Negotiation Skills Assignment

Jewel Case Study

a.) Jewels BATNA is that if Condor doesnt negotiate with him, he can buy Z-2 CPUs from ACME at $35/ unit.

b.) The reservation price for Jewel i.e. the most that it will pay to Condor for Z-2 CPU will be $33/unit because he is already getting it at $35/unit from ACME so there is no point in buying from Condor if he is not offering less than ACME. And also, BETA is offering Z-1 for $38/unit and it has been estimated that Z-1 benefits over Z-2 at about $5/unit, therefore reservation price for Z-2 will be $33/unit.

c.) Jewels BATNA has upgraded because

Case 1- If 50% probability of negotiation holds true and the price is negotiated to $28/unit. Than the BATNA will change from $35 to $28/unit.

Case-2 If 50% probability doesnt hold true for negotiation than there will be no shift in BATNA.

d.) There are two different cases- Case-1- If Jewel negotiates with ACME holds trueThe reservation price for Condors CPU will be less than $28/ unit

Case 2- If negotiation doesnt take placeThe reservation price will be $33/unit (because it is said than Z-1 is $5/unit more beneficial than Z-2).

e.) Condors BATNA is to Jewel at $33/unit and that is only possible if they have information about their competitors to Jewel. Jewel is highly likely to accept the offer at $33/unit.

f.) Condors reservation price is any price which is above their liquidation price i.e. $15/unit and moreover liquidation doesnt leave good reputation of company in the market.

g.) ZOPA would be between $15 to $33.