Negotiation: BATNA, ZOPA, and Communication Log

This article discusses the theory of negotiation, including BATNA (Best Alternative to Possible Agreement) and ZOPA (Zone Of Possible Agreement). It also provides a communication log and advice for the negotiation process.

Running Head: NEGOTIATION
NEGOTIATION
Name of the Student:
Name of the University:
Author Note

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STEP 1
1.
In the theory of Negotiation, BATNA or it is also called as the Best Alternative to Possible
Agreement is the most benefited way of doing things that a party can do if there is no possibility
to reach an agreement and if bargaining fails (Steele and Beasor 2017). This includes several
situations like appeal to the ruling of court, strikes’ execution, negotiation of suspension and
many others (Gonçalves et al. 2016). BATNA is the force behind the winning negotiator and the
way to focus (Brett and Thompson 2016). There must be care taken to assure that the deals are
valued accurately, all considerations are taken in account like value and time of money, value of
relationship and the mindset of the party to stay up to the negotiation side (Zahariadis, 2017).
There are other considerations that are not easy to value as they are based on qualitative or
uncertain considerations and not based on easily measurable factors (Pinkley et al. 2017). The
following are The Best Alternative to Possible Agreement for the Elite Sport Stars with respect
to the legal agreement of endorsement with the company named DeGrandis Sporting Goods in
relation to Kobe Bryant for the bargain of the contract of advertisement campaign to endorse
basketballs that the company sells:
Initially, BATNA will be the deal with the different retailer of sporting goods, Exercise supplies
and they have offered to give the contractual fees of $521,740 that can get high by 15% by
negotiation. This states that if we do not get the deal with the DeGrandis Sporting Goods, then
there is another option to deal with the Exercise Supplies with the endorsement contract. If there
is any deal with the other party by negotiation then it must not be less than the price above
mentioned plus 15%. Thus our reservation value is $600000.

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2
The following are The Best Alternative to Possible Agreement for the Elite Sport Stars with
respect to the legal agreement of endorsement with the company named DeGrandis Sporting
Goods in relation to Kobe Bryant for the bargain of the contract of advertisement campaign to
endorse basketballs that the company sells:
The other party who is negotiating has BATNA so that they can sign the legal agreement with
the other basketball player with respect to the legal agreement. However, the BATNA of the
other party is not said to be as strong as they are keen to endorse the star basketball player Kobe
Bryant with respect to the product they sell for the campaign of advertisement. The party is Pisey
Kim with whom we will be bargaining with in respect to the situation. Initially, the value of
reservation for other party will not be high because they have lower estimate that might be used
by them for the justification of lower contract fee for advertisement campaign. Therefore, around
$620000 is what our estimation is for the value of reservation.
3
The full form of ZOPA range is Zone Of Possible Agreement Range (Chamoun-Nicolas and
Hazlett, 2019). This is also said to be as the bargaining range and it states out the intellectual
zone among the two parties where they can get an agreement (Patel and Rubin 2016). There is no
possibility of any kind of agreement among the two parties outside this zone (Elfenbein 2015).
For example, where an individual for a specific span of time wants to give money at a particular
rate of interest and the other individual who wants to take money has other interest in his
mind.ave the mutual understanding with regards to the interest. It is also said that ZOPA is

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important to carry out the negotiation in a good way. In order to search whether there is ZOPA or
not, then both the parties need to understand the needs and value of one another. This needs to be
carried out initially and it also needs to be changed whenever more information is gathered.
Therefore to find ZOPA, we need to evaluate the values of reservation of both the parties. When
we will negotiate with the party then we must know that the deal will not be less than $600000.
Thus this value might be considered as the value of reservation for us. Initially, the value of
reservation for other party will not be high because they have lower estimate that might be used
by them for the justification of lower contract fee for advertisement campaign. Therefore, around
$600000 is what our estimation is for the value of reservation. In regards with the advertisement
period, the other party will be looking for association for long term. It can be stated from both
ranges that the possible agreement zone is as follows:
As our reservation value is 600000 and the reservation value of the other party is around 620000
therefore we believe that the zone of possible agreement in this situation would be around
617000. This has been calculated based on the circumstances of the other party and taking out
consideration the history of their previous negotiations.
STEP 2
Communication Log
DATE COMMUNICATIO
N
METHOD
Item Discussed Outcome Notes
1/2/2019 Phone The
advancement of
The other party
was enthusiastic

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the deal
Meeting date in
relation to the
deal was fixed
about the deal
7/2/2019 Direct Face to Face Price of deal Price fixed at
$617000
Price would be
subjected to
term of
endorsement
and contingency
clause to be
discussed on
10th February
10/2/2019 Direct Face to Face Contingency
clause and Term
of deal
Endorsement
term of 3
months and
contingency
clause
The
contingency
clause states
that “ the price
of the deal will
be adjusted
based on the
sale proceeds of
the product, if
the product
sales is 2.1m the

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price would be
fixed at
$617000 and
would be
accordingly
adjusted if
proceeds are
more or less”

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The contingency clause is as follows
“The price of the deal will be adjusted based on the sale proceeds of the product, if the product
sales is 2.1m the price would be fixed at $617000 and would be accordingly adjusted if proceeds
are more or less”

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STEP 3
Advice in relation to the Negotiation Process
To
Kobe Bryant
Respected sir,
The following letter of advice is in regards with the process of negotiation contract to endorse the
basketballs that are sold by DeGrandis Sporting Goods. In regards with the advertising
campaign, we would like you to know that we have got the deal with DeGrandis Sporting Goods.
The price for this deal is $617000, for the time period of 3 months. We would want to let you
know that initially BATNA, we had a deal with the different retailer of sporting goods, Exercise
supplies and they have offered to give the contractual fees of $521,740 that can get high by 15%
by negotiation. This states that if we do not get the deal with the DeGrandis Sporting Goods,
then there is another option to deal with the Exercise Supplies with the endorsement contract. If
there is any deal with the other party by negotiation then it must not be less than the price above
mentioned plus 15%. $600000 was the price that was coming up. On the other way, the other
party who is negotiating has BATNA so that they can sign the legal agreement with the other
basketball player with respect to the legal agreement. However, the BATNA of the other party is
not said to be as strong as they are keen to endorse the star basketball player with respect to the
product they have. Therefore, to find ZOPA, we need to evaluate the values of reservation of
both the parties. When we will negotiate with the party then we must know that the deal will not
be less than $60000. Thus this value might be considered as the value of reservation for us.
Initially, the value of reservation for other party will not be high because they have lower

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estimate that might be used by them for the justification of lower contract fee for advertisement
campaign. Therefore, around $620000 are what our estimation is for the value of reservation. In
regards with the advertisement period, the other party will be looking for association for long
term. The price for this deal is $617000, for the time period of 3 months. There is also a
contingency clause that we have in the legal agreement and as per the contract their sales are said
to be around 2.2 million and after that we will get the abovementioned price. As per the reports
we are assured that the company would surely from the sale of basketball sales will make 2.2
million. In addition, the term of 3 months will not have any kind of negative impact on any
contract of future endorsement you will get into as there is no positive impact. The present
situation can be said to be at our side. Therefore, we think that you are fulfilled with the impact
of negotiation that has been carried out in your behalf by us.
Yours faithfully,

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