School of Management and Entrepreneurship

Negotiations for business

MBA 2021-23
REAL LIFE NEGOTIATION

SUBMITTED TO: PROF PRADEEP MEHRA

SUBMITTED BY:

NAME: HEENA ARORA ROLL NO: 2110120882

 REAL LIFE NEGOTIATION
Abstract:

Negotiation is a general concept that has wide range of applications that span various
contexts.
This assignment depicts the negotiation analysis with vendor who was selling his
Iphone 11 server edition. I bargained it on behalf of my cousin who is pursuing his
career in iOS app development.
By applying the concepts of BATNA, ZOPA and understanding the concept of
BATNA, both the parties concluded the deal with Best and Final Offer (BAFO),
where cost of Iphone 11 and other accessories were made at an optimized level.
To add on value and create a good rapport with the Vendor payment was also made
within 2 days of trial & testing period and a healthy relationship was developed.

Objective

Our objective is to do negotiation on the rate of Iphone 11 and get it on our BATNA.
Iphone 11 is 2019 edition. MRP was Rs.60000/- at the time of purchase.
• Our walk-away price or budget for whole refreshments is Rs. 26,000/-, i.e.
Vendor’s BATNA
• Vendor’s expected reservation price = Rs.22,000/-, i.e. my BATNA
Analysis

My reservation price (RV) = Vendor’s

BATNA = Rs. 25000/- Vendor’s reservation
price (RV) = my BATNA = Rs. 22000/-
Thus, ZOPA (Zone of Possible Agreement) lies between Rs.22,000/- to Rs.25,000/-.
Vendor made the deal available over OLX Delhi at Rs.27,000/-, i.e. he has anchored
the negotiation for all. I called him and showed interest in the product.
Bargaining Rounds:
 1. Created emotional connect: We told him that I’m a final year student of
management course and my younger brother is seeking career in app
development. None of us are earning now so, we’re paying you from our
collected pocket money.
2. So, he gave us a student concession of Rs.1000/- New price = Rs.26,000/-, i.e.
out of ZOPA.
3. Degraded the value of his product: I told him that the model is 3 years old
and getting its update is not easy. Its value should be not more than Rs.22,500.
Still, we can pay you Rs.23000/- as you’ve traveled down to our place to
finalize this deal.
He checked about the updates for OS and gave his final rate of Rs.25000/-
Cost = Rs.25,000/-, i.e., on the border of our ZOPA.
4. Moreover, the charger is no longer available with the phone. New charger
for Iphone minimum. Rs.1900/-. I told him to either get us a charger or
adjust the amount as the available.
5. He agreed and said I won’t go anywhere to assemble any more accessories.

Final Cost = Rs.24,000, i.e., within ZOPA for both the parties

Conclusion

Actual negotiation was going on for the cost of Iphone 11 which resulted in creating a
good relationship with the Vendor. Recently, my father referred him to his friend that he
gives good deals. Thus, our negotiation was concluded as a Win-win scenario