Larry Crump, based on a concept developed by Lawrence SusskindTwo-party potentially integrative negotiation between a property owner and a neighboring business over the sale of two real estate parcels
The Hong Kong Property Deal is a simple two-party negotiation that appears to have a single distributive issue (price), but contains several hidden issues that offer integrative opportunities.
The simulation is set in Hong Kong in 1996, just before the British returned Hong Kong to the People’s Republic of China. Lee Wing and Terry Jones each operate a business next door to each other on Tai Po Kau Harbour Road. Between their two businesses is a small lot that is unattractive as a separate building site because it sits between two large warehouses. Lee Wing purchased the small lot in 1990 for $70,000 with the intent of expanding his warehouse. These plans were never realized, and the lot is currently vacant.
Wing has decided to move to Australia, and has arranged to sell his construction material importation business to a family friend, Bill Ling. Ling has gathered the necessary funds to buy Wing’s business and warehouse, but can only offer $50,000 for the small vacant lot (which he neither particularly needs nor wants).
Terry Jones conducts her the Hong Kong business for Australian-based Outback Foods from the lot on the other side of Wing’s vacant lot. Unbeknownst to Wing, Outback Foods is having great success in Hong Kong and could use some extra space to expand its warehouse. Indeed, Terry Jones has a budget of up to $200,000 to purchase additional space for a warehouse.
Wing called Jones yesterday, and the parties are about to meet.
This case allows for the introduction of several fundamental negotiation concepts:
- Bargaining range (both positive and negative bargaining range); also known as zone of possible agreement (ZOPA);
- First offers in a distributive negotiation: how and when to present a first offer;
- Gathering information to determine the other party’s intentions and goals;
- Managing information about our own intentions and goals; and
- Introduction to integrative strategy.
Teacher’s Package Includes:
- Confidential instructions for Lee Wing
- Confidential instructions for Terry Jones
- Teaching note
Hong Kong Property Deal Attributes
- Time required:
- 30 minutes – 1 hour
- Number of participants:
- Teams involved:
- Agent present:
- Neutral third party present:
- Teaching notes available:
- Non-English version available:
PON Teaching Negotiation Resource Center
Soft copy vs. hard copy
You may order this role simulation in either soft copy (electronic) or hard copy (paper) format. If you select the soft copy option, you will receive an e-mail with a URL (website address) from which you may download an electronic file in Adobe Acrobat PDF format. You will have one week to download your materials from when you receive the email. You are then only authorized to use, print, or share the materials as many times as the number of copies you purchase. The TNRC charges for use of this simulation on a per-participant basis. Therefore, you must purchase a separate copy of this simulation for each person who will be participating, regardless of the number of roles in the simulation. You will only receive a link to one electronic file, which includes all general instructions, confidential instructions, and any teaching notes for the simulation. You should separate out the instructions before distributing to participants.
If you select the hard copy option, you will receive paper copies of this role simulation via the shipping method you select.
For additional information about the soft copy option, please visit our FAQ section, or contact the PON Teaching Negotiation Resource Center at firstname.lastname@example.org or 800-258-4406 (within the U.S.) or 301-528-2676 (outside the U.S.).
Please note: At the present time, Teaching Negotiation Resource Center soft copies are compatible with the following versions of the Adobe Acrobat Reader: English, German, French, Spanish, Swedish, Portuguese, Japanese, and Korean. If you have a different version of the Acrobat Reader, you may wish to download one of these at http://www.adobe.com/products/acrobat/readstep2.html, or contact the PON Teaching Negotiation Resource Center at email@example.com, 800-258-4406 (within the U.S.), or 301-528-2676 (outside the U.S.) for further assistance. This restriction does not apply to the freely available Teacher’s Package Review Copies.
Ordering a single copy for review
If you wish to review the materials for a particular role simulation to decide whether you’d like to use it, a PDF, or soft copy, version of the Teacher’s Package for the simulation is available as a free download from the description page of most role simulations and case studies. All Teacher’s Packages include copies of all participant materials. In addition, some Teacher’s Packages (but not all) include additional teaching materials such as teaching notes or overhead masters.
Ordering copies for multiple participants
To order multiple copies of a role simulation for use in a course or workshop, simply enter the total number of participants in the box next to “Quantity.” There is no need to calculate how many of each role is required.
If you are ordering hard copies, the Teaching Negotiation Resource Center will calculate the appropriate numbers of each role to provide, based on the total number of participants. For example, if you wish to order a 2-party role simulation for use with a class of 30 students, you would enter “30” in the box next to “Quantity.” You then would receive 15 copies of one role and 15 copies of the other role, for use with your 30 participants. As another example, if you ordered 30 participant copies of a 6-party role simulation, you would receive 5 copies of each role.
In the event that the number of participant copies you order is not evenly divisible by the number of roles in the simulation, you will receive extra copies of one or more roles. Participants receiving the extra roles may partner with other participants playing the same role, thus negotiating as a team. So, for instance, if you ordered 31 copies of a 2-party role simulation, you would receive 15 copies of the first role and 16 copies of the second role. One of the participants playing the second role would partner with another participant playing that same role, and the two would negotiate as a team.