Your Task

You will engage in a negotiation for the sale and purchase of acommercial asset such as a business or a piece of real estate.

Assessment Description

You may be nominated to represent the vendor and will receiveemail instructions from the vendor company CEO including:

1. Appointment to represent the company as their agent for thesale of the commercial asset;

2. Specific details about the commercial asset;

3. Information about the status of current negotiations with analternative potential purchaser;

4. Information about a new potential purchaser;

5. Contact details of the agent appointed to represent thepurchaser.

Alternatively, you may be nominated to represent the purchaserand will receive email instructions from the purchaser company CEOincluding:

1. Appointment to represent the company as their agent for thepurchase of the commercial asset;

2. Specific details about the commercial asset;

3. Information about alternative assets the company isconsidering purchasing instead;

4. Information about the vendor;

5. Contact details of the agent appointed to represent thevendor.

Stage 1: Pre-negotiation

1. What is your client’s BATNA? What is your client’sreservation value?

2. What is the other party’s BATNA? What is the other party’sreservation value?

3. What is the ZOPA range? What is your strategy for claimingthe greater proportion of the ZOPA? Include at least fifteenacademic references in your answers to the above questions with aminimum of five references coming from academic journals.

You must answer the following questions:

Stage 2: Negotiation You must:

1. Enter negotiations with your counterpart for the sale andpurchase of the commercial asset;

2. Maintain a communications log that captures the date, method,items discussed, and outcomes of each communication. Attach copiesof any communications that confirm agreed price

Stage 3: Post negotiation

You must prepare a 1 page letter to your client advising theoutcome of the negotiation.