Question

Find a scholarly article that discusses negotiation, BATNA, WATNA, or ZOPA and critique it for others. Write at least 500 words and use APA format for the assignment.

Answer 1

In a perfect scenario, our BANTA would be so strong and the other party’s so weak that we hold every ounce of power in a negotiation. Sounds great, right? Not so fast. According to an article from the Harvard Law School, using all of that power could produce less than optimal results. “To avoid the emotional cost of accepting an offer that gives us very little, we often react self-destructively”.

            In this article, a question about whether to low-ball a supplier that was going out of business was posed. The supplier has no reasonable options other than to accept a contract at or just above cost due to the possibility of bankruptcy. An employee of the company asked if they should demand of the supplier based on this information that was obtained during the preparation process. For a business perspective, is it fair to take advantage someone in that position? Is all fair in love, war, and business? Well according to this article, the human mind does not particularly care for unfair deals. Based on a negotiation experiment, people in those low positions of BANTA would actually reject an offer they saw as unfair even if it was not rationally economical. This was confirmed when brain scans that showed the emotional part of the brain that handles “feeling such as disgust, repugnance, and conflict, lit up” (Staff, 2019, para. 3). Based on this information, the supply could walk away and potentially face bankruptcy instead of taking the unfair deal.

Without this knowledge of the human mind, the assumption that the supplier had no choice has the potential to result in an unfavorable outcome. “Examining the basis of those [BANTA] assumptions is the most important element of the formal preparation process”. If we plan to dominate a negotiation and practically make demands instead of seeking a collaborative win-win agreement, we will likely fail to reach one at all or greatly diminish our capacity to reach one in the future. Especially in business where lasting relationships with external suppliers and customers can strengthen a business, its not a good idea to give ultimatums. Not all is fair and economically logical in these dealings. The article is spot-on. Even considering how I would feel as the one with such a weak BANTA, there are scenarios that I would risk losing it all instead feeling like I was taken advantage of. It’s like when there is a wounded animal backed into a corner. The predator thinks they hold all the power, but one wrong step and the wounded could lash out one more time striking a final blow without warning. In the case of this supplier, showing some compassion and seeking to know their interest could go a long way. They are likely to do a lot of talking due to their position so using that to gain additional knowledge is a great way to approach a negotiation. You might find that they are willing to offer discounts on their own that otherwise would had been off the table if an demanding approach was taken.