This negotiation took place between the CEO of a US-based company (BioPharm) and a small business (Seltek). BioPharm operates in the pharmaceutical industry. She wants to buy or build a factory in the United States to produce a new product called Depox. Our group's main objective as negotiators is to play the role of BioPharm to purchase a factory owned by Seltek. It's on sale. This plant is the most suitable choice for BioPharm for a number of reasons, including saving the time and cost of building a new plant, as the Seltek plant is in operation and has obtained approval from the FDA. In addition, it also has a highly experienced workforce, which can help us reduce the cost and time of recruiting and training new employees. The most important issues to bring to the negotiating table are the period of time the plant will be available for use. , the determination of the current workforce and the Petrochek patent that accompanies the factory. Among these issues, time is significant because we experience a $1 million loss in profit each month while waiting for the factory to become available. In preparing for this role play, we analyzed our own situation, evaluated the counterparty and developed a set of strategies to manage this negotiation. First, by evaluating ourselves, we determined that our BATNA was associated with $37 million. I included the cost of building a new factory ($25 million), lost profits in 12 months ($12 million), and the cost of the 90-day option to purchase land (0. 5 million dollars). A $10 million non-refundable expense related to purchasing the option for the land is considered the sunk cost. The maximum amount our group could spend on this purchasing intent is $40 million. We decided our goal would be $16 million... middle of paper ...... ambitious and ambitious enough to avoid setting bad limits and goals. A common tactic is to ask for a price (S1) higher than the target (Stp). However, making an unreasonable request is not beneficial at all because “transactions would only take place if it was advantageous to the parties involved” (Benjamin Franklin). In fact, it's not a mistake if negotiators think they need to ask for more. For the price to be appropriate, good reasons are essential so that negotiators can demonstrate to the other party that the price is reasonable and credible. In our negotiation, the other group sets a weird price ($53 million). This price was certainly rejected by our group as a buyer. The final price was only $16 million. Therefore, asking something strange is not a wise tactic. This can undermine the reliability of the negotiator and possibly harm the other party..