Eighteen months ago Larry decided to move closer to where he works. Following this decision to move, he put his house on the market and started to look for a new one but with no results. Fourteen months later, Larry finally received an offer to buy his house and, after a brief negotiation, settled on the selling price. Because he had not yet found a house to buy, he postponed closing the sale for six months to give himself additional time to look. The buyer, Barbara, was not happy about having to wait that long because of the inconvenience and the difficulty of getting a bank to guarantee an interest rate so far in advance. Larry adjusted the price so that Barbara would accept this postpone-ment, but it was clear that she would be much happier if he could move the date closer. There were relatively few houses on the market in the area where Larry wanted to live, and none of them was satisfactory. He jokingly said that unless something new came on the market, he would be sleeping in a tent on the town common when the leaves turned in the fall. Two months later a house came on the market that met his requirements. The seller, Monica, set the asking price at $145,000, which was $10,000 above what Larry hoped to pay but $5,000 below the most he would be willing to pay. Larry knew that the more he paid for the house, the less he would have to make some very desirable alterations, buy draperies and some new furniture, and hire a moving company. Monica already had attractive drapes in the house. She was moving to a new house; if she could not use the drapes in the new house, Larry might be able to purchase them or ask Monica to include them with the sale. The same might be true for several rugs, hall tables, and other items. Larry also learned that Monica's new home was supposed to be finished soon, about the time Larry was to close on the sale of his I Dresent house.

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Answer all the following questions (using the Questions as sub-headings, and reference appropriately, with a reference list at the end) based on Larry, Barbara and Monica's Case Study:

Question 1 - Terms(10 marks)

(A) Describe the following terms in detail (using references).

(i) Negotiation goals

(ii) Negotiation strategy

(iii) Initial Concessions

(iv) Resistance Point

(v) Opening Stance

(B) Provide examples of the above terms in general.

(C) Provide examples of the above based on the case study.

Question 2 - BATNA (10 marks)

(A) What is BATNA?

Based on the case study, what might some of Larry and Barbara's BATNAs be? Now also use your own assumptions to provide other BATNAs for these 2 parties in the case study. Provide no less than 6 BATNA in total.

(B) Based on the selected BATNA, which negotiation strategy is most effective and why. You have to select only one- either distributive or integrative negotiation. (Tip: Give a well referenced and in-depth explanation of the negotiation strategy then explain which is most effective and why).

Question 3 - Dual Concerns Model (10 marks)

(A) Research and explain the Dual Concerns model.

(B) How can this model assist in understanding negotiation, all 3 parties' concerns and lead to getting successful results in our case study? What do you think Larry, Barbara and Monica's substantial and relational concerns may be?

Criterion 4 - Expression and Presentation (10 marks)

Your Assignment must demonstrate a high level and quality of academic writing with good expression, structure, and minimal error. In-text references and a reference list must be provided.

(Again, please note Turnitin anti-plagiarism software will be used and will pick up similarities. If you have more than 25-30% similarity, please contact your lecturer urgently.)

-Conduct independent research relevant to the questions, including the use of negotiation sources including textbooks, lecture material, authoritative material from internet sites (not Wikipedia) and academic (peer reviewed) journal articles.

Ensure that you:

1. Use knowledge of negotiation theory to recognise its relevance to organisational and individual success; and
2. Demonstrate appropriate negotiation skills and strategy.

References Required