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Know your batna
- 1. KNOW YOUR BATNA Presentation by Mayur Dvivedi
- 3. The BATNA concept BATNA in life Strategic plan and tips to use the BATNA
- 4. The Need for Negotiations Situation, Parties, Issues Interests, Payoffs & Goals Bargaining Mix, Bids & Tactics Limits & Alternatives
- 5. Best Alternative To Negotiated Agreement
- 6. The Negotiation Bargaining Zone Buyer’s Reservation Price (BR) (e.g., $25M)Buyer’s Target Price Seller’s Reservation Price (SR) (e.g., $17M) Seller’s Target The bargaining zone is the space between the buyer’s reservation price (BR) and the seller’s reservation price (SR) – that is, the zone of possible agreement. If BR > SR, then a Positive Bargaining Zone exists. The zone of agreement is from SR to BR (e.g., $8M). ZOPA
- 7. A Negative Bargaining Zone Seller’s Reservation Price (SR) (e.g., $25M) Buyer’s Reservation Price (BR) (e.g., $17M) If BR < SR, then there is no zone of possible agreement.
- 8. Your TP Dealer’s RP Your RP Dealer’s TP 150000 180000 200000 220000 Bargaining Zone 190000=probable compromise
- 9. L&T Offer? L&T salary offer 18 L Present job salary 16 L
- 10. The range of negotiated outcomes that are acceptable to all parties Your RP 17 L Your TP 22 L L&T TP 18 L L&T RP 24 L Your Bargaining Range L&T Bargaining Range Your Stretch Goal 28 L
- 11. L&T TP 18 L Your RP 22 L L&T RP 20 L Your TP 24 L L&T Bargaining Range Your Bargaining Range
- 13. Based on situation, identify BATNA clearly •Better BATNA=more negotiation power •Improve your BATNA Consider other side’s BATNA • Know the deal’s ZOPA • Let other side perceive you have strong BATNA • Consider disclosing own BATNA, if strong Use Stretch Goals • Make 1st offer to Anchor above your target • Else re-anchor • Prepare objective arguments
- 16. KNOW THE SITUATION KNOW YOUR BATNA KEY FOR SUCCESS PREPARATION