How Can You Determine Your Batna?

What are the 5 stages of negotiation?

Negotiation Stages IntroductionThere are five collaborative stages of the negotiation process: Prepare, Information Exchange, Bargain, Conclude, Execute.There is no shortcut to negotiation preparation.Building trust in negotiations is key.Communication skills are critical during bargaining..

What is watna example?

WATNA stands for the Worst Alternative to a Negotiated Agreement. … In negotiation skills, it is good to know what you would reconsider and the rationale. In this example of selling a home, you may need to sell your home by a certain deadline to relocate for a new job.

What is Batna in negotiation example?

If the value of the deal proposed to you is lower than your reservation value, you should reject the offer and pursue your BATNA. However, if the final offer is higher than your reservation value, you should accept the offer. For example, Company A makes a takeover offer of $20 million to Company B.

Why is a Batna a good source of power?

Why is the BATNA a good source of power? has a chance between accepting the other party’s proposed deal not on absolute terms – only whether its comparable to alternative deal thats available. choice to walk away or use BATNA as leverage to strike better agreement.

Should you make the first offer?

Common wisdom for negotiations says it’s better to wait for your opponent to make the first offer. In fact, you may win by making the first offer yourself. … Because of the inherent ambiguity of most negotiations, some experts suggest that you should wait for the other side to speak first.

What is a Batna example?

Example of BATNA If we assume that Tom can sell his car to someone else for $8,000, then $8,000 is Tom’s BATNA. In such a scenario, an agreement will not be made, as Tom is only willing to sell for a minimum of $8,000, while Colin is only willing to purchase at a maximum of $7,500.

How is ZOPA calculated?

A ZOPA exists if there is an overlap between each party’s reservation price (bottom line). A negative bargaining zone is when there is no overlap. With a negative bargaining zone both parties may (and should) walk away.

What is Batna and watna in negotiation?

BATNA: Best Alternative to a Negotiated Agreement. WATNA: Worst Alternative to a Negotiated Agreement.

What are the four principles of negotiation?

The book advocates four fundamental principles of negotiation: 1) separate the people from the problem; 2) focus on interests, not positions; 3) invent options for mutual gain; and 4) insist on objective criteria.

What is the difference between Batna and reservation price?

The BATNA is what you are going to do when you walk away from a deal. The reservation price is the least favourable point at which you will accept a deal. If you are a buyer, it is the maximum you will pay. If you are a seller, it is the minimum you will accept.

What does Zopa mean?

zone of possible agreementA zone of possible agreement (ZOPA) is a bargaining range in an area where two or more negotiating parties may find common ground. … If negotiating parties cannot reach a ZOPA, they are in a negative bargaining zone.

Is ZOPA a bank?

Ltd. Zopa is a UK based peer-to-peer lending company founded in 2004 which has a banking licence.

Should you reveal your Batna?

Don’t reveal a weak BATNA. A bad BATNA is also known as a WATNA, or worst alternative to a negotiated agreement. Telling a supplier, for example, that you dumped your last partner and are desperate to do a new deal is a surefire way to ensure the supplier will highball you on price and resist compromising.

How can I improve my Batna?

Here are six bargaining tips and strategies for those seeking to improve their BATNA:Two (or More) BATNAs Are Better than One. … Don’t Reveal a Weak BATNA. … Don’t Let Them Diminish Your BATNA. … Research the Other Party’s BATNA.More items…•

What is Batna and Zopa?

The terms are BATNA and ZOPA. BATNA stands for Best Alternative To Negotiated Agreement. Your BATNA is what you’ll do if you don’t reach a deal. … The ZOPA is the set of all deals that are at least as good for each party in a negotiation as their respective BATNAs.

What is the difference between Batna and watna?

BATNA definition: the Best Alternative to a Negotiated Agreement. WATNA definition: the Worst Alternative to a Negotiated Agreement. In other words, what was the best alternative if he couldn’t negotiate a new contract. …

What are the negotiation strategies?

Six Successful Strategies for NegotiationThe negotiating process is continual, not an individual event. … Think positive. … Prepare. … Think about the best & worst outcome before the negotiations begin. … Be articulate & build value. … Give & Take.

What are the 4 steps of getting to yes?

4 principles for “Getting to Yes” separate the people from the problem; focus on interests rather than positions; generate a variety of options before settling on an agreement; insist that the agreement be based on objective criteria.