Please answer all parts to this learning exercise.

LEARNING EXERCISE: NEGOTIATING A NEW JOB The purpose of this exercise is to apply the negotiation skills presented in this chap. ter to an actual negotiation situation. You recently received a telephone call from the vice president of sales for a large national office machine supplier. She invited you to an interview-and she made it clear that she wants to hire you and will try to negotiate a contract with you during the interview. You responded that you are quite content in your sales position with a regional competitor of her firm. She also made it clear, however, that this could be a very lucrative move for you, and thus you agreed to the interview. You then suggested that both of you consider carefully all of the issues that might be included in a negotiated contract. To better prepare yourself, you contacted a good friend who is currently a sales agent for her firm and asked him what issues he would suggest that you put on the table, because they might be important to you and she had the authority to negotiate, at least to a lim- ited degree, on those issues. After your conversation with your friend, and after giving the matter some thought, you developed a list of eight issues that you would like to discuss: (1) annual salary, (2) primary sales territory (your friend indicated that due to expan- sion five territories are available), (3) expense account, (4) office location within the building, (5) signing bonus, (6) number of travel days per month, (7) automotive usage plan, and (8) starting date. In final preparation for today's interview you decided to list several possible outcomes for each of the eight issues, and as a means of "creating value" for each you assign a "point value to each outcome so you can compare them. The accompanying table includes the eight issues and your esti- mated value of the possible outcomes for each. In the right column are the vice pres- ident's point values as wellalthough you, of course, don't know them. Review the issues and your values for each possible outcome, and answer the following skills questions. Skill 4.1: Why is this an integrative bargaining situation? Skill 4.2: How could you utilize the categorization method in the interview? Which issues are likely to be compatible issues? Traded issues? Distributed issues? Skill 4.3: How would you implement the first step of the categorization method-identifying all the issues and focusing on the interests of both of you? Skill 4.4: How can you prepare yourself to use active listening in the interview? Skill 4.5: Which initial package of issues would you propose? Skill 4.6: Which IBB tactic might you utilize during the interview? Why? If integrative bargaining is utilized by both sides, and given the values of the options in the table, what is the best possible total point outcome (combined for both parties)? NEW JOB NEGOTIATION: ISSUES AND POSSIBLE OUTCOMES Your Point The VP's Issue Possible Outcome Value Point Value 1. Annual salary $45,000 + commission $50,000 $50,000 + commission $55,000 $55,000 + commission 2. Primary territory St. Louis Indianapolis Evansville Louisville Springfield 3. Expense account $20,000 $25,000 $30,000 $35,000 Unlimited 4. Office location Suite A, no window Suite A, window Suite C, no window Suite C, window Suite E, window 5. Signing bonus $1,000 $2,000 $5,000 10% first year's net sales 20% first year's net sales 6. Number of travel Less than 5 days per month 5-10 10-15 15-20 Unlimited 7. Automotive usage Use own car, 50/mile plan Company luxury car plus gas expenses Company economy car plus gas expenses 8. Starting date Next Monday Two weeks One month Two months after your notice plus one month vacation) Three months