Constructive Negotiation

an exploration of negotiation

its concepts and techniques

and the financial consequences

The Task

• Work as groups of buyers & sellers

• Plan your strategy aided by a computer model

• Negotiate

• Reach a WIN-WIN agreement

Time Table• Familiarisation & planning

• Information gathering meeting

• Preparation of initial proposal

• Initial negotiation

• Modification of proposals

• Final negotiation

• Review & discussion

The Situation

• Board Negotiation• New Relationship (initiated by buyers)• No Current Competitor (new purchase)• Generalised & SimplifiedBut• A Specific Business

– A construction company– Local Government– Prefabricated One-person Dwellings

Areas of Negotiation

• Price/Dwelling• Number of Dwellings• Dwelling Size• Fitting• Commencement &

Completion• Payment Terms

Using the Microcomputer

Buyers & Sellers separately have a computer model to help them assess the financial consequences of their proposals.

To use this you:– Enter a team name & password– Enter the proposal(s)– Review & Compare the proposals– Display & Print– Recess for negotiation meetings

Observations

• Think about your objectives• And those of the other party• Plan carefully the information you need• And the information required by the other party• Plan how your meeting• But be flexible• Remember the computer provides financial

information • It is up to you to think and manage the negotiation• And reach a WIN-WIN agreement!