Conflict Management Assignment: Negotiation Role Play & Summary

Question

Task: Conflict Management Assignment Task
You will engage in a negotiation for the sale and purchase of a commercial asset such as a business or a piece of real estate.

Assessment Description
You may be nominated to represent the vendor (seller) and will receive email instructions from the vendor company CEO including:
1. Appointment to represent the company as their agent for the sale of the commercial asset;
2. Specific details about the commercial asset;
3. Information about the status of current negotiations with an alternative potential purchaser;
4. Information about a new potential purchaser;
5. Contact details of the agent appointed to represent the purchaser.

Alternatively, you may be nominated to represent the purchaser and will receive email instructions from the purchaser company CEO including:

1. Appointment to represent the company as their agent for the purchase of the commercial asset; 2. Specific details about the commercial asset;

3. Information about alternative assets the company is considering purchasing instead;
4. Information about the vendor;
5. Contact details of the agent appointed to represent the vendor Assessment Instructions

Stage 1: Pre-negotiation (1,000 words)
You must answer the following questions:
1. What is your thinking style preference form – monarchic, hierarchic, oligarchic, anarchic – and what is your thinking style scope – internal, external? Attach copies of completed Sternberg-Wagner Thinking Style Inventories.

2. Are your thinking style preferences – form and scope – optimal for conducting this negotiation? Explain your answer.

3. What adjustments (if any) could you make to adapt to a more optimal thinking style for this negotiation?

4. What is your client’s BATNA? What is your client’s reservation value?
5. What is the other party’s BATNA? What is the other party’s reservation value?
6. What is the ZOPA range? What is your strategy for claiming the greater proportion of the ZOPA? Include at least five academic references from academic journals and textbooks.

Stage 2: Negotiation (300 words) You must:
1. Enter negotiations with your counterpart for the sale and purchase of the commercial asset;
2. Maintain a communications log that captures the date, method, items discussed, and outcomes of each communication.

Attach copies of any communications that confirm agreed price.

Stage 3: Post negotiation (400 words)
You must prepare a 1 page letter to your client advising the outcome of the negotiation.

Good Day
Mr. Student, My name is Hazel Go, the agent from Pashendale Holdings Ltd. I hope you’re well. Our company have received your expression of interest in purchasing one of our properties at Macquarie Park, Sydney. It’s a delight to assist you on this matter, and would be glad to know about your thoughts. I am hoping to hear from you soon, so we can start our negotiation.

Thank you.
Kind regards,
Hazel Anne Go
Pashendale Holdings Ltd

Hi Miss Hazel Anne Go,
I am representing my client Farnsworth Property for the purchase of commercial property at 72 Moss Road, Macquarie Park, Sydney.

I would like to start negotiation as soon as possible.

Regards,
Property trust agent
Farnsworth Property

Hi Mr. Student,
Thanks for your email. I appreciate your interest on our property at 72 Moss Road, Macquarie Park, Sydney. This is a new commercial property in the heart of Macquarie Park.
The company’s exclusive offer for this amazing property is $14.5 million. Please let me know if your budget suits the price.
Let me know if you have any questions or would like to book an inspection on this property.

Thank you again for your interest. I look forward to your soonest response.
Kind regards,
Hazel Anne Go
Pashendale Holdings Ltd

Hi Miss Hazel Anne Go,
Thank you for your exclusive offer, however my client cannot accept your offer.
Due to the current situation in Sydney, we are unable to book an inspection.

My client is willing to pay for the property at 72 Moss Road, Macquarie Park, Sydney 13.5 million. Let me know if my offer is acceptable for you.

Thank you.
Regards,

Hi Mr. Student,
Thanks for your offer. I understand that the given circumstances won’t let you inpect the property. Since, the property is well located, the company would like to offer you a more decent price, close to your offer, which is $14 million for 72 Moss Road, Macquarie Park, Sydney.

I am hoping that you would consider this as other company’s are looking for this property as well. Thank you again for your interest. I look forward for closing this deal with you.

Kind regards,
Hazel Anne Go
Pashendale Holdings Ltd

Hi Miss Hazel Anne Go,
Your offer is much appreciated and close to my client budget, so I am accepting your offer.

Now we can continue to close our deal and sign documents required for our deal.
Regards

Answer

STAGE - 1
1. The thinking style preference considered in the conflict management assignment is the Oligarchic style of thinking. The Oligarchic thinking styleallows the individual to predict the tasks and their outcome from beforehand. The Oligarchic style of thinking helps the individual to carry out multiple tasks and multiple goals but by concentrating on one particular task or goal at a time. Unlike other thinking styles, an individual who follows the oligarchic pattern of style follows multiple oriented approaches other than the single oriented approach (Regis, 2020). Moreover, the main scope of this approach is external which means that the individual is allowed to carry out these goals or tasks with the help of other individuals of their preference. Moreover, such individuals may also choose the group or community of their choice and help to carry out with their tasks and goals that will help to complete the major tasks or the goals at the end.

2. The oligarchic thinking style is optimal for this particular negotiation deal of acquiring high performing commercial assets. The form and the scope of external style are also appropriate for this particular purpose. This is so because this particular pattern of property acquiring assets requires a group of people to deal with the company and pursue the negotiation as this is a high performing and high promising asset which requires a group of people to work for this. The oligarchic way of thinking style is required for concentrating on all the aspects that are related to this particular negotiation and not only concentrate on one particular thing here (Minbashianet al., 20190. The oligarchic thinking style reflects concentrating on the goals and then acquiring experiences through it rather than carrying out several experiments and then pursuing it for the completion of the task through the experiment of the task. Therefore, the oligarchic thinking style is not single oriented and based upon experimentations rather it is based upon proper focus and planning on the multiple aspects of the goal.

Furthermore, the oligarchic thinking style is also based upon the reflection pattern after the observations that have been made from the experience which is optimal for the particular negotiation deal. This is so because these particular negotiation deals of the parties require considering all the aspects of the negotiator deal and thereafter concentrating on the different issues and concerns.

3. Some of the adjustments that I would like to suggest here in this thinking style for this particular deal is that the individual must himself concentrate on the achievement of the negotiation deal and analyzing the mere interests of the parties to help recognize thepotentials of the negotiation deal. The individual must not depend completely on the group of individuals to do the task for him while he can concentrate on other things (RegilmeJr, 2019). This is why these alterations must be executed and followed properly. Moreover, these alterations will only help the individual to identify the major necessities of the deal and make further changes during the negotiation. Furthermore, it is also important that the adjustmen6ts are pursued diligently to excel at the negotiation.

4. The term BATNA refers to the best alternative to a negotiated agreement (Sebenius, 2017). In this present negotiation case, the BATNA for the parties is that of the alternative commercial property which is owned by the Wellington Group and they are willing to sell the commercial property at a rate of $17million which however can still be negotiated by the counsel by 10%. My client's reservation value is $13.5million.

5. It is also important to mention in this case the other parties BATNA which is the best alternative available to the other party in case of unsuccessful negotiation of the current or the present agreement (Pinkleyet al., 2019). Therefore, the identified best alternative that is available to theother party is that of selling the commercial property for $14.5million to another party without negotiating on the original price of the commercial property.

6. The term ZOPA refers to Zone of Possible Agreement. The Zone of Possible Agreement primarily means that particular zone or area from where a negotiation can be entered into by the two parties. Therefore in the present case, the ZOPA for the parties is that of negotiating the price of the commercial asset at $14million where both the parties agreed to enter into a commercial agreement to purchase the commercial agreement at the agreed price. Therefore, this is the identified ZOPA or the zone for possible negotiation to enter into a valid agreement by both the parties who are a party to this particular agreement. Therefore, this has been identified by the parties and therefore this is the negotiating zone for the parties which is likely to benefit boththe parties and therefore may yield profit for both the parties at the same time. Moreover, the basic strategy for claiming the greater proportion of the ZOPA is to state the negotiating zone for me and then allow the other party to negotiate accordingly which will benefit me to a great extent and the other party as well (Yaoet al., 2020). This is why this is likely to yield a very good result for both the parties to this particular agreement in which these two parties are a party to the agreement.This is the basic and the simplest approaching strategy which is to mainly help both the parties to negotiate and benefit from both.

In conclusion, it can be thus said that the interests of both the parties are very clear and therefore this must be considered for entering into a valid agreement for both the parties to yield a maximum profit at the same time. The commercial asset which is been talked about here is a high performing asset as required by both the parties and therefore this proves to be the best fit for the party and on other and selling this particular commercial asset at this particular cost is also a beneficial offer and therefore must be considered by the other party.

References
Ghiglieri, G., Buttau, C., Arras, C., Funedda, A., Soler, A., Barbieri, M., Carrey, R., Domènech, C., Torrentó, C., Otero, N. and Carletti, A., 2021.Using a multi-disciplinary approach to characterize groundwater systems in arid and semi-arid environments: The case of Biskra and Batna regions (NE Algeria).

Science of The Total Environment, 757, p.143797.

Minbashian, A., Birney, D.P. and Bowman, D.B., 2019. The thinking styles of managers: Dimensionality, profiles and motivational antecedents. Australian Journal of Management, 44(1), pp.70-90.

Pinkley, R.L., Conlon, D.E., Sawyer, J.E., Sleesman, D.J., Vandewalle, D. and Kuenzi, M., 2019. The power of phantom alternatives in negotiation: How what could be haunts what is. Organizational behavior and human decision processes, 151, pp.34-48.

RegilmeJr, S.S.F., 2019. Constitutional order in oligarchic democracies: Neoliberal rights versus socio-economic rights. Law, Culture and the Humanities, p.1743872119854142.

Regis, V., 2020. A STUDY ON PERFORMANCE OF LEFT BRAIN DOMINANT HIGHER SECONDARY STUDENTS IN OLIGARCHIC THINKING. International Journal Of All Research Writings, 2(10), pp.1-5.

Sebenius, J.K., 2017. BATNA s in negotiation: Common errors and three kinds of “No”. Negotiation Journal, 33(2), pp.89-99.

Yao, J., Zhang, Z.X. and Liu, L.A., 2020. When there is No ZOPA: Mental Fatigue, Integrative Complexity, and Creative Agreement in Negotiations. Negotiation and Conflict Management Research.

STAGE – 2
To
The FrosworthyPvt. Ltd.
I am Hazel Go and I am proud to state that I work as an agent at Pashendale Holdings Ltd. I hope that you’re doing well and this letter finds you in good health. I wanted to provide you with certain valuable insights as regards the negotiation deal which is mentioned here. The thing is that I am accepting your offer of purchasing the commercial asset at the price of $14million and therefore willing to enter into an official contract for purchasing the commercial asset which lies at Macquarie Park, Sydney.

I am pleased to inform you that I am willing to agree on the purchase of the commercial asset which is finalized and is communicated to you for a long period. Thus, I am writing this letter to let you know that I have finalized the deal from my end and thus stating my desire to enter into an agreement with you for purchasing this particular commercial asset.

Moreover, it is my humble request to you to please consider my offer and acknowledge the offer and enter into a valid agreement so that this negotiation deal can be processed. Hence, this is an official letter to express the desire of entering into a valid agreement and state the facts more clearly and precisely. This will help to negotiate the dealing and acknowledge the facts of the negotiation deal.

Therefore, please consider and state your requirements.
Thanking You
Regards
Hazel Go

Communications log:

STAGE – 3
To
The Client
Subject: Letter for stating the outcomes of the negotiation deal Good day,
My name is Hazel Go and I am proud to state that I work as an agent at Pashendale Holdings Ltd. I hope that you’re doing good and this letter finds you in good health. I wanted to provide you with certain insights into the negotiation deal that has been recently stated to you. The details of the deal have already been discussed with you earlier and communicated to you with every minute detail that is considered to be important. However, it is equally important to state to you some further insights which may be required for you to consider for this particular negotiation deal. I am concerned that this may impact the decision that you have taken and help you to gather more valuable insights on your decision. These insights may help you to further understand the rightfulness of your decision and therefore encourage you to celebrate your decision at this hour of the day. Thus, I am discussing a few valuable insights here to help you to understand the possible outcomes of your own decision.

Please read and consider the valuable insights stated in this section of the letter. It is to bring to your notice that the decision of buying one of our properties that are lying at Macquarie Park, Sydney at an affordable price of $14million is a good and significant deal which will help you to make profits in the nearing future. I am also happy to share with you that this negotiating deal of buying the commercial asset at a rate of $14million at this particular spot is going to provide you with several opportunities which will help you to administer various services shortly. Moreover, this commercial property is a high performing asset and therefore this particular commercial asset will help you shortly to a great extent.

Thus, I am really happy to share these valuable insights with you and acknowledge the fact that this negotiation deal is going to prove significant for you in the upcoming days when this high performing commercial asset will prove to yield high profits for you and open various new opportunities for you. Hence, please consider these valuable insights for us.

Thanking You
Hazel Go
Agent at Pashendale Holdings Ltd.