Question 3 (20 marks) Due to financial issues, Michael is going to sell his antique car. Two weeks ago, Michael advertised his 1936 Rolls Royce Silver for sale on the internet. Yesterday Michael received a call from Ronald who offered him $500,000 to buy his car. Michael did not accept this offer as he need more time to consider. This morning, another collector of antique cars, Ben, call Michael to make up an appointment to see his car. Before meeting Ben, Michael determines to set his reservation point at $500,000. Based on this reservation point, he sets his selling price at $52,000. After inspecting Michaels car, Ben is very satisfied with the quality of Michaels car and determine to buy his car. When Michael indicates his selling price, Ben makes his counteroffer of $490,000 immediately. In fact, the reservation point of Ben is $510,000. 1. Evaluate whether Michael uses a right approach to set this target point and reservation point. (5 marks) 2. Has Michael adopted distributive or integrative style of negotiation? Explain the reasons for Michael in adopting such kind of negotiation style. (4 marks) 3. Define and determine the bargaining zone for the above situation. Discuss whether there is any possibility for both parties to reach agreement. (4 marks) 4. Identify and explain one effective negotiation skill and one important source of power of Ben for the above scenario. (3 marks) 5. Discuss what Michael can do to improve his power from BATNA. (4 marks)