Negotiation, Conflicts management and Thinking Styles

This report discusses the negotiation process, thinking styles, and conflict management in the context of selling and buying commercial assets. It explores the pre-negotiation process, BATNA, ZOPA range, and important steps for successful negotiation.

Running Head: Negotiation, Conflicts management and Thinking Styles
Negotiation, Conflicts management and Thinking Styles
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Negotiation, Conflicts management and Thinking Styles
Executive summary
This report is based on the detailed discussion of the negotiation process. This report will
answer the questions relevant to the pre negotiation process and role of thinking styles on in
the selection of the negotiation form and scope. This report will provide the most suitable
BATNA for the seller (Ravi kumar pethani) and buyer (Peter Gerrard Jeremy Bonken) with
the method to identify the alternative means to solve the negotiation conflict. This report will
discuss the ZOPA range by taking the example of the property selling and the negotiation on
the reservation prize.

Negotiation, Conflicts management and Thinking Styles
Contents
Introduction...........................................................................................................................................3
Hierarchic form.....................................................................................................................................4
External scope.......................................................................................................................................4
Characteristics and uses of the external scope and hierarchic form...................................................4
BATNA.................................................................................................................................................5
Client’s BATNA and reservation value.............................................................................................5
Other parties BATNA and reservation values....................................................................................6
ZOPA range...........................................................................................................................................6
Stage 2 Negotiation...............................................................................................................................7
Important steps to enter into a commercial asset negotiation.............................................................7
Negotiation letter for the buyer......................................................................................................8
Communication log...............................................................................................................................9
Letter to client.....................................................................................................................................10
Conclusion...........................................................................................................................................12
References...........................................................................................................................................13

Negotiation, Conflicts management and Thinking Styles
Introduction
Negotiation is a well-known term in the business activities where buyers and sellers deal with
the selling and buying activities on the basis of the contracts. Sometimes some conflicts arise
between them then they use negotiation skills to solve the conflict. The manager leading the
sale or purchase of any commercial asset is liable to design better negotiation plan for that
company to make the negotiation profitable and give better result in the strong bond of
relationship (Brett & Thompson 2016).
Theories of mental self-government including thinking styles were introduced by the Robert
J. Sternberg. He is a famous and well-known professor in the college of Human Ecology of
Human Development at Cornell university also professor of Psychology with the Heidelberg
University.
As the elected manager to sale or purchase the commercial asset the manager will firstly
focus on the pre negotiation planning to make the profitable business and contract (Monczka
et al. 2015).
Pre-negotiation is the phase to identify the possibilities of the conflicts in the contract
between the parties and how managers can change the conflicts into best profitable interest
for the both parties involved in the negotiation (McKibben 2017).
Forms of the negotiation suggested in form of thinking by Robert J. Sternberg are numerous
kinds like Monarchic form, hierarchic from, oligarchic form and anarchic form. The selected
form here for the negotiation is the hierarchic form with the external scope to make the
agreement of the selling and buying more flexible to negotiate with the profitable outcomes.

Negotiation, Conflicts management and Thinking Styles
Hierarchic form
This form is very positive and understandable demanding high skilled and able manager that
is potential to set the preferences of the tasks, plans and circumstances that permit him to
form or make a proper hierarchy of the objectives to be achieved. The manager in this form is
able to handle the multiple tasks in single time (McKibben 2017). He can set the ladders or
set the task according their preferences of the accomplishment and he is enough mature to
work on alternate plan in case of not desired outcome from plan A. this form require manager
to be creative as well as cooperative to lead the team and members positively converted to his
alternate plan. He focuses the things according to their importance and worth according to the
present situation and potential importance of some things in near future (Yuan 2017).
There are two defined scopes in the thinking style of self-government that are: Internal scope
and External scope
External scope
The selected scope for this negotiation plan with the hierarchic form is external scope; this is
a very wide and positive outcome providing scope. The manager using external scope is
flexible to work with a large or small group of people. The external scope allows the
managers to perform a decided task with the support of the other individual. The managers
using this scope are extraverted and social in nature and ready to adjust the task according to
the situations and demands (Crump 2015).
Characteristics and uses of the external scope and hierarchic form
Reason behind the selection of the hierarchic form is the scope it provides to act to the
manager is very wide and challenging. It gives proper time to plan the negotiation techniques
and drafting the golden rules (Lewicki, Barry & Saunders 2016). The external scope helps in
the involvement of the team members and to set the alternate plan with the target of high

Negotiation, Conflicts management and Thinking Styles
earnings and return to both the parties. The hierarchic form is less time consuming compare
to other forms because manager have a rough idea about the settlement of the priorities in the
meeting and the cooperation of the team is very important and only possible by using external
scope of the self-governments in negotiation (Folger, Marshall & and Randall 2017).
Anarchic form is most suitable to replace the hierarch form as an alternate form in the process
of negotiation of the sale and purchase agreement. As same the hierarch form the managers
here works in the great flexibility to deal the any situation at any condition. But the lack of
this form is the managers are confused about the priorities of the tasks and sometimes they
behave in improper way putting negative impact. But they are skilled to manage the
flexibility and also work on the alternate plan (Fan 2018).
BATNA
This is an acronym form of Best Alternative to a Negotiated Agreement; this is rated as the
most beneficial techniques useful in case of the failure of the negotiation (Glumac et al.
2015). Every party entering into the contract have their own BATNA and they disclose it at
the time of the negotiation (Geiger 2017). Selling of the commercial property land on behalf
of the client with the proper negotiation is focused.
Client’s BATNA and reservation value
BATNA tactics of the client are those alternate plans where in case of the failure of the
negotiation managers can provide alternative plans to make the agreement profitable at the
coast where it can make the yes from the managers other party client (O'brien 2019). Ravi
Kumar is selling the property addressed 6-14 Potts avenue blacktown Sydney. In case of any
conflicts arise in the agreement the suitable reservation price fixed by the seller that is 48.4
million, and the BATNA in case of walk out situation is to sell property to Proudfoot
Property trust accordingly.

Negotiation, Conflicts management and Thinking Styles
Reservation value is a part of BATNA and can be understand as the lowest value where your
company is ready to enter into the agreement (Glumac et al. 2015).
Other parties BATNA and reservation values
The most challenging task for the negotiation manager is to hide their reservation value and
BATNA with the identification of the reservation value and possible BATNA of the opposite
parties. Buyer party (Peter…) is ready to purchase the land on 50.4 Million as the reservation
price with the hidden BATNA to purchase the property from Horace Pty Ltd in case of the
disputed and closing of the contract. In term of the negotiation the identification of the
reservation price of the opposite dealing company is important because it helps the managers
to plan the negotiation in a very challenging manner and helpful to get it succeed (Yuan
2017).
ZOPA range
ZOPA is an acronym form of “Zone of possible Agreement” it is a confusing term with the
BATNA and reservation price but it exist at the potential gap that gives benefits to the both
entering parties. Range of ZOPA depends on the gap between the reservation values of the
both parties (Crump 2015).
Buyer’s target price Buyer’s reservation price (50.4 million)
Seller’s reservation Price ZOPA Seller’s Target price
(48.4 million) (2 Million Set the claimable value)

Negotiation, Conflicts management and Thinking Styles
Source: developed on the basis of example of selling property land
Strategies to claim greater ZOPA range are of two types;
 Bargaining range identification strategy is used to identify the alternative negotiation
techniques of the opposite parties to increase the bargaining power of the clients
(Geiger 2017).
 Bottom line identification strategy is to disclose the last reservation value of the
dealing party that gives a manger to identify and settled his parties’ reservation value
competing the other party’s values (Cordell 2018).
ZOPA is a different term from the BATNA and reservation price because it includes the
financial range where both parties can set the agreement of the selling and purchasing of the
commercial assets (Prado & Martinelli 2018).
Stage 2 Negotiation
The negotiation is time taking activities that require talent, practice and hard-work with smart
techniques. This is the process where two parties are sure to select the best way to settle the
agreement and this is a process where both parties depend on each other (Koval 2018).
Before entering into a negotiation a manager
 Must focused on the target he want to achieve by this negotiation
 He must be prepared for the phases of the conflicts
 He must discuss the outcomes of the negotiation with the team
Important steps to enter into a commercial asset negotiation
1. Set your needs- the essential starting point of the negotiation in the commercial asset
is to setting and thinking about the need of the selling the asset or purchasing the

Negotiation, Conflicts management and Thinking Styles
asset. Setting the priority to sell the asset with the other alternatives (Folger, Marshall
& and Randall 2017).
2. Budget- negotiation is based on the budget of the both parties, disclosure of the
budget and the real price of selling the asset is must (Broekhuis & Scholten 2018).
3. Communicate- the most important aspect is to communicate the offer and the terms of
the agreement and negotiation properly. This is the duty of the managers to
communicate the facts relevant to the price and the condition entering to negotiation
properly.
4. Effective offer- BATNA is an alternate way to communicate the counter offer
regarding terms and condition of the price and reservation value. Making of the
effective offer leads the successful negotiation in sells of the asset (Brett & Thompson
2016).
Negotiation letter for the buyer
Mr Peter Gerrard Jeremy Bonken
Sales and purchase manager
Date __________________
Dear,
This is an acceptance letter of your offer to purchase the property at 6-14 Potts Avenue,
Blacktown Sydney. . This is to make an offer of the selling of the commercial land that is at
the Sydney. The price and conditions were already discussed with you hence the pricing
conflicts are arising. The meeting for negotiation on the price will be held hence this is to
request you to attend the meeting with best negotiation strategies to make the offer complete.
This is an official acceptance and negotiation letter posted on my client’s behalf.

Negotiation, Conflicts management and Thinking Styles
Thank you very much
Mr Ravi Kumar Pethani
Senior Sales Manager
Communication log
Date of meeting Time of meeting Ways of the
communication
Items discussed Outcomes of the
meeting
18/07/2019 11:00 AM Indirect proposal Interest to sell
the property
land
No meeting held
25/07/2019 03:15 PM Face to face
communication
Terms and
conditions to the
agreement
Buyer’s
manager holds
the meeting for
2 days
27/07/2019 12:30 PM Telephonic
communication
Price issues
discussion
Planned to
reveal the
reservation prize
15/08/2019 02:00 PM Face to face Disclosure of
the terms and
condition to
make profitable
negotiation
Buyer accepted
the terms and
conditions but
conflict on the
selling prize
29/08/2019 10:19 AM Face to face Reservation
prize
Both the parties
agreed on the
pay some of
50.4 Million at
the profitable 2
Million ZOPA
range

Negotiation, Conflicts management and Thinking Styles
Letter to client
22 September 2019
Dear XYZ
Thank you for your appreciation and the belief you shown on me by selecting me as your
negotiation manager for selling the office commercial land. We received many interesting
proposal with effective offers but my duty was to select the best buyer on the best-selling
price. In last week I selected two buyers from them. Various meetings were held in the past
few weeks. And we come to select the one buyer after getting the successful negotiation from
the both sides named Peter Gerrard Jeremy Bonken.
I am writing the possible outcomes we will achieve from this negotiation to make you relax
about the price and profits in the selling of the property. The negotiation was based on the
collective bargaining and integrated techniques of negotiation.
 The interest and beliefs of the buyer are similar to the negotiation strategy.
 From the operational prospective of this negotiation profitability is the main outcome
of the meeting for the both parties.
 Interested client has interest to contribute towards the problems implementation and
taking responsibility to issues.
 All the relevant facts and matters are communicated properly with the opposite party.
 This negotiation is based on the high return to the business and selling of the targeted
property.
 All facts are discussed though the risk of the conflict is reduced and the agreement
has become very profitable giving high return than our planned reservation price.
 Legal aspects of the agreement are completely fulfilled. Parties are agreed on the
terms and conditions of the agreement.

Negotiation, Conflicts management and Thinking Styles
 This negotiation will lead the strong relationships between the seller and buyer and
they will feel free to contract again without worrying about negotiation.
As per the calculations process of the negotiation contract will be as;
Property- 6-14 Potts avenue, Black town Sydney
Buyer Peter Gerrard Jeremy Bonken
Seller Ravi Kumar Pethani
Reservation price
difference
Seller prince – buyer’s price = profitable/loss ZOPA range
48.4 million – 50.4 million = 2 Million profitable claimable value
Finally but very importantly it is a legal agreement I would like you to advice on the basis of
the above discussed points you would not proceed immediately, keep the meeting asides and
read the negotiation terms yourself with guiding me to make the appropriate changes to
further proceed.
Thank you
Mr Ravi Kumar Pethani
Senior Sales manager

Negotiation, Conflicts management and Thinking Styles
Conclusion
This report concludes the role of a negotiation manager is very important in the agreement of
the selling and purchasing of the commercial assets. The selected thinking style in this report
was based on the Sternberg-Wagner Thinking Style Inventories form which the most suitable
form for this negotiation was hierarch form with external scope. The second stage of
negotiation is to disclose the hidden facts of the agreement and to reveal the beat suitable
BATNA for negotiation. The reservation price and the ZOPA range are the other common
most factors are discussed as major role playing in the negotiation. The contract to sell the
land to the Peter is based on the profitable claimable negotiation and reservation price.

Negotiation, Conflicts management and Thinking Styles
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131-153.
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Lewicki, RJ,BBASDM, 2016, Essentials of negotiation, McGraw-Hill Education.

Negotiation, Conflicts management and Thinking Styles
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