Please answer the five skill questions

LEARNING EXERCISE: BUYING A NEW CAR The classic negotiation situation involves a man or woman who is somewhat of a "car buff" and trades in his or her current automobile every 3 to 5 years for a new one. In this exercise the buyer, Ward Jackson, currently has a seven-year-old Ford Windstar but now, with his children out of school, is ready for a sedan. Ward has two golfing buddies that recently bought the new model of the Toyota Avalon. Ward has ridden in their cars and really likes them. To prepare himself, he decided to utilize the Consumer Reports New Car Price Service to learn more about the different mod- els, availability, and true dealer cost of an Avalon. Thus one sunny Friday afternoon he pulls into the local Toyota dealer just "to browse." A Toyota sales representative, Shelley Kowalski, approaches Ward and after a few minutes has him taking a new red Avalon XL for a test drive. Ward likes the car, but is not in a hurry to buy-unless he believes he is getting the best deal Shelley asks him the classic sales representative question, "Would you like to take this car home today?" Ward responds with, "Who at the dealership can authorize the lowest price?" Shelley responds, "The sales manager." Ward says, "Then you ask him for the lowest cash price on this car, if I write the check today, and keeping in mind that I have the Consumer Reports information, and thus I know what the dealer paid for the car." Review the information and answer the following skills questions: Skill 6.1: Skill 6.2: Skill 6.3: Skill 6.4: Before choosing a particular strategy, carefully identify and con- sider the three key elements for this particular situation-time (deadlines), information, and power-and decide how they may impact the negotiations. Develop a strategy of increments of concession for Ward that will lead the sales manager to guess that he has a certain BATNA or walk- away price-in this case a minimum above the Consumer Reports invoice amount-and thus enable you to get the best deal. The man- ufacturer's suggested retail price (MSRP) for the Avalon XLS is $31,225, and the invoice plus $200 profit for the dealer (Consumer Reports' recommended minimum) is $26,400. Consider whether or not Ward could successfully utilize the principled negotiation strategy in this car-buying negotiation. Why or why not? The Consumer Reports Car Buying Service identified three other cars (Buick Lucerne, Volkswagen Passat, Mercury Montego) that it recommended as generally equal to the Avalon. If the two parties fail to agree on a price, how could Ward utilize this comparison information (or other information) to take the negotiation to a new third dimension (3-D negotiation), and thus change the setup of the whole negotiation situation? Assuming that Ward, like most buyers, would prefer some options that cost extra, utilize the information from the Consumer Reports New Car Price Service as presented in the following table, as well as Ward's option preferences (color: metallic blue; sound system: JBL 6- CD in-dash; DVD navigation system; seats: power, heated front; safety: traction control/stability control, front and side curtain airbags; moonroof: power, tilt/slide), to develop three MESO or economic matrix packages to present to the sales manager. Skill 6.5