Business Negotiation

Questions: 1. Explain and discuss why it would not be appropriate for Great Motors to adopt a purely distributive bargaining approach? 2. Evaluate and describe how each of these tactical tasks may be applied by Vroom Cars representatives during the negotiation process. Provide examples, based on the scenario above, to support your analysis? Answers: 1. Distributive Bargaining is defined as the objectives of one party that is respected, which results in direct conflict with the objectives of the second party. Since the resources of both the parties are limited, each one wants to increase their portion of the resources by bargaining in a competitive manner. The use of information is critical, as it should not be disclosed to the other party, which may give them a strategic advantage over the latter. The strategies that the negotiators need to know are the interdependent situations and understanding how it works. The negotiators need to counter the effects that happen due to this bargaining process (Acheson, 2016). The cons of this bargaining are that it leads to the destructive nature between the parties that are involved in this process. To maintain a good relationship between the parties, then the integrative approach needs to be taken in to consideration (Brett Thompson, 2016). Great Motors should not take up the bargaining process because the growth of the car company is not up to the expectation level of the analyst. However, the company will progress in the next few years where it would be possible for the motor company to make a deal with the Vroom Cars. Distributive Bargaining is important because some problems which cannot be solved in other ways needs to be settled in a win or lose situation. In a competitive situation, the conflicts with respect to the bargaining process are very resistant (Acheson, 2016). For example, the seller will always influence the buyer to buy the product because he will stand to win the situation whereas; the buyer will end up losing after the purchase. The other reason is distributive bargaining process is an exclusive part of the negotiation strategy. It gives both the parties to claim that the services provided by them are of high price (Brett Thompson, 2016). For example, the car buyer making the seller believe that the car is overpriced and that he can opt for another car from another company with the same benefits. 2. Firstly, the representatives of Vroom Cars need to analyze the sales activity of Great Motors. They need to see whether the motor company could sell their product in the market given that Vroom cars are a well-known brand in Singapore, Malaysia and Indonesia. The representatives need to identify the resistance points, which will help the negotiation to function smoothly (Snyder Diesing, 2015). The representatives need to take in to account the location of Great Motors, which is on the outskirts of the country. The representatives of Vroom Cars can use the highball/lowball tactic in which they should first listen to what the offer of the motor company and not counter it. If they are not satisfied, they should leave the demonstration keeping the motor company at loss, because they can sell the cars for themselves and keep the profits in the company rather than sharing it (Allen Burrell, 2016). Since, the car company is ready to negotiate by giving incentives and rebates, the nibble tactic needs to be considered by them as it give both the parties a chance to negotiate for the best offers. The representatives of the car company needs to have their list prepared so that they can stand in a better position to negotiate (Snyder Diesing, 2015). Since the motor company is new in the market, the representatives need to press them make them understand that there are other established distributors in the Singapore, Malaysia and Indonesia belt who can offer better prices to the car company. This tactic known as the Good Guy/Bad Guy will help the car company to be at a better position than the motor company (Allen Burrell, 2016). References Acheson, D. (2016). 6 Negotiation dynamics.International Negotiation: Process and Strategies, 107. Allen, M., Burrell, N. (2016). Distributive Negotiation Strategies.The International Encyclopedia of Interpersonal Communication. Brett, J., Thompson, L. (2016). Negotiation.Organizational Behavior and Human Decision Processes,136, 68-79. Snyder, G. H., Diesing, P. (2015).Conflict among nations: Bargaining, decision making, and system structure in international crises. Princeton University Press.