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Final

BU121 Study Guide - Final Guide: Mass Customization, Extended Producer Responsibility, Sour Cream


Department
Business
Course Code
BU121
Professor
Roopa Reddy
Study Guide
Final

Page:
of 16
1
BU121 Final Exam Notes
NEGOTIATING
Lab Manual (Pg: 276-285)
- Tip #1: negotiating is not merely a series of compromises
o The purpose of negotiating is seeing if you can get your interests met through an
agreement
An interest is why you want something not what you want
- Tip #2 it’s your people skills that can make the different
o DISC
Dominant good at making decisions
Influence good at telling but uses s less direct method
Steadiness when looking at new ideas will see the positive aspects, do not like
change even when it is positive
Conscientious introverted and reserved, task control and focused
o Classic Profile
Emotions, goals, judging others, influencing others value to an organization,
tendencies that can be overused, behaviour under pressure, fears, how to
increase effectiveness
- Tip #3: the most powerful negotiating skill is listening
o Words (7%), tone of voice (38%), body language (55%)
o To be effective at asking questions
Know where your questions are going
Ask the other party if it’s alright to ask questions
Tell them what information you are seeking
o Three levels of listening
Selective, responsive, play back
- Tip #4: develop a plan before negotiating
o Determine negotiating style of other party (DISC)
o What are my/our interests?
o What are the interests of the other side?
o What do I have that I can trade that is low value to me and high value to the other side?
o What are the three options I can use to move the negotiating from compromising to
joint problem solving?
o What is the very least that is acceptable?
What do we aspire to?
What will we be content with?
What can we live with?
o What is my Best Alternative to a Negotiated Agreement? (BATNA)
- Tip #5: the top 10 factors for successful negotiating
o Know what you want, know the other side, consider timing and method of negotiations,
prepare point by point, offer benefits for accepting for accepting your offer, frame
negotiation around 1-2 key points, know your BATNA, prepare options for mutual gain,
listen, draft
o Focus on why not what
What = price, contact, job, etc.
Why = the motivation which caused you to make that decision
2
o Questioning techniques
Know where you are going
Ask permission to ask questions
State why you want to ask questions
o Listening skills
Words, voice tone, body language
Selective, responsive, paraphrasing
o Underlying desire to reach an agreement from both sides
Lecture Material
- EASY process
o Engage recognize you are in a negotiation and quickly review the viable strategies
o Assess evaluate your tendency to use each of the negotiation strategies, as well as the
tendencies of the other side
o Strategize select the proper strategy for this particular negotiation
o Your one minute drill each time you begin a negotiation situation, take a minute to
review the 3 steps, gather knowledge so over time you improve negotiating skills
- Negotiating Strategy Matrix
o Avoidance do not want to use, makes sense when small problem, knowing you have a
better option somewhere else, small problem might grow in importance
Lose-lose situation
o Accommodation no leverage (can improve with knowledge), need to care about long
term, no excuses so take ownership
Ex. Nurse taking care of child
Risk you give up stuff, they gain stuff and take advantage (you should get
something in return), not a healthy relationship
Lose-win situation
o Competition not capable, not worth effort, look at true potential of negotiation
Ex. Car dealer
Someone gets something and the other loses everything, bad for relationship
building
Win-lose situation
o Collaboration win-win-win (you win , they win, relationship wins), 80/20 rule (takes a
lot of effort and works 20% of the time, makes you 80% successful),
prepare/identify/candor (honesty or trust)
2 categories sages and dreamers
Pie is not finite, if you work together you can increase the size of the pie, not
normal tendency for human nature, if you recognize those opportunities and
use this strategy, you can gain many benefits, if you come up against someone
who is competitive and you try to collaborate you are actually accommodating
o Compromising late in the negotiation process after legitimate strategies fully used,
when only a small gap remain on one issue, always directly tied to an agreement
Thomas-Kilmann Conflict Mode Instrument
- Basic Interaction Styles (similar to DISC)
o Driver (D) tries to get task done at faster pace, avoids detail, fear of failure, if you are
mutually competitive they will want to cooperate with you
o Expressive (I) fast conversation, short attention span, does not like detail or boredom,
fast information grabs attention
3
o Amiable (S) not easy to deal with, friendly with you AND competition, concern is that
you are not happy, likes to make sure everyone is ok with a decision, drive the driver
and expressive crazy because they take their time and are not truthful, avoid conflict,
will accommodate, then will use guilt
o Analytical (C) fear of making a mistake, analyze tasks slowly and are task focused, long
time to make a decision, make decisions through analyzing data, once a decision is made
it is hard to change it
- Principled vs. positional bargaining; disruptive vs. integrative bargaining
o Typical negotiations are ‘positional’
Positions are states what they want
Strategy is ‘distributive’: that is your mind set (paradigm), you are looking at the
situation as a finite pie and all you are trying to do is distribute it
Therefore, options SEEM to only be: Competing, compromising, or
accommodating since these are distribute strategies (sharing finite resource)
o Principled negotiations use an ‘integrative’ / collaborative stragey
Produce a wise agreement
Efficiently and amicably
o 4 basic points
Separate the people from the problem ego then emotions get involved, should
be attacking the problem not the people
Focus on interests not positions getting to the true needs
Position what you say you want
Interest why you want what you said you wanted (underlying)
Generate a variety of options before deciding what to do
Insist that the result be based on objective criteria
OPERATIONS AND SUSTAINABILITY
Text (Unit3, Ch.11)
- Stages of production and operations management:
o Production planning the aspect of operations management in which the firm considers
the competitive environment and its own strategic goals in an effort to fine the best
production methods
o Production control decision-making process focuses on scheduling, controlling quality
and costs, and the day-to-day operations of running a factory or service facility
o Improving production and operations developing more efficient methods of producing
the firm’s goods or services
- Classification of production types
o Mass production the ability to manufacture many identical goods at once
Ex. Breakfast cereals, soft drinks, computer keyboards
o Mass customization a manufacturing process in which goods are mass produced up to
a point and then custom tailored to the needs or desires of individual customers
Ex. Dell computers, tract homes, golf clubs
o Customization the production of goods or services one at a time according to the
specific needs or wants of individual customers
Ex. Custom homes, legal services, haircuts