Reference no: EM132058789

Question: 1. In your own words, provide a definition of negotiation.

2. When an individual is arguing over the price of a car at a used car lot, what type of negotiation situation is occurring?

a. Win-win negotiation situation

b. Win-lose negotiation situation

c. "I lose, you win" situation

d. None of these

3. Identify and describe two types of interdependence, and how they affect outcomes.

4. In a short essay, explain Kelley's two dilemmas in Mutual Adjustment. What are they, and the role they play in negotiation?

5. The purpose of this type of negotiation situation is to create value, that is, to find a way for all parties to meet their objectives, either by identifying more resources or finding unique ways to share and coordinate the use of existing resources. Identify the type of negotiation:

a. Distributive bargaining

b. The bargaining range

c. Integrative negotiation

d. Both; 1 and 3

6. Explain the two-dimensional framework for managing conflict in negotiation.

7. Tom decided to sell his old house, and purchase a new house that is closer to his work. He put his old house on the market, and after eight months he received an offer from Jennifer. After a short negotiating process, Tom agreed on the selling price. However, because he has not purchased a new home yet, he decided to postpone the closing sale for another five months. Jennifer was not happy with Tom's decision because of the inconvenience of having to wait that long, and the challenges of getting a bank to guarantee an interest rate for a loan that is so far in advance. To easer Jennifer's concerns, Tom adjusted the price so Jennifer would agree with the postponement. She agreed on the adjusted price but she would have preferred to close the deal sooner rather than later. Two months later, Tom found a home that met his requirements. The seller of the house, Lisa, set the asking price at $250,000, which was $20,000 above what Tom hoped to pay but $10,000 below the most he would be willing to pay. Tom realized that the more he paid for the house, the less he would have to make some other purchases, such as furniture or bedroom setting.
Using the example above, identify the following:

a. What is the target point?

b. What is resistance point?

c. What is a reservation price?

d. What is the asking price?

e. How does Tom decide on the initial offer?

8. There are at least two reasons that an exaggerated opening offer is advantageous. Identify and explain the two reasons.

9. Without concessions (compromises), negotiations would not exist.

a. True

b. False

10. Identify three typical hardball tactics, and describe each one of them.

11. Identify and describe the four major steps in the integrative negotiation process.

12. The goal of creating value is to push the potential negotiation solutions toward a point where "there is no agreement that would make any party better off without decreasing the outcomes to any other party." Which of the following BEST describes the definition:

a. Pareto Efficient Frontier

b. Puerto Rico Negotiation Agreement

c. Claiming value to seller

d. Creating value

13. This type of interest occurs in the negotiation situation when negotiators are concerned with the value of the ongoing relationship between the parties and the future of that relationship.

a. Substantive interests

b. Interests in principle

c. Relationship interests

d. Process interests

14. This technique is used to generate alternative solutions by requiring the parties to find more than one issue in conflict and to have different priorities for those issues. The technique is done by trial and error, and the parties must first establish which issues are at stake and then decide their individual priorities on these issues.

a. Modifying the Resource Pie

b. Compromise

c. Logrolling

d. Find a Bridge Solution

15. Identify and describe the four ways that goals affect negotiation.

16. This type of strategy may be appropriate when the negotiator considers the relationship outcome more important than the substantive outcome.

a. Competition strategy

b. Accommodation strategy

c. Collaboration strategy

d. Both; 1 and 3

17. Being proactive about target setting is likely to make negotiators feel threatened and defensive and lessen their flexibility and creativity.

a. True

b. False

18. Which of the following ethical approaches postulates that "one should follow one's group but also stick up for what one individually believes."

a. End-result ethics

b. Duty ethics

c. Personalistic ethics

d. Social contract ethics

19. At what point in time is it all right to use ethically questionable tactics in negotiation?

20. A negotiator who employs an unethical tactic will experience a positive consequence.

a. True

b. False