Practical Business Negotiation: Educator Notes

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Chapter 5

What kind of behavior can you expect from an individual, maybe someone named Paul Tomlinson from San Francisco, California, U.S.?

You can expect nothing specific. Paul might not even be a native English speaker.

Write your very brief conclusion about culture and negotiation:

Various answers are possible. Answers should emphasize research in advance and flexibility in reacting and learning during negotiation.

Culture and language

Yes – effective and efficient communication within your team is most important. However, extended use of the home language may place a perceived barrier between your team and your counterparts.

Chapter 6

Which offer above is better designed for Tomo? Why?

Version A, because it is vague about what Tomo will give Hiro.

Which offer above is better designed for XinFab? Why?

Version B because XinFab gets a specific result in exchange for a vague offer.

Write a sentence or two making offers that are a little better for you.

Various answers are possible. They should follow the formula of a precise request with a less precise offer.

Which do you think is better for a face-to-face negotiation, whiteboard or computer and projector?

Whiteboard – allows for easy changes to diagrams with participation by all parties. (Answer explained in the following paragraph in the text.)

Deadlock 1

Various answers are possible (delay the discussion, link the accessories to other issues, etc.)

Deadlock 2

Various answers are possible. These might include interacting first with AAT for example. Some answers could be too expensive, such as finding another expert. Coercive threats would be unacceptable as an answer.

Chapter 7

Write what you think are the advantages of playing the hard card first.

Various answers are possible: a party that seems to have low power may do this to project greater power and experience than they seem to have. See discussion following this question.

Write what you think are the disadvantages of playing the hard card first.

Strongly negative opening moves are likely to be met with negative responses. Few negotiators will reward an aggressive start with concessions or with a positive response. See the following graphic.

How would you feel if an offer was retracted a day or two after having agreed it during negotiations?

Various answers are possible. Some students will feel comfortable with retractions, others may be very upset – this may depend on culture, but it is not a moral issue as some students may feel.

Job’s success at business negotiation and his belligerent behavior are well known. Does that make it a best practice for Apple? Or best for all companies?

No – Apple has been in several court cases (such as publishing and hiring) because of Job’s very aggressive approaches to negotiation.

What are some reasons not to retract an offer after it has been made?

Various answers are possible. The retraction may upset the other side if their culture is against this sort of behavior.

What are the reasons to retract an offer after it has been made?

Various answers are possible. New information may arise that shows it was a bad offer, the parties may get access to new resources, it may be better for one or more parties to re-integrate the offer into a new package, etc.

Was Disney’s ultimatum successful?

Yes.
What did Disney’s ultimatum demand?

The main point was an opportunity for renegotiation.
Explain why it was or was not an acceptable “hardball” tactic.

Most people will agree it was acceptable because the alternative, default, would have hurt the banks and Disney much more than the renegotiation.

Chapter 9

I think Team ___ is best because . . .

Various answers are possible.

Cross cultural teams (disadvantages)

Communication time and effectiveness may be lower and disharmony may arise easily. See discussion in the following paragraphs.

Cross cultural teams (advantages)

Diversity of people may bring diversity of ideas, problem solving skills and experience.

Appendix II Inheritance far away

Is this negotiation mostly distributive or mostly integrative?
Despite the seemingly simple sums of money, it is very integrative because questions of reputation, legacy, complex interests, time and their linkable solutions are involved.
What are the interests of Thomas?
Avoiding excessive travel, avoiding excessive cost, avoiding ownership of a house far away, keeping his personal property that might be in the house, the money involved, the reputation of his grandmother, etc.
What are the interests of Bob and Cheryl?
Maintaining their reputation, gaining some financial reward, gaining some use of the house, gaining some form of employment or activity, furthering their volunteer interests, etc.
Are there issues other than money that could Thomas integrate into the negotiation?
Yes – see above.
Should Thomas, Bob and Cheryl negotiate directly or include another person(s)? If so, who?
They could work directly, but not if there are strong emotions involved. They could ask lawyers or volunteer figures such as a respected community member to join.
Approximately what are the reserves that Thomas and Bob and Cheryl should set before they start talking?
Thomas’ reserve should be related to the possible cost of repeated travel, legal fees, and court costs. The Willises should set their targets around the level of the costs Thomas might have to pay.
Is it possible for the parties to create value together?
Certainly – all parties can agree to public or non-profit use of the house, a positive legacy in the community, saving face and possibly sale of the house after its value has increased.
What is Thomas’s BATNA?
It is poor – he would engage in a court action that would be expensive and perhaps only partly successful.
What is the BATNA of Bob and Cheryl?
A little stronger – they may have a strong case to receive some money, but if they lose the case, they may have very high costs to pay.

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