CBN CBN Value Creation & Claiming 2 — Questions and Answers
Question 1: What does 'value claiming' refer to in business negotiation?
- Capturing as much as possible of the available deal value for yourself (Correct answer)
- Creating new value through collaborative problem-solving with the counterpart
- Filing a legal claim against a counterpart for breach of contract
- Identifying and exploiting the other party's informational weaknesses
Correct answer: Capturing as much as possible of the available deal value for yourself
Value claiming involves using negotiation tactics to secure the largest possible share of the deal's total available value.
Question 2: How can anchoring be used as a value-claiming tactic?
- By making the first offer to set a reference point that influences the final outcome (Correct answer)
- By refusing to respond to any of the other party's opening proposals
- By waiting for the counterpart to reveal their reservation price first
- By presenting multiple simultaneous offers to confuse the other side
Correct answer: By making the first offer to set a reference point that influences the final outcome
A strong opening anchor biases subsequent negotiations toward that reference point, helping the anchoring party claim more value.
Question 3: What is the tension between value creation and value claiming in negotiation?
- Creating value requires openness, while claiming value requires withholding information (Correct answer)
- Value creation and claiming are essentially identical strategic approaches
- Value claiming must always occur before value creation in any sequence
- There is no tension because both strategies operate in completely different phases
Correct answer: Creating value requires openness, while claiming value requires withholding information
The negotiator's dilemma arises because sharing information creates value but also exposes weaknesses that the other party can exploit when claiming value.
Question 4: Which strategy allows a negotiator to both create and claim value effectively?
- Sequencing — create value first through collaboration, then claim strategically (Correct answer)
- Withholding all information throughout every phase of the negotiation
- Making all concessions upfront to build the necessary trust for collaboration
- Avoiding any discussion of price or value until the very end of talks
Correct answer: Sequencing — create value first through collaboration, then claim strategically
Skilled negotiators first expand available value through collaboration, then use strategic techniques to secure their fair share of that value.
Question 5: What is a 'package deal' and how does it support value creation?
- Bundling multiple issues together to enable trades that increase overall value (Correct answer)
- Offering a price discount in exchange for a faster negotiation close
- Combining multiple separate contracts into a single unified legal document
- Making all demands in a single non-negotiable take-it-or-leave-it offer
Correct answer: Bundling multiple issues together to enable trades that increase overall value
Package deals allow parties to make trades across multiple issues simultaneously, often creating more value than negotiating each issue separately.
Question 6: In CBN, how do contingent agreements contribute to value creation?
- They allow parties to make deals even when they have different expectations about the future (Correct answer)
- They guarantee a completely fixed and predictable outcome regardless of future events
- They fully replace the need for a written contract in business negotiations
- They are only used in international trade negotiations between sovereign parties
Correct answer: They allow parties to make deals even when they have different expectations about the future
Contingent agreements let parties structure deals around future uncertainties, enabling agreement when parties have different forecasts about outcomes.
CBN CBN Value Creation & Claiming 2
What does 'value claiming' refer to in business negotiation?