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There are a total of three (3) mandatory questions for this GBA.
(a) Analyse two (2) reasons as to why every negotiator should be familiar with the
concept and tactics of distributive bargaining. For each reason, support your answer
with examples to demonstrate your understanding.
(b) SL Circle is a shopping mall with salespersons who are infamous for using hardball
tactics when selling mobile phones, cameras and other consumer electronics to
unsuspecting customers. These salespersons typically view the sales process as a
distributive bargaining process. You had gone down to SL Circle with the intention of
purchasing a new DSLR camera.
(i) Identify four (4) important tactics that is likely to be used by the salespersons
in SL Circle in relation to targets, resistance points and costs of terminating
the negotiations in the above scenario.
Evaluate how each of these tactics may be applied by you and/or the
salespersons during the negotiation process. Provide examples, based on the
scenario above, to support your analysis.
BUS356 Assignment 2
SIM UNIVERSITY Assignment 2 – Page 3 of 4
(ii) Identify and discuss two (2) hardball tactics that the salespersons are likely to
use on you during the distributive bargaining process. Formulate and
recommend an appropriate response to such hardball tactics. Provide reasons
for your recommendation.
(iii) Discuss three (3) tactics that the salespersons are likely to use to close the
deal. Provide examples, based on the scenario above, to support your analysis.
Tom was a part of the senior management team of a global hospitality group. He was
regularly featured in the news as a “an aggressive businessman with a good eye for spotting
business opportunities”. He had been posted to many countries to oversee the expansion of
the group’s operations. In January 2014, Tom advertised his apartment, with all furniture
included, for sale at S$1.3 million. It was a recently renovated apartment that was situated
near various other housing estates and a primary school in the eastern part of Singapore.
He had instructed his property agent that he would not accept offers lower than S$1.25
million and stated that he could convince buyers of the value of the apartment. He told the
agent that “in the worst case scenario… (he) will rent out the apartment, instead of selling it”.
Tom also specified that the completion of the sale and purchase must take place no later than
30 May 2014.
Jason was a potential buyer. Together with his wife and five-year-old twins, he viewed Tom’s
apartment on 1 February 2014. He was impressed with the renovations. However, he
informed the property agent that he was only willing to pay S$1.15 million and did not
believe in “overpaying”, based on recent transaction values of apartments in the vicinity. He
was keen to “complete the sale and purchase quickly if the price was right”.
The property agent tried to recommend some smaller-sized apartments to Jason that might be
suitable for his budget. Jason declined and mentioned that he had been viewing various
similar-sized apartments in the east.
(a) One of the key steps in the integrative negotiation process is to understand the
problem fully by identifying interests of the negotiating parties.
Explain how such interests are distinct from the positions taken by the parties.
Describe the four (4) categories of interests that the negotiating parties may possess.
(b) Identify and discuss two (2) possible interests underlying the stated positions of (i)
Tom and (ii) Jason, in the above scenario. For each interest that you examine, specify
the category of interest in which it falls.
Provide reasons to support your analysis. You may make some assumptions based on
the facts stated above.
BUS356 Assignment 2
SIM UNIVERSITY Assignment 2 – Page 4 of 4
(c) Using the Agreement Circumplex (P.J.D. Carnvale, 2006), examine and suggest two
(2) possible solutions that may be acceptable to both Tom and Jason.
Each solution should come from a different segment of the Agreement Circumplex.
You are encouraged to develop creative solutions that are feasible for implementation.
Your solutions should be suffciently detailed (with amounts, if relevant) so that their
feasibility may be assessed.
According to Savage, Blair and Sorenson (1989), the choice of a negotiation strategy in any
given situation depends on the level of the negotiator’s concern for relationship and
Consider the following scenarios:
Scenario 1 – You are negotiating a job offer with the Global HR Director at a highly
reputable company. This company is ranked in No. 1 in terms of revenues generated.
Scenario 2 – You are negotiating the purchase of a car from a young salesman at a secondhand
car dealer. This dealer is located in a very busy car mart that has more than 50 other car
(a) Formulate your analysis of the two scenarios by using the Dual Concerns Model
selected model and recommend the negotiation strategy(ies) which would be
appropriate for use in each scenario. As part of your answer, you should highlight
three (3) key characteristics of each recommended strategy.
Provide examples and reasons which are specific to the given scenarios to support
(b) Examine three (3) likely perceptual distortions and/or cognitive biases which you
may have for each scenario above.
Appraise how these would have affected your negotiation tactics.
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