Negotiation Role Play & Summary 2

Negotiation Role Play & Summary 2
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Table of Contents
Stage 1: Pre-negotiation.............................................................................................................3
Client’s BATNA....................................................................................................................3
Other Party’s BATNA............................................................................................................3
ZOPA Range..........................................................................................................................4
Strategy for Greater Proportion of ZOPA..............................................................................4
Stage 2: Negotiation...................................................................................................................6
Stage 3: Post Negotiation...........................................................................................................7
References................................................................................................................................10
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Stage 1: Pre-negotiation
Client’s BATNA
In simpler terms, the full form of BATNA is Best Alternative to a Negotiated Agreement. It
is one of the most important tools, which are used by negotiators in order to handle the
imbalances occurring during the negotiation of financial resources with the opposing party
(Harvard University, 2012; Andrade et al., 2010; Kim & Fragale, 2005). Thus, the client’s
BATNA is identified to be at a value of AUD$2,000,000, which can be depicted from the
below table 1. If possible, increase in additional rate, either 15% or 20% can be negotiated as
well.
BATNA 20,00,000
Additional 10% 200000
Reservation value 22,00,000
Reservation Value of Client
Table 1
The client’s reservation value is identified for being at a minimum price of AUD$2,200,000
as estimated in the above table 1. It can be understood that this value is the maximum price
that will be paid by the consumer based on attaining success in negotiation in the advertising
campaign with the new customer. Thus, the alternative price to be expected was AUD$2
million, which is the actual BATNA value of the client. This is expected to be made through
the negotiation of the advertising campaign (Hu 2015).
Other Party’s BATNA
BATNA 4,82,921
Additional 10% 48292.100
Reservation value 5,31,213
Reservation Value of Other Party
Table 2
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Another Party involved in this case is Decathlon Sporting Goods, as they had offered a price
amount, which was not intimidating. Table 2 above projects the maximum value offered by
them at a price of AUD$482,921, so, it is understood that the alternative price to be expected
(BATNA) from the Decathlon Sporting Goods was AUD$482,921. Similarly, the above table
2 also highlights the reservation value amounting to be AUD$531,213 including the
additional 10%, which is expected by the Nike Inc. (US) of Australia after successful
negotiation.
ZOPA Range
ZOPA range is referred to as the Zone of Possible Agreement and is implemented when a
party hired negotiates in terms of the products to be endorsed, especially through advertising
campaigns. It can only be identified after succeeding in negotiating at a fair price accepted by
both the parties (Lai & Turban 2008). In the current scenario, the ZOPA range is expected to
be an additional of 10%-20% of the total expected negotiation price of AUD$2 million.
Strategy for Greater Proportion of ZOPA
At the time of negotiation, several strategies can be used by a negotiator in terms of
generating positive outcomes of ZOPA range. One of the effective strategies to attain the
desired outcome is to engage in various transactions taking place under the negotiation
process. This also includes residing within the national boundaries of Australia and a social
security number of a negotiator (Stephen Dale). Enabling the users to join directly in the
official website of Nike Inc. (US) by providing their respective email addresses can ensure
verifying the client and negotiators. Besides, ensuring that a negotiator has a valid account
number, a presence of minimum Fair Isaac Credit Organization (FICO) credit score of at least
520 along with the presence of valid address and driving license can help in generating a
greater proportion of the ZOPA range. Another approach can be proposed to the lenders for
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