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    Chapter 2

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    katie.tarakachad
    The document discusses strategies for distributive bargaining situations where parties' goals are in conflict over limited resources. It explains that negotiators should determine the other party's target, resistance point, and costs of delay. Various tactics are presented for assessing, managing, and modifying the other party's perceptions to influence their resistance point, including making outcomes appear less attractive and raising their costs. The document also covers topics like opening offers, concessions, commitments, and closing a deal.

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    © All Rights Reserved
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    Chapter 2

    Uploaded by

    katie.tarakachad
    42 views26 pages
    The document discusses strategies for distributive bargaining situations where parties' goals are in conflict over limited resources. It explains that negotiators should determine the other party's target, resistance point, and costs of delay. Various tactics are presented for assessing, managing, and modifying the other party's perceptions to influence their resistance point, including making outcomes appear less attractive and raising their costs. The document also covers topics like opening offers, concessions, commitments, and closing a deal.

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    Negotiation Chapter 2

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    The document discusses strategies for distributive bargaining situations where parties' goals are in conflict over limited resources. It explains that negotiators should determine the other party's target, resistance point, and costs of delay. Various tactics are presented for assessing, managing, and modifying the other party's perceptions to influence their resistance point, including making outcomes appear less attractive and raising their costs. The document also covers topics like opening offers, concessions, commitments, and closing a deal.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    42 views26 pages

    Chapter 2

    Uploaded by

    katie.tarakachad
    The document discusses strategies for distributive bargaining situations where parties' goals are in conflict over limited resources. It explains that negotiators should determine the other party's target, resistance point, and costs of delay. Various tactics are presented for assessing, managing, and modifying the other party's perceptions to influence their resistance point, including making outcomes appear less attractive and raising their costs. The document also covers topics like opening offers, concessions, commitments, and closing a deal.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 26

    CHAPTER

    TWO
    Strategy and Tactics of
    Distributive Bargaining
    Three Reasons Negotiators Should Be
    Familiar with Distributive Bargaining
    1. Independent situations require knowing how this works in
    order to do well
    2. Need to know how to counter the effects of the strategies
    3. Every situation has the potential to require skills at the
    “claiming-value” stage

    2-2
    The Distributive Bargaining Situation
     Goals of one party are in fundamental,direct conflict to
    another party
     Resources are fixed and limited
     Maximizing one’s own share of resources is the goal for both
    parties

    2-3
    The Distributive Bargaining Situation
    Preparation—set a
     Target point, aspiration point
     Walkaway, resistance point
     Asking price, initial offer

    2-4
    The Distributive Bargaining
    Situation
    Party A - Seller

    Walkaway Point Target Point Asking Price

    Initial Offer Target Point Walkaway Point

    Party B - Buyer

    2-5
    The Role of Alternatives to a
    Negotiated Agreement
     Alternatives give the negotiator power to walk away from the
    negotiation
     If alternatives are attractive, negotiators can:
     Set
    their goals higher
     Make fewer concessions
     If there are no attractive alternatives:
     Negotiators have much less bargaining power

    2-6
    The Distributive Bargaining
    Situation
    Party A - Seller

    Walkaway Point Target Point Asking Price


    Alternative

    Alternative
    Initial Offer Target Point Walkaway Point

    Party B - Buyer

    2-7
    Fundamental Strategies
     Push for settlement near opponent’s resistance point
     Get the other party to change their resistance point
     If settlement range is negative, either:
     Get the other side to change their resistance point
     Modify your own resistance point
     Convince the other party that the settlement is the best
    possible

    2-8
    Keys to the Strategies
    The keys to implementing any of the four strategies are:
     Discovering the other party’s resistance point
     Influencing the other party’s resistance point

    2-9
    Four Propositions That Suggest
    How the Keys Affect the Process

    1. The higher the other party’s estimate of your cost of delay or


    impasse, the stronger the other party’s resistance point will
    be.
    2. The higher the other party’s estimate of his or her own cost
    of delay or impasse, the weaker the other party’s resistance
    point will be.

    2-10
    Four Propositions That Suggest
    How the Keys Affect the Process

    3. The less the other party values an issue, the lower their
    resistance point will be.
    4. The more the other party believes that you value an issue,
    the lower their resistance point may be.

    2-11
    Tactical Tasks of Negotiators
     Assess outcome values and the costs of
    termination for the other party
     Manage the other party’s impressions
     Modify the other party’s perceptions
     Manipulate the actual costs of delay or
    termination

    2-12
    Assess the Other Party’s Target, Resistance
    Point, and Costs of Terminating Negotiations
     Indirectly
     Determine information opponent used to set:
     Target
     Resistance points
     Directly
     Opponent reveals the information

    2-13
    Manage the Other Party’s Impressions
    Screen your behavior:
     Say and do as little as possible

    Direct action to alter impressions


     Present facts that enhance one’s position

    2-14
    Modify the Other Party’s Perceptions
     Make outcomes appear less attractive
     Make the cost of obtaining goals appear higher
     Make demands and positions appear more or less attractive to
    the other party – whichever suits your needs

    2-15
    Manipulate the Actual Costs of
    Delay or Termination
     Plan disruptive action
     Raise the costs of delay to the other party
     Form an alliance with outsiders
     Involve (or threaten to involve) other parties who can
    influence the outcome in your favor
     Schedule manipulations
     One party is usually more vulnerable to delaying
    than the other

    2-16
    Positions Taken During
    Negotiations
     Opening offer
     Where will you start?
     Opening stance
     What is your attitude?
     Competitive? Moderate?
     Initial concessions
     Should any be made? If so, how large?

    2-17
    Positions Taken During
    Negotiations
     The role of concessions
     Without them, there is either capitulation or deadlock
     Patterns of concession making
     The pattern contains valuable information
     Final offers (making a commitment)
     “This is all I can do”

    2-18
    Commitments: Tactical
    Considerations
     Establishing a commitment
     Three properties:
     Finality
     Specificity
     Consequences

     Preventing the other party from committing prematurely


     Their commitment reduces your flexibility

    2-19
    Ways to Create a Commitment
     Public pronouncement
     Linking with an outside base
     Increase the prominence of demands
     Reinforce the threat or promise

    2-20
    Commitments: Tactical
    Considerations
     Ways to abandon a committed position
     Plan a way out
     Let it die silently
     Restate the commitment in more general terms
     Minimize the damage to the relationship if the other backs off

    2-21
    Closing the Deal
     Provide alternatives (2 or 3 packages)
     Assume the close
     Split the difference
     Exploding offers
     Deal sweeteners

    2-22
    Dealing with Typical Hardball
    Tactics
    Four main options:
     Ignorethem
     Discuss them
     Respond in kind
     Co-opt the other party (befriend them)

    2-23
    Typical Hardball Tactics
     Good Cop/Bad Cop
     Lowball/Highball
     Bogey (playing up an issue of little importance)
     The Nibble (asking for a number of small concessions
    to)

    2-24
    Typical Hardball Tactics
     Chicken
     Intimidation
     Aggressive Behavior
     Snow Job (overwhelm the other party with information)

    2-25
    Summary
    Negotiators need to:
     Set a clear target and resistance points
     Understand and work to improve their BATNA
     Start with good opening offer
     Make appropriate concessions
     Manage the commitment process

    2-26

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