Part 1
Read this abbreviated analysis of the Hardball Negotiation Tactics:
https://www.pon.harvard.edu/daily/business-negotiations/negotiating-in-extra-innings-nb/
1.According to the analysis, what are the reasons why major league teams are slow to sign top free agents?
2. What can baseball players do to speed up the negotiation process?
3. Can you relate to this issue of running out of time during a negotiation? Please share examples of a negotiation that you have been part of that is similar or one you can see yourself in in the future.
4. What have you learned about negotiation in this module that you feel will help you or your classmates reading this board with their future negotiations?
Part 2
Response to Classmates: SHORT AND SIMPLE
Review and respond to at least two of your classmates’ postings. Your responses need not be long, but they should add substantial thought to the topic. You may certainly respond to more than two classmate posts but will only be graded on two. Consider spreading the wealth if you see a post that hasn’t received a response. Respond by continuing the conversation through quality engagement in any of the following ways:
Offering a new point of view
Asking a question to further the discussion
Sharing personal experiences or knowledge
Tying the information to new knowledge gained
Offering further research or information on the topic
Classmate #1: Anthony Carlock
1. Teams are able to reduce the power of negotiation for players by prolonging the process. They use this as a strategy because some players will feed into the fear of missing out. Another method used to coincide with this idea is when players sign late in the off-season they tend to sign at significantly cut prices than what was initially forecasted. Teams leverage this to acquire players much more feasibly.
2. Players can adapt and speed up the negotiation process by anticipating the instability in the process and set forth a plan for renegotiation. Players can accomplish this by including clauses in their contract that at suitable intervals allow renegotiation. Additionally, putting in dispute resolution clause can help smoothen out the process and reduce friction between the parties.
3. I have personally dealt with being constrained for time in negotiation. Often times in the job search process, I like to gather as many options as possible. The issue I run into with this strategy is when I am given an offer I am granted a small window of time to make a decision. The short turn around for me to accept an offer hinders my ability to weigh my options speaking to other employers.
4. I learned from this module the importance of being prepared as possible to obtain as much knowledge of my opposition or potential business partners to understand their motivations. In some of my sales jobs, this has been accomplished by building a rapport to establish some form of a relationship with clients. One of the Harvard case study illustrates this as it recalls Bob Iger of Disney executing a relationship based strategy to acquisition Lucasfilms from George Lucas. Alternatively understanding the Best Alternative to a Negotiated Agreement (BATNA), can allow you to stay firm within your negotiable boundaries and be fully aware of every aspect in a deal to execute optimally
Classmate #2: Michael Paz
According to the analysis, major league teams are slow to sign top free agents include for various reasons and do so with the end goal of being able to get the most out of deals with players. One reason is that major league teams use time to their advantage, the longer players wait to sign, the lower their negotiation power tends to be. Teams can always speak to other free agents if they can’t agree with a specific player so playing the long game grants them more negotiating power. Another reason is that the pressure to sign, for players, mounts as the window available for them gets smaller. This works out for teams as players who sign late in the off-season tend to settle for far less then they were expected to initially. Two more reasons why MLB teams are slow to sign top free agents are because they no longer rely on ticket sales as much and as a result focus on building their team around younger, less expensive players.
To speed up the negotiation process, baseball players can try using a few approaches mentioned in the analysis. They can anticipate instability by being aware that circumstances and implement a flexible negotiation process to atone for these changes. MLB players should also consider making sure their contracts include clauses that allow for renegotiation, this way even if they have to sign a not so ideal deal today, down the line they can renegotiate themselves to be in a better position. Another way to speed up the negotiation process is by identifying areas where their goals align with those of a certain team, opening up for win-win situations for both parties. Lastly, another strategy players can consider is teaming up with others to gain collective bargaining power.
Running out of time is something that can happen quite often in different negotiating scenarios. In my case specifically, I was impulsively looking to buy a set of wheels on Facebook Marketplace and after exchanging a few messages with the seller I learned that I wasn’t the only person interested in buying them. The seller told me the other person’s offer and asked hear to mines before selling the wheels but I stalled to shoot a number. I was skeptical, and thought the seller was lying about there being another interested buyer in order to inflate the price and rush the deal. I sent him my offer the next day only to find out the wheels had been sold already. I ran out of time to send my offer for thinking the seller might have been lying but was not disappointed because I knew I didn’t need the wheels and was just impulsively looking to buy.
Some of things that I learned in this module that I feel would help some people out is the importance of being prepared, being an effective communicator, and being flexible. Preparation is everything in almost anything you, of course there are cases where unexpected things happen, but doing research and remaining prepared will only help when negotiating. Being an effective communicator includes being able to clearly convey one’s interests while understanding the other party’s needs, which will help find a common ground. Lastly, being able to adapt to changing situations can help leverage oneself out of suboptimal situations or even take advantage those that offer new bargaining power.
