value stage of negotiations
2
Preparation—set a ? Target point, aspiration point ? Walkaway, resistance point ? Asking price, initial offer
3
Party A - Seller
Walkaway Point
Target Point
Asking Price
Initial Offer
Party B - Buyer
Target Point
Walkaway Point
4
?
Alternatives give the negotiator power to walk away from the negotiation
? If alternatives are attractive, negotiators can:
? Set their goals higher ? Make fewer concessions
? If there are no attractive alternatives:
? Negotiators have much less bargaining power
5
Party A - Seller
Walkaway Point Target Point Alternative
Asking Price
Initial Offer
Party B - Buyer
Alternative Target Point Walkaway Point
6
? ? ?
Push for settlement near opponent’s resistance point Get the other party to change their resistance point If settlement range is negative, either: Convince the other party that the settlement is the best possible
? Get the other side to change their resistance point ? Modify your own resistance point
?
7
The keys to implementing any of the four strategies are: ? Discovering the other party’s resistance point ? Influencing the other party’s resistance point
8
?
? ? ?
Assess outcome values and the costs of termination for the other party Manage the other party’s impressions Modify the other party’s perceptions Manipulate the actual costs of delay or termination
9
?
Indirectly
? Determine information opponent used to set:
? Target ? Resistance points
?
Directly
? Opponent reveals the information
10
?
Screen your behavior:
? Say and do as little as possible
?
Direct action to alter impressions
? Present facts that enhance one’s position
11
? ?
?
Make outcomes appear less attractive Make the cost of obtaining goals appear higher Make demands and positions appear more or less attractive to the other party –whichever suits your needs
12
?
?
Plan disruptive action
Form an alliance with outsiders Schedule manipulations
? Raise the costs of delay to the other party
? Involve (or threaten to involve) other parties who can influence the outcome in your favor ? One party is usually more vulnerable to delaying than the other
?
13
?
Opening offer
? Where will you start?
?
Opening stance
? What is your attitude?
? Competitive? Moderate?
?
Initial concessions
? Should any be made? If so, how large?
14
?
The role of concessions
? Without them, there is either capitulation or deadlock
?
Patterns of concession making
? The pattern contains valuable information
?
Final offer (making a commitment)
? ?This is all I can do?
15
?
Establishing a commitment
? Three properties:
? Finality ? Specificity ? Consequences
?
Preventing the other party from committing prematurely
? Their commitment reduces your flexibility
16
?
Ways to abandon a committed position
? ? ? ? Plan a way out Let it die silently Restate the commitment in more general terms Minimize the damage to the relationship if the other backs off
17
? ? ? ? ?
Provide alternatives (2 or 3 packages) Assume the close Split the difference Exploding offers Deal sweeteners
18
?
Four main options:
? ? ? ? Ignore them Discuss them Respond in kind Co-opt the other party (befriend them)
19
? ? ?
?
Good Cop/Bad Cop Lowball/Highball Bogey (playing up an issue of little importance) The Nibble (asking for a number of small concessions to)
20
? ? ?
Intimidation Aggressive Behavior Snow Job (overwhelm the other party with information)
21
Negotiators need to: ? Set a clear target and resistance points ? Understand and work to improve their BATNA ? Start with good opening offer ? Make appropriate concessions ? Manage the commitment process
22
doc_704672130.pptx
This is a presentation on the situations where distributive bargaining situations arise.
Strategy and Tactics of Distributive Bargaining
1
? ? ? ? ?
Goals of one party are in fundamental,direct conflict to another party Resources are fixed and limited Maximizing one’s own share of resources is the goal When the relationship with the other party is not important When they are at the claiming value stage of negotiations
2
Preparation—set a ? Target point, aspiration point ? Walkaway, resistance point ? Asking price, initial offer
3
Party A - Seller
Walkaway Point
Target Point
Asking Price
Initial Offer
Party B - Buyer
Target Point
Walkaway Point
4
?
Alternatives give the negotiator power to walk away from the negotiation
? If alternatives are attractive, negotiators can:
? Set their goals higher ? Make fewer concessions
? If there are no attractive alternatives:
? Negotiators have much less bargaining power
5
Party A - Seller
Walkaway Point Target Point Alternative
Asking Price
Initial Offer
Party B - Buyer
Alternative Target Point Walkaway Point
6
? ? ?
Push for settlement near opponent’s resistance point Get the other party to change their resistance point If settlement range is negative, either: Convince the other party that the settlement is the best possible
? Get the other side to change their resistance point ? Modify your own resistance point
?
7
The keys to implementing any of the four strategies are: ? Discovering the other party’s resistance point ? Influencing the other party’s resistance point
8
?
? ? ?
Assess outcome values and the costs of termination for the other party Manage the other party’s impressions Modify the other party’s perceptions Manipulate the actual costs of delay or termination
9
?
Indirectly
? Determine information opponent used to set:
? Target ? Resistance points
?
Directly
? Opponent reveals the information
10
?
Screen your behavior:
? Say and do as little as possible
?
Direct action to alter impressions
? Present facts that enhance one’s position
11
? ?
?
Make outcomes appear less attractive Make the cost of obtaining goals appear higher Make demands and positions appear more or less attractive to the other party –whichever suits your needs
12
?
?
Plan disruptive action
Form an alliance with outsiders Schedule manipulations
? Raise the costs of delay to the other party
? Involve (or threaten to involve) other parties who can influence the outcome in your favor ? One party is usually more vulnerable to delaying than the other
?
13
?
Opening offer
? Where will you start?
?
Opening stance
? What is your attitude?
? Competitive? Moderate?
?
Initial concessions
? Should any be made? If so, how large?
14
?
The role of concessions
? Without them, there is either capitulation or deadlock
?
Patterns of concession making
? The pattern contains valuable information
?
Final offer (making a commitment)
? ?This is all I can do?
15
?
Establishing a commitment
? Three properties:
? Finality ? Specificity ? Consequences
?
Preventing the other party from committing prematurely
? Their commitment reduces your flexibility
16
?
Ways to abandon a committed position
? ? ? ? Plan a way out Let it die silently Restate the commitment in more general terms Minimize the damage to the relationship if the other backs off
17
? ? ? ? ?
Provide alternatives (2 or 3 packages) Assume the close Split the difference Exploding offers Deal sweeteners
18
?
Four main options:
? ? ? ? Ignore them Discuss them Respond in kind Co-opt the other party (befriend them)
19
? ? ?
?
Good Cop/Bad Cop Lowball/Highball Bogey (playing up an issue of little importance) The Nibble (asking for a number of small concessions to)
20
? ? ?
Intimidation Aggressive Behavior Snow Job (overwhelm the other party with information)
21
Negotiators need to: ? Set a clear target and resistance points ? Understand and work to improve their BATNA ? Start with good opening offer ? Make appropriate concessions ? Manage the commitment process
22
doc_704672130.pptx