MIDTERM 2 EXAM QUESTIONS
1. According to the video “The Sluggers Come Home,” name the following characters: a. The owner of the stadium?
Billy Curry and Ted
b. The Bears owner and the team manager?
Barbara Meyers is the owner of the Bears and Al Griggs is the team manager. c. The name of the commentator?
The commentator in the video is Dr. Margaret Neale.
d. Which character recently earned an MBA? What was his or her role in the story? Carla has recently earned an MBA and her role is aid in negotiation. 2. Why is there no team in the Morgan Hills stadium?
The teams owner was died and the heirs sold team.
3. The Narrator says, “no one should accept a deal that makes him or her worse off,” Yet, she says, this often happens. Give two reasons why? 1) Not knowing reservation prices and 2) Irrational excavation of commitment, need for a deal 4. Describe two types of unrealistic expectations in evidence in the video 1) Overconfidence. It’s somebody who over value their assets. Barbara Meyers who is the owner of the Bears is overconfidence. 2) Under confidence. It’s somebody who under value their assets. Billy Curry and Ted are under confidence. e. Which expectation did the park owners exhibit during the preparation stage? Under confidence. 1) sluggers name and 2) offer $500,000 rental for one year. f. What did team owner show at beginning?
Overconfidence. Barbara is looking for quick deal. She only offer $200,000 at the beginning. g. Give an example of each type of behavior.
1) Ted and Billy, they make lots concessions, and try to accommodating. 2) Barbara is irrational and wants a distributive negotiation. 5. Name and described the two types of negotiation.
Distributive Negotiation- describes a win-lose and competitive situation Integrative negotiations- describe a win-win situation that parties try to find a solution to make the deal bigger. h. Which type was most evident in the early struggle between the two businesses? Distributive.
i. Which party seemed determined to shift to the more promising type? Ted and Billy.
j. Give an example of how they tried to shift the dynamic. They expand the range and make concessions.
6. What was the Target Price that the stadium owner established for the lease of the park? The Curry brothers’ target price is at $500,000.
7. What was their Resistance Point?
Resistance point is $240,000.
8. What was the BATNA they determined?
The BATNA for Ted and Billy is sale the park to city.
9. What was the target price that the team owner was expecting to pay? What was her resistance point?
1) Barbara’s target price is less than $175,000 and 2) her resistance point is 250,000. 10. What did the Narrator say was the danger of over competitiveness? 1) makes behavior irrationally and 2) see every issue as distribute 3) make other party walk away. k. How did it show up?
1) makes a quick deal and 2) let other party make first offer. 11. What is meant by the mythical fixed-pie?
Your lose is my gain.
12. What is risk in making the first offer?
1) Become an anchor and strongly affect the final outcome. and 2) A ridiculous first offer lead to the other party walk away 13. Why do some negotiations coaches urge always let the other party make the first offer? Realize the target price and may pleasant surprise which is a lower offer. l. What is the first offer called?
The first offer is called an anchor.
m. What are the characteristics of a good opening offer? 1) ambitious 2) discussable and 3) reasonable.
14. What is the role of anchors in bargaining?
Top and bottom of range of future offer.
15. When Ted made the first offer. Barbara was seen to flinch. n. What is a flinch?
A shocked or surprised reaction to an offer is flinch
o. What effect did her reaction have on the negotiation? Barbara thought the price is...