Mgmt 405: GTY Chapter 6

What does the acronym BATNA stand for in negotiation contexts?

• Best Agreement Tactics for Negotiation Analysis

• Basic Alternative Terms for Negotiated Agreements

• Best Alternative to a Negotiated Agreement

• Baseline Agreement Terms for Negotiation Assessment

How can a well-developed BATNA influence your negotiating power?

• It decreases your confidence in the negotiation process.

• It provides a fallback option, reducing dependence on the current negotiation.

• It ensures the other party will agree to your terms.

• It eliminates the need for any negotiation.

Why is it important to explore alternatives before entering a negotiation?

• To intimidate the other party with your options.

• To have a clear understanding of your best options if the negotiation fails.

• To avoid making any concessions during the negotiation.

• To ensure the negotiation lasts longer.

What is a “trip wire” in the context of negotiation?

• A tactic to deceive the other party.

• A predetermined point that signals when to re-evaluate the negotiation strategy.

• An aggressive move to force agreement.

• A legal clause that nullifies the negotiation.

Why might disclosing your BATNA to the other party be advantageous?

• It shows transparency and builds trust.

• It can make the other party more willing to make concessions.

• It reveals your negotiation strategy.

• It has no impact on the negotiation.

What should you do if the other party has a significantly stronger bargaining position?

• Agree to all their terms to avoid conflict.

• Develop a strong BATNA to improve your negotiating power.

• Avoid negotiating altogether.

• Use deceptive tactics to level the playing field.

Why is it important to know your BATNA before entering a negotiation?

• It helps you avoid making any compromises.

• It prevents you from considering creative solutions.

• It gives you leverage by showing you what your best option is if the negotiation fails.

• It ensures you always reach an agreement.

What is one potential drawback of setting a bottom line in a negotiation?

• A. It makes you appear indecisive.

• B. It encourages the other party to raise their demands.

• C. It limits your ability to adapt and explore creative, mutually beneficial solutions.

• D. It increases your negotiating power.

When should you consider disclosing your BATNA to the other party?

• When your BATNA is extremely attractive and strengthens your position.

• As soon as the negotiation begins.

• Only if the other party asks about it directly.

• When you want to show flexibility.

What is the main advantage of a well-developed BATNA compared to a bottom line?

• A. A BATNA allows more flexibility and encourages creative solutions.

• B. A BATNA sets a fixed point for agreement.

• C. A bottom line reduces the need for negotiation.

• D. A bottom line provides greater negotiating power.