Pre-Class Exercise 2

Guidelines

 Answer all questions.

 Bullets preferred. Be very brief
 Please check the course intro to check evaluation weightages and risks

Submission

 Put the following in the SUBJECT line: NEG, your first name, slash, followed by roll no,
slash, and followed by pre class exercise with number
o For example:
o Subject: NEG/Rama/1023/PCE 2
 Submit it to CAMU to reach latest by 11.55 PM 15.04.2023 (Saturday).
 Submissions received beyond time limit, or without proper subject line will not be
evaluated

Questions
Based on ‘introduction’ chapter of Getting to Yes book

1. Read the paragraph beginning with “People find themselves in a dilemma.”

a. What are the two common ways to negotiate?
i. Soft
ii. Hard
b. What is the attempted tradeoff?
i. Soft Negotiator – wants to avoid personal conflicts and an amicable
resolution, therefore makes concessions readily to reach agreement any
often ends up exploited and feeling bitter.
ii. Hard Negotiator – sees any situation as a contest and wants to win, often
ends up producing an equally hard response that exhausts the negotiator
and their resources and also harms the relationship with the other side.
2. Read the paragraph beginning with “There is a third way…” What are your three
takeaways from this paragraph?
1. The method of principled negotiation combines both hard and soft negotiation
tactics.
2. The method emphasizes deciding issues based on their merits rather than on a
haggling process focused on what each side says it will and won't do.

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 3. The method recommends looking for mutual gains whenever possible and insists
on a fair standard that is independent of either side when interests conflict.

Based on Chapter 1 of Getting to Yes

1. “Being nice is no answer.” Why?

Being nice alone is not enough to be an effective negotiator. As being too nice can lead
to making concessions that are not in your best interest and can result in a poor
outcome for yourself. Being nice is not enough; we also need to be strategic and use
principled negotiation techniques to achieve the goals.

2. “The game of negotiation takes place at two levels.” Name these levels

The first level is the substance of the negotiation, which includes the issues being
discussed and the positions taken by each side. The second level is the procedure of
negotiation, which includes the way the negotiation is conducted and how the parties
interact with each other.

3. “This method, called principled negotiation or negotiation on merits, can be boiled

down to four basic points.” Name these four points
 People – Separate the people from the problem
 Interest – Focus on interests, not positions
 Options – Invent multiple options for mutual gain before deciding what to do.
 Criteria – Insist that the result be based on some objective standard.

Based on Sarah Talley at Frey Farms (A)

1. July 4th, Watermelon issue: Why are they unable to reach a decision?
The reason they are unable to reach a decision on the Watermelon issue is that Sarah
Talley and Wal-Mart are negotiating from different positions, where Wal-Mart is seeking
lower prices to increase its profit margins, while Sarah Talley is trying to maintain the
quality and profitability of her produce.
2. What advice would you give Sarah Talley for the watermelon deal to go through?
 Try to understand Wal-Mart’s interests: Negotiating implies understanding the
other party's objectives. Sarah Talley could understand Wal-Mart's needs, like
selling watermelons at a competitive price or desiring a rebate. These hobbies
may help Sarah compromise.
 Look for creative solutions: Sarah may try to generate value for Wal-Mart by
packaging the watermelons with other products or offering a discount if

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 customers buy a certain quantity. To stabilize both enterprises, she may seek a
longer-term deal.
 Focus on building a relationship: Negotiation goes beyond the agreement. Sarah
may work with Wal-Mart to find mutually beneficial ways to develop trust. This
could lead to long-term collaboration.

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