7924IBA Negotiation Strategy and Skill

1) Conflict management You have just become employed by Great Aspirations Engineering company (GAE) as their very first industrial architect. The new company presidents plans to expand from engineering to architecture first and then expand into project management and finally construction to becoming a full-service company. It is an ambitious plan and you have joined this small company to help them succeed. Of course, GAE has a government license to provide commercial engineering services, while the government also issues licenses to practice architecture and engage in construction. You are not sure about a government license for project management but that is not your problem.  Your supervisor has given you a two-week deadline to gain governmental approval to secure a business license to expand from engineering services into architecture services. You are an architect and have little experience working with the government. You asked your supervisor if the company lawyer might manage this problem and learned that GAE has no inhouse legal counsel. Your supervisor wants you to learn about state policies and laws that regulate the delivery of architectural services and that seems like a good idea to you also. Previously, your supervisor was an engineer but when you got hired, she got promoted to become the new supervisor for the emerging GAE Architecture Services Division.  You have met twice with the state Commercial Licensing Bureau. In addition to a license application, the state requires confirmation of your company’s commercial architectural expertise (your CV and your official university records will meet this requirement). You have contacted your former university via email and they have responded to your request (your “official” university transcript has been posted to you but has not yet arrived). The state also requires standard documentation from your company’s bank regarding any loans and from your company’s insurance provider regarding the conditions of GAE’s indemnity protection. It was difficult to establish appointments with the bank and the insurance company but you held a first meeting with representatives of each recently. Each asked for additional information about GAE business plans and now you must seek clarification from your supervisor.  Use Chapter One (Lewicki) “The Nature of Negotiation” to examine all of these negotiations.  2) Distributive bargaining You and your spouse each work full-time and are saving for a down payment to purchase your first house. After five years you have saved $80,000. In your state, a down payment of 20-percent is normally required, as banks are unwilling to offer a loan greater than 80-percent of the sales price of a home. You and your spouse have almost agreed on your shared priorities. You each want a three-bedroom home with a one-car garage. You would like a home within 20 km of the CBD, while this is not as important to your spouse who would like to live in a neighbourhood with trees. You think trees are nice but you prefer a veranda with an attractive view. After months and months of searching (and three purchase offers that were simply rejected) you have finally found a couple of houses that interest you, and that meet most of your shared priories as follows:  1) Asking price: $510,000. 3-bedroom house in very good condition (with a garage), 18 km from the CBD, no trees but a veranda that has distant views of tall mature trees.  2) Asking price: $420,000. 3-bedroom house in need a bit of exterior paint (with a garage). It does have a functional bathroom (but your spouse thinks the bathroom needs renovating) and no veranda. It is 25 km from the CBD on an attractive tree-lined street.  The first house just came on the market and the second house has been on the market for at least four months. Interesting, the same real estate agent is representing each seller. You have a proof of funds (PoF) letter from your bank for a standard loan, while your spouse thinks that you should present this letter to the real estate agent to demonstrate that you are, in fact, serious buyers.  Use Chapter Two (Lewicki) “Strategy and Tactics of Distributive Bargaining” to build a plan to engage in these negotiations.  3) Integrative negotiation You and your spouse each work full-time and are saving for a down payment to purchase your first house. After five years you have saved $80,000. In your state, a down payment of 20-percent is normally required, as banks are unwilling to offer a loan greater than 80-percent of the sales price of a home. You and your spouse have almost agreed on your shared priorities. You each want a three-bedroom home with a one-car garage. You would like a home within 20 km of the CBD, while this is not as important to your spouse who would like to live in a neighbourhood with trees. You think trees are nice but you prefer a veranda with an attractive view. After months and months of searching (and three purchase offers that were simply rejected) you have finally found a couple of houses that interest you, and that meet most of your shared priories as follows:  1) Asking price: $510,000. 3-bedroom house in very good condition (with a garage), 18 km from the CBD, no trees but a veranda that has distant views of tall mature trees.  2) Asking price: $420,000. 3-bedroom house in need a bit of exterior paint (with a garage). It does have a functional bathroom (but your spouse thinks the bathroom needs renovating) and no veranda. It is 25 km from the CBD on an attractive tree-lined street.  The first house just came on the market and the second house has been on the market for at least four months. Interesting, the same real estate agent is representing each seller. You have a proof of funds (PoF) letter from your bank for a standard loan, while your spouse thinks that you should present this letter to the real estate agent to demonstrate that you are, in fact, serious buyers.  Use Chapter Three (Lewicki) “Strategy and Tactics: Integrative Negotiation” to build a plan to engage in these negotiations.  4) Strategic choice Describe, compare and distinguish between distributive bargaining and integrative negotiation. Under what conditions will you use one or the other or both approaches when negotiating.  In responding, use Chapter One (Lewicki) “The Nature of Negotiation”, Chapter Two (Lewicki) “Strategy and Tactics: Distributive Bargaining”, Chapter Three (Lewicki) “Strategy and Tactics: Integrative Negotiation” and/or Chapter Four (Lewicki) “Negotiation: Strategy and Planning”. 5) Negotiation planning and preparation You are the Development Manager for Cloudland, Ltd., an Australian company focused on cloud-based technology solutions. Recently your company President advised you about the emergence of a seven-company research and development (R&D) consortium and instructed you to investigate the advantages and disadvantages to Cloudland in joining this consortium (becoming the eighth member). Your President expressed concern about (1) the required costs, as consortium members will be expected to make substantial contributions to joint technology development projects, (2) the relevance of likely projects to traditional Cloudland markets (enterprises in various economic sectors), and (3) ownership and control issues once a consortium project (technology product) becomes available for distribution (for sale).  Yesterday you received an invitation to attend what appears to be the second formal consortium meeting (Cloudland’s first invitation to attend a consortium meeting).   Use Chapter four (Lewicki) “Negotiation: Strategy and Planning” generally, and the 10-part Negotiation Planning Guide (Table 4.2) specifically in applying your knowledge of negotiation planning and strategy to develop a framework to manage your approach to this consortium meeting.  6) Managing digital negotiations You have been employed as a professional for the past ten years and now you have decided to establish your own business. To achieve your business objectives, you need a strong online presence that communicates your knowledge and skill plus reliability, maturity and what else?  How will you present and preserve your online reputation especially when recognising that during your university years you regularly posted messages on Twitter, Tic Toc, Instagram and Facebook that distracts from the online image you wish to present now (posts that appear in any online search of your name).  Select the economic sector that your business will operate in and then respond to the multiple challenges presented by your current circumstance: (a) Briefly, what achievements do you hope to realise in the future, (b) How can you manage your past online carelessness, (c) How can you present and preserve your reputation online, (d) Include principles and guidance for building your professional website, and (e) Outline your social network strategy and how you can use it to support your business goals.  In answering this question, only use: Chapter 9: Present and Future Trends – E-Negotiations: Networking and Cross-Cultural Transactions (found in L@G). 

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