planning document must address data B u s i n e s s F i n a n c e
Specific detailed Instructions from the professor:
- The planning document must address all fields and all parties stated in the template.
- The planning document must address data (numbers, points, dollars) presented in the role description.
- Goals need to be well defined and grounded in data when applicable. You MUST specify your aspiration – the best highest, biggest, grandest most awesome deal you want to achieve for yourself (given your role instructions and data).
- BATNA – this is a description of what you will do as a negotiator if you do not reach a deal. This is where you describe your options outside the negotiation. This is a narrative (story) that you tell yourself. For example, “if I do not strike a deal today with the other party (or if the deal offered is not good enough) then I can do A, B or C (describe what A B C are)” .
- RP – This is the value of your BATNA. This is a number (points, dollars) the represents the value of the A, B or C options that you listed as BATNAs. In your negotiations you always want to get a deal that is better than the RP (either above or below RP, depending on your assigned role). The reservation point/price is the point where you decide to walk away from the table and take the alternative. You must make this VERY CLEAR in your planning document.
- ZOPA is the gap between your RP and the other party’s ESTIMATED RP. The other party will never tell you their RP. You want to evaluate realistically where a deal can be struck. For example, if you are a buyer, you have a finite budget – that is your RP. You cannot pay more than that because you just do not have more money. You can ESTIMATE how low the seller will be willing to go (based on public information escribed in the role). The estimated gap between Buyer RP and Seller RP is the ZOPA. Hopefully, there is a positive gap so you can strike a deal. Meaning, buyer RP is higher than that of seller RP (so that the this can work out, the buyer can afford the price that the seller is asking for, or that the seller is not asking for way over seller’s budget). Estimating ZOPA helps plan for a negotiation.
- First Move and strategy – you need to describe how you are about to approach the negotiation. What are you going to say/offer first and what you expect the other side to do in response.
Need completed by Thursday midnight EST.