Case Study on Negotiation Regarding Buying a Flower Shop
Number of words: 1674
The case study analysis is depending on the past experience of buying a flower shop for starting my flower business. In this case study, I am properly explaining the negotiation which occurred during the time. Each and every factor associated with the negotiation is analyzed and explained properly. In this analysis process, some important aspects need to explain and provide a proper analysis to get proper success and then implement in real life to get a fruitful result from other negotiations. Issues associated with negotiation, and how to move on from these issues and then implement in real life to get a more effective solution. This study also helps to get more positive results for negotiation and then successfully conducts a proper negotiation and the experience can help me for personal professional development.
My interest in the case
I focused on a startup business after completing my education and it was a flower market. Due to this reason, I have observed that the demand for flowers in our locality was huge and it can stand as a profitable business for me. In this situation, I have observed that I have to choose a flower shop that has goodwill in our locality. That can help me to reduce cost in brand value generation and this shop can meet every type of requirement properly. As opined by Kumar and Antony (2018), the flower shop in the middle of the city has generated a loyal customers and met up with customer retention. However, the condition is not as good as other shops that can stand as a major issue in front of this flower shop. If I have invested some money for the repair and inauguration of this shop it can generate more customers and can contact the target customers. It is an important and crucial aspect for me to get a proper way to meet up with goals with strategy.
The interest of the other party
In this case study, I have observed that the seller wants to sell their shop due to this reason he leaves this city permanently and as soon as possible. As stated by Lewis et al. (2017), seller said that he would leave this city permanently and move on to another city, and there he bought a flower shop and did business. In this situation, the negotiation was done in a short time period and only 2 meetings were arranged between us. The seller wants to get a fair price and as possible a higher amount can get from selling his shop. It was an important aspect for this seller to get a fair price against his shop and then leaving the city permanently.
Negotiation issues and priorities
During the time of negotiation, I have observed that different types of issues can occur. The main issues are associated with the negotiation. The seller wants AED 55000 for the flower shop, however, I have a fixed budget amount of AED 50000 for buying this flower shop and AED 5000 for repair and inauguration of this shop. My exit point was AED 51000, which indicates the seller can get AED 51000 against his shop otherwise this deal will not occur. As a result of this negotiation, I bought this flower shop against AED 51000 which can maintain both parties’ interest properly. As stated by He et al. (2018), as well as in this dealing process different types of conflict have occurred between us but finally, this deal was properly done and both parties’ interests meet properly.
Exit and entry points of negotiation
At the beginning or entry point of negotiation, both parties provide information or bid of the flower shop. I have observed that in the entry point the seller asks for the AED 55000 and I am AED 50000. It was indicating between us AED 5000 was different, I am ready to pay the seller AED 55000 after completing the repair. But the seller wants to move to the city and due to this reason, the seller wants to avoid the repair. Because the repair may take a long time and the seller is not ready with this condition. As stated by Cao et al. (2018) Then the seller wants to sell his flower shop for AED 54000 excluding repair. I am unable, not ready to pay AED 54000 which was a high price in this locality. Then I realized after conducting a market survey to get an idea about the flower shop price and I was ready to pay AED 51000 against the flower shop.
Justification for accepting my offer
As a startup company, I did not have to pay much money for the flower shop, after buying this flower shop I have to pay approximately AED 5000 for repair and inauguration for this shop. As well as my budget was tight and I am unable to pay more money against this flower shop, I am ready to pay the seller AED 50000 against his shop. After analyzing and evaluating the condition of this shop AED 50000 is suitable for this shop, the seller was ready to sell his shop AED 55000. I planned that I can invest AED 55000 to ready this shop, however, the seller wants AED 55000 for this shop excluding repairing cost. It was indicating that I have to invest AED 55000 for buying this flower shop and AED 5000 for repairing this shop, which indicates AED 60000 needs investment by me to start a business that was excreted by budget. As a negotiation, I can pay AED 1000 more for this shop which was AED 51000 for buying this shop. This situation is indicating a win-win situation for both me and the shop owner. As opined by de et al. (2020), the primary object of negotiation was not to maintain a win-win situation that can be maintained in this case. If the shop owner wants to sell its flower shop it may not be a better option AED 51000.
Identify and explain the type of negotiation
The consisting and the conversion of this negotiation is indicating this negotiation is indicating a distributed type of negotiation. I gave the seller a fair price for his flower shop and this price is fixed by the similar types of shop prices in the same location. As well as after purchase this shop has to invest approximately AED 5000 for repair this shop. The seller claims that AED 55000 for this shop was higher than the market value and my budget. I stood fixed on my budget which was AED 51000 for a flower shop. The seller claims AED 55000 for this shop. On the other hand, I am offering AED 50000 for this shop which indicates a fixed pool of value is present in this deal (Jazbek, 2019). Then I offered AED 51000 for this shop and it can help to manage a proper negotiation and both parties’ needs and requirements are maintained by this negotiation. This AED 51000 is based on the condition of this shop and the other cost that will be required after purchasing the shop. This deal was indicating one party loss and one party gain, I lost AED 1000 and the seller gained AED 1000 for this dealing.
Final results of the negotiation
According to the of and every analysis and conversation, it is observed that I can provide only AED 51000 against this flower shop and then need to invest AED 5000 for repairing the shop. It is an important aspect to properly negotiate the deal properly and then invest to get more positive results from a dealing. As opined by Aktaş and Mäkelä (2019), this deal can ensure that both parties can stand in a win situation, I made sure that, to close the deal where I win. This offer is good for me and the seller and then implemented in a proper way to get both parties’ needs to be maintained properly. I am assuming that this negotiation deal can satisfy the seller and meet his requirements properly. The future repairing cost is playing an important role in this dealing process. I can pay AED 55000 for the shop when any kind of repair cost does not need to be paid. However, I have to pay AED 5000 for the repair and inauguration of this shop and the essence of this negotiation technique was totally unknown to me.
This case study analysis is indicating the expense that I had gathered from purchasing a flower shop. It was an important aspect for me to get more positive results and this experience can be enhanced by negotiation techniques properly. The main motive of this negotiation is to maintain a win-win situation for both parties that are associated with this deal. In this situation, I have to ensure that those strategies are implemented in this negotiation and both parties’ interests can be maintained. The main motto of this dealing was to get the flower shop at a reasonable price and I can also improve my negotiation skills in a proper way.
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de Oliveira Dias, M., 2020. The Four-Type Negotiation Matrix: A Model for Assessing Negotiation Processes. British Journal of Education (BJE), 8(5), pp.40-57.
He, H., Chen, D., Balakrishnan, A. and Liang, P., 2018. Decoupling strategy and generation in negotiation dialogues. arXiv preprint arXiv:1808.09637.
Jazbek, F.T., 2019. The influence of negotiation behavior on supplier satisfaction: a case study (Bachelor’s thesis, University of Twente).
Kumar, D. and Antony, S.D.P., 2018. Calcified canal and negotiation-A review. Research Journal of Pharmacy and Technology, 11(8), pp.3727-3730.
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