PRE NEGOTIATION WORKSHEET

DISTRIBUTIVE/INTEGRATIVE

Name of Negotiation: restaurant negotiation

Date of Negotiation:08.10.2018

You’re Name(s) (First name and surname):Liao yaxu, Hanieh

Your role in this negotiation:owner of the restaurant

REMINDER: The Pre-Negotiation worksheet MUST be completed PRIOR to your negotiation.

IMPORTANT! 10% of your grade on this assignment will be based on the visual quality of your
written work. This includes (but is not limited to) providing all requested information, proofreading
your document, running a grammar and spell check, and insuring that your document is properly
formatted and aligned. It is fully expected that you will submit “professional quality” work to your
instructor, both in content and in presentation.

PART 1: YOUR ANALYSIS OF THE NEGOTIATION

1. In one or two paragraphs, please provide a summary of why this negotiation is
taking place. You should include what brought the two parties to the bargaining
table, and what they hope to accomplish during the course of this negotiation. Be
as specific as possible using the general and/or confidential written information
that was provided for you.
 The restaurant owner’s desire of get enough money for the trip and the counterparts’
interest on making the restaurant more profitable brought us to the bargaining table.
 they hope to reach a settlement which enable both of us get want we want.
2. What alternatives do you have if you do not successfully complete this
negotiation? List all that apply (whether they be good or bad) and then identify
which option is your BATNA and why. (bullet points)
 We have an offer of $140,000 from Marseille investors
 We can keep looking for another buyer from different ads(we don’t need to give up
our trip in this way and we can probably find a better buyer who are willing to give
reasonable price)
 We can continue running the restaurant and leave our dreams

3. What factors/elements of this negotiation do you see as being DISTRIBUTIVE?

(bullet points)

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 The Price : should cover our debt for boat and make the boat ready for cruise, our
living expenses, saving for boat repairs, we need to keep some money in our bank
account for time of return
 We need the money quickly: since we are uncomfortable in the apartment and we
are almost near 50, also my wife needs this trip for depression
 We want money in cash

4. What factors/elements of this negotiation do you see as being INTEGRATIVE?

(These may or may not be expressed in the documents you have received. (bullet
points)

 both parties wants to make this deal, so negotiation is crucial

 we are both from same brand (feel as member of a bigger group)
 we have both worked hard for growth of the brand

PART 2: PREPARING TO NEGOTIATE

1. What are your INTERESTS in this negotiation? (bullet points)

 The money they can offer can help us for our purpose
 We want to fulfill our life dream(we need the trip)
 We want to leave the apartment as soon as possible
 My wife has depression and she can’t continue working
 Since the competition is getting hard, we prefer to not risk on business
 We want to go to this trip when we are still young enough

2. What CURRENCIES do you have that could be of interest to your counterpart? (bullet points)

 Our restaurant had been worked with the same brand name for 12 years

 We have an appropriate property

 They don’t need to pay for building a restaurant

 we have reputation in the area with their brand name

 we have regular customers

 we have employers who familiar with brand menu and recipes

3. What do you believe are the INTERESTS of your counterpart? (bullet points)
 They prefer to buy the restaurant with low price
 They would like to buy an equipped restaurant instead of building a new one
 They would like to save time
 They are aware about this restaurant avenue from the past years so they can have forecast
and marketing plan for increasing current avenue with less effort

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 They can benefit from regular customers
 They can benefit immediately from regular customers
4. What CURRENCIES do you believe your counterpart has that would be of interest to you?
 They are large restaurant franchise owner and are able to pay our desired price
 Most probably they can pay in cash (not installment or deposit)
 They are most potential buyer for saving 12 years restaurant

5. What alternatives do you believe that your counterpart has to this negotiation?
 They can find another equipped restaurant in the area
 They can buy a bigger land and build another restaurant
 They can purchase in another region in France

 Which alternative do you believe is their BATNA?

build their own restaurant
6. List the items you plan to negotiate AS OBJECTIVES IN NEGOTIABLE FORM.

 The price

 The time of delivery for total amount of money

 Get a position for in the restaurant in time of return

 In case of not reaching to settlement, negotiate about written consent for transfer

restaurant license to another person

7. In order to uncover the needs and interests of your counterpart, and to be able to validate
or invalidate your assumptions about him/her, you will need to ask a series of questions.
List ALL the questions you plan to ask your counterpart that will contribute to accomplishing
these two objectives. (Minimum 6 questions) Remember to focus ONLY on questions that
assist you in gaining information that would be helpful during the negotiation.
 what is their offer for the restaurant?
 What is your expecting revenue for the first year?
 How many people do you want to hire?
 what is your budget regarding constructing a new building?
 How do you attract customers if you build a new restaurant?
 When do you think you can make profit constructing a new restaurant ?

8. What specific information do you feel you should WITHHOLD from your counterpart?
Explain WHY. ( in one paragraph)
Don’t mention the sluggish economy in this industry,although opponents have already
known it,we would reduce our bargaining zone once we refer to it.(they will probably reduce
the price they offer. ).Also,never tell them our reservation point and BATNA which would
also narrow our bargaining zone by weakening our advantages.

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 9. Which party do you believe has more power in this negotiation? Explain in one paragraph.

In our point of view, the restaurant owner has the more power. First of all he had owned this
business for twelve years plus his yearly avenue shows that he had managed the restaurant
properly. In addition he possesses the license and property and can sell it to any better offer
while the policy of company is to increase their ownership. At the end, he had run the same
business for twelve years and knows its weaknesses, strength and competitors better than any
other person in the company and that region.

PART 3

POST NEGOTIATION WORKSHEET

DISTRIBUTIVE/INTEGRATIVE

Name of Negotiation:

Date of Negotiation:08.10.2018

Your Names: Liao Yaxu, Hanieh

Your role in this negotiation: owner of the restaurant

Please complete this post-negotiation worksheet immediately upon completion of your

negotiation, while everything is still fresh in your mind. Be SPECIFIC with your answers,
citing precise examples from your negotiation.

IMPORTANT! 10% of your grade on this assignment will be based on the visual quality of
your written work. This includes (but is not limited to) providing all requested information,
proofreading your document, running a grammar and spell check, and insuring that your
document is properly formatted and aligned. It is fully expected that you will submit
“professional quality” work to your instructor, both in content and in presentation.

1. List all the items on which you reached agreement, and include the amount or terms agreed
upon. If you finished with a “no outcome”, indicate where you got stuck and why, providing
details about which items you agreed upon, and which you did not.

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 They accepted six months vacation, however ,the representative goes to write a proposal to
management in order to make it nine months.
 They accepted to pay €150,000 as a loan with 24months instalment to refund. However they
would also gives us the money within six-month period.
The owner would stay as the manager of restaurant but in addition a person as a vice manager
will be committed to help the restaurant owner.This person can be trained and informed by current
manager about any details related to restaurant and he would run the restaurant while owner goes
for the vacation (although we fail to sell it ,we have more time to search the buyer after we finish our
trip)
 We came to an agreement that headquarter helps the restaurant in increasing marketing
activities and therefore sales growth
 They accept to send a proposal to the Les Florets restaurant management in order to
support us with new apartment near the restaurant
 As a exchange to all these supports, headquarter would take 10% share of the restaurant
profit

2. On a scale of 1-10 (1= very unsatisfied, 10=very satisfied), how would you rate your outcome
on this negotiation? Explain.
8 (two points are deducted for the failure of going to two-years trip around the world
and the failure of selling the restaurant; but we successfully enlarged the bargaining
pie by receiving the loan to support our trip and also get a chance to improve the
restaurant’s competition with company’s help which could guarantee a good prospect
of our future income, plus we save a large amount of money by reducing the duration
of vacation and we can save it to rent a better apartment. To sum up, not only we got
the chance to have the trip with less expenses from the deduction of trip duration, but
also we gain another chance to save the same position(job) and make more profit from
restaurant by improving the competition tools.

3. On your Pre-Negotiation Worksheet, you identified possible Integrative Elements (creative

options) within this negotiation which would create value and enlarge the pie. To what
degree were you successful in incorporating these elements into your negotiation? Explain.
The counterpart highly valued our experience in running the restaurant and the potential
regular customers in our restaurant,they didn’t want to loss such a good resource,so after
we mentioned that, they agreed to help the restaurant in increasing marketing activities
which could make the restaurant more profitable for them and we could also benefit from
it.

4. Look back at your Pre-Negotiation Worksheet where you identified what you believed were
your counterpart’s INTERESTS, CURRENCIES and BATNA. How accurate were you? Explain.
INTERESTS:we inaccurately identified their interest on our restaurant,buying the
restaurant is not their first choice,they had other alternatives.
CURRENCIES:we mistakenly believed they are well-funded for the price of the
restaurant.

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 BATNA：we failed to identify their BATNA,they were very scrupulous about it .
In your opinion, who had the stronger BATNA—you or your counterpart? How did that affect
the way you negotiated? Give at least one specific example.

We have better BATNA,because we could sell it to another potential buyer or

postpone our trip to next year,but they had no immediate option and if if they wanted to build
a new restaurant ,they would consume much more money and time on it.
5. Describe what you learned from this experience and what you would do differently in your
future negotiations to improve. (200 words minimum)
 Reanchoring as soon as possible when the counterpart give an offer to us which require
us make full preparation before negotiation(brainstorming all different responses our
counterpart might have after we anchor ,and make different equivalent offers in the value
of us before the negotiation)
 During the negotiation,we have to keep a clear mind,and never make a wrong decision or
say something wrong which is hard to recover (for example:reveal some info of your
BATNA accidentally).
 When we feel bad(personally feel tired,tense atmosphere,etc.)and get stuck in the
negotiation or we need time to deeply discuss some items with partner,feel free to call
for a break and the fresh air may bring us some good ideas.(we asked for a pause during
this negotiation which enabled us organize our mind and adjust our scheme ).
 Never be afraid of giving a kind of extreme offer, since the counterpart is also fully
prepared and have already thought about the possible offers they may receive before,a
high aspiration always ended with a relatively good outcome compared with opening with
a low aspiration,so set the goal highly before the negotiation and bravely express your
requirements.We think we could get better offer by asking for a longer vacation than two
years and setting a higher price(more than€200,000)for the restaurant at the very
beginning,and then make proper concessions which may eventually ended with better
result than now.