N02 : Strategy and tactics of distributive bargaining

BA370

Negotiation Chapter 02 : Strategy and tactics of distributive bargaining

In this chapter, we looked at the key elements of distributive bargaining, namely, the bargaining mix, the BATNA, the bargaining range, the settlement point and the stalemate.
We realized that, although ethical concerns exist for using distributive bargaining tactics, it is still important to study distributive bargaining so that negotiators can succeed in situations that are distributive. We studied positions commonly taken during the bargaining process such as the initial offer and the resistance point and we looked at strategies for closing a deal.

Distributive strategies and tactics are important and useful, but negotiators need to recognize that these tactics can also be counterproductive, costly and may not work but it useful when negotiators want to maximize the value obtained in a single deal, when the relationship with the other party is not important.  

Question 1 : What are 3 Reasons to be familiar with Distributive Bargaining?

Answer:

1. Knowing how it works to do better
2. Know how to counter the effects of the strategies
3. Every situation has potential to require skills at "claiming-value" stage

Question 2: What are Tactical Tasks of Negotiators?

Answer :

- Assess outcome values and the cost of termination for the other party
-manage other party's impressions
-modify other party's perceptions
-manipulate actual costs of delay or termination

Question 3 : How to Manage other Party's Impressions?

Answer :

1. Screen you behavior: say and do little as possible
2. Direct action to alter impressions: present facts that enhance ones position