Negotiation is a familiar term that transcends common business parlance. In the context of business, negotiation is found as a sub-branch in marketing where it refers to the wider steps applied toward agreement in decisions about buying and selling.
Several situations normally arise where individuals have to negotiate (Gregor, pp79). This may entail negotiating within ones-self or with other parties. In this case, it is therefore important that one understands their ability in terms of negotiation skills and if possible find ways of bettering it.
Body
The modern day marketer is faced with several situations that require great skills of negotiation. How are you able to strike a deal with your prospective clients? How effective are you in convincing the buyer that whatever you are offering is the best deal available? Are you able to respond to the growing wave of market complexities in the scramble for a market share?
Such are the questions that a marketer is forced to come to terms with. It therefore brings the concept of negotiation into greater perspective. In negotiating within ones-self, one has to weigh the benefits and the costs inherent in all the available options and pre-evaluate the effects of a given decision (Graham, pp76). That is what normally creates the conflict of interest between ideals and interests.
Negotiation between two parties is a common day occurrences. A marketer has to be acquainted with certain skills to enable effective negotiation transpire. Filching is an important aspect in the subject of negotiation (Graham, pp45).
It involves making the buyer feel that the bargain they are proposing is very unreasonable. Since it is common norm that people will always seek to spend less while marketers will always want to maximize their profits, the two parties have to strike a bargain. Flinching will help the marketer in persuading the buyer to concede faster to his stance.
Negotiation is also enhanced when the marketer endeavors to get as much information from the buyer as possible. From that information, he can make a dim perspective of the buyers psychological orientation that will help him know how much to stress (Gregor, pp83).
It therefore elicits a lot of demonstration of inner feelings, ideas, views and other intrinsic aspects to the alternate party (Gregor, pp69). As such, a marketer should not make the buyer feel that he is quite desperate to sell. He should be ready to walk away without giving room for too much concession. After all, he is out on a profit mission. Moreover there will always be better bargains.
The process of gauging ones negotiation ability is not an easy process. However, through the use of certain simple ways, it is possible to assess it. By experimentally convincing a buyer to purchase a product and successfully striking a bargain that goes to your interest can be a clear indication that one is not worse off (Gregor, pp71).
Conclusion
It can therefore be said that negotiation is a virtue that is endowed on different people in different proportions. As a very important aspect in a world of limited resources, negotiation skills come in handy in various aspects of the day to day life.
Business people as well as other partakers in business will always be engaged in situations that require them to critically apply their negotiation parameters (Graham, pp56). It is therefore quite imperative that the horn such skills so as to be able to bargain more and transact better in an increasingly competitive world.
Works Cited
Graham, Larry. Marketing Strategies: A New Outlook. New York: Paragon Books, 2003.
Gregor, G MC. Marketing in the Wider Perspective. Cambridge: Cambridge University Press, 1999.
Negotiations are part of our daily activities. In commerce, effective negotiations are the pillars of all successful businesses (Dietmeyer & Kaplan, 2004). Companies who adopt effective negotiation strategies can be able to generate assessable business values for themselves and for their clients.
Unlike in the past, negotiations have become very important to every business organization. This has been brought about by deals becoming more complex, more professional buyers joining the marketplace, competitive behaviors in the market, and increase in internal negotiations within companies (Dietmeyer & Kaplan, 2004).
Business experts classify negotiations into several types based on critical variables such as time, conflicts, and participants. In this regard, this paper seeks to compare and contrast integrative negotiation and distributive negotiation strategies.
Integrative negotiation is normally referred to as win more- win more model of negotiation (Pienaar & Naylor, 2001). Through this approach, participating parties aim at walking away with at least perceptions of having gained more than they could through different approaches. As compared to other models of negotiations, this model is the most preferred.
During the negotiation processes, disagreements are avoided because they are more costly than compromises. This implies that gains and losses are equalized to enhance repetitive and continuous relationships in the future. Another approach of negotiation is distributive negotiation model. This approach is normally referred to as win-lose model of negotiation (Pienaar & Naylor, 2001).
Unlike the previous model, each party involved in the negotiation process is after winning the deal. This implies that the winning parties are not concerned with the outcomes of the losing parties. More often, losing parties will seek control over the other parties finances, resources, or associations. Distributive negotiation models are applied mostly in negotiations with fixed resources to be shared.
As such, court cases, some property negotiations, and divorce issues are the best examples of distributive negotiations. As compared with integrative negotiation model, distributive negotiation model employs offensive tactics rather than defensive tactics.
For instance, in distributive model parties employ deception tactics by trying to make the competing parties give in more than they can concede (Pienaar & Naylor, 2001). According to business experts, integrative model is more effective than the distributive model. In general, integrative model can be described as cooperative approach, while distributive model can be described as competitive approach.
In my work environment, the integrative negotiation model will be more effective than the distributive model. Through this model, our organization can cooperate and focus with other organizations with the aim of increasing the gains for both parties. Equally, integrative model will enable our organization to avoid uncertain competitive bargains.
On the other hand, our organization can employ a distributive negotiation model when solving issues that cannot be solved through other available approaches. Similarly, our organization can utilize this approach when they want to get the most out of a single deal.
However, this approach should only be adopted when the relationship with the competing party is insignificant (Pienaar & Naylor, 2001). In conclusion, it is upon the business managers and their negotiation representatives to decide on the negotiation models.
During the decision-making processes, they should evaluate whether they can afford a distributive model or an integrative model. Similarly, they should evaluate the future dependencies and the relationships that would evolve out of the negotiations to decide on the models to be adopted (Pienaar & Naylor, 2001).
References
Dietmeyer, B. J., & Kaplan, R. (2004). Strategic Negotiation: A Breakthrough 4-step Process for Effective Business Negotiation. Chicago: Dearborn Trade Publishing.
Pienaar, W. D., & Naylor, A. (2001). Negotiation: theories, strategies, and skills. Kenwyn: Juta.
The art of negotiation plays an important role in communication. Negotiation approaches vary from culture to culture. It is important to understand the cultural backgrounds of the people that we negotiate with to follow the right approach that is agreeable to them. This paper will look at the five negotiation approaches used by the Chinese and their effectiveness when applied in a US setting.
The Chinese normally insist on general terms that are to guide the negotiation process before it begins. This helps them to control the location where the negotiation is going to be held if they are the hosts. They usually make the other side to show their level of interest in a proposition first before they reveal their own interest. They do this to analyze the weaknesses of the other party and how they can exploit them. Chinese businessmen usually look at ways they can benefit from a business transaction at the expense of the other party (Miles, 2003, p.454). These approaches are likely to catch an American businessman doing business with the Chinese by surprise. The Chinese businessman is likely to have a psychological edge over the American businessman. The Chinese businessman is likely to come up with conditions that favor his position during negotiations.
The Chinese know how to act with authority, whether it is real or imagined. They use strong-arm tactics to push their position through to gain an advantage over the other parties they are doing business with. They know how to apply psychological force to make the other parties yield to their position for their own benefit. This makes them use all types of tactics to strengthen their bargaining power. They compel the other parties to reveal their interests first in a transaction to be agreed upon, and then afterward, they delay revealing their own interests. They use time as a tool of coercion to make the party yield and concede to their demands (Miles, 2003, p. 455). This approach can be very effective for the Chinese in the US, where the element of time in business negotiations is highly treasured. Many American businesspeople look for ways to close business transactions within a short time.
During negotiations, Chinese business firms use many people who do not have clearly defined roles and levels of authority. Some of these people deflect attention from the people with the real authority who pretend to be aloof during the negotiations. They bring in unrelated issues to the negotiating table, which are not of interest to the other party. This approach is used to exasperate the other party as the Chinese take time to strengthen their own bargaining position. Sometimes they use go-betweens who push their agenda more vigorously to make the other side concede without a fight. This approach can work in the US because the other side of the transaction is likely to get distracted by these deceptions. They are very good at masking their true intentions, which makes the other party think that they are weak (Miles, 2003, p. 456). They use hard bargaining tactics that work for them on many occasions.
They use shame to instill guilt in the other party for past or present mistakes. The use of shame as a tactic is meant to weaken the bargaining position of the other party so that they can take advantage. They can make the other party feel shameful so that they later use it as a trick to make forceful demands. They do not shift from their own positions and use unorthodox methods to stay put. When they feel that they have less control over the process, they change negotiators and the locations to ensure that they bring in new negotiators who are more forceful. They will pretend that they are angry to blackmail the other parties to agree to their demands (Miles, 2003, p. 456). This approach may not necessarily work in the US because American businessmen do not like negotiations, which are emotional and manipulative. An American businessman is likely to call off negotiations that are very coercive.
They normally insist in their negotiations that friendship is the same as an obligation. This makes them coerce the other parties to submit to their demands. They also like going back to renegotiate previous agreements whenever it suits their interests. They are likely to tell the other party that the competitor next door offered better terms to them on a deal being discussed. This is meant to make the party they are negotiating with desperate. They know how to lessen or lift expectations of the other party, depending on whether the process is working in their favor or not. They like going back to issues that had already been settled in previous discussions (Miles, 2003, p. 457). This approach may be ineffective in the US because Americans prefer transacting business with transparent and honest people. A US business person will not appreciate being told that the person he is about to do business with proposed the same transaction to his biggest competitor.
References
Miles, M. (2003). Negotiating with the Chinese. The Journal of Applied Behavioral Science, 39 (4), 453-472.
Negotiation entails a dialogue that involves two or more parties, which have a common goal or interest. In this case, the common goal or interest that bound the buyer (me) and the seller (Sam) was the need. While Sam wanted to dispose of his Lexus GS 400, 2005 car, I wanted to buy it through an exchange with my BMW 540i 2002 and additional payment. Since negotiation exists in different forms and styles, our style of negotiation involved distributive style. Distributive style transpired since Sam and I were involved in a negotiation that centered on a certain range of payment between $1,500 and $500. The style employed was accommodating since no one wanted to hurt the other in the process of negotiation. Facial expressions and tonal variations were some of the factors that facilitated our accommodating style of principled negotiation. Hence, it is within this background that the essay examines the process of negotiation involving the purchase of Sams car.
Process Analysis
Goals, Planning, and Preparation
The intention that commenced our interaction and an ultimate negotiation with Sam was the need to buy a car, through an exchange with my BMW 540i. Lewicki, Barry, and Saunders assert that negotiations require parties that have a common interest, which binds them together (23). Since Sam wanted to dispose of his Lexus GS 400, which was clean and in good condition, and I wanted to sell my car, a common interest bound us together. As a result, I decided to instigate the negotiation with the main objective or goal of disposing of my car to him with an additional payment. The goal behind my intention to negotiate with Sam was to purchase his car and trade it with my car after giving him an additional payment of around $500. Therefore, according to my plan of action, I expected to receive Sams Lexus GS 400 after making a submission of my BMW 540i and an additional payment of about $500 to Sam.
After identification of the common interest between Sam and me, I contacted him and informed him of my intention to exchange my BMW 540i with his Lexus GS 400 and offer an additional payment. Consequently, after contacting Sam, he agreed and chose a place where we would meet and negotiate. With the negotiating skills acquired in class, I understood the significance of employing distributive negotiation that incorporates win-lose outcomes. Additionally, I knew that for a successful negotiation between Sam and me to occur, I had to apply an accommodating style of negotiation that is principled and does not result in disagreements and dissatisfaction with both parties. According to Lewicki, Barry, and Saunders, effective type of negotiation that involves new parties is distributive as it limits the range within which they price their products (578). As a result, I prepared myself well for a successful negotiation with Sam and the achievement of set goals and objectives.
Although I knew that my BMW 540i was a bit old as opposed to Sams Lexus GS 400, I equipped myself with the confidence required so that he would not infer any weakness in my vehicle. Confidence and knowledge of the car were among the factors that I employed in an attempt to ensure that the negotiation process would be successful. Confidence and knowledge of the subject involved in the negotiation are very crucial factors as they facilitate the passage of correct information to the other parties involved. In addition, the factors help the negotiators highlight the strengths and weaknesses of the subject of negotiation. Lewicki, Barry, and Saunders explain that negotiators require confidence and knowledge of the negotiation subject so that they can present their demands and interests successfully (546). Therefore, with the knowledge of my BMW 540i and confidence, I was prepared to meet Sam and successfully persuade him to trade my BMW 540i with an additional payment of about $500 in exchange with his Lexus GS 400.
Outline of the Strategy
The employed outline of the strategy encompassed the distributive type of negotiation, accommodating style, and soft negotiation process. Through the application of the strategy, I would be in a position to persuade Sam and make him exchange his Lexus GS 400 with my BMW 540i and an additional payment of around $500, and thus, achieve my objective. Although I understood the challenges that centered on negotiations, I knew that with good persuasion and negotiation skills acquired during the lectures, the achievement of my goal, which entailed an exchange of my BMW 540i with Sams Lexus GS 400 together with an additional payment of about $500, was achievable. Successful negotiations result in outcomes that satisfy the parties involved (Lewicki, Barry, and Saunders 78). The employment of a good negotiation outline and strategy, my goal would be easy to achieve, while ensuring that Sam and I walked away satisfied with the outcomes.
To achieve the intended goal and trade Sams Lexus GS 400 at a fair price after an exchange with my BMW 540i, I had to set an outline that incorporated an opening offer and my intended target. Moreover, I equipped myself with the skills concerning the best alternative to a negotiation agreement (BATNA) that would be practical in instances of unachieved agreement in a negotiation process. Lewicki, Barry, and Saunders state that BATNA is very effective in scenarios where negotiators fail to reach an agreement concerning the prices of products that they intend to sell or purchase (56). In essence, the main aim of the opening offer was to set the pace of the negotiation and inform the other party, Sam, of my price range. The opening offer also facilitated the course of the negotiation since the other party, Sam, made his decision to continue or terminate the negotiation after the knowledge of my opening offer.
Negotiation Process
After a consensus with Sam concerning the day of our meeting and negotiation, and my successful preparation for the day, we met with him after work. Our meeting point was on the northern side of the city, which is adjacent to his workstation. Since Sam knew the terms of our negotiation, it was easy to initiate the process. Fundamentally, for the parties to negotiate well, they need to have correct information concerning the subject of negotiation prior to the process (Lewicki, Barry, and Saunders 28). During our meeting, I informed Sam of my initial intention to trade my BMW 540i with his Lexus GS 400 and offer an additional payment of $500. On his side, Sam argued that he expected an exchange of his Lexus GS 400 and an additional payment of $1,500 because his car was in good condition. According to Sam, my BMW 540i required painting and thorough cleaning on the floor because it had Dogs hair.
Sam also highlighted that his car was very clean and had new tires, and thus, it was worth more than my car, together with an additional $500. Another argument that Sam raised was the amount he presumed that he would spend when changing engine oil and cleaning of the Dogs hair that was on the floor of my BMW 540i. Sam also argued that a summation of the cost that he would likely incur in changing the engine oil, cleaning, and painting the car would be around $150. According to Lewicki, Barry, and Saunders, the negotiation process entails arguments that concern the quality of the product and its presumed price (17). However, I informed Sam that my car is economical because the rate of fuel consumption is very low, and thus, it would save him a lot on fuel consumption. In addition, I argued that I would spend some amount of money replacing the radio in his Lexus that went on and off frequently. After negotiating for some time, we came to a consensus with Sam, who agreed to trade his Lexus GS 400 with my BMW 540i and an additional payment of $750. The agreement was satisfactory, and each of the parties walked away, happy, and satisfied.
Analysis of the Process, Tactics Employed, and Use of Power
From the negotiation process, it is evident that I followed my plan of action and successfully convinced Sam to trade his Lexus GS 400 with my BMW 540i together and an additional payment of $750. While my initial offer of $500 was not accepted, it was instrumental in setting the course of our negotiation, which culminated in an agreement to pay $750. Substantially, my initial opening offer of $500 worked as it enabled us to settle at a much closer figure that exceeded my target by around $250. According to Lewicki, Barry, and Saunders, a successful negotiation process concludes when both parties come to a common agreement, which is satisfactory (38). My goal of trading my car with Sams Lexus GS 400 succeeded since we came to a consensus and agreed to trade our cars. Although Sam was a bit challenging and hard to convince, the skills acquired during the lectures facilitated by negotiation and occasioned positive and successful outcomes.
The tactics employed in the process of negotiation comprised a distributive type of negotiation, accommodating style, and a principled negotiation process. Distributive style of negotiation was instrumental in fixing the range within which the involved parties in the negotiation would focus on while accommodating style facilitated an understanding and fair treatment of the parties. Lewicki, Barry, and Saunders elucidate that accommodating individuals ensure that they do not hurt others during and after the negotiation process but achieve their objectives satisfactorily (130). The principled negotiation process was practical as it enabled a fair consensus that satisfied the parties involved in the process. The use of power was evident in several instances of the negotiation process. Involved parties demonstrated the power of knowledge and expertise on the subjects of negotiation, as each pointed out the strengths and weaknesses of the subjects. Additionally, the confidence of the negotiators demonstrated power in character. While the floor of my BMW 540i was not clean, I demonstrated some level of confidence and explained the positive side of the vehicle to Sam.
Conclusion
Negotiation is a process that entails two or more parties bound together by a common interest. Essentially, negotiations require prior knowledge of the subjects and terms of negotiations. My experience with Sam during the trading of my BMW 540i and his Lexus GS 400 proved the significance of factors like confidence and knowledge on the subject of negotiation. Throughout the process, Sam majored in the strengths of his vehicle and the weaknesses of my BMW 540i in an attempt to diminish the value of my car. Conversely, since I had negotiation skills, I countered his arguments by pointing out some weaknesses in his Lexus and highlighting the strengths in my BMW 540i. In the absence of the negotiation skills, Sam would trade his Lexus GS 400 with my BMW 540i at a higher payment than the $750, which later became our accord. Ultimately, the process culminated in a consensus that Sam would trade the car with my BMW 540i at an additional payment of $750, an element that was satisfactory to Sam and me, and thus, a successful negotiation process.
Reflective Analysis
Some of the important lessons learned from the experience comprise the persistence of individuals during a negotiation process. Moreover, I learned that it is significant to respect the values, beliefs, and perspectives of other parties during negotiation so that the process becomes successful. Self-confidence, assertiveness, and good knowledge of the subject of negotiation are instrumental in a negotiation process, while the absence of these factors can lead to failure or unsuccessful negotiation. Factors like assertiveness, self-confidence, and knowledge of the negotiation subject are some of the factors that I observed and realized that they are momentous during my experience in the negotiation process. Proficient application of these factors played an integral role in convincing Sam to yield to my suggestions and trade my car with his car at a minimal price. Therefore, I learned various issues that concern the external environment and the practical part of the negotiation.
Some of my strengths include the knowledge that I had about my BMW 540i. The knowledge that I had about the vehicle was a useful strength since it facilitated my negotiation with Sam, who had argued that the car was not clean and worth the amount that I proposed. The strength that I helped me to counter the argument raised by Sam is the economic aspect of my car. Owing to the skills acquired during the lectures, I was able to employ the strengths that the vehicle had and use them overrule the arguments raised by the other party; hence, a successful negotiation. On the contrary, my reluctance to change the car seats and wash the floor regularly proved to be a weakness. As a result, Sam was quick to point out and identify since the floor had traces of Dogs hair. The weakness became a major center of the argument that Sam centered on during the negotiation process.
The concepts of negotiations, such as the types, styles, and methods, were significant in the achievement of my goals in the negotiation process. My ability to persuade Sam to trade his Lexus GS 400 with my BMW 540i and offer an additional $750 was achievable since I had acquired negotiation skills from the lectures. Moreover, the confidence demonstrated throughout the process of negotiation was an outcome of the skills that I learned. Among the main factors that a negotiator requires for successful persuasion is confidence since it assures the other parties of the knowledge concerning the subject of negotiation. By employing a distributive type of negotiation, accommodating style, and using principled negotiation process, I was able to convince Sam and achieve my desired objective.
Works Cited
Lewicki, Roy, Bruce Barry, and David Saunders. Negotiation. New York: McGraw-Hill Higher Education, 2010, Print.
Negotiation is an art of human communication that is evident whenever people make conversations. People often negotiate with friends or family for favors, contractors to receive services, and medical practitioners while seeking the most effective treatment solutions. However, business or contract negotiations take a formal approach, obligating the parties involved to adhere to strict rules regarding the business terms and pay increased attention to detail. Otherwise, rushing into a contract can result in severe outcomes like damaged relationships, tarnished portfolio, lawsuits, and voided contracts. Thus, this essay explains and analyzes the critical factors of a negotiation that are ethical and conducive to the goals of procuring twelve-cell computer batteries for the organization.
The Factors That Can Influence Negotiation Outcomes
Negotiation is a complex process because the outcomes must meet the interests of all parties involved in the negotiation. Therefore, several factors can interfere with the results of contract negotiation, obligating administrators and managers to acknowledge all potential facilitators and inhibitors of effective negotiation to ensure benefits. Nonetheless, the crucial aspects of negotiation include the context, individual interests, negotiators cognition, trust, communication, ethics, intermediaries, the negotiation process, and the medium of communication (Galluccio, 2021). The context of a negotiation refers to the conditions or situations that bring about the negotiation process. In this case, the organization seeks to procure twelve-cell computer batteries. The main objective is to obtain high-quality batteries at a favorable price and ensure fast delivery. Subsequently, the negotiators cognition refers to the mental processes that shape the negotiation process. On that account, positive perceptions and a good understanding of the benefits of these batteries to the organization can encourage administrators to put in more effort in the process.
The negotiators creativity also plays a critical role in allowing parties to agree on a long-term business arrangement that will bear fruit. Creativity refers to the willingness to develop and search for alternatives and solutions to inhibit challenges. The negotiation process, describing the communication tactics, negotiation style, presence of intermediaries, and the tools applied in negotiation also influence outcomes since a streamlined and efficient process focuses on the most critical issues of the contract (Yoon-Flannery & Nguyen, 2018). Finally, trust, ethics, and effective communication also determine negotiation outcomes because they facilitate understanding and mutual agreement. Negotiators who can communicate their needs and plans show high levels of organization, thus encouraging parties to acknowledge their demands. Subsequently, ethical negotiation practices like integrity and fairness play a major role in sustaining positive relationships between negotiators. Thus, the procurement teams should familiarize themselves with these tenets and their effective application and practice to avoid limitations.
Critical Elements of a Successful Negotiation
Successful negotiations comprise five basic elements, including preparation, information exchange, bargaining, concluding, and execution. Preparation is the most crucial element of a contract negotiation process because it allows both parties to familiarize themselves with each others values, business tactics, and cultures (Jung & Krebs, 2019). For instance, preparation before negotiating on the twelve-cell battery procurement will involve comprehensive market research of the chosen suppliers background, reliability, quality, and pricing. Moreover, it will allow for comparison to determine the supplier offering the most benefits. Subsequently, information exchange involves informing all parties of the contracts requirements and soliciting their contributions, and opinions. Therefore, the plan to procure the twelve-cell batteries will include the input of parties involved in the negotiation process.
Afterward, the negotiation may move into the bargaining state, where all parties present their suggestions and demands toward closing the contract and any changes that would increase the contracts effectiveness and viability. Consequently, this stage involves complicated processes, requiring effective communication between all parties and clear guidelines on how to proceed with the contract negotiation (Galluccio, 2021). Therefore, the organization will provide its suppliers with a detailed list of demands and rules they should adhere to when delivering on their responsibilities. Consequently, the suppliers will respond according to their capabilities, thus allowing the negotiation to move into the conclusion and execution process. In the conclusion and execution stages, all parties preview the contracts demands and commit themselves to meet its requirements. Eventually, the procurement process will begin, and all parties will be required to meet their end of the bargain.
Applying Aspects of Negotiation to Business or Personal Life
Negotiation is an art that demands high ethical standards and interpersonal collaborations to ensure that initiatives are effective and efficient. Therefore, it is crucial to observe moral and ethical guidelines when engaging in contract negotiations to avoid negative outcomes like litigation and a voided contract (Jung & Krebs, 2019). On that account, truthfulness, trustworthiness, and integrity should be a priority when getting into legally binding contracts to ensure the sustainability of the business. On that account, administrators and individuals in charge of the twelve-cell battery procurement process will be warned against any actions that might jeopardize the viability of the contract. Additionally, the project will be designed to meet the demands of both parties and assure benefits (Yoon-Flannery & Nguyen, 2018). Thus, the process will observe all the stipulated guidelines and spearhead effective communication and positive relationships through all processes for fruitful cooperation.
Although a win-win outcome is often the best resolution in contract negotiation, sometimes it is impossible for both parties to benefit, especially in a contract regarding the procurement of products or services, because of the processes associated with closing the deal and executing the contract. For example, although the twelve-cell battery procurement negotiation aims to realize positive outcomes for both parties, the organizations interest lies in driving down the pricing to achieve higher value, which might obligate the suppliers to sacrifice, thus facilitating a win-lose outcome. However, a win-lose negotiation can quickly escalate and become adversarial, as one of the parties may not be satisfied with the outcomes. As a result, it may contribute to occasional conflicts, workflow disruptions, inefficiencies, and poor service delivery due to budget cuts. Thus, a win-lose outcome or zero-sum approach to contract negotiation might be beneficial for one party but might not always yield positive results.
Conclusion
Contract negotiation requires dedication and commitment toward set goals to achieve program initiatives. Moreover, it is crucial to know the potential ethical, legal, social, and interpersonal factors that can impact the negotiation outcomes. However, it is advisable to observe all the elements of successful negotiation and incorporate moral and ethical values into the negotiation process to limit errors and foster sustainable relationships. Moreover, effective communication and information exchange between involved parties can serve a major role in streamlining processes. Hence, although the twelve-cell battery procurement negotiation process may benefit from a win-lose negotiation approach and outcome, observing all the tenets of successful contract negotiations will enable the initiatives to be efficient.
References
Galluccio, M. (2021). Science and Diplomacy: Negotiating Essential Alliances. Springer Nature.
Jung, S., & Krebs, P. (2019). Preparation and Negotiation Process. In The Essentials of Contract Negotiation (pp. 7-19). Springer, Cham.
Yoon-Flannery, K., & Nguyen, J. (2018). Contract Negotiation. In A Surgeons Path (pp. 75-80). Springer, Cham.
My role as a negotiator in this job offer negotiation is to understand and satisfy the interests of the recruit Leslie, and the company at which I am working. Accordingly, in order for the interests to be satisfied, they should be brought to the table and acknowledged by both parties. My interests in this negotiation were in making a contribution to the annual bonus for hiring perspective recruits, who will at the same time maximize the benefits for the corporation, due academic achievements. Leslies interests can be seen through working in the R& D department of the company and potential enrolment in PP supported PhD scholarship program.
Goals/Strategies/Tactics
The goal of the negotiation is to find a way to bring Leslie on board, while being consistent with Purezza Pharmaceuticals (PP) precedent and policy. The main strategies that will be used in an integrative strategy will be to emphasize win-win situations. In that regard, the strategies that might be used might be seen through taking the perspective of the applicant, identifying interests and priorities, expressing interests and priorities, identifying several issues to discuss, rather than focusing only on a single issue, offering package deals, and logrolling. Other tactics can be seen through cutting the costs, expanding the pie, bridging solution, and non-specific compensation.
The issues that can be identified in the process include the following:
The starting salary.
The starting title.
Scholarship support.
The signing bonus.
The start date.
Two important tactics that can be used in negotiation are package offers and logrolling. For the package offer, the main emphasize will be in providing.
For logrolling, I will try to concede on low priority issues in exchange for issues that are of high priority for the company. The issues that can be conceded might include scholarship, as a low priority issue, versus, for example giving up the European trip. The interview should indicate the high priority and low priority for Leslie, while at the same the flow of the interview shall indicate the distribution of the priority for the company. One of the advantages of logrolling is that opening offers with it is stated to be leading to more integrative agreements (MORAN and RITOV, 2002). Such advantage can be seen in that logrolling initial offers result in higher combined profits for the two parties, and higher effectiveness (higher valued counter-offer from the initiators perspective) than distributive offers (MORAN and RITOV, 2002). Despite such advantages, there are no social message conveyed in the logrolling and thus, open flow of the conversation and the types of question might be used to build trust with Leslie.
For package offers, such strategy implies making multiple offers simultaneously. In that regard, such strategy will complement logrolling, where the high priority and low priority issues reached can be offered at different packages. With the increase of number of issue negotiated simultaneously, better agreements can be reached by negotiators (Lewicki et al., 2010). Both strategies can be implemented at the same time, along with other strategies such as emphasizing commonalities, and expressing interests and priorities to Leslie.
BATNA
BATNA in this negotiation can be seen through other candidates, in case Leslie does not elect to join PP. Such alternative is acceptable, with its own strengths and weaknesses. The strengths can be seen through the fact that the company might settle to more modest conditions for other candidates. At the same time, the company will not have to change its recruitment policies, make exceptions, or set precedents in terms of starting salaries, bonuses, and/or starting time. The main weakness, however, can be seen through Leslies credentials, which make him the preferred candidate for the position. Relying on other alternatives will mean that the company will lose Leslie, as a candidate with very high potential in the scientific side.
Alternatives
In addition to the alternatives of logrolling and integrated packages, other alternatives might be considered as well. One alternative is cutting the cost for compliance for Leslie. The costs that can be cut for Leslie might include promising Leslie a transfer to the R7D department in the future. Another option can be seen through expanding the pie, which is adding more resources and more uses for those resources, e.g. additional $5000 as a starting salary and/or guaranteed 10% percent first years bonus.
Unfolding the Interview
Building trust discuss the relationship with Leslie in the past
Express concerns with Leslies welfare
Show interest in recruiting
Emphasize common interests
Diagnostic questions Ask about expectations
Career progression
Priorities in career
Mutual issues
Differing issues
Providing information the nature of the job
The benefits
The advantages offered in the long-term
The offer Multiple offers at the same time
Offers in packages
Trading issues (e.g. bonus for shifting start date)
References
Lewicki, R. J., Barry, B. & Saunders, D. M. 2010. Negotiation, Boston, McGraw-Hill/Irwin.
Moran, S. & Ritov, I. 2002. Initial Perceptions in Negotiations: Evaluation and Response to Logrolling Offers. Journal of Behavioral Decision Making, 15, 101-124.
A multinational corporation (MNC) is a huge corporation with a headquarters in one country and offices, industries, or plants in other nations throughout the world. As a result of its global reach, international organizations must keep up to date on changes in the demographics, geography, mentality, and behavioral characteristics of their target audience in each of its various locations. MNCs must conduct extensive market research to advertise their products and services and earn a profit effectively (Wang, 2018). For MNCs to be successful in negotiations, they need to know the negotiating styles of both parties.
Differing Negotiation Styles
A range of reasons contributes to the differences in strategic bargaining strategies among Spanish and French negotiators. As a starting point, its important to note that the French prefer to talk about current events while theyre having a conversation. Respect, solid logic, soundness of avoiding confrontation, polite conversation, and humorous and formal styles differ between French and Spanish (Richardson, 2017). Spanish talks, on the other hand, tend to focus on the speakers interests. French consultants may spend significant time gathering information and debating details before the consultation begins. On the other hand, even if they do not want to give you the knowledge, they dont take it personally when you ask for it. You may, however, have to dig for some of the more personal details on your own to complete the puzzle. A few contacts on the French side would be really helpful. The French emphasize Cartesian logic, which urges them not to take anything for granted unless it has been proven.
Similarity
Negotiation Pace be prepared for a slower pace of discussion. Negotiations and decision-making can take a long time, even if the French dont spend much time preparing for them. MNCs submissions can be re-analyzed and re-processed over and over again. Be patient, regulate your emotions, and realize that delays are unavoidable. The polychronic working style is common in France, particularly in the south. They are utilized to carry out various tasks and goals at once. Rather than discussing events in a sequence of occurrence, they speak nonlinearly, hopping from one issue to the next.
The global economy and globalization have been important characteristics of the present political paradigm. The claims and criticisms of multinational businesses have thus far served as the foundation for political importance (MNCs). MNCs dynamic expansion and impact on the world and the lives of millions of people worldwide make them so essential. MNCs lack of expertise can lead to a dismissive attitude toward cultural differences. It is best to try to comprehend the value proposition process and establish a problem-solving discussion for any challenges caused by unfamiliar cultures.
What could MNCs do to improve their position when negotiating
MNCs should conduct research before negotiating with a stranger; it will help them gain respect for cultural differences and help them rise above ignorance in many situations. Moreover, MNCs should consider how external service provider reflects their values, attitudes, and behaviors. The influences of their respective cultures shape the company and its coworker. Cultural understanding can be helpful while having a conversation with someone. MNCs can alter their approach during the debate to achieve the greatest results if any of these unfavorable suggestions (Bartlett, 2018). Culture can develop rifts between you and your suppliers; in this case, MNCs should always be looking for solutions to bridge the cultural gap. Finding common ground with its service providers, such as interest or objective, is the first step in creating an effective bridge between you and them.
Richardson, G. (2017). Anglo-French negotiations on the Spanish Partition Treaties (1698-1700): A Re-evaluation. In The Contending Kingdoms, 173-190. Web.
Part of the assessment criteria for Interpersonal and Organisation Negotiation was a group analysis of a case study, which required intense discussions. As per instructions, we formed a group of four members consisting of the following individuals: Vicky Phan, Tom Tchung Tu Lay, Sultan Alanazi and Risto Jon Angeloski. A suggestion was raised that we select someone to head the group but after careful deliberation, we came to the agreement that being a small team, all members should be regarded as equals and as such there was no point in appointing a group leader.
Overall as a group, we worked fine and the cohesion among members was superb. We did not hold regular meetings but we made creditable steps every single time we met. Most of these meetings were brief discussions that we mostly held after class. The primary reason as to why we could not find better times to sit as a group was that all the group members had previous work commitments and because of the disparity in the units we take, we all had different class schedules.
However, we were under regular communication with each other via e-mail, text messages and phone calls; media through which we were able to comfortably share tasks and ideas. At one point we had to engage in group chats over the internet, an experience that helped us exposed us to creative methods of using available technology in the attainment of educational objectives.
After initial discussions, the group decided that the best way to tackle this assignment was that every group member prepare a draft of the entire assignment. The reason for this was that it would have been extremely difficult to divide the work evenly based on the complexity of the topic question. The method that we chose also ensured that each member had an idea of the other members thought patterns as well as the compounding effect of enabling all of us to generate a concrete understanding of the subject matter. This was a factor that immensely increased our combined group knowledge and intelligence.
After preparing the drafts, we then sat down and each member presented his/her findings. We then actively debated the presentations while pointing out the shortfalls and even adding more information to drafts that did not sufficiently exhaust certain points. We also had to select a method for how the information would be collated. As a group, we decided that one person should combine all the work completed by individual members and prepare a final draft, with group members volunteering to complete areas of the assignment where more in-depth information was needed.
The core factor that united us as a team was that all decisions were made with every group member present. Each member was given a chance to air his/her views and no meeting was closed without each member satisfactorily voicing his/her concerns. At no point were decisions made without the consent of each and every group member. The members were all open-minded and whenever contention arose we discussed the possible options and arrived at the best possible option. We came to the agreement that the final draft of the assignment had to be complete and ready for presentation to the assessment panel by a certain date and time, and we all applied ourselves fully to see the realization of this objective.
It is important to note that the process of negotiations is a delicate process, which requires knowledge of effective strategies and an understanding of the perspective of the other party. One of the oldest and fairly common methods of negotiation is centered around threats. However, it is not clear whether or not the use of threats is effective during the negotiation process since it has both advantages and drawbacks. The given analysis will primarily assess if threats are effective during the negotiation process. The findings indicate that threats can be effective, but only in a specific set of conditions and against a specific category of individuals.
Defining Threats in Negotiations
It should be noted that the term threat is a broad concept, which can be interpreted as a number of influences, forces, or actors. In the context of negotiation, a threat is a type of statement done by one side with an intent to communicate that some form of hostile action or negative outcome will be inflicted if the other side does or does not do something the former side desires (Morveli et al., 2020). In other words, threats are tightly intertwined with the concept of intimidation, fear, and warning, where one sides benefits, and the other side experiences a loss.
Inherent Effectiveness of Threats
Threats belong to a category of a persuasive force, where restrictive actions and statements are made to sway the decision-making or behavior of the other party in favor of the one imposing them. It is evident that threats can be effective as a method of negotiation since it was utilized throughout the history of humanity. However, there are two critical factors, which need to be put in place in order to make these measures effective.
Firstly, it is highly important for the proponent agent to have some form of credibility for the opposition party in order to make the threat valid and perceived as such (Espinoza et al., 2020). In other words, threats can be taken seriously if the proponent of these measures has no authority, power, or perceived credibility to enforce them. For example, a threat of a lawsuit is more threatening from a professional law firm or legal agency than from an average individual since the former cases have more perceived power and credibility as well as competence to follow up with the claims.
Secondly, the context and strength of the threat itself are critical to the overall effectiveness (Espinoza et al., 2016). In other words, a serious threat with more undesirable consequences is stronger than a mild one. For example, a threat from a person with a gun threatening to take someones life is stronger than of a person threatening to file a complaint. Therefore, the combination of the perceived credibility of a proponent and the strength of a threat determines the overall effectiveness.
Specificities of Opponents
In addition to the factors inherent to threats, the specificities of opponents also play a major role in determining the overall outcome. Evidence suggests that when the threat is not activated, high FTS buyers pay more than low FTS buyers. Consistent with face theory and social role theory, this effect is moderated by gender, with the association being stronger for women buyers than for men buyers (Miles et al., 2020, p. 2).
In other words, women tend to have higher levels of face threat sensitivity or FTS, which in turn makes them more susceptible to threats compared to males. For example, in the context of negotiations, a persons threats can be more effective if used against people with high FTS rather than low FTS. Therefore, the typology and characteristics of an opponent can play a critical role in influencing the general effectiveness of threats in the negotiation process.
Sustainability of Threats
It should be noted that so far, threats effectiveness was assessed in an isolated scenario, which does not include their impact on its consistent and continuous use, which determines its sustainability. It is stated that active use of threats as a primary method of negotiations can not only lead to a major backlash from an opponent but also force other potential opponents to take on a position with tougher bargaining conditions (Schneider, 2019). In other words, threats are not effective in the long term, and they are not useful for building sustainable and mutually beneficial relationships, which could lead to a multitude of gains in the long run. Therefore, threats are only feasible and plausible as a one-time solution, where a proponent does not plan to engage with an opponent and related parties in the future.
Conclusion
In conclusion, threats are a form of negotiation measure, which can be effective under a specific set of conditions. Firstly, threats effectiveness is determined by their inherent strength and a proponents perceived credibility. Secondly, threats are more effective against categories of opponents, who have a higher degree of face threat sensitivity. Thirdly, threats are only feasible as an only one-time solution since they are unsustainable and can make future negotiations more difficult. Therefore, threats should only be used if a proponent does not plan to negotiate with an opponent and related parties in the future, has the credibility and power to do so, and uses them against high FTS individuals.
References
Espinoza, M. M., Possebom, A. T., & Tacla, C. A. (2016). Construction and strength calculation of threats. Frontiers in Artificial Intelligence and Applications, 1, 403-410. Web.
Espinoza, M. M., Possebom, A. T., & Tacla, C. A. (2020). On the calculation of the strength of threats. Knowledge and Information Systems, 62, 15111538. Web.
Morveli, E. M., Nieves, J. C., & Tacla, C. A. (2020). Measuring the strength of threats, rewards, and appeals in persuasive negotiation dialogues. The Knowledge Engineering Review, 35, e36. Web.
Schneider, A. K. (2019). Negotiating from the bully pulpit: Teaching Trump, tactics, and turmoil. Negotiation Journal, 35(1), 215218. Web.
Negotiation for a contract is an extremely involving process, which demands substantive knowledge and experience. The preparation process plays a critical role towards the success or failure of winning a contract. Under the preparation process, a negotiator, who is the supervisor of the whole activity, takes into consideration the starting point of planning, source of information, time management planning and essential sources of power. By trying to answer these questions, a negotiator enhances the possibility of undertaking a successful contract negotiation. Adequately planning and preparing for a contract improve the winning chances of a negotiation process.
The initial stage of planning and preparation for a contract involves deciding on the planning. This involves the process of brainstorming to find out the needs of the contract, compromise to be taken into account and the schedule by the team members. After analysing these significant elements of a contract, the team members will then determine and understand the objectives of the contract. In addition, an outline of the main and minor objectives will be clearly listed. The Identification of the main and minor components of the contract enables the team to come up with a definitive and defensive position during negotiation (Raiffa, 1982). Adequately covering the components of the contract gives the negotiating team humble time to identify the expectations and demands of the contracting team. The evaluation and measurement of these facts contributes significantly to the negotiation process, as the negotiator will have confidence in presenting the terms and conditions of the organization. Additionally, the negotiator will have a deeper insight to reflect, formulate, and streamline any issue that might not have been mention in the contract.
The acquisition of relevant and essential information for the contract is critical to the success of the negotiation process. A negotiator should identify the possible sources of relevant information that gives sufficient data and facts. The necessary information is obtained from thorough research on similar experiences and earlier documented contract processes. Acquiring this information imparts the negotiator with tangible facts and data that give him or her detailed contents of the contract to be negotiated. Data and facts can be obtained from several sources, which include educational books, journals, magazines, reports, and any other relevant materials (Sist, 1984). To supplement the information obtained, it is vital to have skills and experience in the contracting process in order to boost the chances of winning contracts.
Another element that is critical in the preparation of the contracting process is time management. Proper time utilisation in tackling critical and crucial matters of the contract promotes the chance of establishing sound and reasonable agreements (Guth, 2008). On this perspective, it is necessary to look into matters relating to the time devoted to contract planning, identification of the demands of the contract, and search of information.
At the end of the planning and preparation of a contracting process, it is sufficiently vital to highlight the sources of power that gives the team better chances over its competitors. This refers to the abilities that will influence the outcome by use of logic and validity or legitimacy of a position without forcing any action (Marsh, 1990). There exist numerous sources of power. These include persistence, competition, expertise, legitimacy, involvement and the right attitude. The ability to acquire these skills prior to and portraying them at the time of the contracting process will contribute enormously towards successful negotiations. Similarly, a negotiator can present the demands of the organisation and guide the whole group involved in the negotiation in an objective and impartial manner. The stimulation and involvement of every person involved in the negotiation process gives a sense of appreciation and importance to the participants.
From experience that I gained while undertaking a negotiation process involving a contract to supply foodstuff to a college, I noted that adequate planning and preparation for a contract procedure is rewarding. It gives a negotiator robust and defensive grounds that meet the demands of the team overseeing the negotiation. At the same time, my negotiation skills played a significant role in my successful winning of the contract.
References
Guth, S. R. (2008). The contract negotiation handbook: an indispensable guide for contract professionals. Morrisville, N.C.: Lulu Press.
Marsh, P. D. (1990). Contract negotiation handbook (2. ed.). Aldershot: Gower.
Raiffa, H. (1982). The art and science of negotiation. Cambridge, Mass.: Belknap Press of Harvard University Press.
Sist, A. J. (1994). Understanding and avoiding the contract negotiation impasse. Monterey, Calif.: Naval Postgraduate School.