Business Negotiation and Consensus: Case Study Analysis

This case study examines negotiation and consensus-building strategies across four distinct scenarios. The first scenario analyzes a car sales negotiation, highlighting the use of commitment tactics and suggesting counter-strategies like involving a sales manager and removing emotion from the process. The second scenario focuses on a negotiation with a buyer, exploring the anchoring tactic and inductive reasoning, and recommending methods for sellers to respond effectively to buyer price offers. The third scenario addresses collective bargaining in a company's union contract negotiation, proposing direct communication between employees and management as an alternative. The final scenario examines a house purchase negotiation, where the owner uses a bottom-line strategy and a deadline, and suggests the purchaser use deductive reasoning to counter the offer.

Negotiation and Consensus

Table of Contents
Scenario 1: Negotiating the price of new car with saleswoman................................................3
Scenario 2: Negotiating deal with a buyer.................................................................................3
Scenario 3: Negotiating for company’s union contract as lead management............................4
Scenario: 4 Negotiation while purchasing a house....................................................................4

Scenario 1: Negotiating the price of new car with saleswoman
Commitment tactic is being used by the sales woman. The specified tactic is applied in order
to present that hands of other party are tied and he has limited authority to negotiate with the
customer. While applying this tactic, player take prior actions during negotiation process
which partially commits them to some pre-determined strategy specified for bargaining
position. In present case it might be a genuine excuse by the sales woman. Thus, appropriate
counter action would be to asking sales woman to request sales manager regarding
negotiation and bargaining with him. Further customer can also take emotion out of the
equation. He could react in a manner as he is not interested in purchasing car as no attractive
offer is provided. Even attempt could be made to ensure the manager that you approached
them because you were sure that company complies with the policy of providing attractive
offer to the customers. It would be more appropriate to go to the dealer at the end of day so
that salesperson is more eager to complete the deal.
Scenario 2: Negotiating deal with a buyer
Anchoring is a tactic in which buyer specifies a target price, which can be referred as budget
cap in order to anchor the bargaining range. The specified tactic is applied in present case as
the buyer has provided a price to finalize the deal. The ideal way to deal with the issue is that
seller should provide the suggested price. Further, buyer has provided inductive reasoning
which is also referred as hypothesis, or trial or error method to provide a quote. As buyer has
provided an offer than details regarding same could be asked to ascertain how they came up
with the specified figures. Seller would be able to ascertain whether they have demanded
appropriate discount or specified adequate figures or not. Even seller could say straight to the
buyer that the specified price is not acceptable and you require reassessing price on the basis
of new scope and terms. It would be appropriate to call a meeting and finalize appropriate
price after discussion.

Scenario 3: Negotiating for company’s union contract as lead
management
In this case, lead management negotiator uses the collective bargaining technique. It is a
technique for negotiation in which workers negotiate in collective manner with their
employers, generally through trade union. The reason behind the implementation of this
technique is that it assists in trade union to safeguard the economic as well as non-economic
interest of employee by organized program. Instead of using collecting bargaining technique,
employee of company should directly discuss with management. They should describe about
their expectation for enhancement of salary or wages. It would open communication channel
among employee and employers. Further, instead to negotiation through trade union, if
worker would directly talk with their respective employer, then they can explain their
problem in better manner. Similarly, employer would also get to know about expectations by
employee. In addition to this, there are several reason for which organization would increase
the salary of employees, such as if fair value of salary given by company is less than market
rate of wages, then in such case employer have to increase the salary of worker, otherwise
productivity of work also affected in negative manner. They can also talk with human
resource department of company and explains about the responsibilities they possess as
compared with amount of salary they received. All the above methods can be used instead of
collective bargaining technique.
Scenario: 4 Negotiation while purchasing a house
Bottom line strategy has been used by the owner of house. As the owner has stated that he
has valued house $30000 less than the assessed value which means no probability exist to
reduce the offer amount. Bottom line strategy refers the minimum amount one could suggest
for property. Even tactic of creating deadline has been created in order to develop sense of
urgency. As facts have been stated by owner of the property that she has to move for new job
and sell house quickly. Thus, strategy has been used to make the deal speedy. Purchaser
could argue by making deductive reasoning. It is referred as process of providing logical
solutions. Purchase could state the actual price of the area and ask to make appropriate deal
to let the owner know that she has provided inadequate offer price. The fact can be
supporting through considering the situation of scenario which does not agree with the price
quoted by the owner of price. It will enforce the owner to provide appropriate price