HRM702: NEGOTIATIONS, ADVOCACY & BARGAINING

INDIVIDUAL ASSISGNMENT: 20 marks (10%)

Semester 2/2020

Student: Romeet Rishneel Singh ID:2016138951

1. What do you consider as the main key issue (s) of contention in this case
study & why? (2 marks)

The main issue here is that Mr. Ritesh is willing to purchase the chainsaw but
does not have enough money to do so. He tries to bargain with Vinod Patel
sales person offering the amount of $1225.00 ,but the manager is not willing
to reduce to the amount and is sticking with his price. This is because the
manager is expecting to get the maximum profit out of the sale. Also the
price offered may be low and may not generate enough profit. This gives
Ritesh a little chance of purchasing the chainsaw with the cash he has to
offer.

2. Critically examine which negotiation approach and advice would you

recommend to Ritesh & why?
(3 marks)
Integrative negotiation or a win-win approach. This approach will be
collaborative and create value. Ritesh will feel that he is achieving what he is
looking for, which is when the salesperson reduces the price to meet Riteh’s
demand. Ritesh will be satisfied with the outcome after this approach.

3. Critically analyze which negotiation approach and advice would you

recommend to the Salesperson & why? (3 marks)

One would advise Integrative negotiation or a win-win approach to the

salesperson as well. The salesperson will want the best outcome and he will
achieve it through this approach. This approach will see the salesperson
making the sale without incurring a loss and also retaining a customer for
future sales. Customers are the most important part of a business, and if the
customer is satisfied with the services, he /she would definitely return. The
salesperson should understand this as well as the manager , thus they can

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 compromise a little so both parties are at win-win situation and are satisfied
at the end of the day.

4. Critically explore which particular negotiation technique and tactic would

you recommend to both Ritesh and the Salesperson & why? (4 marks)

Discuss.
The negotiation tactic one would recommend to Ritesh will be trial balloon.
Ritesh could suggest a final solution to the salesperson to see if he bites on it.
If Ritesh really wants the chainsaw, he would have to come to an agreement
with the salesperson by offering the maximum amount he can and wait and
see if it is agreeable to the other party. On the other hand , the sales person
can use another technique, which would be making the pie bigger. The sales
person if not agreeing to Ritesh’s offer can try to offer alternatives to Ritesh
which could be agreeable to him. This can be done by offering a chainsaw
with another brand which may be cheaper and meets Ritesh’s price range.
Also the salesperson can use the spiral approach if Ritesh is keen on buying
the same chainsaw. For this the salesperson would have to start with
reaching the minimum agreement in which case Ritesh would have to buy it
or leave it. This way both can have collaboration and a win-win situation.

5. To enable parties break the seemingly deadlock in the negotiation; describe

the strategy you would recommend to both parties in achieving a realistic
outcome so that a win-win situation is accomplished. (8 marks)

One would suggest both parties to co-operate with each other, identifying common
issues, goals and problems. Once the parties get familiar with each other’s situations,
they can see if they are willing to compromise. When both parties are at a deadlock,
there is no other option than to compromise. Ritesh has made an offer for the
chainsaw of $1225.00. The manager however is not willing to accept that offer. The
goal of the manager is to achieve maximum profit and goal of Ritesh is to get the
chainsaw at the most cheapest price. This creates a problem. The manager must
consider other shops selling the same product and must see if he does not lose a
customer. On the other hand Ritesh would have to consider the minimum price all
the other shops can offer him for the same product. If Ritesh is been offered the best
price within the market, then he should work together with the salesperson and the
manager to reach to an agreement so he does not miss on the cheapest opportunity.

Compromising will be the best solution to this negotiation so both parties can
achieve a moderately satisfactory outcome, thus creating a win-win situation.