1. Accommodating Strategy The CEO of a company wants a pay rise. The company policy doesn’t allow the CEO to be paid more than a certain sum yet theycan’t afford to lose the most important man in the company. This is an example of the accommodation strategy. Thus in order to retain the CEO’s services the company negotiates with the CEO and adds more benefits and perks to his contract instead of allowing a pay rise. Competing Strategy A scandalous Indian actress wants to purchase a rare Rolls Royce; however the Rolls Royce is just reserved for the very elite of the world.
The company, upon receiving the request for the car will put their own need on a higher scale due to the risk of damaging its own reputation and image. The needs of the actress will be given a lower priority and her request will be denied. Avoiding Strategy A soccer player wishes to renew his contract with a substantial pay rise. However, his team cannot afford to fit his new demands into their wage structure. The representatives of both parties agree to meet and negotiate the deal.
Since there were still 2 years remaining before the player’s current contract expires, the team’s representatives agree to defer contract talks till the next year thereby successfully avoiding contract talks. 2) Did Ari and his counterpart exhibit integrative or distributive bargaining? Ari and his counterpart displayed distributive bargaining. This is because Ari wanted fair compensation for work done by him in the past for his counterpart. Since both negotiators are looking for a share from a common pool of money, the more Ari gets, the lesser his counterpart shall be left with.
Distributive bargaining is known to be a process where both parties are trying to break something up and get as much for themselves as possible, as displayed by Ari and his counterpart. Thus, it would be appropriate to say that the style of negotiation displayed in this situation is that of distributive bargaining. What were each sides starting offers, aspiration ranges, and settlement range? The starting offer made by Ari’s counterpart was that of $4 million. Ari did not make a starting offer but instead outright rejected his counterpart’s offer and went on to tell of his accomplishments thereby suggesting that the offer was too low.
Ari’s aspiration range was somewhere above $12 million whereas his counterpart seemed like he wanted to seal the deal within $10 million. The settlement range turned out to be within the $10-$12 million range and the deal was finally closed at $11 million. Do you think there may be any negative repercussions from Ari Golds very aggressive negotiation style? Ari’s negotiation style is very aggressive to begin with and he tends to swear at and verbally abuse his counterparts a lot.
This arrogant style cannot always get him what he wants because there can be situations where his counterparts might get offended and refuse to negotiate thus ruining the whole deal. Therefore, Ari needs to realize this and adopt a more cautious approach to his negotiating process so that he can ensure that a successful negotiation process will take place with a favorable outcome. Bibliography Schermerhorn, Hunt, & Osborn. (2003). Organizational Behavior (8 ed. ). John Wiley & Sons, Inc.