Name: Tran Duc Nhat Anh

Class: IHME62
ID: 11200367

PAPER: 02
Section 1: Choose the best response for each one and give the short explanation for your choice (3.0
points)
1.1. Negotiation implies that both parties accept that the agreement between them is:
c. final and binding
Explain: Since both parties accept the agreement, they all have nothing more to negotiate, or
we can say that both companies have reached the target which they set for the negotiation,
and negotiate more may lead to a worse result.
1.2. A message can only be deemed effective when:
c. meaning is shared and the message is understood by others
Explain: The nature of communication is to convey the idea of you to others. In the concept, a
message can be called effective if it successfully conveying the meaning or we can say that the
others are understood.
1.3. The audience’s attention can be captured at the beginning by using the following technique:
a. asking an interesting question
b. beginning with an unusual statement
c. beginning with a specific problem that the audience can relate to
d. any of the above.
Explain: Three of the above can raise a person’s interest. An interesting question will raise our
curiosity and the solving instinct. An unusual statement will “wake” a person brain because it is
different. A related problem can remind the person and give them a sense of brag-able.

Section 2: What is H.I.T? Suggest benefits of using a ‘H.I.T’ classification during negotiation
preparation? (3.0 point)
* H.I.T stands for Have to have, intend and tradable. This are a measurement to classify your
aim from the most important to the least.
H: have to have, this is the most important one, the one you must reach in an agreement
I: Intend, this is less important but still needed in the negotiation and this one is flexible
T: Tradeable, this is the least important one, you will consider it first if you have to give up on something

1
* During negotiation, “H.I.T” classification brings some benefits:
- You are consistent on your target
- You can keep track of where you are on the negotiation
- You can be more flexible
- You are fierce when you have a must-have target
- You are more accountable
- You have priorities
- You can avoid unnecessary negotiation and unwillingly agreement

Section 3: Case Study: (4.0 points)

After building a profitable construction company together over several decades, Larry Stevenson
and Jim Shapiro recognized that their differences had become irreconcilable. Stevenson wanted to buy
out Shapiro, who was willing to sell for the right price. After months of haggling and legal maneuvering,
Stevenson made his final offer: $8.5 million for Shapiro’s shares in the company.
The company is worth about $20 million, Shapiro thought to himself. I own 49% of the shares.
Heck, I helped build this company. I’m not going to accept anything less than my fair share—$10 million.
I’d rather fight in court than accept $8.5 million. Shapiro rejected the offer, and each party prepared for
a trial.
Shapiro’s rationale for rejecting Stevenson’s offer seemed reasonable enough. Furthermore,
Shapiro’s lawyers assured him, a court ruling very likely would be in his favor.
3.1. What do you think about Shapiro’s decision? Is it right or wrong? Why?
I think Shapiro’s decision is both right and wrong. He was right when he chose not to accept the
offer of $8.5 million because it is not equal with his fair share which is $10 million. He was wrong
when he rapidly goes to the decision of going to the trial without careful consideration. He didn’t
think about the BATNA before it and may result in the money he can get could be less than the
money in the first offer due to the expense in the whole process of the trial or due to the fact that
the result of the trial is worse.

3.2. If you were Shapiro in this case, what would you assess your BATNA?
I would prepare some other BATNA like If the money I got after the trial is less than the first offer:
- I will not go for the trial and sell my shares to the other shareholder
- I probably accept the first offer
- I will negotiate with Stevenson again to make a better offer
In order to make the BATNA, I should find information about how much do I have to pay for the
trial, the probability I can win in the trial, the money I get If I lost, …