Quick Answer: What Do Batna And Zopa Stand For?

What is Batna and watna negotiation in procurement?

BATNA stands for best alternative to a negotiated agreement.

WATNA is the worst alternative to a negotiated agreement..

How do you identify a Batna?

Fisher and Ury outline a simple process for determining your BATNA: develop a list of actions you might conceivably take if no agreement is reached; improve some of the more promising ideas and convert them into practical options; and. select, tentatively, the one option that seems best.

What are the 5 principles in negotiation?

Ethics and Negotiation: 5 Principles of Negotiation to Boost Your Bargaining Skills in Business SituationsPrinciple 1. Reciprocity: Would I want others to treat me or someone close to me this way?Principle 2. Publicity: … Principle 3. Trusted friend: … Principle 4. Universality: … Principle 5. Legacy:

What is avoidance negotiation?

Avoidance is a typical reaction when a negotiator is pitted against someone who is highly competitive. Avoiding negotiation styles work best in situations where the negotiation concerns a matter that is trivial to both parties.

What is an effective negotiation?

Negotiation is a process where two or more parties with different needs and goals discuss an issue to find a mutually acceptable solution. Good negotiations contribute significantly to business success, as they: … help you build better relationships.

What are the 7 basic rules of negotiating?

The 7 Rules of Power NegotiationWhere do people learn to negotiate successfully? … Rule No 1 – Everything is negotiable. … Rule No 2 – Know what you want before negotiating. … Rule No 3 – Aim for a Win/Win negotiation. … Rule No. … Rule No 5 – Never believe anyone else is entirely on your side. … Rule No 6 – Strive to be innocent. … Rule 7.More items…•

What are the 3 phases of negotiation?

The three phases of a negotiation are:• Phase One – Exchanging Information.• Phase Two – Bargaining.• Phase Three – Closing.More items…•

How do you negotiate a supplier?

In this article, you’ll learn about eleven successful tips for winning supplier negotiation.Build your Rapport. In business, building rapport plays a prime role. … Reach out for More. … Know their Customers. … Cost to Supplier. … Build on the Offer Price. … Flex your Finance. … Mental Math. … Find your Sweet Spot.More items…

What does Zopa mean in negotiation?

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.

Why is ZOPA important?

A “Zone of Possible Agreement” (ZOPA–also called the “bargaining range”) exists if there is a potential agreement that would benefit both sides more than their alternative options do. … The ZOPA/bargaining range is critical to the successful outcome of negotiation.

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 are some good negotiation tactics?

5 Highly Effective Negotiation Tactics Anyone Can Use. Want to be a better negotiator? … Listen more than you talk. … Use timing to your advantage. … Always find the right way to frame the negotiation. … Always get when you give. … Always be willing to walk.

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.

What is a walk away point?

In order to know when the outcome of the negotiation is just unacceptable and it is preferable to pursue the BATNA option; the negotiator must be clear about the threshold for each negotiable issue that is just acceptable. This is known as the walk away point. See also Negotiation.

Is ZOPA a direct lender?

Zopa enables investors to lend to UK consumers directly through its peer-to-peer lending platform. … Investors’ money is split across multiple borrowers. Investors then receive monthly repayments of interest and capital, which they can relend to compound the interest.

What negotiation means?

A negotiation is a strategic discussion that resolves an issue in a way that both parties find acceptable. … By negotiating, all involved parties try to avoid arguing but agree to reach some form of compromise. Negotiations involve some give and take, which means one party will always come out on top of the negotiation.

What is the meaning of Batna?

best alternative to a negotiated agreementThe best alternative to a negotiated agreement (BATNA) is the course of action that a party engaged in negotiations will take if talks fail, and no agreement can be reached.

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.

How can you improve your 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…•