To pass this unit, please study the 20 vocabulary words below.
- Bargaining
- BATNA (Best Alternative To a Negotiated Agreement)
- BPA (Best Possible Agreement)
- Close a deal
- Concession
- Consensus
- Counter offer
- Deadlock
- Demands
- Escalation
- Flexible
- High-ball
- Leverage
- Low-ball
- MDO (Most Desired Outcome)
- MEEP (multiple economically equivalent proposals)
- Negotiation
- Ultimatum
- Walkaway
- ZOPA (Zone of Possible Agreement)
Verb (ing)
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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."
Noun (concept)
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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."
Noun (concept)
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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."
Verb (ing)
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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."
Noun (concept)
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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."
Noun (concept)
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agreement by all
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"When no consensus could be reached, all parties agreed to pick up negotiations the next day."
Noun (concept)
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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."
Noun (concept)
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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 cease negotiations and explore other alternatives."
Noun (concept)
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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."
Noun (concept)
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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."
Adjective
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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."
Verb (infinitive)
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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."
Noun (concept)
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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."
Verb (infinitive)
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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."
Noun (concept)
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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."
Noun (concept)
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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."
Noun (concept)
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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."
Noun (concept)
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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."
Noun (concept)
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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."
Noun (concept)
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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."