Week 5 Assignment
Application: Best Alternative to a Negotiated Agreement (BATNA)
Jack is successful in getting a raise in salary. He can now afford a new minivan and a bigger home for his family. But before he purchases a minivan, he decides to privately sell his sports car. After all, he was successful in negotiating a higher salary, so how hard could it be to negotiate a good price on his vehicle?
Within a day of posting his sports car for $19,000 in the local newspaper, Jack received several offers for his sports car. His sister, Jill, offered him $16,000. His neighbor Alex offered him $17,000 and some guy named Bob offered him $18,000. Jack wants to wait a few more days to see if more offers will come to him. Although he wants $19,000 for his sports car, he knows his BATNA (Best Alternative to a Negotiated Agreement) is $18,000.
Knowing your BATNAâ€”the best alternative action or outcome of a favorable value that you are willing to take if your current negotiated agreement does not produce an optimal resultâ€”is important in any negotiation. With additional preparation and persuasion strategies, it can be leveraged to achieve successful negotiated outcomes. For this weekâ€™s Assignment, you apply BATNA along with persuasion strategies to the scenario involving Jack detailed above.
To prepare for this Assignment:
- Review the Learning Resources for this week.
- Review all of the scenarios involving Jack throughout this week. What are the key aspects of Jackâ€™s life that play a role in his current negotiation?
- Think about how using BATNA as a preparation strategy might improve Jackâ€™s chances of a successful negotiated outcome. What are all of Jackâ€™s available alternatives? Which of those alternatives are the most promising and practical?
- Consider the application of specific persuasion strategies in Jackâ€™s car sale negotiations. How will Jackâ€™s credibility, language use, and tactics prove important to achieving a successful negotiation outcome?
Submit a 2- to 3-page paper addressing the following:
- Briefly describe Jackâ€™s negotiation situation using the five Ws: who, what, when, where, and why.
- Identify the BATNA and all available alternatives for Jackâ€™s negotiation situation.
- Explain how each of the alternatives you have identified would help Jack achieve a successful negotiation.
- Explain two persuasive strategies that might be used for a successful outcome.
- Explain the outcome of Jackâ€™s negotiation based on your application of BATNA and persuasion strategies and how both additional preparation and persuasion strategies affected the outcome.
Be sure to support your ideas by connecting them to the week’s Learning Resources, and something you have read, heard, seen, and/or experienced.
Submit your Assignment by Day 7. In order to receive full credit, all Assignments must be submitted on time. Should you encounter an unanticipated and uncontrollable life event that may prevent you from meeting an Assignment deadline, contact the Instructor immediately to request an extension. Your Instructorâ€™s contact information is in the Contact the Instructor area. For a full description of the late policy, please refer to the â€œPolicies on Late Assignmentsâ€ section of your Syllabus.