Batna for Soutwest Airlines and Muse/Transtar Essay

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Why Use BATNA (Best Alternative to a Negotiated Agreement)? By Edrie Greer, Ph.D., Global Knowledge Instructor Negotiation is one of the oldest problem-solving methods in the world. It's a basic means of getting what you want, when you and the opposing side share some common interests yet differ in others. A good negotiation method should protect you from making a bad agreement or rejecting one that you should accept. For example, if you implement a bottom line – by establishing in advance your worst acceptable outcome, such as the lowest price you'd accept for an item you're selling – you're limiting your options if circumstances should change during the negotiation, and you may not get the best possible agreement. What is BATNA? BATNA (Best Alternative To a Negotiated Agreement) is a term developed by Roger Fisher and William Ury of the Harvard Negotiation Project. In the absence of a deal, it is the preferred course of action you should take. It's a hefty concept that can make your negotiations more successful, especially when the other side is more powerful and/or has a stronger bargaining position. You negotiate to obtain something from another party that is more valuable than what you get by not negotiating. Knowing your BATNA allows you to understand how much it will cost you if you fail to come to an agreement. For example, if you're a car salesperson who is close to reaching your end-of-month quota (and that trip to Hawaii incentive) your cost of not agreeing to a deal proposed by a savvy customer will be high. Your BATNA will not be favorable, so you might be more willing to continue negotiations. Knowing your BATNA, instead of guessing what it might be, keeps you from being too optimistic about your alternatives. You might not fully understand the impact of a disgruntled employee who sues your company or an agitated spouse who hotly contests a divorce. It
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