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Negotiation Exercises PDF

This document outlines four negotiation exercises: 1. A buyer is trying to negotiate the price of a leather jacket from a street trader in a foreign country. The buyer has a maximum of 750,000 local currency units and wants to pay a fair price. 2. An individual needs to negotiate payment terms with creditors to avoid damaging their credit history and jeopardizing an upcoming loan approval. 3. An employer wants to hire a new employee but their salary requirement would compromise the existing salary structure and bonuses. 4. A company is negotiating supply terms with their current critical component supplier but has received a better discount offer from an out-of-state vendor. They need to negotiate an increased volume and address

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Jagat Rathore
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3K views

Negotiation Exercises PDF

This document outlines four negotiation exercises: 1. A buyer is trying to negotiate the price of a leather jacket from a street trader in a foreign country. The buyer has a maximum of 750,000 local currency units and wants to pay a fair price. 2. An individual needs to negotiate payment terms with creditors to avoid damaging their credit history and jeopardizing an upcoming loan approval. 3. An employer wants to hire a new employee but their salary requirement would compromise the existing salary structure and bonuses. 4. A company is negotiating supply terms with their current critical component supplier but has received a better discount offer from an out-of-state vendor. They need to negotiate an increased volume and address

Uploaded by

Jagat Rathore
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Negotiation Exercise:

1. Role playing: You are trying to buy a leather jacket from a street trader in a foreign country
whose local currency is valued at 50,000 to 1 of yours. You really like the jacket, which is a good
fit, well made and style. But you think the trader is asking too much. Can you negotiate an
acceptable price for both of you?

Buyer: You have a maximum of 750,000 units of local currency and 100 units of your own. You
also have your credit cards. Decide what you want to pay and the tactics you will employ making
concessions. A similar jacket in your country will cost about 130 units of your currency.

Trader: You have sold seven of these jackets to foreigners in the last few days. The lowest price
you received was 300,000 units, the best prices 800,000 units. Most foreigners did not even
haggle with you. The jacket cost you 200,000 units. You know that you can buy them more
cheaply with foreign currency than your own, which is shaky on the exchange market. In fact, 30
units of the Buyer’s currency would buy you another jacket. You are determined however to
make a good profit on this deal.

2. You have been analyzing your cash flow for the next thirty days and realize you will be
significantly short in meeting your financial commitments. One account you owe equals your
shortfall by itself, and the check must be mailed tomorrow. Two other accounts combined also
equal your shortfall, and both checks need to be mailed the day after tomorrow. You cannot
afford to create a poor credit history because of a pending loan approval with all three accounts
being critical credit references. Analyze the power factors, set up your negotiation strategy, walk
through a scenario with your partners (observers).

3. You have interviewed a prospective new employee who could be a key member of your team.
The new person’s required salary would compromise the integrity of your salary structure,
because it is 20% higher than your most senior performer who has been with the company for
over 10 years. Finances are tight, yet you believe this person could make a significant impact on
future profits. If you paid the required salary for the new person, it would eliminate bonuses for
all your staff that you feel they’ve earned this year. You’ve been searching for an individual with
this skill level for three months. Analyze the power factors, set up your negotiation strategy,
walk through a scenario with your partners (observers).

4. You are negotiating terms with a supplier of a critical component in your manufacturing process.
You receive 100 units monthly. You project needing 150 units for the next 6 months and perhaps
as many as 200 units ongoing after that. You’ve been satisfied with the supplier’s quality,
however there have been two occasions where late deliveries have forced overtime to meet
customer commitments. An out of state vendor has offered you a 20% discount for the 200
units per month for a one year contract. Analyze the power factors, set up your negotiation
strategy, walk through a scenario with your partners (observers).

You have 10 minutes for each exercise then you will sum your findings for the group.

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