Thinking Styles, Negotiation & Conflict Management Are Crucial For Effective Essay Writing.

Discuss about the Thinking Styles, Negotiation & Conflict Management.

This presentation is a negotiation process on behalf of a client-vendor against the purchaser. The commercial asset on sale is the real estate owned by my client. The presentation covers three main areas, namely: pre-negotiation, negotiation, and post-negotiation.

Thinking style according to Lauren?iu and Ramona (2014, pg. 21) is a concept that determines the link between one’s intellectual capabilities and his/her personality. My thinking style is Monarchic. With this thinking style, one prefers solving one problem after the other. My level of thinking style is internal. In this case, I prefer dealing with tasks that require some engagement with particular, solid chores that require substantial accuracy in execution. The Internal level of thinking style is particularly important in ensuring best results in a given task. 

The Monarch form of thinking style and the internal level of thinking are sufficient in for ensuring an optimal for administering this negotiation. A Monarchic form of thinking styles allows one to be focused and objective in solving a given problem. All the energy and concentration is put into a given engagement (Lauren?iu and Ramona, 2014). On the other hand, the internal level of thinking style in this negotiation will ensure the negotiator is specific to the issues of the subject, and that, clear and accurate decisions are made in the negotiation process.

To ensure a more optimal thinking styles for this particular task, the specific adjustment that needs to be considered is borrowing some ideas from other forms and levels of thinking styles. To cite as an example, as a negotiator should adopt the idea of an anarchic form of thinking styles that allows executions of multiple tasks that allow some level of flexibility and have no formal structure (Lauren?iu and Ramona, 2014). By so doing, the negotiator will be able to engage in many tasks in the negotiation without many problems. Also, the negotiator can also borrow the ideas of solving problems that are more open and general and that expect one to think in a more abstract way. The reason for making such as an adjustment is to ensure that one is prepared in case the purchaser decides to employ an internal level of thinking style in this engagement.

BATNA simply refers to a Best Alternative to a Negotiated Agreement. The client's BATNA for the real estate investment is $175 million, and the reservation value is $150 million. The $175 million is the amount the other purchaser had offered to give as payment for the investment, and $150 million is the predetermined minimum value of offer the client can accept for the investment.

BATNA and ZOPA of Both Parties

The BATNA of the purchaser is $135 million, and the reservation value is $163 million. The $135 million is the budgeted amount the other party had prepared to pay for the property and $163 is the highest they can stretch the budget for the commercial asset. This means that the purchaser can afford to any amount between $135 and $163 million for the asset. 

ZOPA is the Zone of Possible Agreement. In the sale of property, product or services, ZOPA is the intellectual region where two parties in the negotiation can agree. In this case, the ZOPA lies between $150 million and $163 million. This is the comfort area where the negotiation should be focused by both parties. However, this is not final as my client may opt out of the negotiation if a better offer is placed on the table by another vendor. The best strategy to obtaining a greater proportion of the ZOPA is by raising the reservation value. This will force the purchase to increase his/her BATNA.

Entering into negotiation requires that the seller makes an offer to the buyer, in this case, the selling of a real estate. The intention is to attract the potential offers for purchase from different vendors. This process involves the use of a contract that is prepared by the real estate local association with the support of their legal counsel. The sole purpose of preparing the contract is to allow vendors the opportunity to understand the property is of what nature and its market price (Bruce and Ray 2006). The contract document also provides room for specifying the clauses the parties wish to be factored in the agreement including the purchase terms, the closing of negotiations, the official handover, the amount required for deposits and any other conditions that will bind the contract.

Once the buyers complete making their offers, they will be expected to make an official delivery to the seller. The most potential buyer is appraised, and the negotiation is moved to the next stage. The negotiator will expect that the potential buyer to give a detailed offer. The offer of a suitable buyer will be the basis for further negotiations. The negotiator is entitled with the right to accept, reject or even give a counter offer after a detailed review of its details. With a counter offer, the negotiation process is initiated (Bruce and Ray 2006). The Complete counter offer should entail the following information: the deadlines for giving feedback, dealing with various contingencies and other special conditions such as asset inspection and the financing arrangements. This will lead to several exchanges between the negotiator and the buying part until the agreement is reached or the negotiations fold, and the log below is documentation of all the communications between the two parties.

Negotiation

Table 1: Communication Log

The following are the issues that were covered in the negotiation, the outcome, and the possible next move: The negotiator did apply the monarchic form of thinking style and internal level of thinking style. Our BATNA to the negotiation is $175 million, and the reserved value is $150 million. On the other hand, the BATNA for the purchaser is $135 million, and their reserved value is $163 million. After extensive negotiations, the agreed price was $160 million.

Further, the other important items that were covered in the report include the following: earnest money payment, taxes and other adjustments and title of the real estate. The others are property ownership/possession, the risk of losses, developments, and fixtures, general conditions and time to accept and close the sale. After extensive negotiations, the parties agreed that the process of closing the sale of the real estate would take approximately six months.

The following are the outstanding issues of the negotiation process: the agreed price for the property is $160 million. According to the agreement, the parties also committed that during the closing of the sale, a 40% down payment and the remaining balance of 60% be paid at the interest rate of 12% per year. The title deed of the real estate transfer. At the closing of the sale, the seller must give the title to the purchaser, and it must have a good and sufficient warranty that is free from all liens and obstructions saving as otherwise given in the offer. Property Ownership/Possession- the seller must transfer the possession of the asset to the purchaser at the closing of the sale and failure to do so, a certain fee will accrue.

In general, the negotiation should be implemented since the sale value of $160 million is above the reserved value of $150 million and there is no any other purchaser who is giving us a better offer.

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