Negotiation Preparation Table for Liz and Terry of Desklib

This article discusses the negotiation preparation table for Liz and Terry of Desklib, including their interests, options, alternatives, legitimacy/objective criteria, and BATNA. Liz is a regional manager with Wholesale Foods, while Terry is the owner of a small fruit orchard. They must negotiate terms for quantities and prices for Terry's fruit, delivery dates, and crating. The COVID-19 pandemic has created uncertainties for both parties. The article provides a negotiation preparation table to help them find mutually profitable solutions.

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ADR-Project-2
Liz and Terry
Liz is a regional manager with Wholesale Foods, a large and growing national produce
distributor. She is responsible for managing relationships with suppliers, mostly small
farmers in the state, as well as customers of wholesale Foods, who range from small corner
grocers to the stores of the largest regional supermarket chain. One of the suppliers with
whom she must negotiate is Terry, the owner of a small fruit orchard at the northeast
corner of the state.
As the manager of the large territory, Liz has to worry about her profitability, which in turn
is function of the price at which she buys and sells produce. But her profitability is also
affected by the amount of effort it takes her to get the produce to market and how much
she has to spend to overcome glitches in her delivery system. For example, if a farmer is late
with his deliveries, Liz has to spend money to get produce from somewhere else, usually at a
higher price, to meet her obligations to her customers; or if farmer delivers fruit in bulk, Liz
has to spend money to crate it properly. Similarly, her profitability is related to the price she
can get for the produce from her customers. These days uncertainty of COVID-19 is causing
another problem. She is not sure when boarders will close or travelling will be restricted and
supply will be affected. If she can develop a reputation for being a source of “quality”
produce with “consistent” supply, she can get an extra few cents per pound over average
market prices which is rapidly adds up to big profits. To manage some of these tasks, Liz
maintains a small fleet of closed-bed trucks capable of travelling around the state and
employs a few more workers than is absolutely necessary in her warehouse. Due to COVID-
19 she has to maintain high degree of hygiene at the warehouse and among her workers.
Terry is his own boss, running a farm that has been in his family for three generations. Over
his lifetime he has seen the farm experiment with number of different crops, but at
significant risks: a bad harvest with a supposedly improved strain of one of his traditional
crops could wipe him out. Similarly, the risk of planting something different and not being
able to sell it at a good price could mean not being able to pay off the season’s debts at
harvest time, which in turn would mean not being able to buy needed stocks and supplies at
planting time. Terry has one open bed pick-up truck he uses to bring in supplies and deliver
fruits. He hires only seasonal help, at planting and harvest time. COVID-19 has creating lots
of uncertainties. Due to travel restrictions, he is not sure if he can get cheap helping hands
from bag packers/travelers at planting or harvest time. Also, sudden closing of boarders and
travel restrictions are causing problems in planning and not to mention cost involved in
maintaining hygiene.
Each year, Liz and Terry get together and discuss terms: quantities and prices for his fruit,
the dates on which delivery should be made, how the fruit will be crated etc. Although they
get along, Liz has sense that there is more they could do that would be mutually profitable
particularly in the uncertain time of COVID-19.

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Instructions for Students
Based on the facts above and by using negotiation preparation table below
1. Find out: (a) Interests; (b) Options; (c) Alternatives; (d) Legitimacy/Objective
Standards; (e) Communication; (f) Relationship; (g) Commitment: of Liz and Terry
2. Word limit: 2000 (maximum)
3. Submission date: 9 May 2021
4. You may submit your complete negotiation preparation table instead of submitting
an essay.
Tips: You may check self-learning exercise (Salary Negotiation) for using negotiation
preparation table.
Negotiation Preparation Table
1. Interests
Table-1—Identifying Relevant parties
People on “my side” who may care about
the outcome
People on “their side” who may care
about the outcome
 Friends – Mav
 Family?-----
 Boss?-----
 Constituents? ---
 Others- Samuel
 Friends-At work, colleagues
 Family? ---
 Boss?---
 Constituents?---
 Others---

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Table-2—Clarify Interests
Your Interests
What do I care about?
Interests of Other Party
If I were in their shoes, what
would I care or worry
about?
Others
What are some of the
concerns of others who may
be significantly affected?
Personal
Short-term Enough money to
cover rent, pet food
and care, car
payments, and other
expenses.
 Vacation time
 Health-care services
Long-term Opportunity to
advance and
grow in various
fields and
segments.
Business
Short-term
Promoted to a new post and
setting a positive example
at the workplace
Respect from the boss,
coworkers, and
subordinates.
Along with incentives and b
onuses.
Long-term
Promoted to new store with
better income.
Personal
Short Term
To improve my mindset in
order to be more
productive.
Business
Short-term
Need someone that is
adaptable to changing
environments and various
policies mainly during
COVID-19.
Keep the customers
satisfied
Long-term
Relationships with
suppliers in order to
keep balance in
profits.
Others-1
A competent, fair, and
consistent supervisor
a productive working
connection
Others-2
Keep the supplies regular
during Covid-19 and keep
the stores clean by adopting
new technologies and ways.
Long-term partnership
Access to a good/priority
selling display
Others-3
Long-term bond and
partnership with
vendors

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Table 3: Probe for Underlying Interests
List more important interests for you and your counterpart that you identified in Table-2. Fo
r each of these, ask yourself “why” and “for what purpose”? If you discover deeper interests ,
list them in the second column. Finally try to rate your own interests by allocating 100 point
s among them in proportion to their relative importance.
Important Interests
(From Table-2)
Basic or Underlying interest
s
(Ask yourself “why?” and “f
or what purpose?”
Relating Importance
(Allocate 100 points)
Mine
Money to cover living costs
Future Advancement Possibi
lities
For various bills that is food,
lodging, pet care
Compensation
More opportunity for challe
nge and growth in life.
40
30
20
Theirs
Good Assistant Manager
Forecast the sales and bring
someone responsible in
order to delegate the work.
(Note: you cannot imagine
which interests are of high p
riority for them at preparati
on stage. You can only find
out when you meet. In mee
ting you can take note of th
eir priorities. So there is no
need to allocate any points)
2. Developing OPTIONS
Step-1 (Create OPTIONS to Meet Interests)

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My Interests
Funds to cover living costs
Promotion in the job post
of assistant manager
future advancement oppor
tunities
Advantages
Possible Options
rise in pay
a discounted grocery prod
ucts
incentive compensation
With plans for continuing e
xpansion, Liz is been prom
oted to assistant manager.
To get experience, rotate a
round other departments.
Options to interact with co
rporate marketing.
Duty of making good relati
ons with the supplier in or
der to make the deal.
Spend time talking to custo
mers to figure out what th
ey care about the most.
Add on insurance plans for
more protection
Utilization of company’s pe
rsonal delivery trucks and
warehouses.
Their Interests
pay the lowest possible wa
ge
excellent office administrat
or
Satisfied clients.
Step-2 (Find Ways to Maximize Joint Gains)
Consider ways to combine skills and resources to satisfy key interests on both sides.

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Inventory of Skills and
Resources
Combine similar
resources to
produce value
Combine different
resources to produce
value
Me
Abilities in management
Ability to communicate
Understanding of Inform
ation technology.
Effective writing skill
Experience of more than
5 years
Develop a strategy to bo
ost client happiness and
turn the business positio
n in the market field.
Plan for Liz to assist in th
e training of new employ
ees.
Create a plan for Liz t
raining and growth t
hat keeps me produc
tive and growing.
Liz utilize its writing/I
T talents for the supe
rmarket's -marketing
-new training materi
als -newsletter - Face
book/Twitter Other c
ommunication portal
s
Give the Liz greater b
enefits by reducing th
e wages , so she will
be happier and the su
permarket will save
money.
Them
Money
Program of Instruction
Possibilities for Advance
ment
Customer service dedicati
on
Benefits purchasing powe
r.
3. Developing BATNA

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ALTERNATIVES-Step 1: Think of My Alternatives to a Negotiated Agreement
My Key Interests
1. Advancement to Assistant Manager
2. Possibility of expansion
3. Bonuses, incentives, and benefits
4. Funds to covers all the requirements.
Ask/Explore-What Could I do to satisfy my Interests if we do not reach an agreement
Possible Alternatives Pros Cons
1. Liz can Work at another s
upermarket after quitting it
s current employment.
2. Maintain its position as r
egional manager while redu
cing the spending.
3. Search for more opening
s in the same supermarket.
With its experience, it shoul
d be simple; she could start
at a better wage.
It's risk-free and simple.
Maintaining seniority; rema
ining in the company she kn
ow; maintaining working re
lationships; possibly gainin
g a quicker pathway to pro
motion
Interesting; promotes devel
opment.
Some hazards; challenging
amid the COVID-19 crisis; la
ck of seniority; insecure 5-y
ear working relationship
Liz coworkers have lost res
pect for her because she ba
cked out them due to the fi
nancial crises occurs in the
company.
I'm not sure if there are any
more openings.
Expensive, requires additio
nal loans, and takes more ti
me in order to do the busin
ess functions.

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ALTERNATIVES-Step-2 -Select and Improve my BATNA
Ask/Explore—Of my alternatives, what I really do if no agreement is reached (My
BATNA)? Why?
#
Ask/Explore – What can I do to improve my BATNA (Write down concrete steps you could
take to improve your BATNA even before you go into the negotiation.)
ALTERNATIVES-Step-3 (Identify Alternatives open to the Other side)
Their key Interests:
1. Pay the lowest feasible compensation
2. 2. Hire a competent assistant manager
3. 3. Provide customer satisfaction.

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Ask/Explore---What could THEY do to satisfy their interests if we do not reach
an agreement?
Alternatives Pros Cons
Look for another person to
promote.
2. Hire a temp until Liz can
hire a full-time assistant ma
nager.
3. Reorganize tasks and abo
lish the post of assistant ma
nager.
Liz may not have to pay the
m much; there are many ap
plicants accessible during C
OVID-19.
Addresses an immediate de
mand.
Saves money and makes a g
ood impression.
Must fill in for someone els
e until someone else is foun
d; must squander time inter
viewing candidates.
The temporary personnel m
ust be trained first, followe
d by the full-time staff.
It will be difficult; Lou/Lisa
will have to put forth more
effort; there may be opposi
tion from others (eg Union,
Government as it is trying t
o protect jobs).
ALTERNATIVES-Step-4-Estimate Their BATNA
Ask/Explore – What I would do in their shoes? (which of their self-help alternatives looks
best for them?
Step-5 How might I legitimately make their BATNA less attractive
By Making it harder to pursue? By influencing their perception of how
unwise or costly it might be?





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4. Legitimacy/Objective Criteria
LEGITIMACY 1 : Use External Standards as a Sword and as a Shield
What specific substantive question has to be answered in this negotiation?
Possible standards (precedents, benchmarks, prior practice, accepted principles)
Place each standard along a range from least favourable to you, to most favourable to you.
Below each standard, indicate what that standard would mean in this case.
Less Favourable -----------------------------------------------Most Favourable
Other standards that may be relevant or that require research:
LEGITIMACY 2: Use of the Fairness of the Process to Persuade
Persuasive Processes
If you cannot agree on an answer, you might agree on the process to find an agreeable answ
er.
 By getting influenced by the people for example communication.
 Also, by verbal threats
The test of reciprocity

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In some cases, reciprocity can be very pers uasive. Are there some negotiations in whi
ch your counterpart is in a position similar to yours?
If so, what standards or arguments does he/she use in the situation?
How could you apply those standards or arguments here?
LEGITIMACY 3: Offer them an Attractive Way to Explain Their Decision
If they had to explain the result of this negotiation to someone important to them, they coul
d convince their constituents with the following few points.
1. “It’s a fair deal based on liz experience and the previous sales that have been done in
their business.”
2. “ I am not paying any more that we were paying and I am getting an eager, enthusia
stic employee with experience and training.
1. Communication
Developing Communication Strategy
Step-1: Communication 1: Question My Assumptions and Identify Things to Listen For
The first step in dealing with your blind spots is to become aware of them. In the left hand col
umn list your assumptions about their intentions and perceptions. In the right hand-hand colu
mn, write down key phrases your counterpart might say that should lead you to question your
assumptions.

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My Assumptions
(I assume that-----)
Things to Listen for
Example
I assume that pandemic has badly effect the
business because it effect the company oper
ations and sales due to which the company
of Liz has to experience huge loss in their b
usiness.
Covid-19 has also bring various opportuniti
es for the business of Liz because of this she
is able to capture the new customer base by
fulfilling their needs and wants.
Step-2: Communication 2: Reframe to Help Them Understand
Your Perspective
(List 3-5 statements you mig
ht make to clearly put forth
your Interests
How might they hear it?
(For each statement, list you
r counterpart’s possible resp
onse, eg “Yes, but -----)
Reframing
(Restate your interests so tha
t they will hear them better)
1. Growth in the busine
ss.
2. New and innovative
products.
But is very hard for them to
grow their business because
many big players or organisa
tions present in these industr
y.
If they are able to do this it
will be very beneficial for th
em but it is a very difficult t
ask because they have to cha
nge their ongoing business p
rocedure.
Liz builds effective business
plan and strategy which will
convey the complete inform
ation regarding the expansio
n of their business in the fut
ure.
She can use the appropriate
way in order to tell its vision
s to the workforce. Thus, it
will encourage and motivate
them to do more work in the
ir respective work area. By t
his they can achieve these g
oals in a short time period.

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2. Relationship
Relationship 1: Separate People Issues from Substantive Issues
a. Describe your relationship (use adjectives----)
b. Separate Relationship from the Substance
Substantive Issues and Problems
(money, terms, dates and conditions)
Substantive options and remedies
(Consider referring to Interests and opt
ions table)
Relationship issues and problems
(reliability, mutual acceptance, emotions
etc.)
Ways to improve the relationship
(Make sure these are not substantive co
ncessions)
Relationship -2: Prepare to Build a Good Working Relationship
What might be wrong now? What can I do----
What might be causing any present
misunderstanding?
At per the case, miscommunication can
cause misunderstanding.
What might be causing a lack of trust?
-----try to understand them better?
Written and verbal communication can be
made to reduce the cause of issue.
-----to demonstrate my reliability?

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Coordination between people at the
workplace.
What might be causing one or both of us
to feel coerced?
Difference in opinions
What might be causing one or both of us
to feel disrespected?
Main cause can be poor listening skills
What might be causing one or both of us
get upset?
Professional behavior
---to put the focus on persuasion instead
of coercion?
Such difference lead to various issues at the
workplace.
---to show acceptance and respect?
---to balance emotion and reason?
In order to perform properly
3. Commitment
Commitment 1: Identify the Issues to Be Included in the Agreement
Overall purpose of negotiation
Is to focus on the direct negotiation and serve best to the clients with the aim or providing
best legal advice. Also, to bring harmonious relationships between the parties.
Expected Product of Negotiation
(Draft a table of contents for a final agreement that would be operational and durable)
Confidentiality
Duty of Lawyers
Direct negotiation
Proper communication
Specific purpose of next meeting

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Specific purpose of next meeting will be to bring people together so that they can
bring and produce a common decision.
Tangible product of next meeting
(If you could imagine the piece f paper your would produce during this meeting, what would
it contain?)
-----A list of options for further consideration?
----An action plan for further work necessary before an agreement would be possible?
----A joint recommendation to your respective organizations?
-----An agreement in principle?
-----A signed contract?
---Commitments towards the next step?
---Others ----------
Commitment 2: Plan the Steps to Agreement
Decision makers: name of those who will “sign” the agreement
Key Managerial Personnel will sign the agreement
Implementation: Information that the agreement should include about what happens
next
 Implementors who should perhaps be consulted before agreement is final:
 Possible obstacles to implementation:

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 Ways to deal with obstacles:
Steps necessary to get to a binding
agreement
Target Date
1. Tentative Agreement on issues to
be included:
2. Clarification of interests on each
issue:
3. Discussion of options for
handling each issue:
4. My draft of a framework
agreement:
5. Joint working draft of possible
agreement:
6. Final text ready for signature:
Marking Rubric:
Interests 5 marks
Options 5 marks
Alternatives and BATNA 5 marks
Legitimacy/Objective Standards 5 marks
Communication 5 marks
Relationship 5 marks
Commitments 5 marks
Logic/Creativity 5 marks
Total 40 marks
Also refer to Project page for marking rubrics.