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MBA506 Thinking Styles, Negotiation and Conflict Management Report Sample

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 (seller) 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.

Solution

Introduction:

Negotiation is very important for both effective selling and purchasing for any industry. Specifically for the construction industry, the seller needs to be efficient in negotiation as it is the only way to have profit through proper negotiation with the customer. For Assignment Help Negotiation is supported with thinking style which would be discussed through proper style, preference to confirm better negotiation from a seller's perspective. Here, the discussion focusses about negotiation about selling a real estate with the help of the below three stages.

Stage 1: Pre-negotiation

According to the Stemberg Wagner self-assessment inventory, it is found that being a seller, I am more efficient in anarchic style as the evaluation confirms the highest score in this type of thinking style. It highlights the fact that, I understand the meaning of punctuality and depends mostly on the proverb of first come first chance in the professional field as well, which is one of the most important aspect that needs to be taken care by a seller (Ozan 2019). However, I do not stick to any task very long and can switch from one task to another task easily, if found that both are equally important. Problem-solving is very important for making any decision and based on the self-assessment test, it is noted that, I try to effectively handle all the problems by discussing and writing idea through emotional intelligence to confirm best findings. Sometimes, I get puzzled with the priority of the problems. However, taking the decision by considering all points is one thing that I prefer the most, which confirm efficacy in thinking style and the thinking type helps in being a multitasker though not in every possible way. The thinking style is much helpful for me to negotiate effectively.

As per the test, my thinking scope is more related to external style, as I always brainstorm ideas with peers and friends to have multiple perspectives as if it would be better for him to speak with others rather than studying reports. He further likes to work in collaboration and the situation where he can work together by combining his ideas with others by sharing his ideas. Most importantly while taking decisions he always takes other opinions into account to make them effective.

Negotiation can be done through 5 strategies like collaborative, compromising, avoiding, accommodating, and competing which do have significance as per the scenario. An anarchic form of thinking can be much helpful to negotiate (Sariçoban & Kirmizi, 2020). It confirms better decision-making skills by sharing enough consideration for different types of problems and most importantly confirms the ideas to be well organized and well prepared for negotiation. The external scope of negotiation can be best for collaborative or accommodating negotiation which would help to sustain a positive environment in the entire negotiation taking care of interpersonal relationships between seller and buyer. However, the type of negotiation form and scope can be disadvantageous in some respect as all decisions cannot be taken jointly with varying views of everyone. Further, all negotiations cannot be done on the basis of first come first chance, as there might be other better opportunities to consider which is indicated in the scenario as well.

It is better for the seller to adapt the optimal thinking style which can balance several factors. Anarchic thinking style is important with proper decision making, effective problem-solving skills, however, it needs to be empowered with emotional intelligence to confirm taking the decision, not only by the fact of prioritization, rather sharing consideration for other aspects as well. Similarly, it will be better for the seller to exercise such an optimal thinking style that can perfectly balance between internal and external scopes (Soysal & Radmard, 2018). The seller needs to be directed by the Pareto principle to confirm minimum input with maximum output. Hence, he needs to decide if it would be better for him to go with the external scope or with the internal scope.

BATNA stands for the best alternative to a negotiated agreement. Reservation value can be referred to as the least favorable point with what one can accept the negotiated agreement (Thomas et al, 2018). For the seller, the reservation value would be the minimum amount and for the buyer, this would be the maximum amount. The buyer deals with 2.5 million with a 10% discount over the property. However, the negotiation does not come to an end with the amount offered, as the seller is not quite happy with the offered price and thus, he is further negotiating with the buyer by saying that the BATNA is not feasible and possible from the end seller. The reservation value even needs to be decided, as the buyer has offered a 5% discount and 2.5 million for the property whereas the seller's offered amount is 5.5 million to 6.5 million with a 5% discount. The negotiation still needs to be initiated from both the party as the BATNA and reservation value are not matching with each other for seller and buyer. The seller has further looked for BATNA and reservation value from the buyer to join on the same board.

The ZOFA range is a zone of possible agreement to bargain in an area where selling price can find the common ground. It can only exist if there would be an overlap between the expectation of the parties regarding the agreement. In order to claim the greater portion of ZOFA, it is needed to negotiate effectively and efficiently with empowered decision-making skills (Lani 2021). The seller cannot be directed by emotion, rather through emotional intelligence, while negotiate to confirm the fact that he is negotiating and not bargaining. It is very important to be aware and controlled while negotiating. Offers need to be lowered as per the offered value as rejecting all offers can be negatively impactful. It is better to avoid drastic price cuts while negotiating the behavior needs to be polite to confirm the best proportion of the ZOFA.

The discussion has confirmed justification for effective negotiation where it is started its discussion through thinking style preference form. As per the discussion it has been seen that anarchic thinking style preference form has some advantages to carry on for better negotiation with the support of external scopes (Jeong et al, 2019). However, it needs to be empowered with proper alignment with other styles as well as internal scope. It is very important to have the same BATNA and reservation value to make an end in the negotiation to not spare much scope for the ZOFA range.

Stage 2: Negotiation

The negotiation between the seller and the buyer is for fixing the price where the reservation value for the seller is 5.5 million and the buyer is 2.5 million with 5% and 10% discount respectively. At first, the negotiation has been initiated by the buyer to be confirmed about the price of the property and the seller has started the negotiation with the price of 5.5 and with a competing negotiation strategy. Through the strategy, the seller has confirmed assertiveness, not cooperativeness as it is formally conveyed that the reservation value offered by the buyer is not feasible and possible. Further, it takes the help of the strategy of avoiding, he has already shown that he has further options and cannot retain much for the deal to crack with the same party. From the perspective of the buyer, the negotiation has started with the strategy of accommodating, as he has started much formally to maintain the relationship with the other party. He went into smooth over tension minimizing references to confirm a good rapport for satisfying the needs of the seller. From the beginning point, the buyer is going for cooperativeness and not much assertive in his negotiation. With negotiating with the seller, he has also tried to exercise compromising as a negotiation strategy by seeking a middle ground solution, which as per him can be satisfactory for both the parties' needs. However, the initiative has not been much entertained by the seller, as he does not show any interest to exercise collaborating negotiation strategy through his communication. The seller only offered assertiveness in his negotiation and not even offered any creative solution to satisfy the concern of all parties.

Stage 3: Post Negotiation

[Your Name]

Email: [Your email address]

[Date]

By email: [Client email address]

[Client Name]

Chief Executive Officer

[Client Organisation Name]

Dear [Client Name],

RE: NEGOTIATION FOR [PURCHASE/SALE] OF [PROPERTY ADDRESS]

Thank you for your instructions.

Greetings of the day

Hereby, the follow-up of the negotiation regarding the property between seller and buyer is been accomplished to notify about the progression regarding the same. Before going for the negotiation, it would be better to inform what type of negotiation form and other associated factors have been used to confirm better negotiation for selling the property with the greater proportion value for the seller. Initially, the anarchic thinking style has been used by the seller to confirm better prioritization, effective handling of the problems by noting down the ideas to confirm a decision. It has cherished the external thinking style, where collaboration and cooperation have been exercised for taking decisions. Brainstorming has been confirmed in the process. Decisions only are taken including teams' perspectives and opinions and not by the internal report. Sharing and aligning ideas play the key role to justify the decision in the entire negotiation process of selling the property to confirm the best outcome. In order to achieve further improvement in the process, it is being considered that it will be better for the seller to have a perfect collaboration between external and internal scope, as sometimes decision making by self becomes much more important rather than group involvement. In case of emergency, it would be better to take the decision by Pareto principle to confirm minimum input with maximum output to confirm the best result through negotiation. However, as per the negotiation at present, there is a considerable ZOFA range in the reservation value of the property. The BATNA of the seller and the buyer is not being aligned as the seller is exercising aggressiveness adopting competing for negotiation strategy whereas the customer is having accommodating negotiation strategy to gel with. As per the last negotiation, the reservation value from the seller is 5.5 million with a 5% discount, and the reservation value from the buyer is 2.5 million with a 10% discount confirming a considerable ZOFA range. It is even hereby being notified that the negotiation does not come to an end as the seller is further waiting for the response of the buyer regarding offered reservation value by the seller.

Yours sincerely,
[Your name]

 
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