Reasons why deals fail1. Interests of parties don’t align2. Mismanagement of the bargainingprocess3. Human Psychology
UNIVERSITI UTARAMALAYSIAOTHMAN YEOP ABDULLAHGRADUATE SCHOOL OFBUSINESSBSMH 5113Business NegotiationCase StudyDeveloping a StrategicNegotiation Plan:Toyota HighlanderBy;PRIDHIVRAJ NAIDU - 814284
The Case- Miss Michelle and Miss Yale is interested tobuy Highlander 4 wheel drive- Miss Michelle is trading in her low mileage1992 Honda Accord LX.- The Lacey’s however, they would be keepingtheir current car and financing the purchasebeyond a $5,000 down payment.- Manufacturer’s Suggested Retail Price (MSRP)- no incentives provided to the dealerships forsales of the Highlander model
Q1 Best Nego Strategy- Dual Concern Model- Competitive bargaining
Q1 Best Nego Strategy- Competitive bargaining tactics aim for a largeslice of a fixed pie of value(Amanatullah, Morris & Curhan,2008)- In the purely distributive case, the interests ofthe parties are negatively correlated(Walton & McKersie,1965)- I win – you lose
Q1 Best Nego Strategy (Cont.)- Seller seeks the highest price possible and thebuyer hopes to pay as little as possible.(Barry & Friedman,1998)- Each negotiator presumably has in mind areservation price, beyond which he or she willnot go in reaching an agreement(Raiffa,1982)
Q2 Nego ProcessPHASESPREPARATIONRELATIONSHIP BUILDINGINFORMATION GATHERINGINFORMATION USINGBIDDINGCLOSING THE DEALIMPLEMENTING THE AGREEMENT
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