Negotiation Skills Assignment

Jewel Case Study



Submitted By-
Shivam Goyal
a.) Jewel’s BATNA is that if Condor doesn’t negotiate with him, he can buy Z-2
CPUs from ACME at $35/ unit.

b.) The reservation price for Jewel i.e. the most that it will pay to Condor for Z-2
CPU will be $33/unit because he is already getting it at $35/unit from ACME
so there is no point in buying from Condor if he is not offering less than
ACME. And also, BETA is offering Z-1 for $38/unit and it has been estimated
that Z-1 benefits over Z-2 at about $5/unit, therefore reservation price for Z-2
will be $33/unit.

c.) Jewel’s BATNA has upgraded because

 Case 1- If 50% probability of negotiation holds true and the price is
negotiated to $28/unit. Than the BATNA will change from $35 to
$28/unit.

 Case-2 If 50% probability doesn’t hold true for negotiation than there
will be no shift in BATNA.

d.) There are two different cases-
 Case-1- If Jewel negotiates with ACME holds true
The reservation price for Condor’s CPU will be less than $28/ unit

 Case 2- If negotiation doesn’t take place
The reservation price will be $33/unit (because it is said than Z-1 is
$5/unit more beneficial than Z-2).

e.) Condor’s BATNA is to Jewel at $33/unit and that is only possible if they have
information about their competitors to Jewel. Jewel is highly likely to accept
the offer at $33/unit.

f.) Condor’s reservation price is any price which is above their liquidation price
i.e. $15/unit and moreover liquidation doesn’t leave good reputation of
company in the market.

g.) ZOPA would be between $15 to $33.