My walk away point in the negotiation of the business between Martin and I, are the options of Martin contributing $5000 and I contributing $30000 on the capital; using of storefront A, moderate size, high traffic; employing of Van 160 new in the delivery process and using of the top-quality equipment. I came up with that kind of decision because the other outcomes of the agreement would not be beneficial to me. Moreover, I will be comfortable walking away because the alternative choice is more beneficial. Additionally, my target is to employ the used top quality equipments for the business to enhance the quality of the products.
Question 2
My target is that Martin contributes $30000 and I contribute the remaining $5000 for the capital of the business so that that I can remain with substantial capital to diversify in other businesses. Moreover, my target is to use shared space E small size and Van 120 used low mileage, which I thought is economical considering that the business is new in the market and needs to minimize on the production cost to maximize its profits. I came up with these targets to ensure that the business remain sustainable even in the long-run (Pienaar " Spoelstra, 2010).
Question 3
The criteria I will use in assessing the outcome of the negotiation when it is over is by investigating the motives of reaching the agreement. For instance, I will examine the interest of Martin to the agreed outcome of the negotiation. In addition, I will also examine the level of commitment of Martin to the results of the agreements; for instance, his willingness to contribute the agreed amount of capital for the establishment of the business (Eadie " Nelson, 2011). Similarly, I will consider the viability of the outcome of the negotiation, as one of the criteria of assessment; whether all the resources for the establishment of the business are effectively covered in the agreement or not. This criterion will enable both Martin and I to assemble the required resources for starting the business with a lot of ease.
However, my judgment of success for the negotiation process is based on the agreement where all the four issues like the capital, space, Van and the equipment are resolved to the mutual benefit of both Martin and I. The success in the negotiation process is only achieved when both Martin and I feels okay about the way issues on the table are settled. However, when one party is not okay with the way the issues were resolved, the negotiation will not be considered as successful (Lewicki, 2014). Additionally, another way I will employ in the judgment of success in negotiation is whether any learning has taken place. For instance, a negotiation is considered successful if both Martin and I learned to interact more explicitly or become better at resolving the disputes (Saner, 2012). Moreover, when both Martin and I can prevent any cause of future mediation in the process of carrying out the business, the negotiation process can be considered successful since there exist mutual understanding of one another.
Question 4
My checklist of effective distributive negotiation strategies would help me to claim as much value as possible in my business negotiation with Martin. Therefore, I would refer to the checklist strategies before engaging in the negotiation with Martin. The distributive negotiation strategies I would employ include;
i. Estimation of the bottom line of negotiation
I would begin with setting the least amount to accept before walking away from the negotiation table. For instance, my best options for the negotiation like Martin contributing $30000 for the capital; and I contributing the remaining $5000 for the establishment of the business. I would research on Martin’s past negotiation strengths and his possible best alternative to a negotiated agreement (BATNA) as one of the tactics to accomplish this strategy.
ii. Identification of a strong BATNA
I would identify and establish a strong best alternative to a negotiated agreement (BATNA) to remain in a good position to reject a mediocre agreement like contributing the $35000 capital for the business alone. I will only negotiate on the agreement which is close to 100 points satisfaction but not that which is close to my walking out point. I would employ the tactic of conducting negotiations on multiple fronts to improve my identified BATNA (Yang " Yang, 2012).
iii. Anchor aggressively
I would ensure that I am the first one to make the offer of contributing $5000 towards the capital for the business. Subsequently, I would propose that Martin contributes the remaining $30000 and also takes the control of the business operations as I only deal with the management of the business finances. I would employ the verbal tactics in convincing Martin to agree with my anchored prices or positions on the negotiation table.
iv. Setting high aspirations
I will set an ambitious and realistic aspiration level or goal. For example, the use shared space E small size and Van 120 used low mileage is a realistic aspiration for the new business. I would employ the issue of minimizing the cost of production to drive Martin in buying to the agreement. Additionally, I will also set that the business acquires the used top quality equipment to enhance the quality of the products. I would employ my entrepreneurship skills to gain the power of negotiation to make Martin understands the need for such options (Barney, 2013).
Question 5
My strategy for creating value in the business negotiation with Martin includes the following steps;
i. Identification and clarification of the interests
I will identify and clarify my interests and those of Martin on the various options being negotiated for the establishment of the business. I will offer to contribute $5000 towards capital for the business and clarify my option for Martin to understand. As well as, I will allow Martin to ask clarifying questions to my option; which I will answer appropriately with good will (Paulson, 2010). On the other hand, I will also listen to Martin’s interest and provide him with ample time to clarify his options in the negotiating table so that we develop a binding agreement. My list of interest will include; Van 120 used low mileage, used top quality equipment, shared space E small size and contribution of $5000 towards the capital for the business.
ii. Brainstorming of the likely value-creating opportunities
After making the list of interest, I will brainstorm on the options based on the list of interests. For instance, I will boost creativity and reduce self-censorship by agreeing with Martin to record all the ideas in a chart without evaluation. I will record the value-creation opportunities in the chart with main columns representing issues, options, and Values as in the case study.
iii. Evaluate options
I will first agree with Martin on the set standards or criteria to employ in choosing among the ideas established in the brainstorming stage. The standards will enable both Martin and I to weigh possible package of options, values and issues that will result in efficient outcomes that maximize value for both of us (Lewicki, Saunders " Barry, 2015).
Question 6
My walk away point in the negotiation with Martin in dissolution of the business includes; Martin taking all the $15000 remaining capital; Martin promising to pay lease for the space and the Van; and paying the lease for the kitchen equipment by myself. I came up with the decision for the walk away point by weighing the magnitude of loss I will experience in the moment Martin takes all the $15000 capital and fail to pay for the promised lease for space and the Van. I also plan to continue using the space and the Van in my new venture; and the moment Martin declines to pay the promised amount of the lease, I will be liable. The moment I walk away from the negotiation, the dissolution of the business will not take place and none of us will benefit from the remaining resources of the business as decision must be reached by both Martin and I.
Question 7
The criteria I will employ to assess the outcome of the negotiation with Martin about the dissolution of the business are through checking the benefits accrued by the agreed decision on my side. For instance, I will use the level of benefit I receive after the completion of the negotiation process and examine if they are close to my 100 points of walk away (Overbeck, Mannix " Neale, 2011). On the other, I will also follow the loss criterion in the determination of the outcome of the negotiation process. For instance, if the agreed decision is near to my walking away point. The assessment through the benefit and cost criteria of the outcome of the negotiation of business dissolution will drive me into judgment for the success of the negotiation (Saner, 2012). I will judge the success of the negotiation based on the level of satisfaction. I will consider negotiation successful the moment the agreement is favorable to both Martin and I. But, in this case of dissolving our business because of Martin’s unreasonable measures, I will only consider the negotiation successful when Martin is ready to accept liability for his actions (French, 2011).
Question 8
I believe that the interest of Martin in the business is to ensure that customers get the best of the dishes through the provision of the elaborate dishes and menus. However, Martin did not understand how to articulate his interest to favor the sustainability of the business by adjusting the prices of the elaborate dishes since the cost of production was higher. My interest is to ensure that the business make profit, therefore I had to propose for Martin to adjust the price of the elaborate menus to ensure that the profitability of the business is not negatively affected. Both Martin and I had the right to share the proceeds of the business equally (McKee, 2017). The agreement stipulated that both Martin and I will share the profits equally.
The dispute between Martin and I could be resolved through mediation. The effective way of restoring peace between Martin and I is by seeking the assistance of a neutral mediator to help us identify our mistakes in the business operations (Brett, 2013). The moment our mistakes in the partnership are revealed, we will be in a position to revive the business through the avoidance of the similar mistakes.
Question 9a
Yes, I need to form a coalition with the employees against Martin. I will align myself with the cashier of the restaurant because he or she is the one who receives money from the customers. Additionally, the cashier is the one who issues petty cash for the purchase of the ingredients but after my approval. Therefore, the cashier is well conversant with the financial books of the restaurant like the cash flows, balance sheet and the financial position of the business (Lax " Sebenius, 2016). The cashier will be the preferred partner in forming coalition against Martin.
Question 9b
The best way of blocking Martin to form coalition against me is to inform all the employees that Martin does not mean well for the progress of the business (Walton " McKersie, 2011). Since, the business is the source of livelihood for the employees, they will tend to turn a deaf hear on Martin. Every employee will develop negative opinion of Martin, as he will be seen as the enemy of the employees by his determination to bring down the business through introduction of elaborate dishes which require higher production cost. Therefore, the moment all the employees forms the poor opinion of Martin, no one will be ready to listen to his incitement against me of any kind.
References
Brett, J. M. (2013). Negotiating globally: How to negotiate deals, resolve disputes, and make decisions across cultural boundaries. San Francisco, Calif: Jossey-Bass.
Barney, M. (2013). Leading value creation: Organizational science, bioinspiration, and the cue see model. New York City, NY : Palgrave Macmillan
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French, R. (2011). Organizational behaviour. Hoboken, N.J: Wiley.
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Lewicki, R. J. (2014). Essentials of negotiation. Boston: McGraw-Hill/Irwin.
McKee, D. (2017). Mediation mechanisms: Distributive negotiation in litigation. Carlton, Oregon : Ridenbaugh Press.
Overbeck, J. R., Mannix, E. A., " Neale, M. A. (2011). Negotiation and groups. Bingley, U.K: Emerald.
Pienaar, W. D., " Spoelstra, H. I. J. (2010). Negotiation: Theories, strategies and skills. Kenwyn: Juta.
Paulson, D. A. (2010). The integrative/distributive bargaining approach as it relates to negotiators' satisfaction, teacher salaries and district fund balances.
Yang, M., " Yang, F. (2012). Negotiation in decentralization: Case study of China's carbon trading in the power sector. London: Springer.
Saner, R. (2012). The expert negotiator. Leiden: Martinus Nijhoff Publishers
Saner, R. (2012). The expert negotiator: Strategy, tactics, motivation, behaviour, leadership. Leiden: M. Nijhoff.
Walton, R. E., " McKersie, R. B. (2011). A behavioral theory of labor negotiations: An analysis of a social interaction system. Ithaca, N.Y: ILR Press.
