Unit 13: Vocabulary

Please study the 20 vocabulary terms below. Then press the Mark Complete button to continue.
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bargaining
a repeated back and forth to negotiate an agreement, trying to get the other party to agree to one's terms
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When mastering the art of negotiating you will learn that there are different bargaining strategies, so pay attention to which strategy is being used on you.
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BATNA (Best Alternative To a Negotiated Agreement)
one's backup plan should no consensus be reached in contractual dialogues
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Having a solid BATNA is crucial because it will allow you to make a rational decision on whether to accept a negotiated settlement.
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BPA (Best Possible Agreement)
the outcome at the end of the negotiation that best satisfies all parties' interests
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This is one of our long-term clients, so we are in good spirits to achieve the BPA in tomorrow's negotiations.
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close a deal
to formally conclude negotiations by making the agreement official, often by having both parties sign a contract
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Patricia is one of our best Salespeople, she can be counted on closing several deals in a day.
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concession
giving up a demand or value for the sake of reaching an agreement
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Our company went into the negotiation expecting to make a few concessions, so they decided on those demands they were willing to concede beforehand.
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consensus
agreement by all
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When no consensus could be reached, all parties agreed to pick up negotiations the next day.
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counter offer
a proposal made in response and as a rejection to a previous proposal
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She turned down the opening proposal, but came prepared with a counter offer.
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deadlock
a point where no consensus can be reached as no party is willing to compromise or make relevant concessions
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After a few hours of negotiating we found ourselves in a deadlock, so the decision was made to seize negotiations and explore other alternatives.
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demands
expectations or needs that one is asking to receive
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One of the most important parts of successful negotiation is good preparation, so you should assess your demands in advance.
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escalation
a sudden and intense disagreement between the parties, can result in a heated argument
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When Randy noticed the ineffective communication between his colleague and their potential partner, he stepped in as mediator to prevent an escalation.
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flexible
open to changing one's demands
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The prices our suppliers named seemed too high for us, so we asked them if they were flexible in terms of pricing in order to keep negotiations open.
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high-ball
making a request that is much bigger than one expects the other party to accept
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When I go to the local market I expect the vendors to high-ball their offers, so I usually low-ball in return and in the end we settle on a fair price.
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leverage
something that gives one party bargaining power over the other party
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Peter knew that his company had leverage over its clients, as it was the only importer of tropical fruits during the pandemic.
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low-ball
making an offer that is much smaller than one expects the other party to ask for
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When Suzy negotiated her salary at her new job, she knew that the company's first offer would be low-balled, and to therefore not accept it.
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MDO (Most Desired Outcome)
one's “ideal” result that one hopes to achieve in the negotiation
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Before entering negotiations, we prepared by determining our MDO, our BATNA, and our walkaway.
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MEEP (multiple economically equivalent proposals)
several offers with different terms but the same economic value to the person offering, that they present to the other party at the same time
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The firm wasn't willing to make too many concessions, but it did have a MEEP strategy prepared and was confident that one of the proposals would be accepted.
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negotiation
two or more parties engaging in discussion with the goal of coming to an agreement regarding a transaction or decision
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I would like to receive $300 for my bike, but I am open to negotiation.
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ultimatum
a “take it or leave it”, a final offer which if not accepted ends the negotiation and/ or implies serious consequences, the threat possibly being to not come to an agreement at all
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During their protests the workers issued an ultimatum: better working conditions or they would walk.
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walkaway
one's least beneficial but still acceptable outcome in the negotiation, also called LAA (Least Acceptable Alternative)
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The goal in any negotiation process is to come to an agreement that will suit you, so it's important to define your walkaway beforehand.
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ZOPA (Zone of Possible Agreement)
also called the "bargaining range", all possible outcomes where an agreement can be reached and is more beneficial to all parties than any other alternative
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Both parties are very flexible on their demands, so the ZOPA is quite broad.
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