Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
59 Cards in this Set
- Front
- Back
|
A strategy that a negotiating party uses during the negotiations
Once initial negotiating positions have been articulated and understood, the parties enter into bargaining. The best negotiators and deal makers master two tools: conditions and concessions. Some additional bargaining gambits include: - Good guy/bad guy - Poker face - Patience and persistence - Common ground Frequent negotiators are constantly inventing new approaches. |
Bargaining Gambit
|
|
|
Large clients to whom a new venture offers services at a loss to gain the positive-sum effect of using them as a reference with other clients.
|
Bellwether Customers
|
|
|
In a negotiating session, options and alternatives that help the negotiator establish a bargaining floor and determine whether the negotiation is worth continuing; also called a walkaway alternative.
|
Best Alternative to a Negotiated Agreement (BATNA)
|
|
|
A strategy that a negotiating party uses to close a negotiating session.
As bargaining positions harden and a mutual agreement approaches, the parties have an opportunity to close the negotiation. Vulnerability can be used to the entrepreneur’s advantage through the following closing gambits: - Nibbling/whittling - Reframing the deal - Appealing to ego |
Closing Gambit
|
|
|
What a negotiator gives in a negotiation.
|
Concession
|
|
|
What a negotiator gets in a negotiation.
|
Condition
|
|
|
A tactical move that a party makes during negotiations to better its position.
|
Gambit
|
|
|
Zero-sum negotiations involving tactics that often include a third party as a mediator or arbitrator. Disputes that end up in court often result in lose-lose outcomes
|
Lose-lose Negotiation
|
|
|
Negotiations in which one or more parties views the negotiation process as a zero-sum game. Also called Distributive negotiating
|
Lose-win Negotiation
|
|
|
A process in which two or more parties attempt to reach acceptable agreement in a situation characterized by some level of real or potential disagreement.
|
Negotiating
|
|
|
The art and practice of attending social events and connecting with individuals who may be able to assist with the entrepreneurial venture
|
Networking
|
|
|
A strategy that a negotiating party uses to open a negotiation.
Negotiators can start a negotiation by: - Asking for more than one can get. - Offering less than one is willing to pay. - Never saying yes to the first offer. - Flinching at the first offer. A key to opening a negotiation is to avoid conflict |
Opening Gambit
|
|
|
A view of the negotiation process in which the negotiating parties create new substantive and relationship value as a result.
|
Positive-Sum Game
|
|
|
Outcomes that affect the status of the interpersonal relationship between the parties to the negotiation.
|
Relationship Outcomes
|
|
|
The situation in which resources are limited and must be acquired, applied, and managed efficiently.
|
Scarcity
|
|
|
Finding something that was needed but wasn't necessarily being sought
|
Serenditpity
|
|
|
The final terms of the negotiated agreement.
|
Substantive Outcomes
|
|
|
Negotiations in which both parties are satisfied with the outcome and neither party has a sense of loss.
Parties are satisfied with outcome and don’t have a sense of loss Based on the assumption that the parties are engaged in a positive-sum game Bellwether customers can be important for entrepreneurs convincing other potential clients of the viability of the new venture Effective win-win negotiation is accomplished in three steps: - Building a foundation - Exploring the possibilities for a solution - Seeking agreement |
Win-Win Negotiating
|
|
|
A view of the negotiation process in which limited resources are assumed and the goal is to obtain control of those resources.
|
Zero-Sum Game
|
|
|
Networking skills have been identified as one of the most important factors distinguishing successful entrepreneurs from those who are not successful. (T or F)
|
True
|
|
|
Entrepreneurs should narrow their social network to gain access to crucial resources.
(T or F) |
False
|
|
|
Successful entrepreneurs do not waste time attending industry-linked social functions and events in the simple hope of a serendipitous encounter.
(T or F) |
False
|
|
|
The ability to develop common ground into a mutually beneficial business relationship requires negotiating skills. (T or F)
|
True
|
|
|
Entrepreneurs negotiate nearly every day because the environment in which they are working is characterized by profusion. (T or F)
|
False
|
|
|
Everything is negotiable, and a firm response of yes is only an opening position in business negotiations.
(T or F) |
False
|
|
|
Research has shown that an entrepreneur's social network varies from time to time depending on the different phases of the venture's life.
(T or F) |
True
|
|
|
Parties to a win-win negotiation are satisfied with the outcome and don't have a sense of victory
(T or F) |
False
|
|
|
Lose-lose negotiation is zero-sum and involves tactics that often include a third party as a mediator or arbitrator.
(T or F) |
True
|
|
|
One effective preparation objective is for entrepreneurs to determine their BATNA before entering the negotiation process
(T or F) |
True
|
|
|
In which phase do entrepreneurs discuss their initial idea and develop their business concept?
|
Motivation Phase
|
|
|
Which of the following is a straightforward technique that the entrepreneur can use to be effective in networking?
|
A) Make a great first impression.
B) Ask open-ended questions. C) Be an active listener. D) All of the above |
|
|
Which of the following web services provides entrepreneurs the opportunity to connect with a wide range of other entrepreneurs, professional service providers, and consultants via the Internet?
_____ helps people make connections and grow their networks. Members get a free networking-oriented home page and can send messages to other members. They can also join special networks related to their industry, interests, or location. More than 200 organizations host networks on ______ to help their members interact with each other and grow their organizations |
Ryze.com
|
|
|
All negotiations consist of
|
A) interdependence and conflict.
B) Opportunistic interaction. C) Possibility of agreement. D) All of the above |
|
|
Which type of negotiation is in use when someone orders merchandise for retail display?
|
Lose-win
|
|
|
Entrepreneurs use their networking skills for a variety of reasons:
|
- Acquiring new business
- Finding new employees and other human resources - Learning new ways of doing things that may be better than the old ways - Obtaining resources such as money, office space, telephone systems, and so on |
|
|
The venture development phases identified by the investigators are:
|
The motivation phase: Entrepreneurs discuss the initial idea and develop their business concept.
The planning phase: Entrepreneurs seek the knowledge and resources needed to launch the venture. The establishment phase: Entrepreneurs actually establish and run the venture. |
|
|
The webs of contacts that help bring about success are called
|
Social Capital
|
|
|
there are some straightforward techniques that the entrepreneur can use to be effective in networking. Here is a list of eight such techniques:
|
- Make a great first impression
- Remember names - Ask open-ended questions Open-ended questions tell people that you are interested in them, and such questions allow people to talk about themselves. Some examples include:Tell me about your business, What services do you provide, How is your industry doing? and What are your biggest challenges? - Be an active listener - Establish common ground - Seek to help others first - Be able to describe how your venture helps others - Follow up |
|
|
the following web services provide entrepreneurs the opportunity to connect with a wide range of other entrepreneurs, professional service providers, and consultants via the Internet:
|
- LinkedIn
- Ryze.com - Friendster |
|
|
In fact, some networking consultants advise that the primary objective of networking should be to...
|
Gain an understanding of others' concerns and problems.
|
|
|
Establishing _________ is the goal of networking
|
Key contacts
|
|
|
Entrepreneurs negotiate with ______________ to obtain money for their ventures
|
Angels and Venture Capitalist
|
|
|
Entrepreneurs also negotiate with many other people, including customers, vendors, suppliers, and investors. All negotiations, regardless of the context or parties, consist of four basic elements:
|
- Interdependence.
- Conflict - Opportunistic interaction - Possibility of agreement |
|
|
Entrepreneurs who know their BATNA, which is also called the...
|
Walkaway alternative
|
|
|
In general, three types of outcomes can be produced through negotiating:
|
- Lose-win
- Lose-lose - Win-win. |
|
|
The actions in each step of the win-win negotiation are guided by five general rules, called the Five Cs:
|
- Concentrate on each side’s interests
- Create an appropriate climate - Communicate clearly - Carry out a practical process - Consider each side’s effectiveness |
|
|
Research on the fundamental factors that make negotiations effective has identified four primary factors:
|
- Obtaining substantial results
- Influencing the balance of power - Promoting a constructive climate - Obtaining procedural flexibility |
|
|
Five generic bargaining gambits based on the conditions and concessions concepts are...
|
- Refuse to make any concessions until all the demands are known.
- Negotiate the negotiations - Condition any agreement on approval of a higher authority - Never make a concession without asking for one in return. - Condition all concessions on one another |
|
|
_________ is a provider of private online networking tools used by more than 800,000 people in all industries and across the globe. By managing their existing network on LinkedIn, people can discover inside connections they never knew they had and reach the people they need to meet through referrals from others they already know and trust
|
LinkedIn
|
|
|
________ is more socially oriented than either Ryze or LinkedIn. Nonetheless, its online services enable entrepreneurs to create their own personal and private networks where they can interact with people who are connected through networks of mutual acquaintances.
|
Friendster
|
|
|
Researchers have begun to assess the importance of the entrepeneur's ______ as a means to gain support, knowledge, and access to distribution channels
|
Social network
|
|
|
An entrepreneur's social network has several characteristics. One of these characteristics is the size of the network. Entrepreneurs can enlarge their social network to gain access to crucial resources. Another characteristic of an entrepreneur's social network is ________
|
Positioning
|
|
|
________ is the resources, support, and advice that an entrepreneur's social network can provide to the growing venture
|
Social Capital
|
|
|
The four basic elements of negotiations are
|
- Interdependence
- Conflict - Opportunistic interaction - Possibility of agreement |
|
|
Entrepreneurs spend least amount of time during phase 1 and that phase ____ entrepreneurs spend the most time developing their network
|
Phase 2
|
|
|
Phase ____ entrepreneurs spend an amount of time somewhere between phases 1 and 2
|
Phase 3
|
|
|
Phase 3 entrepreneurs spend an amount of time somewhere between phases 1 and _____
|
2
|
|
|
The acronym SHE stands for...
|
Smile, handshake, and eye contact
|
|
|
Entrepreneurs negotiate every day because the environment in which they work is characterized by _______
|
Scarcity
|
