Negotiation

2023年12月24日發(fā)(作者：生活是美好的)

A Negotiation On

Commercial Properties

Investment

Module Code: MBAM951

Module Name: Negotiation

Candidate Number: 063146

Word Count: 1500 words

Page numbers: 5

CONTENT

i.

ii.

Introduction

Context

? Participants

? The background

? Pre-work

iii. The Six Meetings

? The first meeting

? Anchored at the cond and third visit

? Unexpected risks appeared at the fourth meeting and struggled at the fifth

? The final deal at the sixth meeting

iv.

v.

Inspection and Recommendation

References

i.

Introduction

As said, negotiation exits in our daily life if we think it carefully, in other word, not

only we ourlves are manipulated by others to some extent but we do the same

to others. This essay will describe a business negotiation from a personal

dimension pinpointing negotiation perspective.

The story is mainly about me and my manager attracting a fund manager to invest

in our commercial plateau eco-community, and will be told chronologically.

The whole negotiation is an integrative approach becau we share the final goal,

which is to maximize the value for both sides. [1]Whereas we were at risk of losing

him to other competitors or investment sources, I and my manager ud a sort of

tactics to nudge him bad on analysis and predictions on his and his wife’s

personalities. Although we ignored some underlying risks during the process which

almost led us to failure, fortunately, the problems were tackled due to objective

factors and our dynamic and responsive solutions. Thus, this negotiation ended up

with me and my manager’s getting this investment.

Overall, the outcome is satisfying. However, we did make some mistakes during

the process, such as personal emotions involved, lack of consideration of other

stakeholders and underestimated exchangeable factors, which parts can be

improved by applying negotiation frameworks.

ii.

? Participants

The company: Hong Kong Land Holdings Ltd. Chongqing Company (HKL), a

member of Jardine Matheson group, has a good reputation on prime office and

luxury retail property management as well as sustainable development in Asia but

not tested in the local market of Chongqing. My manager and I reprent this

company to negotiate with potential clients, investors and brand partners.

Potential investor: Mr. Yang, a futures trader with more than 1.5 million pounds

cash, in his 30s and married his classmate in college with a 6-year old boy, living

in a high-profile villa at outskirts of the city with parents (the way shows your filial

piety in China), very lucid-minded and nsitive about negotiation routines

developed in sophisticated work environment.

Context

? The background

HKL was developing an eco-community consists of a residence, shopping mall,

fitness centre, parks, subway station, primary school, community clinic, and so

forth, which are all designed bad on environmentally sustainable thinking. The

mode of the investment is to attract investors to buy the properties first, then sign

a contract with the company to authorize them to manage it. Mr Yang heard about

this project from a friend right after he discusd with his wife about the high risks

of futures trading and thought putting money on long-term physical properties is a

relatively low return but stable and cured investment, which fits his prent

needs. Therefore, he rearched on this project and developed a considerable

comprehension. After a few phone calls, we t up our first meet.

? Pre-work

Before the first meeting, given he is a straightforward man who hates people

tempting or testing, me and my manager did some analysis and hypothesis bad

on his personal information.

First, his high-risk job gave him a n of risk aversion and nsitivity of

negotiation tactics, so we need to u an authentic attitude and well-phad

nudges to consolidate his confidence and thus cure the deal.

Secondly, the residence where he lives is in a relatively remote and 10-year old

but well-established community, which is an indication of his preference of quiet

but a high-quality lifestyle (facilities and convenience) and good rvice.

Lastly, his family structure and his handling of parental relationships show that he

values his family and family members significantly. We are to take some of his

families’ living scenes into account to influence his decision and t this as the key

part to penetrate when the situation reaches an impas.

We identified his options and possible BATNA as well as the ZOPA, then decided

to drop the comparison of numbers, instead, try to stand out by stressing the added

value behind our brand (reliable, profitable and thoughtful), concept (eco-community and sustainable) and implementation (faithful and responsive).[2]

iii.

? The first meeting

The Six Meetings

The first meeting was a conversation between just me with Mr Yang and his wife,

the manager plays the power that I will resort to. Instead of starting the business

talk right away, we decided to make the first meeting for three goals: Using

conditional language to give them autonomy; Develop a chance to establish a

personal relationship with them; Validate their predicted BATNA and ZOPA. As our

plan, the first meeting went well and we built up a very good understanding and

explicit atmosphere although they showed up 30mins late than expected becau

of the traffic jam when they took their son to the school in the city centre.

? Anchored at the cond and third visit

On the next visit, he tried twice to get dominance of the talk, the first one was

postponing the meeting to the next day, the cond one was he trying to t the

topic of the cond meeting as discussing some preconditions, which in

negotiation theory are attempting to control the agenda and declaring some issues

are non-negotiable. This means he was engaged on this project, what we need to

do is maximizing the amount of this investment and bringing in his resources.

To make it professional and equal which will facilitate our way to get dominance,

we didn’t rush to t up the cond meeting, instead, called him one day after he

claimed his proposal to confirm the appointment on next visit. It’s a tactic to soften

his attitude by making him wait but without upright refusing or disagreeing.

With the attitude nudge and relationship establishment, I anchored by tting a few

gains on the cond meeting, such as location, the expected cost, the facilities and

the rvices provided in the future. The price and expected return I ud his risk

aversion to emphasize our certainties comparing to competitors’ possibilities.

During the whole process, I intentionally mentioned my manager for a couple of

times on some key points to establish his image as a powerful decision maker. At

the third meeting, I officially introduced my manager, then he played a bad cop to

deliberately reviewed a few agreements we achieved previously, which is nibbling

in negotiation theory, when a deal is done, go back for just a little bit more.

? Unexpected risks appeared at the fourth meeting and struggled at the fifth

We thought the deal would be done at the fourth or fifth meeting, but a new

stakeholder showed up which we did not consider, his parents. The properties still

need to be taken care of by someone, which turned out to be his parents, but they

did not want to spend much time on commuting back and forth due to the place is

40 minutes away from their home and they can not drive. Although we were worried

about the deal, we cho to listen rather than trying to convince them right away.

? The final deal at the sixth meeting

Then I and my manager analyzed the whole situation, which is he apparently

wanting this project but he values his parents’ opinions. After discussion, we made

a bold decision, suggesting them to move to our community. There were three

thoughts behind this decision:

Firstly, the problem of his parents taking care of the business would be solved;

Secondly, he and his wife were struggling with nding their child to school as well

as fetching up. Therefore, our community having one of the best schools is a

solution for them;

Thirdly and lastly, there are no many public means of transport due to the location

of their old hou, if they moved to our community, they can u the subway to

travel to places, which will also save the young couple much time and energy.

Finally, eight weeks after his first visit, on the sixth meeting, he thought it is a great

idea and accepted it, we signed up the contract after a few hours of discussion

about details.

iv.

? Inspection

The whole process had twists and turns, but the outcome was good, what I and

my manager did right in terms of negotiation framework:

Firstly, we pre-worked and developed a good understanding of the BATNA and

ZOPA of both sides, then estimated his options and possible risks and identified

differentiation tactics.

Secondly, we established affiliation and mutual understanding and respect: we

were active listening and had been respecting their interests, additionally, ud

conditional language to ensure their autonomy.[3]

Thirdly, tactics and ploys ud subtly and effectively, such as risk aversion,[4] bad

cop(my manager)/ good cop(me), character consistency: I played the professional

but thoughtful mediator between both sides who promote the phas of the deal

and my manager played the dignified decision maker who anchors at significant

points, and we successfully immerd ourlves in the characters the entire

negotiation process.[5]

? Recommendation

Inspection and recommendation

Stakeholders

If we considered the risk of Mr Yang’s parents and propod the corresponding

solutions in the first place, the deal could be established at least one week less. In

addition, the possibility of failure on this deal will be reduced significantly.[6]

Ask good questions

We were active listening but did not ask enough questions to interact, for example,

about his wife’s work and position and their family members’ hobbies, the

personal questions could enhance our trust and we could ek other determining

factors for Mr Yang.[7]

Orientation and Volume

I and my manager kept calm and immerd in our characters the entire time, even

when he was dominant or using complaining to shape us and eking for a better

offer, which part we can apply orientation and volume to declare our position.[8]

Positive utilization of Emotions

Although I established a good personal relationship with Mr Yang and his wife

which helped smooth the whole negotiation, I was exploited becau of personal

emotion involvement and did not utilize it in Mr Yang’s family relationship, such as

using our own parents’ everyday concerns and children’s education to resonant

him.[9]

v. References

[1] Crawford, W. (2019, February 21). Negotiation. Lecture prented at

Integrative versus Distributive bargaining? EXETER.

[2] Crawford, W. (2019, February 21). Negotiation. Lecture prented at

Preparation, EXETER.

[3] Crawford, W. (2019, February 21). Negotiation. Lecture prented at

AFFILIATION, EXETER.

[4] Crawford, W. (2019, February 21). Negotiation. Lecture prented at

Kahneman’s Fourfold Pattern, EXETER.

[5] Crawford, W. (2019, February 21). Negotiation. Lecture prented at ROLE,

EXETER.

[6] Crawford, W. (2019, February 21). Negotiation. Lecture prented at

AFFILIATION, EXETER.

[7] Crawford, W. (2019, February 21). Negotiation. Lecture prented at

APPRECIATION, EXETER.

[8] Shell, GR. and Moussa, M., 2008. The Art of Woo, Chichester, Wiley

[9] Shapiro, D., Fisher, R. (2007). Building Agreement: Using Emotions as You

Negotiate. Cornerstone, London.