Negotiation Skills Assignment
Jewel Case Study
a.) Jewels BATNA is that if Condor doesnt negotiate with him, he
can buy Z-2 CPUs from ACME at $35/ unit.
b.) The reservation price for Jewel i.e. the most that it will
pay to Condor for Z-2 CPU will be $33/unit because he is already
getting it at $35/unit from ACME so there is no point in buying
from Condor if he is not offering less than ACME. And also, BETA is
offering Z-1 for $38/unit and it has been estimated that Z-1
benefits over Z-2 at about $5/unit, therefore reservation price for
Z-2 will be $33/unit.
c.) Jewels BATNA has upgraded because
Case 1- If 50% probability of negotiation holds true and the
price is negotiated to $28/unit. Than the BATNA will change from
$35 to $28/unit.
Case-2 If 50% probability doesnt hold true for negotiation than
there will be no shift in BATNA.
d.) There are two different cases- Case-1- If Jewel negotiates
with ACME holds trueThe reservation price for Condors CPU will be
less than $28/ unit
Case 2- If negotiation doesnt take placeThe reservation price
will be $33/unit (because it is said than Z-1 is $5/unit more
beneficial than Z-2).
e.) Condors BATNA is to Jewel at $33/unit and that is only
possible if they have information about their competitors to Jewel.
Jewel is highly likely to accept the offer at $33/unit.
f.) Condors reservation price is any price which is above their
liquidation price i.e. $15/unit and moreover liquidation doesnt
leave good reputation of company in the market.
g.) ZOPA would be between $15 to $33.
