SC 019Identifying ZOPA and BATNASummary Be Prepared the better you know alternatives BATNA and understand your walkaway alevel strategy and then hammer out the details of this dealbYour exaExampleThe ID: 868187
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��Review��Copyright 20122016 International Learning Enterprises. All rights reserved.Page of SC 019Identifying ZOPA and BATNA Summary: Be Prepared: the better you know alternatives (BATNA) and understand your walkaway a. level strategy and then hammer out the details of this deal. b.Your exa ExampleThe best choice here is to just bite the bullet and take the offer we need to get this product to our internal customer, even at these b.Your example: __________________________________________________________Concept ReviewIndicate True or False: ��Review��Copyright 20122016 International Learning Enterprises. All rights reserved.Page of BATNAis the course of action that will be taken by a party if the current negotiations fail and an agreement cannot be reached. BATNA is not the same thing as the reservation point or walkaway point. BATNA is the bottom line in order to protect one from giving too much and receiving to
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o littleZOPA is the range between each party’s real base or bottom lines.Outside ZOPA, no amount of negotiation will yield an agreement.Try to analyze the ZOPA but don’t reveal your BATNA.In your own words, explain what BATNA is._________________________________________________________________________________________________________________________________________________________________________________________________________________________________Read the following scenarioand draw the ZOPA You are looking to buy a supply of raw materials, and your maximum budget is 500,000. At the same time, a seller (who has not disclosed his amount to you) is looking to sell the raw materialsfor at least 400,000. If you are offered the raw materials at a pricebeyond 500,000 you simply walk away. If the seller is offered a deal less than 400,000 he simply walks away ��Review��Copyright 20122016 International Learning Enterprises. All rig
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hts reserved.Page of REVIEW SOLUTIONSSuggested AnswersIndicate True or False: BATNAis the course of action that will be taken by a party if the current negotiations fail and an agreement cannot be reached. TRUE BATNA is not the same thing as the reservation point or walkaway point. TRUE BATNA is the bottom line in order to protect one from giving too much and receiving too littleFALSEZOPA is the range between each party’s real base orbottom lines.TRUEOutside ZOPA, no amount of negotiation will yield an agreement.TRUETry to analyze the ZOPA but don’t reveal your BATNA.TRUEIn your own words, explain what BATNA is. In contrast to a bottom line, a BATNA is not interested in the objectives of a negotiation, but rather to determine the course of action if an agreement is not reached within a certain time frame. As a gauge against which an agreement is measured, it prohibits a negotiator from accepting an unfavorable agreement or one that is not in their best intere
4 sts because it provides a better option
sts because it provides a better option outside the negotiation. Read the following scenarioand draw the ZOPA ��Review��Copyright 20122016 International Learning Enterprises. All rights reserved.Page of You are looking to buy the raw materials, and your maximum budget is 500,000. At the same time, a seller (who has not disclosed his amount to you) is looking to sell the raw materialsfor at least 400,000. If you are offered the raw materials at a price beyond 500,000 you simply walk away. If the seller is offered a deal less than 400,000 he simply walks away Remember: Thezone of possible agreement(ZOPA), in salesnegotiations , describes the conditions between two parties where an agreement can be met which both parties can agree to. Within this zone, an agreement is possible. Outside of the zone, no amount of negotiation will yield an agreement. Buyer: maximum of 5 00,000 Seller: minimum of 400,000 ZOPA: 4 00,000 - 500,0