1. NegotiationSkills
Intensive Course
June 2013
ricard.muste@alumni.esade.edu
Session 1

2. “process of allocating scare resources between two or
more parties via a human behavioural process (or not)”
Heng Xu

3. • “Negotiating is the proper strategy in a case involving different, sometime even competing
interests, but where at the same time the two parties are interdependent to the degree
that an agreement would yield advantages for both of Them.” Negotiate by William
Mastenbroek 1989
• “Negotiation is a basic means of getting what you want from others. It is the back-and-
forth communication designed to reach an agreement when you and the other side have
some interests that are shared and others that are opposed” Getting to Yes by Roger
Fisher, W Ury 1981
• “Negotiation is a process of interpersonal communication, usually between two people or
two groups who often have a vested interest in the issue under negotiation” Negotiating
Assertively by C. Richardson 1990
• “Negotiating is about searching for a single solution mutually acceptable to both
negotiators” Pocket Negotiator by G Kennedy 1987
• “Negotiation is a process through which parties move from their initially divergent
positions to a point where agreement may be reached”. It’s a deal by Steele, Murphy and
Rusill, 1989
3
Other definitions…

4. Key Concepts
• BATNA
• Opening price
• Target Price
• Walk Away Point or Reserve
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5. BATNA
(Best Alternative To Negotiated Agreement)
“Your BATNA is the standard against which any proposed
agreement should be measured. It is the only standard
which can protect you both from accepting terms that are
too unfavorable and from rejecting terms it would be in
your best interest to accept.”
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6. Target Point
The Target Point is the best option for you. It is the result
you want to finish with. Nevertheless, it is not that easy,
you will have to work hard to achieve it.
Advice: It should be closely defined
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7. Opening Point
The Opening Point is the point with which you start the
negotiation. It should be higher than your target point as
the other party is going to pull it down.
Advice: Aim high, but be realistic otherwise it could result
offensive
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8. Walk Away Point
The Walk Away Point is the worst still acceptable result
you can achieve. If the point goes lower than this point you
are just going to quit the negotiation.
Advice: It should be kept in the back of your mind
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9.  Buyer’s WAP
 Buyer’s TP
 Buyer’s OP
 Seller’s OP
 Seller’s TP
 Seller’s WAP
Zone of
potential
agreement
Zone of
potential
agreement
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The Bargaining Zone
The Bargaining Zone or ZOPA is the set of possible solutions
comprised between the Buyer and the Seller’s Walk Away
Point

10. Is an agreement possible ?
 Seller (€):
 Opening: 8m
 Target: 6m
 WAP 4,5m
 Buyer (€)
 Opening: 4m
 Target 5m
 WAP 7m
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11. Is an agreement possible?
 Seller (€):
 Opening: 90m
 Target: 80m
 WAP 75m
 Buyer (€)
 Opening: 50m
 Target 60m
 WAP 70m
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