NCM Assignment
Future Negotiation Pan
Context of Negotiation: Plan to buy a second hand flat from an uncle (works in real estate)
Negotiating with a relative appears as one of the most difficult negotiation to handle as the
emotional part of the brain values the relational aspect between the negotiators, while the
rational part of the brain wants to get the negotiation closed by getting the product at the
minimal optimum price. The opportunity to buy a second-hand flat are many different real-
estate agents at reasonable price, but the trust factor of a relative’s assurance and the
desire to bargain more makes the decision more difficult.
Now I as a buyer might have to negotiate with my uncle on different factors based on my
priorities and available options.
A proper negotiation plan that can help me maximize the opportunities in future can be laid
in below mentioned steps-
1. Defining the negotiating goal.
2. Defining the major issues related to achieving the goal.
3. Assembling the issues, ranking their importance, and defining the bargaining mix.
4. Defining the interests.
5. Knowing your alternatives (BATNAs).
6. Knowing your limits, including a resistance point.
7. Analysing and understanding the other party’s goals, issues, and resistance points.
8. Setting one’s own targets and opening bids.
9. Assessing the social context of negotiation (for example, who is at the table, who is not at
the table but has a strong interest in the negotiation outcomes, and who is observing and
critiquing the negotiation).
10. Presenting the issues to the other party: substance and process. (Negotiation)
1. Defining the negotiating goal:
The agenda is to buy a good second-hand flat considering various factors.
But the single agenda of buying a good flat has different goals like-
Substantive Goals:
The factors like- state of the flat, etc. are the substantive goals associated with buying a flat.
The money is paid in exchange to fulfil these substantive elements and they have tangible
values attached to it.
Intangible Goals:
Intangible goals can be- facilities available, location of flat, safety, etc that adds satisfaction
related to the purchased flat and builds psychological comfort.
Procedural Goals:
To bargain in a fair way to get the flat at optimum price based on the substantive and
intangible goals as well.
2. Defining the major issues related to achieving the goal:
I may face multiple issues in this scenario. As the flat is not new but second-hand the
condition of the flat can be a point of concern and contention. The location constraint with
the price/budget. The facilities, securities, and mainly the price. As it is a second hand flat, I
want to pay as low as possible to get the best value for myself.
3. Assembling the issues, ranking their importance, and defining the bargaining mix:
With the key issues are identified, I have to prioritize them. As the bargaining mix increases,
the chances of a successful negotiations also increase. Now prioritization follows 3 steps.
a) Issues are arranged below as per the importance:
Priority of goals-
Good Condition of Flat
Price
Security
Locality
Facilities available
b) Linked Issues and Independent Issues:
Linked Issue- Locality is dependent on location and security is dependent on location
and locality.
Independent Issue- Facilities available.
4. Defining the interests:
Tangible Interests- The physical condition of the flat
Intangible Interests- Location, facilities available, security available
5. Knowing your alternatives (BATNAs):
I can approach other real-estate agents to get the flats based on the requirements and price
point. Also, in case the price or the flats presented in the catalogue to me can be rejected or
avoided on the points of intangible factors like- location, facilities and others. Even in case of
a substantive interest mis-alignment the projection of intangible interest may save the
relational aspects between both the negotiator.
6. Knowing your limits, including a resistance point:
As the negotiation is with my uncle, the intangible factors like- trust, relationship,
experience, future such transactions all play a subtle role in defining the current negotiation.
Pushing too much over price and other substantive factors may affect the relational factors
and the long-term association and future negotiation scope. Hence the trade-off if any has
to look at the subtle factors that may act as big resistance points in the process of
negotiation.
7. Analysing and understanding the other party’s goals, issues, and resistance points:
As an uncle, the negotiator would want to give a best flat to me, but would also try to get
extra money for the factors of trust and experience. Here the Zone of Possible Agreements
plays an important role. We both need to maximize our gain by considering the various
aspects of interest related to substantive and relational.
8. Setting one’s own targets and opening bids:
To set my own targets and opening bids-
I need to contact other real-estate agents for the flats
Need to assess the relational build-up that may increase or decrease based on the
successful and failed negotiation.
9. Assessing the social context of negotiation:
Understanding the time limits of the negotiation will also be imperative as the process
cannot go on for long and I cannot spend too much effort negotiating with one agent (my
uncle). Similarly, for there will be multiple offers valid for limited time from other real-estate
agent and the time-value of money will also keep changing.
10. Presenting the issues to the other party: substance and process:
As the elaborate planning is done, I need to execute the negotiation as per the plan.
Presenting and Framing the Issues: Presenting the demands related to the understanding of
best flat as per my knowledge and requirements.
Planning the Process: The process can be planned by following the steps below-
Scope- All the issues of both the parties.
Sequence-Issues to be discussed based on priorities.
Framing-The issues can be presented with substantial data and proofs.
Packaging-Understanding based on nature of independence or groups.
Formula-Discussing the different rules and processes crucial for both the parties
