Negotiation Report: Pashendale Holdings Ltd Property Sale Analysis

This report details a negotiation process for the sale of a commercial property on behalf of Pashendale Holdings Ltd. The report analyzes the pre-negotiation stage, including the selection of a monarchic thinking style and the assessment of BATNA and ZOPA. The negotiation phase is described, highlighting the importance of communication and emotional intelligence. The post-negotiation stage summarizes the successful outcome, with the property sold at a favorable price. The report includes self-assessment inventories, communication logs, and a discussion of the negotiation's effectiveness, emphasizing the role of thinking styles in achieving a positive outcome. The report highlights the importance of understanding the other party's reservation value and maintaining a flexible ZOPA to reach a mutually beneficial agreement. The author used an external thinking scope and a monarchic thinking style, focusing on each task individually to ensure a successful outcome.

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Human Rights

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Table of Contents
Stage 1: Pre Negotiation........................................................................................................3
Thinking Style Preference Form..........................................................................................3
Thinking Style Scope..........................................................................................................4
Sternberg-Wagner Thinking Style Inventories.....................................................................4
Significance of the thinking style form and scope...............................................................4
Adjustments........................................................................................................................ 4
BATNA & Reservation Value of client.................................................................................5
BATNA & Reservation Value of other party........................................................................5
ZOPA Range...................................................................................................................... 5
Stage 2: Negotiation............................................................................................................... 6
Stage 3: Post negotiation.......................................................................................................7
Reference List........................................................................................................................ 9
Appendix.............................................................................................................................. 11
Assessment 1: Sternberg-Wagner Self-Assessment Inventories......................................11
Assessment 2: Communications log template..................................................................14

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Stage 1: Pre Negotiation
On behalf of Pashendale Holdings Ltd, I approached the Farnsworth Property Trust
regarding the sale of commercial property at the commercial property of 116 Davies Street,
Liverpool, Sydney. The price that I had quoted to them was $ 16.83 million for the plot of
land.
Thinking Style Preference Form
The theory of mental self-government implies that thinking styles understood in accordance
with the opinions of government constructs. According to the theory coined by Robert J.
Sternberg, there are different types of governments present in the world but they are merely
external reflections or mirrors in which people can be governed and organized and not
coincidental (Adomako, Danso, Uddin and Damoah, 2016). Sternberg suggests that the
understanding of people can be done in terms of the forms, functions, scope, and learnings
of government. It is inherent of people do not consider or exhibit a single style but people
prefer to behave differently and undertake tasks in different situations (Zhang, 2011). The
theory comprises three different types of functions namely legislative, executive and judicial.
Whereas the theory comprises of four different forms of mental self-government namely
monarchic, hierarchy oligarchic and anarchic. An individual possessing monarchic form,
preference for certain projects, tasks, and situations which allows them to completely focus
on only one task at a time rather than undertaking to multitask. The underlying quality of a
monarchic individual is their approach towards accomplishing a task and the single-minded
focus on a particular situation before moving to the next task (Buzan, 2014). A hierarchical
oriented person is a multi-tasker who has a predilection for particular projects, tasks, and
situations within a given time frame. This kind of people can be adaptive in any setting where
it requires to fulfill the goals my setting different priorities for accomplishing them. Only the
situation that demands more attention than others are considered (Chen and Liu, 2012). A
person who is anarchically oriented tends to be much more flexible than any other forms as
the person takes random approaches for every situation which might be difficult to
understand by other people (Delina, 2014). Finally, a person who possesses oligarchic
characteristics has a predilection for specific situations, projects, and tasks which is
somewhat similar to a hierarchically oriented person. This kind of individuals to undertake
multiple things within a given time frame but the issue lies with prioritizing the tasks to be
accomplished. To be fair, an oligarchical oriented person can easily manage situations when
they are of equal importance (Richmond and Conrad, 2012).

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As a negotiator, in this case, I have chosen the monarchial thinking style because my focus
would be every aspect of this deal. The entire negotiation process required to focus on a
particular before moving onto the next.
Thinking Style Scope
The theory of mental self-government comprises two different scopes namely internal scope
and external scope. A person having an internal scope is considered to be introvert and
often disapprove working within a group. People with such characteristics work
independently of others. On the other hand, a person possessing external scope are
generally extroverts and are open to working in groups. I have applied the external scope of
thinking style to negotiate with the purchasing agent of the company. The external scope
helps in working with others or a group of people which would enable an individual to
generate new ideas and concepts (Yashkova et, al, 2016). There were some small areas of
conflicts which were also resolved through the process of effective communication and
external thinking.
Sternberg-Wagner Thinking Style Inventories
Refer to Appendix.
Significance of the thinking style form and scope
In order to continue with the negotiation process, I have chosen the monarchical style of
thinking as it emphasizes every aspect of the deal. The negotiation approach and thinking
styles were appropriate to address and take the deal to the final stage. I focused on every
task with a single-minded and accomplished each task before moving to another. The deal
with the client seemed difficult initially but necessary clarifications were addressed in details.
For instance, on the first day, the geographical location of the property was discussed while
on the upcoming days the communication was related to the positive returns on investment
and the solution of petty conflicts. Throughout the entire negotiation process, I maintained a
positive outlook towards my work and so this helped me to proceed ahead. I kept my
patience until the purchaser was convinced to finalize the deal.
Adjustments
Though the monarchic thinking style form and the external scope of thinking were suitable
for the negotiation, it was quite a lengthy process since I had to give complete priority and
focus to one task at a time. The aim of the entire negotiation was not to sell the property at
the initially quoted price of $ 16.83 million but to obtain a better price than $ 15.3 million that
the Hewitt Constrictions was offering. As per the statistics, the price of the same 116 Davies
Street land was between $ 15.5 million and $ 16.5 million. I aimed at raising the bid above
the alternative bid of $ 15.3. Thus I started negotiating for more so that it settles at

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something good. The buyer as expected was not ready to offer more than $ 15.3 million.
Through my consistent tone and repetitive and patient communication through emails, the
buyer developed their faith in our company. The bid rose from $ 15.25 to $ 16.25 million.
BATNA & Reservation Value of client
The BATNA which Pashendale Holdings Ltd had while making this negotiation was to sell
the property to Hewitt Constructions, at a price of $ 15.5 million. Thus if the Farnsworth
Property Trust did not negotiate and purchased the land, we still had an alternative deal. I
was firm with my stand and would not accept anything below our reservation value of $ 16
million.
BATNA & Reservation Value of other party
On the other hand, the Farnsworth also had an alternative of purchasing from Uruz Holdings,
a plot which is close in location to the one which we are offering for sale. Their reserve value
was at $ 16.25 million above which they would not pay at all and reject the deal. It is an
added advantage to know about the other part’s reservation value so that accordingly the
price can be quoted and the negotiations can be made (Kozhevnikov, Evans and Kosslyn,
2014).
ZOPA Range
The ZOPA range was known to me and so I did not quote any price much outside the range
or else my offer could be at the risk of rejection right from the beginning. I gave a quotation
which touches the maximum limit of the ZOPA range (Schön, 2017). Further negotiations
were made to get the price within the agreeable range. The negotiation was based on a
cognitive style where emotions were made a part of the negotiation. When two people
negotiate using cognitive styles it becomes their own interest-based process of negotiation. I
had my own interest of getting a higher price for the land while the other side party, i.e.,
purchasing agent of Farnsworth had an aim of getting this plot of land at the least price they
could negotiate for. Thus while communicating we both came to a common price which was
fixed as the deal (Young, 2016). The price of $ 16.25 million was finally decided on the land.
There was also the involvement of emotions in the process of negotiation (Delina, 2014). We
as humans value our emotions and as a negotiator, I have learned this over the years that
using the emotional aspect into a deal one can get his way out. Thus I tried to value the
sentiments and emotions of my potential purchaser, the company as well as the purchasing
agent (SCHATZKI, 1981). I positively motivated the agent to fix the deal as well as conveyed
how we as a company value the interests of our purchasers. Their business goal is our
priority and we will always be a support to the company post the deal is made. The
negotiations involving emotions are often better than the cold negotiations (Boehm and
Lyubomirsky, 2008). The negotiator plays an important role in understanding the needs and

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interests of the purchaser. I tried to even make the ZOPA much flexible so that there could
be proper negotiations made and a good bargain set.
Stage 2: Negotiation
Communication is very important in the case of all the negotiations and business
transactions. I had a long and continuous communication process over emails with the
purchasing agent, Mr. Matheus Rodrigo Berger Ramos. After highlighting our strengths of
the deal and eliminating the weaknesses or hindrances pertaining to the deal I finally
managed to make a positive negotiation and sold the land at $ 16.25 million on 05.01.2019.
Communication phases are clearly discussed in the file appendix given below (Assessment
2: Communications log template).

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Stage 3: Post negotiation
[Your Name]
Email: [Your email address]
January 7, 2019.
By email:
VirnaPashendale
Chief Executive Officer
Pashendale Holdings Ltd
DearVirna,
RE: NEGOTIATION FOR SALE OF 116, DAVIES STREET, LIVERPOOL, SYDNEY
The final outcome of the negotiation was a positive one. They realized that the bargain was
fair as the present price of the same commercial property is between $ 15.5 million and $
16.5 million. They found the location of the land strategic and needed the property. We had
an alternative offer which was too low to fix a deal for. Therefore I negotiated to fix the final
price at a higher level. This was a profitable negotiation for us as we received a better
purchase at a higher rate. For the buyer, it was a good bargain as they got a good and
highly demanded land plot at a reasonable price. The negotiation was not easy as after the
first time when the price was quoted the buyer agent was not happy and disinterested to
continue the communication regarding the purchase of the particular plot of land. However, I
kept my patience and tried to emotionally connect the purchaser to the deal. The bringing in
of emotions and the application of the cognitive style was useful for negotiating further. I
have a hierarchy thinking and so step by step I kept on negotiating with the purchasing agent
while I also kept catering to their interests and priorities. The buyer could be connected to
the deal when they saw that all their expectations were being met through this particular
purchase. They also saw that we as a company valued their business strategies of
increasing their capital growth as well as enhancing their investment holdings. There were
few small conflicts that arose but were eventually resolved before the final deal was fixed
through the cooperation from both sides. As an external thinker, I was always trying to

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address the issues that were hindrances to the sale of the property. Moreover right from the
beginning, I had to be conscious and aware of all the various aspects that were a problem or
an area of disapproval by the purchaser. Thus I gradually eliminated those aspects from the
property's deal so that the deal becomes even more attractive to the buyer. But while doing
all this I was also very much aware of the fact that I need to maintain the BANTA so that we
are not worse off. The ZOPA was made flexible while the reservation value was not
compromised with. The first offer made by the buyer was $15.3 million. However, we got to
know about the true value of the land, and there was a potential possibility of negotiating it
with 10% more than the price offered by the. Since the value of the property was somewhere
between $15.5 million to $16.5 million, I decided to bid a little higher and asked for $16.83
million. As expected, the deal was rejected. I then offered $16.5 million, which was the real
maximum price of the land. Again it was rejected. Finally the potential purchaser Farnsworth
Property Trust through their purchasing agent, Mr. Matheus Rodrigo Berger Ramos agreed
to pay us an amount of $ 16.25 million (which was their reservation value) for the purchase
of the plot of 116 Davies Street, Liverpool, Sydney.
Yours sincerely,
[Your name]

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Reference List
Adomako, S., Danso, A., Uddin, M. and Damoah, J.O., 2016. Entrepreneurs’ optimism,
cognitive style and persistence. International Journal of Entrepreneurial Behavior &
Research, 22(1), pp.84-108.
Boehm, J.K. and Lyubomirsky, S., 2008. Does happiness promote career success?. Journal
of career assessment, 16(1), pp.101-116.
Buzan, T., 2014. Mind Maps for Business: Using the ultimate thinking tool to revolutionize
how you work. 7th Edition. London: Pearson Education.
Chen, G.H. and Liu, Y., 2012. Gelotophobia and thinking styles in Sternberg's
theory. Psychological reports, 110(1), pp.25-34.
Delina, R., 2014. Transparency in Electronic Business Negotiations–Evidence Based
Analysis. Quality Innovation Prosperity, 18(2), pp.79-89.
Kozhevnikov, M., Evans, C. and Kosslyn, S.M., 2014. Cognitive style as environmentally
sensitive individual differences in cognition: A modern synthesis and applications in
education, business, and management. Psychological Science in the Public Interest, 15(1),
pp.3-33.
Richmond, A.S. and Conrad, L., 2012. Do Thinking Styles Predict Academic Performance of
Online Learning?. International Journal of Technology in Teaching & Learning, 8(2).
SCHATZKI, M., 1981. Negotiation.
Schön, D.A., 2017. The reflective practitioner: How professionals think in action. 6th ed.
Abingdon: Routledge.
Sternberg, R.J., Zhang, L.F. and Rayner, S. eds., 2011. Handbook of intellectual styles:
Preferences in cognition, learning, and thinking. 4th Edition. New York City, United States of
America: Springer Publishing Company.
Yashkova, E.V., Sineva, N.L., Shkunova, A.A., Bystrova, N.V., Smirnova, Z.V. and Kolosova,
T.V., 2016. Development of Innovative Business Model of Modern Manager's
Qualities. International Journal of Environmental and Science Education, 11(11), pp.4650-
4659.
Young, A.R., 2016. Not your parents' trade politics: the Transatlantic Trade and Investment
Partnership negotiations. Review of International Political Economy, 23(3), pp.345-378.

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Zhang, L.F., 2011. The developing field of intellectual styles: Four recent
endeavours. Learning and Individual Differences, 21(3), pp.311-318.

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Appendix
Assessment 1: Sternberg-Wagner Self-Assessment Inventories

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