CIPS Negotiation Challenge 2014

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CIPS Negotiation Challenge 2014
First Round
Dilemmas
ASSESSOR PACK
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Party Animal
You are in negotiation with your flatmates, trying hard to convince them you
should have a party at your house on Saturday. You have been revising hard
for crucial exams and feel you all deserve “just one night off”. You have
presented your case well and think they might agree but an uneasy silence has
developed as they look at each other to see who is going to respond. Which of
the following would you do and in what order?
1. Go over your argument again
2. Ask them a question
3. Stress that if ALL your friends are invited it will be the best houseparty
ever
4. Smile gently and say nothing
5. Excuse yourself for a comfort break for a couple of minutes.
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Party Animal
• 4, 3, 1, 5, 2
• 4, Remember – silence is golden! The first person to break the silence in a
negotiation generally concedes
• 3, Emotion is the most powerful of any persuasion methods
• 1, A credible logical argument supporting your issue is second in the power
of persuasion
• 5, Taking a recess is another way of holding silence for longer and gives you
time to review your strategy
• 2, Asking questions will simply re-open dialogue and remove any pressure.
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Take it or leave it
You are out shopping with a friend and see a great shirt which you have your
heart set on. However, the shirt on display is the only one in your size and has
a small black mark on the collar. You request a discount and the sales assistant
wants more than you proposed. In order of priority which of the following
would you do?
1. Ask for five minutes to think and discuss with your friend
2. Accept the deal
3. Stay silent, smile and maintain eye contact
4. Ask to speak to the Manager
5. Try to make him/her feel unreasonable
6. Say ‘No’ and decline
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Take it or leave it
• 5, 3, 4, 1, 2&6
• 5 - The use of Emotion in a Negotiation is most powerful and when the
other party feels unreasonable they will generally concede
• 3 - Silence is uncomfortable and the other party will mostly break the
silence within 10 seconds with small movement
• 4 - Always ensure you are talking to the decision maker
• 1 -Taking time out to re-asses and consider any proposal from the other
party is preferable to reacting to their offer immediately and without
thought
• 2 - is acceptance which is non-assertive behaviour
• 6 - could escalate into conflict. Neither option 2 or 6 will get you the best
deal.
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Still apart
You need to replace your laptop prior to starting University. You are in a
Negotiation in ‘Laptop World’ proposing a discount plus extras. The sales
assistant insists it would be very difficult to give any discount so only token
movement has been made. What would be the order of your preference of
these 6 possible courses of action?
1. Ask a friend to return to the shop with you for moral support
2. Agree to move considerably from your opening proposal
3. Agree to move slightly from your opening proposal
4. Allow the Negotiation to go to deadlock and return home without the
laptop
5. Be open about your feelings and the lack of movement
6. Explain to the sales assistant your reasons for asking for a discount.
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Still apart
•
5, 6, 1, 3, 4, 2
•
5 - Emotion – The most powerful persuasion method has the best chance of getting
you to the best possible outcome
6 - Logic – Get your logic in first with compelling argument to support your position
and you will have a greater chance of gaining movement
1 - Change Negotiators – Sometimes changing personalities will help gain movement
3 - There is a cost to this option. Always get something back in return for any
movement you make
4 - Threat – If threat is used be prepared to carry it through and use with care as it
can damage relationships
2 - Compromise – The behaviour of last resort. The movement will be costly for you.
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Fair and reasonable
You are buying your first car with your savings. You have set your mind
on a particular second hand model and have obtained prices from three
garages.
Garage
Price
A
£5100
B
£5300
C
£5295
Write down your negotiation objectives for each garage – (three actual
amounts, an Ideal price, a realistic price and a walk away price. The
various features of the purchase (tax, mot, car mats, fuel etc) are
identical for each.
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Fair and reasonable
•
•
•
•
Whatever target price you have decided to set through effective preparation and
planning, your targets should be the same for each garage
Garages B and C are simply conditioning you to change your starting point
The make, model and various features of the purchase (tax, mot, car mats, fuel etc)
are identical for each garage so therefore your target price should be the same
E.g. Targets for Garages A, B and C
– Ideal=£4335 Realistic=£4590 Walk-Away=£5000
The price students record is largely irrelevant. We are looking for a clear understanding
on how to recognise prices as a conditioning tactic plus strategies to counter these
tactics from each garage.
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A testing phone-in
You are home alone and receive a phone call from your mobile phone provider
about this years price increase. Which would you do and in what order?
1. Stay on the line in order to ascertain the specific details
2. Suggest you will go into your local mobile phone shop to discuss the
situation
3. Tell the caller you will not be accepting any price increases
4. Request they send you the relevant information through the post or via
email
5. Express your disappointment and mention that you wanted to stay a loyal
customer but this would make you consider taking your custom to another
provider.
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A testing phone-in
•
5, 3, 4, 2, 1
•
5 – Linking Emotion with a warm veiled threat will put you securely in a position of
power within the negotiation
3 – Both warm with the caller and tough on the issue. Assertive behaviour will
ensure your credibility throughout the negotiation. Getting your logic and reasoning
in first will also add to your position of power. Care to use good, sound, logical
reasoned argument
4 – This option simply delays the inevitable need to negotiate. That said, it allows
you time to make comparisons with other providers
2 – Suggests you are willing to accept some kind of increase when you arrive at the
shop. This option will however buy you time to plan and prepare
1 – You will react rather than respond and will not be in a position to drive a good
deal due to lack of preparation and planning.
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•
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Mirror, signal, manoeuvre
You and 6 friends are enjoying an evening meal at the local Italian restaurant.
The main meal was great but the service was poor and desert took over an
hour to arrive. You complain and request a reduction in the bill. Which of the
following responses suggests the waiter is prepared to reduce the cost of your
meal?
1. We are prepared to offer you a free soft drink on the house but a
reduction in the bill would be very difficult
2. Our standard policy is to apologise and offer a free drink on the house
3. Please accept our apologies. We do not give discounts as it is against
company policy
4. I wouldn’t be in a position to offer you a discount I’m afraid
5. As you ate everything and haven’t mentioned the service until now it’s
almost impossible for me to pass a reduction through the till.
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Mirror, signal, manoeuvre
• 1, 2, 4, 5
• 1 – ‘Very difficult’ does not mean impossible and is a signal of movement
from the other party
• 2 – ‘Standard policy’ means that with good negotiating skills the other party
could be persuaded to move. With the service being so poor we were
looking for much more than your ‘standard’ policy in terms of discount
• 4 – ‘I’ wouldn’t be in a position suggests someone else is the decision
maker. Ask to speak to the manager
• 5 – ‘almost impossible’. A signal for movement as the waiter is not saying it
is impossible.
The skill is to master the art of listening and pick up on any signals of
movements throughout a negotiation
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