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Games people play: negotiations

WHAT IS NEGOTIATION? D1D2DISCUSSIOND4DnD3D5SOLUTION

Слайды и текст этой презентации

Слайд 1GAMES PEOPLE PLAY: NEGOTIATIONS

GAMES PEOPLE PLAY: NEGOTIATIONS

Слайд 2WHAT IS NEGOTIATION?
D1
D2
DISCUSSION
D4
Dn
D3
D5

SOLUTION

WHAT IS NEGOTIATION?  D1D2DISCUSSIOND4DnD3D5SOLUTION

Слайд 3GAME THEORY
● Game simulates real life
● Includes 5 elements:
Players =

decision makers
Strategies available
Rules
Outcomes
Payoffs

GAME THEORY● Game simulates real life● Includes 5 elements:Players = decision makersStrategies availableRulesOutcomesPayoffs

Слайд 4AN EXAMPLE OF GAME THEORY: THE PRISONER'S DILEMMA

AN EXAMPLE OF GAME THEORY:  THE PRISONER'S DILEMMA

Слайд 5TYPES OF NEGOTIATIONS
DISTRIBUTIVE
Involve win-lose, fixed-amount situations wherein one

party’s gain is another party’s loss
INTEGRATIVE
Involve joint problem

solving to achieve results benefiting both parties which can lead to win-win or lose-lose outcome
TYPES OF NEGOTIATIONSDISTRIBUTIVE  Involve win-lose, fixed-amount situations wherein one party’s gain is another party’s lossINTEGRATIVE

Слайд 6FOUR KEY CONCEPTS
BATNA
Reservation Price
ZOPA
Value Creation

FOUR KEY CONCEPTS BATNAReservation PriceZOPAValue Creation

Слайд 7KNOW YOUR BATNA!
Best Alternative to a Negotiated Agreement (BATNA)
Typical example:

negotiate or go to court
Improving your situation
Improve your BATNA
Identify the

other side’s BATNA
Weaken the other party’s BATNA
KNOW YOUR BATNA!Best Alternative to a Negotiated Agreement (BATNA)Typical example: negotiate or go to courtImproving your situationImprove

Слайд 8RESERVATION PRICE
The least favorable point at which one will accept

a deal
The “walk-away”
Example: you are looking for larger office space.

You set your BATNA at $20/SF and your Reservation Price at 30$/SF
RESERVATION PRICE The least favorable point at which one will accept a dealThe “walk-away”Example: you are looking

Слайд 9ZOPA
Zone of Possible Agreement (ZOPA).
The difference between the Seller’s Reservation

Price and the Buyer’s Reservation Price

ZOPA
250$
275$
Seller’s
Reservation Price
Buyer’s

Reservation Price


ZOPAZone of Possible Agreement (ZOPA).The difference between the Seller’s Reservation Price and the Buyer’s Reservation PriceZOPA250$275$Seller’s Reservation

Слайд 10QUESTION:
What will happen if we change points of buyer’s and

seller’s reservation price?
ZOPA
250$
275$
Seller’s
Reservation Price
Buyer’s

Reservation Price
QUESTION:What will happen if we change points of buyer’s and seller’s reservation price?ZOPA250$275$Seller’s Reservation PriceBuyer’s

Слайд 11VALUE CREATION
Create value = enlarge the pie
Basic principles:
Seek out shared

interests
Propose mutually beneficial trades
Secure insecure contracts

VALUE CREATIONCreate value = enlarge the pieBasic principles:Seek out shared interestsPropose mutually beneficial tradesSecure insecure contracts

Слайд 12PLANNING THE NEGOTIATIONS: PRE-NEGOTIATING
Objectives
What is involved? (+extremes)
Goals of opposition
NOT the costs

=> what is VALUABLE

PLANNING THE NEGOTIATIONS: PRE-NEGOTIATINGObjectivesWhat is involved? (+extremes)Goals of oppositionNOT the costs => what is VALUABLE

Слайд 13PLANNING THE NEGOTIATIONS: NEGOTIATING
confidence and power
keep the negotiation in your control
aim

as high as you feel necessary
remain flexible
know your

business
PLANNING THE NEGOTIATIONS: NEGOTIATINGconfidence and powerkeep the negotiation in your controlaim as high as you feel necessary

Слайд 14COMING TO AN AGREEMENT
Write down the terms
Discourage the other side

from seeking further concessions
Be happy =)

COMING TO AN AGREEMENTWrite down the termsDiscourage the other side from seeking further concessionsBe happy =)

Слайд 15
THANK
YOU
FOR
YOUR
ATTENTION!

THANKYOUFORYOURATTENTION!

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