Condo Case Analysis. RV and ZOPA Reservation Values, Home – Mr. Johnson:$130,000 (market value)...
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Transcript of Condo Case Analysis. RV and ZOPA Reservation Values, Home – Mr. Johnson:$130,000 (market value)...
![Page 1: Condo Case Analysis. RV and ZOPA Reservation Values, Home – Mr. Johnson:$130,000 (market value) – Mr. Smith:$400,000 (Value of 2 condos minus construction.](https://reader037.fdocuments.net/reader037/viewer/2022110322/56649d155503460f949ea662/html5/thumbnails/1.jpg)
Condo Case Analysis
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RV and ZOPA
• Reservation Values, Home– Mr. Johnson: $130,000 (market value)– Mr. Smith: $400,000 (Value of 2 condos minus
construction costs)– ZOPA = $130,000-$400,000 = $270,000
• Reservation Values, Lot– Mr. Johnson: $50,000 (market value)– Mr. Smith: $600,000 (added gym value minus
construction costs)– ZOPA = $50,000-$600,000 = $550,000
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Home Sale Price =$150,000Lot Sale Price = $150,000
• Mr. Johnson– Home Sale $150,000– Lot Sale $150,000– Mortgage Payoff -$50,000
– Total $250,000 ($100K home + 150K cash)
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Home Sale Price =$150,000Lot Sale Price = $150,000
• Mr. Smith– Condos for sale x 2 $600,000– Gym Enhancement $800,000 ($20K x 40)– Home Cost -$150,000– Lot Cost -$150,000– Construction Condo -$200,000– Construction Gym -$200,000
– Total $700,000
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Home Sale Price =$150,000Lot Sale Price = $150,000
• ZOPA, Home: $270,000• ZOPA, Lot: $550,000
• Total Value Generated:– Mr. Johnson $300,000-$180,000(RV) = $120,000
– Mr. Smith $1,000,000(RV)-$300,000 = $700,000
– Total: $820,000
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Rent-free CondoMortgage Payoff
• Mr. Johnson– Condo Value (while alive) $320,000– Mortgage Payoff $50,000
– Total $370,000
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Rent-free CondoMortgage Payoff
• Mr. Smith– Condos for sale x 2 $600,000– Gym Enhancement $800,000 ($20K x 40)– Home Cost $0– Lot Cost $0– Construction Condo -$200,000– Construction Gym -$200,000– Mortgage Payoff -$50,000
– Total $950,000
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Rent-free CondoMortgage Payoff
• ZOPA, Home: $270,000• ZOPA, Lot: $550,000
• Total Value Generated:– Mr. Johnson $370,000-$180,000(RV) = $190,000
– Mr. Smith $1,000,000(RV)-$50,000 = $950,000
– Total: $1,140,000
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Conflict Management
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Objectives
Understand the concepts of conflict management
Describe different styles of conflict management
Apply communication strategies to increase effectiveness in conflict conversations
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Conflict is the interaction of interdependent people who perceive incompatible goals and interference from each other in achieving those goals
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Conflict is the interaction of interdependent people who perceive incompatible goals and interference from each other in achieving those goals
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Conflict in ED
CommonPatientsNursesConsultants
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What are our choices?
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Ignore itTalk about itTake it to a higher level
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Ignore it
Sometimes ignoring is okHow to know when
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Talking about it
Master your storyGetting startedLearning to ListenMaking a PlanFollowing Up
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Have you ever noticed? Anybody going slower than you is an idiot, and anyone going faster than you
is a maniac?
-George Carlin
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Master your story
See and hearTell a story
Ugly story?
FeelAct
Patterson, K, Grenny, J, McMillan R, & Switzler, A. Crucial Conversations. NY, NY:
McGraw Hill, 2005.
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What HappenedFeelingsIdentity
Stone D, Patton B, Heen S. Difficult Conversations. NY, NY: Penguin Books,
1999.
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Sorting out our story
Stone D, Patton B, Heen S. Difficult Conversations. NY, NY: Penguin Books,
1999.
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Sorting out our story
Stone D, Patton B, Heen S. Difficult Conversations. NY, NY: Penguin Books,
1999.
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Sorting out our story
Stone D, Patton B, Heen S. Difficult Conversations. NY, NY: Penguin Books,
1999.
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Stone D, Patton B, Heen S. Difficult Conversations. NY, NY: Penguin Books,
1999.
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Stone D, Patton B, Heen S. Difficult Conversations. NY, NY: Penguin Books,
1999.
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How to get started?
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Third story
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Create safety
Extend an InvitationMutual RespectMutual Purpose
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Third storyTheir storyYour story
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Listen
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Speak Clearly
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Agree on a Plan
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Follow up
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What if they didn’t read the same books?
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Letting Go
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Practice
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References• Malhotra, Deepak, and Max Bazerman. Negotiation Genius: How to Overcome Obstacles and Achieve
Brilliant Results at the Bargaining Table and Beyond. New York: Bantam, 2007• Tyversky A, Kahneman D. (1981). The Framing of Decisions and Psychology of Choice. Science, 211(4481),
453-458• U.S. News & World Report (2005, January 30), 52. (egocentrism)• Kramer RM, Newton E, Pommerenke PL. (1993). Self-Enhancement Biases and Negotiator Judgment:
Effects of Self-Esteem and Mood. Organizational Behavior and Human Decision Processes, 56(1), 110-133.• Medvec VH, Madey SF, Gilovich T. (1995). When Less is More: Counterfactual Thinking and Satisfaction
Among Olympic Medalists. Journal of Personality & Social Psychology, 69(4), 603-610.• Cialdini R, Vincent J, Lewis S, Catalan J, Wheeler D, Darby B. (1975). Reciprocal Concessions Procedure
for Inducing Compliance: The Door-in-the-Face Technique. Journal of Personality and Social Psychology, 31, 206-215.
• Taylor T, Booth-Butterfield S. (1993). Getting a Foot in the Door with Drinking and Driving: A Field Study of Healthy Influence. Communication Research Reports, 10, 95-101.
• Langer EJ, Blank A, Chanowitz B. (1978). The Mindlessness of Ostensibly Thoughtful Action: The Role of “Placebic” Information in Interpersonal Interaction. Journal of Personality & Social Psychology, 36, 635-642.
• Cialdini RB. (January 2004). Everybody’s Doing It. Negotiations, 7.• James JM, Bolstein R. (Winter 1992). Large Monetary Incentives and Their Effect on Nail Survey Response
Rates. Public Opinion Quarterly, 56, 442-453.• Rick Foster, President, Foster, Hicks and Associates Leadership and Team Consultants• Patterson K, Grenny J, McMillan R, & Switzler A. Crucial Conversations. NY, NY: McGraw Hill, 2005.• Stone D, Patton B, Heen S. Difficult Conversations. NY, NY: Penguin Books, 1999.• Wilmot W & Hocker J. Interpersonal Conflict. Seventh edition. NY, NY: McGraw Hill, 2005.• Stewart J. Bridges Not Walls. Ninth edition. NY, NY: McGraw Hill, 2005. • Conger J. The Necessary Art of Persuasion. Harvard Business Review Classics. 2008• Tannen D. The Power of Talk: Who Gets Heard and Why. Harvard Business Review. Sept-Oct 1995.