4.3 Best Alternative to a Negotiated Agreement 2022
Added on 2022-09-30
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Running Head: NEGOTIATION
NEGOTIATION
Name of the Student
Name of the University
Author’s Note
NEGOTIATION
Name of the Student
Name of the University
Author’s Note
NEGOTIATION1
STAGE 1:
1:
BATNA means the Best Alternatives to the Negotiated Agreement. It is the best
alternative available to the party if the negotiations do not succeed and the meeting of the minds
of the parties cannot be concluded. According to Pinkley, Conlon, and Sawyer 2017, it can be
explained that BATNA may not be admissible at the time of ongoing negotiation but is attained
through its impact on the process of negotiation in due course of bargaining between the parties.
However according to Sebenius 2017, BATNA can be explained as the most successful practice
in the concept of negotiation and bargaining. As explained by Brett and Thompson 2016,
BATNA is explained as the assessment of socio-environmental factors depending on reputation,
relationship, gender, status and culture based on which the BATNA value is assessed. As
explained by Marsden and Siedel 2017, the concept of BATNA can be divided into two
fundamental strategies: firstly being the distributive strategy which aims to claim maximum
value and second is the integrative strategy which aims to identify the interest of both the parties
and integrate them to reach a possible and the best outcome without compromising any party’s
interest or benefits from such agreement. Ury 2015 has established the step wise recognition of
the strategies related to the BATNA and reaching a negotiated price along with other terms and
conditions of the contract.
In the given scenario, following is my client’s BATNA and their reservation value:
The contract fee offered by alternative sports star, LeBron James is 823,530$.
STAGE 1:
1:
BATNA means the Best Alternatives to the Negotiated Agreement. It is the best
alternative available to the party if the negotiations do not succeed and the meeting of the minds
of the parties cannot be concluded. According to Pinkley, Conlon, and Sawyer 2017, it can be
explained that BATNA may not be admissible at the time of ongoing negotiation but is attained
through its impact on the process of negotiation in due course of bargaining between the parties.
However according to Sebenius 2017, BATNA can be explained as the most successful practice
in the concept of negotiation and bargaining. As explained by Brett and Thompson 2016,
BATNA is explained as the assessment of socio-environmental factors depending on reputation,
relationship, gender, status and culture based on which the BATNA value is assessed. As
explained by Marsden and Siedel 2017, the concept of BATNA can be divided into two
fundamental strategies: firstly being the distributive strategy which aims to claim maximum
value and second is the integrative strategy which aims to identify the interest of both the parties
and integrate them to reach a possible and the best outcome without compromising any party’s
interest or benefits from such agreement. Ury 2015 has established the step wise recognition of
the strategies related to the BATNA and reaching a negotiated price along with other terms and
conditions of the contract.
In the given scenario, following is my client’s BATNA and their reservation value:
The contract fee offered by alternative sports star, LeBron James is 823,530$.
NEGOTIATION2
The contract fee can be negotiated for fee down value at the rate of 15% amounting to the
reduction value of 123,529$.
The final amount payable by us shall be 700,000$ which is the reservation value that
shall be payable by us to LeBron James and Kobe Bryant.
The BATNA for us is either LeBron James would accept our negotiated offer or we
negotiate a contract fee with Kobe Bryant.
2:
BATNA or the Best Alternative To Negotiated Agreements relate to the alternative
course of action for the process of negotiation in a agreement between two parties (Spangler
2003). Knapp et al 2015 talks about detailed course to assess every aspect of situation leading or
eligible for negotiation. Further according to Graham 2019, the theory of negotiation should
involve a third approach dealing with the concept of split-the-difference which coincides the
concept of fair dealings along with negotiable agreements. However, negotiation is not all about
situational analysis but also involves the effective involvement of emotional intelligence of the
parties to negotiate or influence the other party in accordance to their own terms and conditions.
According to Kelly and Kaminskiene 2016, the importance of negotiation and mediation has
been explained with reference to the application of emotional intelligence and worth of the
opponents. According to Greenberg 2019, it can be explained that the BATNA has evolved with
changing time and the changes basically include the assessment of the merits of settlement by the
parties based on which legal negotiation and mediation is prepared by the lawyers, and the same
shall be adjudicated as the best alternative to a negotiated agreement.
In the given scenario, the other party’s BATNA and reservation value are:
The contract fee can be negotiated for fee down value at the rate of 15% amounting to the
reduction value of 123,529$.
The final amount payable by us shall be 700,000$ which is the reservation value that
shall be payable by us to LeBron James and Kobe Bryant.
The BATNA for us is either LeBron James would accept our negotiated offer or we
negotiate a contract fee with Kobe Bryant.
2:
BATNA or the Best Alternative To Negotiated Agreements relate to the alternative
course of action for the process of negotiation in a agreement between two parties (Spangler
2003). Knapp et al 2015 talks about detailed course to assess every aspect of situation leading or
eligible for negotiation. Further according to Graham 2019, the theory of negotiation should
involve a third approach dealing with the concept of split-the-difference which coincides the
concept of fair dealings along with negotiable agreements. However, negotiation is not all about
situational analysis but also involves the effective involvement of emotional intelligence of the
parties to negotiate or influence the other party in accordance to their own terms and conditions.
According to Kelly and Kaminskiene 2016, the importance of negotiation and mediation has
been explained with reference to the application of emotional intelligence and worth of the
opponents. According to Greenberg 2019, it can be explained that the BATNA has evolved with
changing time and the changes basically include the assessment of the merits of settlement by the
parties based on which legal negotiation and mediation is prepared by the lawyers, and the same
shall be adjudicated as the best alternative to a negotiated agreement.
In the given scenario, the other party’s BATNA and reservation value are:
NEGOTIATION3
LeBron James can either accept out negotiated value and form the contract with us for the
advertisement campaign or negotiate with other companies, as they are not in the rush.
Kobe Bryant can either accept our contract free or negotiate with other companies as they
are not in rush.
The reservation value for them is 700,000$ which is the minimum value as payable by us
to both the parties.
3:
ZOPA or Zone of Possible Agreement is the zone between the parties existing between
the sale and the negotiations for sale where the minimum targets of the parties are met.
According to Jeong 2016, it can be explained that if reverse of bilateral agreements is not
possible, then negotiations can be in a series of cross connections involving strategies with
respect to expansion of minimum targets between the parties. As explained by Zartman 2016, the
situation where ZOPA is absent, such agreement is not possible. The basis of negotiation is the
minimum target that should be fulfilled by the dealing (Petukhova and Bunt 2017). As explained
by Zheng and Negenborn 2015, ZOPA is the negotiation driven mostly by the elasticity and
uncertainty of demand and supply. According to Yip and Schweinsberg 2017 it has been stated
that emotional intelligence is important while negotiating because anger expressions can lead to
exiting of the party from negotiations.
In the given scenario, the best strategy is to bargain the price which falls below the
reservation value which amounts to 700,000$ so that the minimum amount payable remains
within the budget including the expenses and other negotiated values and statutory expenses.
LeBron James can either accept out negotiated value and form the contract with us for the
advertisement campaign or negotiate with other companies, as they are not in the rush.
Kobe Bryant can either accept our contract free or negotiate with other companies as they
are not in rush.
The reservation value for them is 700,000$ which is the minimum value as payable by us
to both the parties.
3:
ZOPA or Zone of Possible Agreement is the zone between the parties existing between
the sale and the negotiations for sale where the minimum targets of the parties are met.
According to Jeong 2016, it can be explained that if reverse of bilateral agreements is not
possible, then negotiations can be in a series of cross connections involving strategies with
respect to expansion of minimum targets between the parties. As explained by Zartman 2016, the
situation where ZOPA is absent, such agreement is not possible. The basis of negotiation is the
minimum target that should be fulfilled by the dealing (Petukhova and Bunt 2017). As explained
by Zheng and Negenborn 2015, ZOPA is the negotiation driven mostly by the elasticity and
uncertainty of demand and supply. According to Yip and Schweinsberg 2017 it has been stated
that emotional intelligence is important while negotiating because anger expressions can lead to
exiting of the party from negotiations.
In the given scenario, the best strategy is to bargain the price which falls below the
reservation value which amounts to 700,000$ so that the minimum amount payable remains
within the budget including the expenses and other negotiated values and statutory expenses.
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