Question

Your Task

You will engage in a negotiation for the sale and purchase of a commercial asset such as a business or a piece of real estate.

Assessment Description

You may be nominated to represent the vendor and will receive email instructions from the vendor company CEO including:

1. Appointment to represent the company as their agent for the sale of the commercial asset;

2. Specific details about the commercial asset;

3. Information about the status of current negotiations with an alternative potential purchaser;

4. Information about a new potential purchaser;

5. Contact details of the agent appointed to represent the purchaser.

Alternatively, you may be nominated to represent the purchaser and will receive email instructions from the purchaser company CEO including:

1. Appointment to represent the company as their agent for the purchase of the commercial asset;

2. Specific details about the commercial asset;

3. Information about alternative assets the company is considering purchasing instead;

4. Information about the vendor;

5. Contact details of the agent appointed to represent the vendor.

Stage 1: Pre-negotiation

1. What is your client’s BATNA? What is your client’s reservation value?

2. What is the other party’s BATNA? What is the other party’s reservation value?

3. What is the ZOPA range? What is your strategy for claiming the greater proportion of the ZOPA? Include at least fifteen academic references in your answers to the above questions with a minimum of five references coming from academic journals.

You must answer the following questions:

Stage 2: Negotiation You must:

1. Enter negotiations with your counterpart for the sale and purchase of the commercial asset;

2. Maintain a communications log that captures the date, method, items discussed, and outcomes of each communication. Attach copies of any communications that confirm agreed price

Stage 3: Post negotiation

You must prepare a 1 page letter to your client advising the outcome of the negotiation.

Answer 1

Engaging in a negotiation for the sale and purchase of a commercial asset such as a business or a piece of real estate.

Stage 1: Pre negotiation

1. BATNA is an acronym to Best alternatve to a negotiated agreement. BATNA is an ability to identify a negotiator's best alternative.BATNA answers a question " What would you do if you are not able to agree to a deal with your negotiation partner?"

BATNA has weakness too that it does not matter if the other side has no good alternative for doing business with you.

Reservation Value: The least favourable point at which one will accept a negotiated agreement is know as Reservation value. Reservation values is different for different people. For example: For seller it would be a minimum amout at which they will sell and for buyer it would be the maximum amout at which they will accept to buy.

Reservation value is always expressed in number. It is the lowest value at which a client will accept a deal.

2. Other party's BATNA: Other party's BATNA refers to the other party who has either to pay or sell the propery and negotiate with the client for accepting the proposal.

3. ZOPA Range : Zone of possible agreement is the range at which an agreement is satisfactory to both te parties involved in negotiation process.ZOPA shows the range between each parties reservation value and the overlap area where each party negogiated to pay an amount.

Strategy for claiming the greater proportion of the ZOPA:

1. You should collect all the information from open sources and experts you know.

2. Make a preliminary assumptions from the above collected data and try to visulaize them in the same way.

3. Test and adjust your assumption in negotiation round. Thsi will help you to improve your performance in negotiation.

Stage 2 : Negotiation you must:

1. Enter negotiation with counterpart

Date	Communication Method	Items discussed	Outcome
20 Januart 2020	Intergative negotiation: This negotiation helps to find out solution for both the parties involved. It involves negotiation participants through creative and collaborative problem solving.	Wozzby Holding Pvt Ltd	It helped to reach us to a negotiatble price ih which both the parties were satisfied. The agrred price is $30 Million.

Stage 3: Post negotiation:

20 January, 2020

By email: ankeetas52.com

Ankeeta singh

Chief executive officer

Franswirth property Trust

Sub: Negotiation for purchase /sale of Wozzby holding pvy. ltd.

Dera Ankeeta,

On behalf of Wozzby holding company i would like to take this opportunity to thank you for the attention and instructions you have stated in the prebious letter. It is my pleasure to write a report on the negotiation that I had undertakenon the property of this firm.As yo know it is the objective of the firm to econmicall and sustainably use the resources which it owns. The exploitation of this property can only be done through sales.

I wish to confirm that during the arrangement of negotiation the selling firm had required that the property is sold at a higher price which can be acceptable. Due to goof negotiable skills my company wants me to negotiate the property of Wozzby holding pvy. ltd.

This agreement made me learn to negotiate the property at its best deal. Its a great opportunit for me to enhance my skills and knowledge and utilize my experience to negotiate better.I was much encouraged to do the best deal of negotiation to this firm this is because am one of the nest employee to handle this negotiation which much ease and make the deal successful.

As a supplier i would like to negotiate the property with you in $30 million which is beneficiary for you as it is 5% lower than the original price.I hope and trust to get acceptance of this offer from your side. I hope you understand in pas we have been a loyal customers to each other.

With this note I would like to end the statement that we can have a meeting further reconsidering the negotiation and discussing the outcomes of the negotiation.

Thankyou

Regards

John Paul