Exam 3 Flashcards
(25 cards)
Integrative issues
the negotiation problem is much more important to one party than the other
distributive issues
Parties have opposing sides
- 1 party wins and the other loses
compatible issues
both parties want to negotiate to reach the same outcome
- they are on the same page
BATNA
best alternative to negotiated agreement
what % of startups succeed
20%
Pre money valuation
The value of a company before it receives outside investment or financing. It reflects what investors think the company is worth on its own, not including the new funds being added.
ventre capitalist what what return
10x
Organization Culture lecture
- “Culture is strategy” – Porter
- Organizations have a dominant culture, but subcultures also exist.
- Strong cultures align goals, boost motivation, and improve performance control.
- National culture can outweigh organizational culture; diversity must be preserved.
- Culture is sustained through hiring, leadership, and socialization.
SAS
- SAS treats employees exceptionally—free gyms, flexible hours, onsite daycare, social work support.
- Private company with low turnover, no layoffs, and consistent profitability.
- Perks boost retention and productivity, saving ~$60M/year.
- SAS shows how a people-first culture drives long-term business success.
Entrepreneurial funding sources
- Venture Capital (VC): funded by pensions, endowments, high-net-worth individuals.
- Angel investors: invest early, often $250K–$500K, typically local and hands-on.
- Friends, Family & Fools (3 F’s): common in the early stage.
- Crowdfunding and corporate partnerships also help startups raise capital.
Types of Issues in Negotiation
- Distributive: Win-lose (e.g., salary, bonuses).
- Compatible: Shared interest (e.g., both want the same start date).
- Integrative: Differ in importance to each side (e.g., stock options, location).
General negotiation practices
- Don’t just compromise—make tradeoffs across multiple issues.
- Differences create value—use them to build better deals.
- It’s 50% emotion, 50% economics.
- Focus on interests, not just positions or price.
- BATNA = Best Alternative to a Negotiated Agreement. Always know yours.
Aroians job advice
- Build relationships before negotiating.
- Do homework on the company’s challenges.
- Show how you can solve problems and be a team player.
- network
6 Common Mistakes in Negotiation
- Neglecting the other side’s problem
- Letting price bulldoze other interests
- Letting positions drive out interests
- Searching too hard for common ground
- Neglecting BATNAs
- Succumbing to biased perceptions
Cityside Financial
- Cityside had all of the common problems of diversity—stereotyping, division, and inefficiency—but none of the benefits like collaboration or innovation.
- leadership sets the tone of diversity
- ## The most effective diversity strategy requires a paradigm shift where leadership values different perspectives, builds trust, and commits to learning from all employees.
Discrimination-and-Fairness paradigm
Assumes everyone shoudl be treated the same, leading to suppression of differences
Access and legitimacy paradigm
value diversity in specific market contexts (underused talents)
integration and learning paradigm
views differences as valuable resources that can improve how the organization thinks, works, and grows.
- what is should be
Zappos
- all about company culture (treating employees and customers well)
- not about being low cost
- BIGGEST differentiator 24/7 customer service with personal touch
- 75% of business was repeat customers
- cultural fit was 50% of hiring evaluations, including creativity and individuality.
can other companies immitate Zappos?
What other companies could easily copy: customer service basics, perks like open offices, or published core values.
What’s hard to imitate: authentic employee empowerment, trust, transparency, deep commitment to values, and emotional connection.
culture- 3 legged stool philosophy
balancing employees, customers, and shareholders equally.
Dave Armstrong case
- he had 3 job option to chose from
- He’s navigating uncertainty, risk, and limited experience, while trying to balance personal interests and career potential.
Bounded rationality
People satisfice—they choose acceptable, not optimal, solutions due to limited info and time.
Decision making tools
- Decision tree (actions → outcomes → consequences)
- Quantitative analysis (weigh factors like salary, equity, fun, flexibility)
—-Point allocation (distribute 100 points across priorities to clarify trade-offs)
