Assignment task: Your firm would like to purchase a very important piece of equipment from a supplier in South Africa. The Purchasing and Supply Chain Manager who has been sent to South Africa to procure the item has faxed back the following information: Appraised value = K6m, supplier's desired price = K6m, your company's desired price = K5m, your BATNA = K5.5m, supplier's BATNA = K5m.
1. Draw a diagram to present the scenarios in this negotiation situation.
2. From the data given above: Determine the bargaining zone and show it on the diagram.