ESTABLISH YOUR NEGOTIATING POSITION

Before beginning any negotiation, you need to have a solid understanding of your limits and options. Your success
depends on knowledge of four concepts:

CONCEPT DEFINITION

BEST ALTERNATIVE TO Your option if you fail to reach

A NEGOTIATED agreement during a negotiation
AGREEMENT (BATNA)

WALK-AWAY POSITION The least favorable point at which you’ll

accept a negotiated deal; otherwise,
you walk away

ZONE OF POSSIBLE The range in which a potential deal can

AGREEMENT (ZOPA) take place, defined by the overlap
between your walk-away position and
the other party’s walk-away position

VALUE CREATION The trading of goods or services that

THROUGH TRADES have only modest value to their
holders, but exceptional value to the
other party (this primarily applies to
multiple-issue negotiations)

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