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Group 2: Hriday Chandra Saha Mirza Mahmuda Ferdous

The document discusses different negotiation strategies: avoiding, accommodating, competitive, collaborative, and compromising. It analyzes the key factors of relationship concerns and outcome concerns that determine which strategy to use. Relationship concerns consider the importance of the current and future relationship, while outcome concerns consider the importance of achieving a good outcome. Different strategies are more effective depending on whether relationship or outcomes are prioritized. The document provides details on each strategy, including when they are most appropriate to use. It emphasizes considering the specific situation, preferences, past experiences, styles, and other factors in deciding which strategy to select.

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102 views28 pages

Group 2: Hriday Chandra Saha Mirza Mahmuda Ferdous

The document discusses different negotiation strategies: avoiding, accommodating, competitive, collaborative, and compromising. It analyzes the key factors of relationship concerns and outcome concerns that determine which strategy to use. Relationship concerns consider the importance of the current and future relationship, while outcome concerns consider the importance of achieving a good outcome. Different strategies are more effective depending on whether relationship or outcomes are prioritized. The document provides details on each strategy, including when they are most appropriate to use. It emphasizes considering the specific situation, preferences, past experiences, styles, and other factors in deciding which strategy to select.

Uploaded by

Nisha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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GROUP 2

HRIDAY CHANDRA SAHA

MIRZA MAHMUDA FERDOUS

OMAR FARUK
FATHIHA KHATUN NISHA

HASIBUL ISLAM
Selecting A Strategy

“Strategy” what does it means?


A strategy is a set of related action that managers take to increase their company's
performance goals.

In this presentation, we will discuss five basic strategies that can be used for negotiations.
1. Avoiding
2. Accommodating
3. Competitive
4. Collaborative
5. Compromising
Key Factors That Determine Strategies….

 Relationship Concerns  Outcome Concerns


Key Factors That Determine Strategies….

Relationship concerns: In relationship concern, first you have to focus on how


important is your past and future relationship with the other party?
The importance of the relationship between the two parties will be affected
by a number of factors :
 Whether there is a relationship at all
 Whether that relationship is generally positive or negative
 The length of the relationship and its history and so on
Key Factors That Determine Strategies….

Outcome Concern: The second factor affecting negotiating strategy is the


importance of the outcome of the negotiation. How important is it for you to
achieve a good outcome in this negotiation?
For example-
If you are buying a car from a dealer, price may be the most important factor,
and you may have absolutely no interest at all in the relationship. Here, your
relationship concerns are low and outcome are high.
Negotiation Strategies
High

Accommodating Collaborative
Lose to win Win –win
Importance of
Relationship
Compromise
Split the difference

Competitive
Avoiding
Win at all cost
Lose-lose
Low Win-lose

Low Importance of Outcome High


1. Avoiding Strategy
 Lose- lose
 Reasons : cost effective (time, money and relationships)
2. Accommodating Strategy

 Lose to win
 Primarily concerned with the relationship between the parties
 Effective when long term relationship is important and short
term task is not important
3.Competitive strategy
•MOST FREQUENTLY USED STRATEGY
•KNOWN AS DISTRIBUTIVE, POSITIONAL OR HARD-BARGAINING
NEGOTIATION
• OUTCOME IS MORE IMPORTANT THAN RELATIONSHIP
•THE GOAL IS TO GET THE OTHER PARTY TO GIVE IN
• BASICALLY A ‘ZERO SUM GAME’
• BASED ON “ I WIN, YOU LOSE” CONCEPT
The main reasons are:
 a one time negotiation
 Future relationship may not be important
 Relationship exists but poor to begin with
 reputation for being competitive
Critical factors in a competitive strategy:

1. A well-defined bargaining range

*A starting point
* A target
* An ending point or walk away

( an overlapping point is important to end the negotiation)


2. A good alternative

* BATNA ( best alternative to a negotiated agreement)


* more attractive alternative
* equally good alternative with less cost

3. Tactics

enhance competitor’s position & place


*

* behavioral tactics such as bluffing, being aggressive


& threatening
*sometimes may backfire
Results and drawbacks of using a
competitive strategy
 Can be costly & time-consuming
 Frequently used by inexperienced and untrained
 Tendency to underestimate the competitors
 Self-fulfilling prophecy
STRATEGY
Collaboration at
the conceptual
level, involves:

“Collaboration enables
individuals to work
together to achieve a
defined and common

business purpose ”
KEYS TO SUCCESSFUL COLABORATION

Shared understanding of the issue

Commitment to participate

Clear and shared goals

Mutual benefits

Trusting relationships

Right skills, knowledge, behaviors and support structures


Continued….

Appropriate governance arrangements

Senior leadership commitment and support

There is a situation / opportunity that will benefit from


a collaborative effort
OBSTACLES TO COLLABORATION

•No potential for collaboration


•Motivated only to accomplish its own ends
•Competitive behavior
•Time
•Bargaining mix
•A Lack of Respect and Trust
5.Compromising Strategy

When an agreement is reached and the parties separate, the compromise process can
help both parties feel satisfied that they have reached an acceptable solution
When this works:
•When your party needs to fix or maintain relationships with the other party. Compromising reduces the
strain of negotiating.

•When you are pushed for time and dealing with a party you have dealt with before and trust.

•When you have nothing else you can possibly offer in the negotiation, you may have to settle for less
than you hoped for.

•Most likely to win against an Avoiding negotiator.


When to be careful:

•Never compromise on something where the outcome is critical to your party.

•Don’t become known as a compromiser! The other party may wise up to your style which will
leave you weak.

•Compromising often happens when you have not prepared enough for the negotiation.
Preparation is paramount to a successful negotiation.
“Consideration To Choose The Strategy”

Importance Of Outcomes Importance Of Relationship


Situation

 Do I care a lot about the


outcomes…
FACTORS
 Am I willing to sacrifice this
OF relationship...
CONSIDERATION  Endangered relationship by
pursuing the outcomes…
 Preferences
 Personal preferences can analyze in different situations and it’s strengths allow
to choose the biased strategy when it becomes more advantageous.
Preferences for particular strategies are influenced by subtle issues:

 Appreciation of truth, values, integrity, manners and courtesy.


 Respect to others.
 Important of fair play.
 Ego involvement in negotiation.
 Perception And Past Experiences

 Stability of relationship
 Role of communication
 Trust on opponents.

“The more experiences you


have, the better you become at
using The sTraTegy.”
Style And Other Factors

 Interaction Between Two Party’s Own Style,


 Effect Of Combination,
 Is Negotiation Voluntary Or Imposed?
 Is The Situation Highly Structured And Has Established
Agenda Or Not?
Thank You
Any Question?

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