PRE-NEGOTIATION WORKSHEET

Negotiation:

Your Name(s): Lizbeth Carolina Martinez Salas

Your Counterpart’s Name(s):

Your role in this negotiation: Seller’s Representative

Please complete this pre-negotiation worksheet PRIOR to your negotiation. Be SPECIFIC

with your answers. Use more space if necessary.

IMPORTANT! 10% of your grade on this assignment will be based on the visual quality of
your written work and the clarity of your writing. This includes providing all requested
information, proofreading your document, running a grammar and spell check, providing
page numbers, correct use of fonts and spacing, and insuring that your document is properly
formatted and aligned. It is fully expected that you will submit “professional quality” work
to your instructor, both in content and in presentation.

PART 1: THE CONTEXT OF THE NEGOTIATION – 6 points

a. In one or two sentences, explain why this negotiation is taking place. What has
brought the parties together, and what do they hope to accomplish? (2 points)
The negotiation is taking place because of the age of the shareholders, they have no interest
in wanting to develop the property therefore they prefer to sell the property as soon as
possible.

Shareholders are looking for a buyer who will able to keep the property to a use consistent
with its own history at the same time he can achieve the goal of shareholders of prevent the
destruction and bad uses of the Houses.

b. List the PERIPHERAL elements (other than positions and interests) which may have
an impact on the negotiation and explain why. (4 points)

The main elements that have an impact with negotiation are:

A regentrified area: Downtown was now a chic area with remodeled houses, gourmet
restaurants and trendy boutiques that would help the company to make an impact for sale
given that a previously forecast had been predicted an increase in the local economy, so it
would have to be ready on favorable terms for sale.

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Tenant’s Rights and Anti-Condo Legislation: Gotham passed Tenant's rights and Anti-Condo
Legislation that extended the plan and the process of dislodging and relocating tenants, at the
same time that it demanded cash payments from the company in order to help the right
redistribution of tenants, which was affected in Downtown cash flows and represented a cost
equal to or higher than working on a project without the need to move tenants.

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PART 2: ANALYSIS OF INTERESTS, OBJECTIVES AND CURRENCIES
(IOC matrix) (both sides) – 22 points
a. Please complete the IOC MATRIX as thoroughly as you can. Be sure to look
beyond what is written in your documents. Be CLEAR and SPECIFIC. (3 points per
box = 18 points total)

Your Interests Your Objectives THEIR Currencies

(assumed)
 Find the ideal buyer who  Prevent the Houses from  Increase in the
will put the property a becoming gaudy tourist company's profits from
use consistent and attractions as they are to the sale of the property
transmit not only its own prevent destruction of for shareholder interest
history, but also the the houses. purposes.
history of the  Prevent commercial uses  Better financial and
neighborhood.  Choose the best option administrative control.
 Sell the property as soon to generate the  Gentrification, Inc.
as possible in order to maximum profit. proposes to develop the
have a quick profit for property into 51 luxury
shareholder plans row houses.

Their Interests Their Objectives YOUR Currencies

(assumed) (assumed) (assumed)
 Having the freedom to  A regentrified property
 Destroying the property use the property for with an improved
 Make use of the commercial uses image that includes
property for without lose sight of improved houses and
commercial and the attractive side of it better sites such as
residential purposes. for tenants. restaurants and
 Keep the company  boutiques that make
away from the family the place more
business. attractive for tenants.

b. What are your priorities among your interests? Explain why. List them in order of
importance. (4 points)

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It is important that the company manages to find the right buyer that satisfies the
interests and conditions of shareholders to prevent misuse of the property and prevent
its destruction, once this is done, the company is ready to negotiate with the company
buyer in order to achieve the best deal and get from this the best profits for the
personal interests of the shareholders, after this it is only pending to carry out the sale
and take care that the conditions of sale are being met margin of the law with the
property.

1. Find the ideal buyer to sell the property

2. Make a good negotiation in order to achieve the best deal.
3. Sell the property
4. Take care of the use of the property in order to review that buyer keeps the
location in good state and prevent the right use of this.

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PART 3: ITEMS TO BE NEGOTIATED – 6 points
a. Complete the table below for each item you plan to negotiate. (4 points)

ITEM OPENING TARGET LIMIT RELATIVE

IMPORTANCE
1=high, 3=low
Price $23 million $20 million $ 15 million 1

Mortgage 0 3% 7% 1

Commercial 0 0 5 2
units created
Profits $6 million $ 5 million $ 4 million 1

b. For items where numbers were not provided in your written instructions, explain
how you determined your OPENING, TARGET and LIMIT for each item. (2 points)

In the case of the mortgage, this is determined on the basis of the interest and objectives
of the company you want to sell, since they have no interest in wanting to develop the
property, they wish to get rid of any responsibility for the interest payment and mortgages
of it.

In relation to the price, this is based on the offers granted and the average value that the
property is considered to have. The allocation of profits and trading units was also made.

PART 4: ALTERNATIVES & PREPARING YOUR STRATEGY – 18 points

a. What alternatives are available to you if you do not reach an agreement?

Explain. Which of these alternatives is your BATNA? Explain why. (4 points)

1. Sell the property accepting the terms and conditions of the seller to develop
and build shopping centers or carry out the destruction of the property.
2. Sell the company by keeping the current state of it for tenants without the
construction of shopping centers but managing to obtain a low price for the
sale of the same and low profits paying a percentage of mortgage for it.
3. Develop the property and generate profits on its own.

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 b. What alternatives do you believe are available to your counterpart if you do not
reach an agreement? Which of these alternatives do you believe is their BATNA?
Explain why. (4 points)
1. Lograr cerrar un trato con permiso y términos aceptados para poder desarrollar
la propiedad en orden para construir unidades comerciales o bien llevar a cabo
la destrucción de esta.
2. Cerrar el trato aceptando pagar una tasa de hipoteca alta o completa de los
cargos que esta representa.

c. Indicate what strategy (distributive or integrative) you want to put in place and
explain why. Identify and explain which elements of the negotiation will be
distributive, and which ones will be integrative. (10 points)

PART 5: OPTIONS – 10 points

What CREATIVE OPTIONS, (“expanding the pie”), do you want to explore during this
negotiation? Complete the table below and explain how will each of these options bring
value to BOTH sides? Make links with the interests of both sides. (10 points)

OPTION WHY?

PART 6: COMMUNICATION AND RELATIONSHIP – 19 points

a. What will be your opening statement? Explain. (2 points)

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b. What questions do want to ask your counterpart to uncover her/his interests
(minimum 5 questions)? Explain why. Please refer specifically to the IOC matrix on part
2 above and review the assumptions you have made on the other side’s interests. (5
points)

c. What messages do you want to send and share with your counterpart (minimum 5
questions)? Explain why. (5 points)

d. What information you are not ready to share? Explain why. (2 points)

The entire information about the personal interests of shareholders, as this may affect the sale, since
it would represent a loss of information power to buyers.

Additionally, it would not share information about the other offers the company has, since if they
represent a low level of profit compared to the current offer with which it is trading, this would
similarly represent a loss of power and a risk of not getting higher pay for the sale of the property.

e. What is, according to you, the current level of your relationship? What preferred
behavior would you like to put in place in this negotiation? Explain why. What actions
do you plan to take in relation to the preferred behavior? Make the link with your
strategy (part 4). Be specific. (5 points)

TOTAL POINTS FOR PRE-NEGOTIATION WORKSHEET:

 81 points for content
 8 points for presentation

_____ /89 = _____ / 20

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No commercial units

Give people opportunity t olive

Formal gardens  he wants to build in this area

We can accept the idea to build the tower but we can ask for a high profit and reduce the
total of mortgage yes and also make it less tall and ask for the garden instead of the
fountain and at the top of the building

We can accept with a high percentage of profit with the number of floor they want and
keep ¼ of the garden

23?

With des