Preparation of The Negotiation Exercise Les Florets [PDF]

Zitiervorschau

Name and role: Michail Al Restaurant owner Name of your partner: Jordi Ekanga/Vice president

Preparation of the negotiation exercise « Les Florets» 1. What is the goal of this negotiation? a. What is the common goal of this negotiation? 

to have an agreement on the sale.

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Les Florets want to buy the restaurant because very profitable need to sell it because want realize my dream/need money.

b. What do you want to achieve from this negotiation? To sell the restaurant to have enough money to go on trip. 2. What is your RP, TP and SP? RP: 190 000 because it is the minimum amount, I need to cover my expenses for my trip. TP: 205 000 SP: 210 000 3. What is your BATNA? only one from investors from Marseille (price 140 000 = low)

4. What are the issues to discuss in the upcoming negotiation? to agree on a price to have a deal. 5. What are your interests (why do you want what you want)? Please define your preferences for each of the issues mentioned above. Really want to go in trip My spouse is struggling with depression she can not work in the future for the restaurant  Need to sell it as soon as possible 6. What are your priorities (rank the issue as a function of their importance to you)? 1) To sell the restaurant at 190 000€ minimum 2) To sell it at Les Florets 7. What do you think could be the interests and priorities of your counterpart? To buy the restaurant at the minimum possible price to make profit afterwards because the restaurant is profitable. 1

8. Which crucial information do you possess? a. Which information, arguments, objective criteria, … are you going to use to explain your interests? If they want to buy something, it will cost minimum 200000

b. Which questions could you ask to gain more information about the interests and needs of your counterpartner?

Why do you really want to buy my restaurant? Could you do a first offer? 9. What is the strategy (overall approach for conducting the negotiation) that you have in mind? Please specify your general strategy, offer strategy and the strategy that you are going to use to create alternative solutions.

The general strategy will be to have an integrative bargaining to agree on common deal. I will let the counterpart do the first offer to get more information about his reservation point and BATNA. I will also tell them that my restaurant has a good reputation and is profitable and that it is better to buy my restaurant than building a new one because the second option for them will take time and more money to attract clients etc… 10. What do you think could be the priorities of your counterpart? I think the priorities of the counterpart will be to have the restaurant to become more profitable. 11. Based on your strategy, which two tactics (actions used to implement strategy) are you going to test during the negotiation? Open, reflective questions Questions when I was in doubt Show interest Lowball/highball (Hardball) The Nibble (Hardball) Intimidation (Hardball)

Paraphrasing Emotion labeling Effective pauses Bogey (Hardball) Chicken (Hardball) Snow job (Hardball)

Asking questions: to see what the interests of the counterpart are Emotion labeling: I will insist on the fact that my spouse is sick to create an emotional atmosphere.

Post negotiation analysis 1. Did you make the first commitment? a. If yes, what was your commitment? No

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b. If yes, which tactics did you use to make your commitment? (Public pronouncement, linking with an outside base, increase the prominence of demands, reinforce the threat or promise) No 2. Did you propose closing the deal? If yes, how did you do it? (Did you choose any of the following tactics: Provide alternatives, Assume the close, Split the difference, Exploding offers, Deal sweeteners?) I propose the close the deal by asking if the price of 195 000 with benefiting from my actual clientele and reputation would be a good deal and the counterpart agreed. 3. What was the final deal? Price = 195 000€. This price is divided in 160 000 for the restaurant and 35 000 for the benefit from my actual clientele and from my reputation

General (self) evaluation of the exercise 1. Is the outcome of the negotiation in line with the goals of this negotiation? Why or why not? Yes, I have more than my minimum amount of 195 000€. 2. What would you do differently in future negotiations? To find more arguments. 3. What did you learn from this negotiation? Its difficult to bargain and we need to insist sometimes.

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