Mgmt300 negotiation plan PDF

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1. Parties The negotiation process involves the sale and purchase of a unique custom-made 1927 Bentley convertible which called for two main principal party of Mrs Amelia Austin as the intended buyers with Mr Henry Soles as the owner of the car. The two party has decided to choose their own representatives to drive the negotiation process on their behalf with their interest in mind.

As a result, Mrs Austin had her secretary to do the purchasing of the car while Mr Soles had a third party, which is a, to negotiate as the seller. It is crucial that all the parties involved in the negotiation process are thoroughly evaluated and profiled to determine any underlying interests as well as predetermining tactics which may be used during the negotiation. The used of a field analysis is highly effective in identifying multiple parties within a negotiation and their relationship to each other. Using the diagram illustrated below, the following party have been identified:

I myself am a British antique automobiles sales agent on commission. My role in this negotiation is to negotiate a deal where Mr Soles would be able to sell his car for an amount that he believes his vehicle is worth. He is willing to let this car go, as he has tried to sell it for the last three years, but he will not let it go for any price. I must be aware that as the sales agent, I will not receive any commission below the £20,000 mark, and Mr Soles rejected a previous offer of £26,000.Mrs Austin has chosen her personal secretary as her representative. She is in UK on a holiday, and has given Raghav, her secretary, full authority to sell the car for an offer of no more than £23,000. With these figures and guidelines in place, we began our negotiation.Ultimately both parties are in this negotiation to obtain a better deal for their client. Their preparation for this meeting, will hence determine the outcome.

2. Analysis of Needs, Priorities, Resources and Contraints Needs and Interests Mr Soles has hired me, as I sell antique automobiles on commission. His 1927 custom-made Bentley has been on the market for three years, and even rejected an offer for £26,000 from BAT Enterprises.At this stage Mr Soles is more keen on getting a good price for his automobile, rather than who he is selling it to. Reason being is that the car has been restored, and although has genuine parts, it does have some replaced parts in the vehicle, which candepreciate the car value according to Bowling State University Ohio’s Accounting Lecturer, Phil Schurrer. As the agent, I want to help my client sell his vehicle for over £20,000, as I will not receive any commission from the sale, and with my best interests in mind, this may not be the only vehicle Mr Soles will sell, and understanding the kind of gentleman heis, he will have other like-minded collectors who too will like to sell their vehicles at some stage. This will cement my reputation as a sales agent, and open opportunities for future business. I have two weeks to sell this car, hence I will take advantage of every interest client in the purchase of this vehicle.Mrs Austin is a recently divorced widow. It is said that her late husband was somewhat domineering. Dario Maestripieri from Psychology Today said that submissive wives usually do not want to be taken advantage of outside of

their home, and they tend to over-protect themselves. Mrs Austin’s personal secretary Raghav mentioned that Mrs Austin was purchasing the car as a tribute to her late husband, as he was an avid car fan. He claimed that her two sons will take good care of the car, driving it around Texas, and claiming it their own. PrioritiesFor Mr Soles, his selling of this antique vehicle is of high importance, and more specifically, because of depreciation, and time. He has the upper hand between the two of us because he has options. As the sales agent, my ‘must’ priority is to take this car off the market within two weeks, or else the car will be sold to BAT Enterprises and I will receive no commission. Not only that, I will not be able to cement my reputation and relationship with Mr Soles; to develop that trust that I am a fantastic sales agent, and he can trust me with the selling of his vehicles.Mrs Austin’s priority is to ensure she doesn’t get ‘take advantage of’ in this sale. She has ‘fallen in love’ with the Bentley, and would like the negotiation to come to a settlement at the first meeting with myself. In this instance, I believe that Mrs Austin has some emotion connection to the vehicle, as it could possibly take her mind off herrecently widowed husband. As I have learnt through experience in my own life, selling anything focuses on two extremely important factors: emotion and concept.In this instance, I can identify for Mrs Austin, that she is on holidays from America. Her emotional intensity is high after her husband’s death, and there is a concept of ‘owning’ something very dear to another man: Mr Soles. In Section 3 of this report, I will uncover why this will play a major role in terms of closing the deal at the best price for Mr Soles.ResourcesAs I have a reputation to maintain, ensuring that I reach a settlement of more than £26,000 is my priority. Hence, to know the inside/out of this particular Bentley, and all the knowledge that encompasses the value of the car, to ensure that I don’t fall intoa trap is key.Understanding that Mrs Austin’s secretary has followed recent editions of Hemmings Motor News, I have to be aware of what he may do to try and bring down the price forMrs Austin. Facts, recent sales prices, all of these information that may give an upper-hand to Raghav; I need to be prepared with counter arguments, followed by a Plan A, B, C, D and possibly even an E. For myself, if Raghav uses estimates from Hemmings Motor News, I have further researched into the magazines’ valuation tool, which is created by ‘Hagerty Valuation,’ and if Raghav were to use Hagerty’s classic car valuation, I would inform him that there is a disclaimer in their policies that the tool is a collection of estimates and are based on various data sources, and that the value could be “displayed differently here”. Evidently, this is all to ensure that I am fully prepared, and will not lose face if Mrs Austin’s secretary is on a mission to purchase the car at a price that is below my reputation and standard.

Constraints Before heading into the negotiation, it is important to understand what factors that may come up during the negotiation that could inhibit myself to get the deal that I want. On my behalf, timing is a constraint. With only two weeks to make a deal for the purchase of Mr Soles’ vehicle, a time constraint exists from the beginning of the negotiation. With Mrs Austin’s interest in the car, I need to be able to capitalize on this opportunity. Another factor that we found was budget. With Mrs Austin’s secretary only having delegation on a strict budget, it was important for myself to ‘sweeten’ the deal to ensure that both parties are happy.The fact that Mrs Austin had to ship the car back to Texas was another constraint that we had to overcome. Ever Global International estimated that the shipping price of thecar was around 30% of the car’s value (including insurance). It was therefore important to be able to have both parties understand the process in which it is to be transported overseas.

3. How and Why? Negotiation StrategyFrom the beginning of the negotiation, I had a target point, and a resistance point. I knew that Raghav had one too, and as a buyer, I would believe his target point would have been far below anything I would even consider. As this car has no asking price, and is purely based on valuation figures, and estimates from similar car sales as suggested by Hemming Motor News, I knew that we would have a wide bargaining range. Either way, I let Raghav put his offer down first.The negotiation tactic of screening activities came into play from the beginning. I allowed Raghav to speak about his client. I purely listened. Until he was unable to speak no more about who Mrs Austin was and her background, I asked him to give me a price that he believed would settle the negotiation, and allow both parties to be happy. That figure was £8500. It was then when I realised that Raghav had not done enough research, as the lowest value for the car was no less that £20,000. From that moment, I chose to use selective presentations to lure Mrs Austin’s secretary to a deal that would suit me best. One technique that I was eager to use was to give Mrs Austin’s secretary one deal, only to have that rejected, because a better deal was given straight after. BATNA was enforced, and it worked to my favour.I believe that Raghav was interested to have an integrative negotiation, but I was looking for a greedy settlement figure that would cement my reputation for future deals. However, I was open to let Raghav speak, and to reveal things about Mrs Austin that would work to my advantage.Because of Raghav’s sharing of Mrs Austin’s situation, I was able to draw on emotion to help cement my target point even further, and allow him to see that the deal I was offering him was the best possible for Mrs Austin. In the previous section, under

Priorities, I was able to uncover that her husband’s passing emotionally impacted MrsAustin, as he was a dominating man. I incepted an idea that this car meant a lot to Mr Soles, and for Mrs Austin to be able to own something ‘so dear’ to another man, it would allow her to feel emotional strength, and some pride that she owns not just someone else’s valuable, but a man’s valuable. Here, Mrs Austin’s secretary began seeing where I was coming from, and the dynamics started to shift towards my end. This was when I began to name my price in the agreement, which ultimately pushed the negotiation to a final agreement, which ensured that Mrs Austin will have her car safely delivered to Texas, and Mr Soles would have me again to help him negotiate his next sale. 4. Reflection4. Reflecting on your negotiation, were you satisfied with the outcome? Why?Using material discussed in the course, explain what measures you can useto assess whether a negotiation was successful (2.5 marks) The final agreement settled on the purchase of Mr Soles’ 1927 custom Bentley convertible for £31,000 with delivery covered by Mr Soles to Texas.I was successful in my priority, and thus generated a commission of 20% of £11,000. Not only that, I was able to earn trust and respect from Mr Soles, which in turn will allow myself to grow my reputation for being a good closer. Not only was I successfulfrom my part, but also Mrs Austin got her car delivered to USA free of shipping charges, and was given the keys on the day. Through interdependence, we were able to achieve an outcome. The key to my success during the integrative bargaining negotiation were the steps in preparation, I took to plan out the flow of the negotiation. From researching Texas Road Laws, to the valuation tool, to car collector auctions and even the psychology of widowed wives, I took all the precautions, and variables that could come from the negotiation to ensure that I will not be taken advantage of, and that I will have full control over the

negotiation; the management of tangibles and the resolution of intangibles.Understanding the goals, issues and defining the interests of both parties in the negotiation game is crucial to ones success in the agreement. With the knowledge of the BATNAs (alternatives), and the limits, it is evident by the settlement I reached with Mrs Austin’s secretary, that I achieved what I needed to ensure that Mr Soles would get the best deal possible...