3.5 Negotiating Strategies (Shobhit Gupta)
3.5.1 Salami (Slice by Slice) – it is one of the nNegotiating strategies tactic when overtime, small concessions are made by one party to the other. These Concessions seem reasonable at the time, but in the long run term they become large concessions. It also creates a panic in the mind of the other party that the deal for acquisition can be cancelled at any point of time by the party who is offering.
So wWe can will apply this negotiating strategy tactic at the time of negotiation with Zenur Team. by not disclosing Levon’s budget of $400 million to acquire the car-sharing business. We have a budget of $400 million to acquire Zenur but by applyingThe application of this strategy may help Levon we can acquire Zenur’s business for a in lesser amount. First, we will can offer them the lowest market value for the business, let us say $34000 million for the acquisition and then if they do not agree, we will then increase the offer “slice by slice” asking a reason for the additional value from Zenur’s team, so we can gauge the price they are willing to accept to let go of their business. like after some time we can offer $360 million and later $380 million.
By offering “slice by slice,” the Zenur board members cannot tell predict our final Levon’s maximum budget budget of for the acquisition and we can may acquire Zenur for ain lesser amount.
3.5.2 Deadlines: This is another negotiatingon strategy which we are going to use at