Case 1: Read the following discussion and answer the questions that follows:
Alex: Thank you for meeting with me today. I’m interested in discussing the potential investment
in your start-up company. I believe it’s an exciting opportunity.
Anderson: I appreciate your interest. We’ve worked hard to develop a solid business model. Let’s
talk numbers. How much are you considering investing?
Alex: Well, based on my analysis of similar start-ups in the market, I think a fair investment range
would be between $200,000 and $250,000.
Anderson: Interesting. That seems quite low considering the potential growth of our company. We
were initially looking for investments around $500,000 to really accelerate our expansion.
Alex: I understand your ambition, but I’m concerned about the risks involved in such a significant
investment. Let’s anchor the discussion around my initial range, which takes into account market
trends and potential challenges.
Anderson: Fair enough, but our company has shown promising traction and has already secured
major partnerships. We believe that a higher investment would significantly boost our growth
potential. Let’s consider this as a key disagreement: finding common ground on the investment
amount.
Alex: I acknowledge your achievements and partnerships, but let’s consider the wider market
conditions and the potential for unforeseen challenges. I believe my initial range provides a
reasonable starting point.
Anderson: I appreciate your caution, but I can’t ignore the significant opportunity we have at
hand. Can we debate around where we explore alternative investment scenarios that still align
with our growth goals?
Alex: Absolutely, let’s consider it as a debate. I’m open to exploring different investment structures
or milestones tied to funding. That way, we can balance risk and potential returns.
Anderson: That sounds like a reasonable approach. Now, let’s shift our focus to the terms of the
investment. What kind of return on investment (ROI) are you expecting?
Alex: Given the inherent risks of start-ups, I’m aiming for a return of 15% over a five-year period.
This allows for a realistic assessment of our investment.
Anderson: While I understand your caution, our projections indicate the potential for a much
higher return. Can we look at this point as a negotiation point where we work together to find a
middle ground on ROI?
Alex: Certainly, let’s do that. I’m open to revisiting the ROI based on a thorough analysis of your
projections and market dynamics.
Anderson: Excellent. In this negotiation, let’s remember that both parties have unique
perspectives and objectives. By acknowledging the potential for compromise, we can strive for a
mutually beneficial outcome.
Alex: Agreed. Let’s continue the discussion with an open mind and a commitment to finding a
solution that aligns our interests and mitigates risks.
Test: Spot the negotiation techniques from the conversation:
Question 1: Which negotiation strategy is Anderson employing when he state, “Our company has
shown promising traction and has already secured major partnerships. We believe that a higher
investment would significantly boost our growth potential”? ………………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………………
Question 2: What labeling technique does Alex use in response to Anderson’s request for a higher
investment? ………………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………………
Question 3: When Alex proposes an investment range based on market trends and potential
challenges, which negotiation technique are they utilizing? ………………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………………
Question 4: In the dialogue, when Anderson states, ” Can we look at this point as a negotiation
point where we work together to find a middle ground on ROI,” which negotiation technique are
they using? ………………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………………
Question 5: What mirroring technique is demonstrated by Alex in response to Anderson’s
statement about their company’s achievements and partnerships? ………………………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………………………
