Name:

!" No.:

Birla Institute of Technology and Science, Pilani (Rajasthan) Second Semester 2009 20!0 "om#rehensi$e %&amination "ourse 'o( ) BITS "*!9+ ,B- "*!9 ,a&( ,ar.s ) */ "ourse Title ) 'egotiation S.ills and Techni0ues 1eightage ) */2 3ate ) 0!+0/+20!0 3uration ) 2 hours Challenges are what make life interesting; overcoming them is what makes life meaningful. - Joshua Marine
NOTE:

Part-A is closed book (10%): Suggested time is 20 minutes Part-B is open book (25 %) P-RT4-) "losed 5oo. (!0 & !(06!0(0 mar.s) 1. List down the methods of persuasion.

2. Briefly explain reverse golden rule?

3. List down the different forms (any four) of deception?

. !hat are the "ey aspects of lying?

#. List down the different tactic categories.

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$. %&motions can 'e a great asset to a negotiation( ) *ustify

+. List down the three approaches that won,t wor" in handling-dealing with emotions.

.. List down the different forms of power.

/. 0ive an example for open ended and pro'ing 1uestions?

12. List down the strategies that can 'e used to eliminate one,s own desire and need to lie.

***END***
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P-RT4B) 7#en 5oo.

1. 3r. Luigi 4ranconi owns a fast food 5i66a 5arlour 7ust outside of London. Last year he had an audited turnover of 81/39+#29 producing a net profit after tax of 83$9+#2. :he shop has 'een trading for seven years and is located in a good position9 opposite a 'usy shopping mall and .22 meters away from its, nearest rival9 ;c<onalds. 3r. 4ranconi wants to sell the 'usiness as a going concern and has advertised it at a price of 81+#92229 inclusive of= 3toc"9 worth on average 8#9222 >itchen 4ittings worth9 according to 3r. 4ranconi 82#9222 (:hese cost him 83#9222 when new 1. months ago.) ?estaurant 4ittings costing 81/9222 3 years ago :he freehold valuation of the restaurant premises :he @goodwill, of the 'usiness

Aou own two 5i66a fast food restaurants in the area and you wish to 'uild your 'usiness through ac1uisition9 so long as the 'usinesses you ac1uire are the right price and in the right location. Aour current restaurants are ma"ing good money and you 'elieve you have the right formula for success B strict financial controls9 plus pi66as that your customers li"e. Aou have tried to 'uy other fast food restaurants 'ut the deals fell through 'ecause their owners would not agree your 'est price. Aou are loo"ing at another restaurant in town in addition to 3r. 4ranconi,s which seems to meet your re1uirements. Cne pro'lem you have is with finance. Aou cannot finance the deal yourself. Aou could 7ust a'out finance the deal yourself 'ut this will pro'a'ly cause you cash flow pro'lems. D 'etter alternative would 'e to agree a deal with 3r. 4ranconi where you pay #2E of the money up front (i.e. immediately in cash) and pay the 'alance over 29 or prefera'ly9 years. Before you have your meeting with 3r. 4ranconi you need to plan and prepare for the negotiation which will ultimately ta"e place. :o help you in this process answer the following 1uestions 'elow= a) Dssuming 3r. 4ranconi,s price (81+#9222) seems to 'e relatively cheap for a profita'le pi66a 'usiness in such a location9 what you must not do and why? (2(0 ,ar.s) ') Fdentify the issues to 'e negotiated. (2(0 ,ar.s) c) !hat information must you find out a'out 3r. 4ranconi,s 'usiness 'efore you 'egin to negotiate? (*(0 ,ar.s) d) Ff you are prepared to go as high as 81.#9222 for the shop9 'ut you can pay no more than #2 per cent in cash now with the 'alance over years9 how should you lead 3r. 4ranconi towards this short of proposal? (*(0 ,ar.s) 2. ?ecently9 overhead charges at all research sites have 'een increasing dramatically. Fn some instances9 they have added almost #2 percent to the overall cost of the new product research your company does. :his pro'lem has 'ecome particularly acute at the larger9 most prestigious institutions where you usually fund several different pro7ects.
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Last wee"9 you met with a representative from one of these institutions. <uring the meeting9 you told him that your firm would only pay 22 percent for overhead. Aou were somewhat ta"en a'ac" when he told you that one of your associates from another department had agreed to an overhead of 2 percent 7ust the previous wee"9 and he expected you would pay the same. Gow would you respond? !hether you would pay 2 percent? !hat are the implications of saying yes? (*(0 ,ar.s) 3. Aour company is one of four that have 'een as"ed to 'id on a large multimillion)dollar supply contract for a ma7or defense contractor. Aou su'mitted a proposal that you felt was honest and fair. :he company then as"ed that everyone re)'id9 this time using a new specification wor"sheet they developed so that they could more clearly compare the 'ids. Aou completed the wor"sheet and sent it 'ac". D few days later9 you received a call from the firm indicating you were in the lead. :hey said they would li"e to give you the 7o'9 'ut that you would have to reduce your price 'y at least 12 per cent. a) ') c) d) Gow do you respond? !hat are the implications of saying yes? !hat other options are availa'le? !hy not to do what he wants? (2(0 ,ar.s) (2(0 ,ar.s) (2(0 ,ar.s) (2(0 ,ar.s)

. Ds the result of a series of financial reverses9 you are faced with selling a portion of your anti1ue car collection. Aou need to get at least H$#92229 and you need it in three days. :he car you have up for sale is an anti1ue Bentley that you "now worth is at least H.#9222. :he car is in excellent shape and is easily worth H.#92229 if not more. Aou haven,t chec"ed on the mar"et value or whether there are any people loo"ing9 nor have you placed any advertisements. !hile you are discussing the situation with your spouse9 a well)"now collector approaches. Dfter some 'rief conversation he indicates that he has heard9 through mutual friends9 of your interest in selling the Bentley. Ds the two of you are loo"ing at the car9 he says9 %Loo" F don,t li"e to haggle)it,s not my style. F can give you H+ 9222 for the car9 and F can have a 'an" Ihe1ue to you in 2 hours.( a. !hat do you do? '. Briefly comment on your BD:JD? ***END*** (2(0 ,ar.s) (2(0 ,ar.s)

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