Three Key Negotiation Tips

Three Key Negotiation Tips - maintain consistency * Base...

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* Three Key Negotiation Tips Tip #1: Preparation * Know your BATNA! * Define your  own  reservation price;  nothing but new info can adjust  your reservation price! * Research the other party’s  BATNA/reservation price—the  more prepared party controls  negotiation. * Determine individual MESOs  ( M ultiple  E quivalent  S imultaneous  O ffers) * Three Key Negotiation Tips Tip #2: Strategies  * Focus on your strengths; be aware  of and shore up your weaknesses;  be realistic but optimistic * Make aggressive first offers  whenever possible
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* Aggressive goals not aggressive  behavior * Gather information during the  negotiation * Watch how you are making  concessions * Develop reciprocity and trust * Three Key Negotiation  Tips Tip #3: Outcomes * Consider environment—table,  noise, lighting, temperature, etc. * Ratify small steps on your way to  ultimate goal to gain buy-in and 
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Unformatted text preview: maintain consistency * Base results on objective standard * Create a Win-Win Scenarioyou never know when you will negotiate with same person again * Follow up on decision even if it is negative Now that we have discussed the firms calculations for: * Cost of Debt (bonds) * Cost of Equity (preferred stock, common stock) We are ready to combine them using the WACC formula . The weighted average cost of capital is just the weighted average cost of all of the financing sources. CS: MARKET value of common stock k CS : cost of common stock PS: MARKET value of preferred stock k PS : cost of preferred stock D: MARKET value of debt k D : cost of debt V: D + PS + CS T: Tax Rate...
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This note was uploaded on 11/23/2011 for the course BUS M 301 taught by Professor Jimbrau during the Summer '11 term at BYU.

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Three Key Negotiation Tips - maintain consistency * Base...

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