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A Negotiation for Acquiring an Asset

Between Two Parties.


The Case:
Mr. Jamal had a clothing shop named Clothing World in Metro !hopping Mall in
"hanmondi Commercial #one. $e wanted to sell that shop as he needed some immediate
cash. As the news was spread out% there were two parties% Mr &ahim and Mr. Jahid e'pressed
their interests to (u) that shop. Mr. Jamal faced the pro(lem as (oth parties wanted to (u)
that asset% no one wanted to ga*e up% Mr &ahim% who had a shop +ust (eside Clothing World
wanted to e'pand the space () merging two shops. ,n the other hand% Mr. Jahid% an outsider
who wanted to start a new (usiness in that mar-et.
Mr. Jamal set a selling price of T. /000000 for the shop% (ut made up mind that at he would
sell it if he got T. 1200000. Mr. Jahid came first with an offer of T- 1200000% though he
was read) to pa) upto T- 1300000. ,n the same da)% Mr. &ahim also came with the same
offer as Mr. Jamal did.
As Mr. Jahid got the information that Mr. &ahim also offered the same price as he did% then
he raised the price to t- 14000000 as he was desperate to start a new (usiness in that mar-et.
When Mr. &ahim was informed a(out new situation% he was not read) to ga*e up either% he
also raised his price to T- 1400000 and requested to accept his offer as he was his fellow
(usiness man. Mr. Jamal fall in a dilemma% if he waited for a longer time he would get higher
price than what he anticipated% (ut he needed immediate cash. 5n Addition he thought if (oth
parties pulled off themsel*es from the race% then would (e affected negati*el).
Though Mr. &ahim was his fellow (usiness man (ut Mr. Jahid came first with the offer. $e
requested (oth parties indi*iduall) to tal- with each other and made a settlement. But the)
declined to do so.
To resol*e the deadloc- Mr. Jamal informed Mr. Anwar $ossein% the chairman of the mar-et
committee. Then one da) he set a negotiation ta(le and all the parties were present there in
order to negotiate with the goal of reaching an agreement.
Although (oth parties were desperate to attain the asset% (ut (oth ha*e alternati*e plans in
their respecti*e minds. Mr. Jahid had an alternati*e plan that he would go to some other
mar-et if could not get the shop. ,n the other hand% Mr. &ahim thought if he would not get
the shop he would in*est some mone) to his (usiness and rest of the mone) would (e
deposited in the (an- in order to capitali#e future opportunities.
Though initiall) the) came with a (it tough mindset (ecause the) held different power% (ut
ultimatel) the) sought a fair outcome. After an e'tensi*e and long discussion% Mr. &ahim
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admitted that Mr. Jahids claim is strong enough as he came first with the offer% (ut said his
own offer was not wea- either as he was doing (usiness in that mar-et for a long time. And
he was a fellow (usinessman of Mr. Jamal. To reach into a settlement Mr. &ahim ga*e an
alternati*e offer to Mr Jahid that if he would ga*e up his claim then he would sell him his
another shop owned () him in the same mar-et at (elow the mar-et price. $e said that Mr.
Jahid could (u) it as it would (e (eneficial for him.
Mr. Jamal thought a(out this offer and decide it would not (e wise to ma-e a conflict with an
e'isting (usiness man in that mar-et where he was going to (e a newcomer% in addition he
was getting a shop with a lower price% which could (e (eneficial for him% as he could in*est
the e'tra mone) in his new (usiness. Additionall) a warm relation with Mr. &ahim would
help him to do his (usiness in that mar-et in future.
6inall) he decided to accept that offer from Mr. &ahim and ga*e up the claim a(out Mr.
Jamals shop and got read) to start his new (usiness in that mar-et with a new shop% what he
wanted. Mr. &ahim aloso finall) got what he wanted% an e'pansion of his e'isting shop. Mr
Jamal also got what he wanted. The negotiation is ended successfull) as all the parties
(enefitted from the negotiation.
6rom the definition of negotiation we find that it is process that in*ol*e (etween two
or more people of equal or unequal power meeting to discuss shared or opposed
interests in relation to a particular area or mutual concern. 5n m) case two parson% Mr.
&ahim and Mr. +ahid were holding unequal power% where Mr Jahid had an ad*antage
that he was the first person to ma-e the offer and Mr. &ahim had an ad*antage that he
was an e'isting (usinessman in this mar-et. The issue of the negotiation is to acquire
the asset which is in this case% a cloth shop.
This is negotiation rather than selling as the it fulfills the condition that% someone
want something from someone else and *ice *ersa. $ere Mr. &ahim wanted to to (u)
the shop% and Mr. Jahid wanted to start a new (usiness in that mar-et. 5n the process
of negotiation Mr. &ahim offered another shop owned () him to Mr. Jahid and
wanted his gi*ing up claim a(out Mr. Jamals shop so that he could get it.
5t is an integrative negotiation rather than descripti*e one% as it in this negotiation all
the parties cooperate to achie*e ma'imum mutual (enefit% emphasi#ed on future
relationship (etween them and e*er) one found them in a win7win situation.
.e) Characteristics of these negotiations are
7 To resol*e the deadloc-
7 Mutual (enefit of (oth parties
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7 5n*ol*ement of third part)
7 Willingness of (oth parties to reach a solution
BATNA
Although (oth parties were desperate to attain the asset% (ut (oth ha*e alternati*e plans in
their respecti*e minds. Mr. Jahid had an alternati*e plan that he would go to some other
mar-et if could not get the shop. ,n the other hand% Mr. &ahim thought if he would not
get the shop he would in*est some mone) to his (usiness and rest of the mone) would (e
deposited in the (an- in order to capitali#e future opportunities.
!ellers &ese*ation Price was8 T- 1200000 (ut as-ing Price was T- /000000
Bu)ers &ese*ation Price was8 T- 130000 (ut the was finali#e at T- 1400000
$ere the 9,PA is T- 1200000 to T- 1300000
Mr. &ahim identified the reasons (ehind Mr. Jahids the interest for (u)ing the shop.
5f the negotioan did not happen% then e*er) part) would get nothing. And if there would (e a
successful negotiation then their o(+ecti*es would (e achie*ed.
5n this case the (oth parties are colla(orati*e in order to achie*e mutual (enefit.
Though initiall) the) came with a (it tough mindset (ecause the) held different power% (ut
ultimatel) the) sought a fair outcome.
5n this case Mr &ahim was in the mind set of offering first% and he did so% instead of using his
power to prohi(it Mr. Jahid from entering in the mar-et as he wanted a good relationship
(etween them.
Mr. &ahim e'tended his hand () offering an alternati*e first offer of selling his other shop at
a lower price to Mr. Jahid which creates a surplus *alue.
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