2strategyandtacticsofdistributivebargaining.pptx

单击此处编辑母版文本样式,第二级,第三级,第四级,第五级,#,单击此处编辑母版标题样式,2 Strategy and Tactics of Distributive Bargaining,Du Xiao-rong,2.1 Preparation Knowledge,Also called competitive,or win-lose bargaining,in which the goals of one party are usually in fundamental and direct conflict with the goals of the other party.,Distributive bargaining,When a negotiator wants to maximize the,value obtained in a single deal,When the relationship with the other party,is not important,When they are at the claiming value stage,of negotiation,2.1 Preparation Knowledge,Distributive bargaining strategies and tactics,are useful:,2.2 The Distributive Bargaining Situation,A Case,Larry decided to buy a new condo.The seller,Megan,set the asking price at$145,000,which was$10,000 above what Larry hoped to pay but$5,000 below the most he would be willing to pay.,2.2 The Distributive Bargaining Situation,The point at which a negotiator would like to conclude negotiations,The point beyond which a negotiator will not go and would rather break off negotiations,The initial price set by the negotiator,Target point,Resistance(Reservation)point,Asking price,2.2 The Distributive Bargaining Situation,Note:,For a seller,resistance point is the,smallest,amount he/she will settle for.,For a buyer,resistance point is the,most,he/she will pay,2.2 The Distributive Bargaining Situation,The range of possible prices,The buyers view of the house negotiation,Larrys Megans Larrys,target asking resistance,point price point,$130000$135000$140000$145000$150000,2.2 The Distributive Bargaining Situation,Bargaining range(settlement range or zone of potential agreement):The spread between the resistance points.,Positive bargaining range:When the buyers resistance point is above the sellers.,Negative bargaining range:When the sellers resistance point is above the buyers.,Negotiations that begin with a negative,bargaining range are likely to stalemate.,Figure of bargaining range,2.2 The Distributive Bargaining Situation,Note:,(1)Both parties to a negotiation should establish their starting,target and resistance points before beginning a negotiation.,Starting points are in the opening statements each party makes.,The target point is learned or inferred as negotiations get under way.,The resistance point,should be kept secret,2.2 The Distributive Bargaining Situation,(2)The parties starting and resistance points are arranged in,reverse order,with the resistance point being a,high price,for the buyer and a,low price,for the seller.,(3)The foundamental process of distributive bargaining is to reach a settlement within a positive bargaining range.,2.2 The Distributive Bargaining Situation,Bargaining mix,Definition of bargaining mix:The package of issues for negotiation is the bargaining mix.,Each item in the mix has its own starting,target and resistance points.,E.g.in Larry and Megans case:,A secondary issue important to both parties is the,closing date of the sale.The date of sale is part,of the bargaining mix.,2.3 Fundamental Strategies,Discovering the other partys resistance point,Information is the life force of negotiation,！,Case:The second-hand piano,Buyers target point:$700,Sellers asking price:$1000,Analysis:If the seller had not volunteered the,information about the packers coming that,afternoon,the buyer might not have been able,to negotiate the price.,2.3 Fundamental Strategies,Influencing the other partys resistance point,(1)The value the other attaches to a particular outcome.,The,less,the other party values an issue,the,lower,their resistance point will be.,The more the other party believes that you value an issue,the lower their resistance point may be.,2.3 Fundamental Strategies,(2)The costs the other attaches to delay or difficulty in negotiation,The,higher,the other partys estimate of your cost of delay or impasse,the,stronger,the other partys resistance point will be.,The higher the other partys estimate of his/her own cost of delay or impasse,the weaker the other partys resistance point will be.,(3)The cost the other attaches to having the negotiation aborted.,2.3 Fundamental Strategies,Manipulating the actual costs of delay or termination,Extending negotiation beyond a deadline can be costly!,(1)Disruptive action:To increase the costs of not reaching a negotiated agreement.,Case:Negotiation between food workers and the,boss,2.3 Fundamental Strategies,(2)Alliance with outsiders:To involve other parties who can somehow influence the outcome.,(3)Schedule manipulation,Case:Smart Japanese,2.4 Positions Taken during Negotiation,Opening offer,Whether making the first offer?,Does making the first offer lead to a better,outcome for you?,-Yes,if youre certain of your counterparts,BATNA.And in this situation,first offer can,anchor a negotiation.,-Not necessary if you are uncertain.,2.4 Positions Taken during Negotiation,Wether making exaggerated opening offer?,Negotiators who make exaggerated opening offers get higher settlement than do those who make low or modest opening offers.,Case:A wrong opening offer resulting a better,outcome,2.4 Positions Taken during Negotiation,Opening stance,Competitive stance vs.Moderate stance,A negotiator should try to send a consistent message through both the opening offer and stance.,2.4 Positions Taken during Negotiation,Concessions,Q1:After the first round of offers,what movement or concessions are to be made?,Q2:If concessions are to be made,how large should they be?,Note,It is not an option to escalate ones opening offer,Note,The first concession conveys a message to the other party about how you will proceed,Guidelines for making concessions,1.Give yourself enough room to make concessions.,2.Try to get the other party to start revealing their needs and objective first.,3.Use trade-offs to obtain something for every concession you make.,4.Concede slowly and give a little with each concession.,5.Keep a record of concessions made in the negotiation to try to identify a pattern.,6.Do not concede“too often,too soon,or too much.2.4 Positions Taken during Negotiation,Pattern of concession making,Pattern of concession making for two negotiators,5,4,3 ,2 ,1 ,0,1 2 3 4 5,Concession number,2.4 Positions Taken during Negotiation,Size,of concessions,=As concessions,=Bs concessions,Descending concessions,When the successive concessions get smaller,it signals that there is not much left to concede.,Equal amount concessions,When the successive concessions worth the same amount,it seems to suggest there is plenty left to concede.,2.4 Positions Taken during Negotiation,Final offer,“This is all I can do”or“This is as far as I can go”.,Using concession to convey the message that the present offer is the final one.,Making the last concession more substantial.,Making a personalized concession to the other party.,2.4 Positions Taken during Negotiation,“,I went to my boss and got a special deal just,for you”.,Provide alternatives:,Providing two or three alternative packages for the other party that are more or less equivalent in value.,Assume the close,Split the difference,2.5 Closing the Deal,“,Weve made many concessions.Why dont we,just split the difference?”,Exploding offers,An exploding offer contains an extremely tight deadline in order to pressure the other party to agree quickly.,Sweeteners,2.5 Closing the Deal,“,Ill give you X if you agree to the deal”,2.6 Hardball Tactics,Hardball tactics are designed to pressure negotiators to do things they would not otherwise do,and their presence usually disguises the users adherence to a decidedly distributive bargaining approch.,Hardball tactics are offensive and are,Motivated for revenge when such tactics,are used against the other party.,Typical hardball tactics,Good cop/Bad cop:,(1)How to do,One negotiator presents a tough position.,His partner presents a soft position.,2.6 Hardball Tactics,Case:Mr.Huston purchasing aircrafts,(2)Notes,Before the bad cop plays his role,prepare the good cop,How to act as the bad cop?,(3)Weakness of good/bad cop tactic,Its relatively transparent.,Negotiators using this tactic can become so involved with their game playing and acting that they fail to concentrate on obtaining their negotiation goals.,2.6 Hardball Tactics,Lowball/Highball,(1)How to do,Negotiators start with a ridiculously low/high opening offer that they know will never achieve,(2)Weakness of lowball/highball tactic,The other party will think negotiating is a waste of time and will stop negotiating,2.6 Hardball Tactics,Case:The Soviet Unions opening bid for sale the,US televison rights to the 1976 Olympic Games,(3)The best way to combat lowball/highball,Ask for a more reasonable opening offer from the other party.,Good preparation for the negotiation,2.6 Hardball Tactics,Bogey,(1)How to do,Negotiators pretend that an issue of little or no importance to them is quite important.Later,this issue can be traded major concessions that are actually important to them,2.6 Hardball Tactics,Case:A sly leather buyer,(2)Weakness of bogey tactic,This tactic is fundamentally deceptive,and it can be a difficult tactic to enact,(3)How to combat the bogey,Good preparation for the negotiation,Be very cautious about sudden reversals in positions taken by the other party,2.6 Hardball Tactics,The nibble,(1)How to do,Negotiators ask for a proportionally small concession on an item that hasnt been discussed previously in order to close the deal,2.6 Hardball Tactics,Case:The canny saleperson sold the car,(2)Weakness of nibble tactic,People feel that the party using the nibble did not bargain in good faith,(3)How to deal with the nibble,Respond to each nibble with the question “What else do you want?”.,Have your own nibbles prepared to offer in exchange,2.6 Hardball Tactics,Chicken,(1)How to do,Negotiators combine a large bluff with a threatened action to force the other party to“chicken out”and give them what they want,2.6 Hardball Tactics,Case:The manufacturer negotiating with,the town committee,(2)Weakness of chicken tactic,It turns negotiation into a serious game,(3)How to combat the chicken,To downplay,reword,or ignore the commitment,Use of external experts to verify information,2.6 Hardball Tactics,Intimidation,(1)How to do,Forcing the other party to agree by means of an emotional ploy,Increasing the appearance of legitimacy,Using guilt as a form of intimidation,2.6 Hardball Tactics,Case:Chrysler CEO Lacocca negotiated,with the labour union,How to deal with intimidation tactic,When making any concession,it is important for negotiators to understand why they are doing so.,Discussing the negotiation process with the other party who is intimidating.,Ignoring the other partys attempt to intimidate you,Using a team to negotiate with the other party,2.6 Hardball Tactics,Case:The Angry wholesaler,Snow job,(1)How to do,Negotiators overwhelm the other party with so much information that he/she has trouble determining which facts are real or important,2.6 Hardball Tactics,(2)How to deal with snow job tactics,Not be afraid to ask questions until you receive an answer you understand,Invite technical experts discuss the technical issues,Listen carefully to the other party and identify consistent and inconsistent information,2.6 Hardball Tactics,Dealing with typical hardball Tactics,Ignore them,(1)Pretend you did not hear it.,(2)Change the subject.,(3)Call a break,upon returning,switch the topic.,Discuss them,Respond in kind,Co-opt the other party,2.6 Hardball Tactics,Case:Negotiation between Japan Air Lines and,McDonnell Douglas,