Rosary College Of Commerce & Arts

Term: 06
TERM END EXAMINATION
Course Title: Negotiation Skills
Subject Code: 005
Class: SY/BBA(T&T)
Roll No: R/TT-19-44
Name: Valusha Antao
Date: 01/02/21

QI.
Ans: 1.
As a negotiator one should follow the collaboration and cooperation to his or her extent for the
deal to be agreed. In collaborating and cooperation the parties must get well on together. It
depends if the party of the negotiator wants to have a win-win solution for both the parties. In
this instance for example- Both the parties, Party A is the dealer to negotiate on their needs and
the other party B is to gain more benefits for their company of their demands. So therefore both
the parties have to collab, cooperate and coordinate their needs and as well as their demands. At
the same time while stating their conditions, they analyze that the both the parties aims, motives
and goals. They study each other’s ideals.
Collaboration and cooperation approach it seeks a win-win situation. Where all parties walk
away with something of value. In this style, the negotiators are comfortable to use this, the cause
is that both the parties build trust, honesty between them. In communication and behavior, the
parties have a good deal and that too a mutual agreement under their conditions. It is an
important aspect of negotiation and it is said to be more advantageous from competitive
negotiation strategy.
Both the parties while using the collaborative approach must forget their initial concerns and
positions. They should work hand in hand and go on a joint quest towards a creative path to
maximize their joint and individual outcomes. The parties must learn how to work together for
their mutual gains and getting desired outcomes which will benefit everyone. Communication and
information sharing are a major aspect of collaborative negotiation which helps negotiators to
create value jointly. The parties can use various techniques such as brainstorming to invent creative
solutions to their problems.
The negotiation treats the relationship between the parties as a valuable, while seeking an equitable
agreement. Each party’s reputation, pride, principles and sense of fairness are duly taken into
consideration as the negotiation stage on a reasonable and fair level.

The collaboration approach focuses only on the overall outcome rather than the transactions
between them. The parties integrate their sources or ideas and therefore they share the power,
information, interest, etc. They are many negotiators who choose this style to negotiate with the
opponent parties. Because they use problem solving method to create great benefit or value or to
increase their satisfactory deals. It is a highly effective in which if the parties wants it for a long
term relationship.

3.
• True, BATNA is critical for any negotiator as the negotiator only negotiates when the
deal is on edge for the walk-away point or walk-away price situation. BATNA (Best
alternative to a negotiated agreement) is the action that a party engaged in negotiations
will take if it fails, and no agreement can be reached. In other words it is a party where
they satisfy the interests of the other party without negotiating with the counterparts.
• It is critical also it acts as negotiation tactics. It is never a wise decision if the party
doesn’t know their BATNA (Best alternative to a negotiated agreement). Because the
values of knowing their best alternative to an agreement can provide power, determine
the reservation point and as well ZOPA (zone of possible agreement). It determines
each other bottom lines.

• It is the key focus and the driving force behind a successful negotiator. A party should
generally not accept a worse scenario than its BATNA.
For example - Aisha needs a car and is negotiating with Tom to purchase his car. Tom
offers to sell his car to aisha for Rs. 20,000. Aisha finds a similar car to which it has great
value value of Rs. 18,500. Aisha's BATNA is Rs. 18,500. If Tom does not offer a price
lower than Rs 18,500. Aisha will consider her best alternative to a negotiated agreement.
She is only willing to pay up to Rs. 18,500 for the car but would want to pay Rs. 15,500
only.
• For another example: A teacher wanted to buy 20 pumpkins for 20 students for the
Halloween competition. So she searched a vendor which sell pumpkins and have a shop
who sells pumpkins so much. The teacher spoke to the owner of the shop that she would
like to have 20 pumkins, but the owner was quite shocked because she has only 20
pumkins left with her. The owner refused, so the teacher negiated by using BATNA
where the other party wanted the pumkin seeds. So that she can sample them on her
garden, the teacher said that she will give her the seeds as she promised, she will do. Th
teacher has build the trust to the owner, the owner had agree the conditions which befitted
her needs and as well her demands are being agreed. The owner got her benefits and her
promise is to fulfilled by the teacher. That she agreed to give the seeds to her as soon as
the Halloween competition gets over.
 • BATNA is the result like of a two-step planning and preparation process. First, it pays to
determine all alternatives. Then we have to choose the most attractive and actionable
alternative. Next, it is to realistically assess the other negotiator’s alternatives. Finally we
have to figure out whose best alternative is stronger and more actionable. BATNA comes
in handy for our lives onto are basic needs, which we negotiate for grocery such as
onions, vegetables, etc.

• It gives more negotiating power to a party at the negotiating table. A negotiator usually
anticipates the opponents BATNA and puts forth objective criteria to make counterparts
BATNA look weak. The stronger the BATNA, the more are the chances that you would
achieve the desired objectives. They act as a source of power as they enable negotiators
to walk-away from the negotiation if the desired goal is not achieved. BATNA can
protect us from accepting terms that are too unfavorable and from rejecting terms it
would be in our party interest to accept.

Q2.
Ans: 1)
Under this case, the negotiation tactics are applied here are:
• Brinksmanship: Where (party A) shanaya and shane wanted to purchase an office, which
is of the deal of RS.52 Lakhs. The sales managers (party B) is willing selling only RS.52
lakh. The party A shane negotiated that they have the budget of RS.50 lakh, which they
can only purchase from this much amount. But the sales manager said either you have the
deal or don’t take it, because they aren’t willing to decrease the price for the office.
Therefore this tactic where one party pursue a set of value to the point where the other
party (Party A) must either agree or walk away. It is a hard approach because the
delegation leaves the other (party A) to be on edge or brink of what they want to achieve
or accept the deal. It is like saying that other delegation party has no choices, but to
accept that offer put forth among them and there also no alternatives which can be found.

• Hot potato: Shane has a problem of paying Rs.52 lakh and can only willing to pay up to
Rs.50 lakh for to purchase the office. So he told his problem to the other delegation party,
the sales manager. But the fact they can’t help their problem and also they aren’t willing
to trade-off or decrease the negotiated price. So either the delegation party (shane and
shanaya) have to accept the actual price or walk-away the deal and find another one. As
this tactic states that someone taking their problem and making it to the other party( sales
 manager) theirs, when it is like a ball is thrown at them (the sales manager), it isn’t their
problem that they can solve the main problem from shane and shanaya.

• Bogey: At the end of the case, shane said to the sales manager that “ I am sorry for that,
we could strike a deal at Rs. 50 lakh, though he wasn’t sure of his partner will agree on it
and a slight budge can bring back the deal. He said in confident style while in reality he
gave a bluff to the sales manager, so the sales manager can his mind or the deal of Rs. 52
lakh, because of that he had said.
Thus this tactic the delegation that is shane pretended or try to convince the other
delegation party (the sales manager) that the issue or problem he had is very important to
them. Once he is convinced that is the sales manager which they can trade for the
concession and cut-off the price too agree on the negotiated price that is Rs.50 lakh. Then
the buyer (shane and shanaya) can buy the office and the seller (the sales manager) is
convince of selling of Rs,50 lakh.