MGC2230 Study Guide - Final Guide: Best Alternative To A Negotiated Agreement, Negotiation, Reservation Price
8 Aug 2018
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Document Summary
Negotiation: a process where two or more parties exchange goods or services and attempt to agree upon their exchange rate. Negotiation issues = the items needed to be decided on. Issue positions = the potential outcomes that can be decided. Preference = the satisfaction gained with each issue position (potential outcome) Negotiation issue structure: the interrelationship bw the negotiator"s preferences. Negotiator"s preferences are exactly opposite to each other. The joint outcome is fixed (all preferences always add up to the same number). Negotiator"s preferences for two different issues complement each other. They can trade-off to reach a win-win solution (max joint outcome). We tend to assume that the other"s preference is the opposite to ours. After identifying the negotiation issues, positions and your preferences: target point (also target price) The exact result you"d like to achieve by the end of the negotiation. A more specific target point is better than a vague target point: batna.
