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    Negotiation

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    Syed Ahmad
    Negotiation refers to a process where two or more entities discuss common and conflicting interests to reach an agreement that benefits all parties. It involves preparing strategies and objectives, building relationships, exchanging information and offers, persuading the other side, making concessions, and ultimately coming to an agreement. Cultural variables and past experiences influence the negotiation process and strategies between different cultures can vary, such as how Americans prefer direct information exchange while Japanese place more importance on relationship building. Preparation, flexible strategies, understanding different perspectives, and ensuring long-term relationships are keys to successful international negotiations.

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    Negotiation

    Uploaded by

    Syed Ahmad
    162 views11 pages
    Negotiation refers to a process where two or more entities discuss common and conflicting interests to reach an agreement that benefits all parties. It involves preparing strategies and objectives, building relationships, exchanging information and offers, persuading the other side, making concessions, and ultimately coming to an agreement. Cultural variables and past experiences influence the negotiation process and strategies between different cultures can vary, such as how Americans prefer direct information exchange while Japanese place more importance on relationship building. Preparation, flexible strategies, understanding different perspectives, and ensuring long-term relationships are keys to successful international negotiations.

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    Negotiation

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    Negotiation refers to a process where two or more entities discuss common and conflicting interests to reach an agreement that benefits all parties. It involves preparing strategies and objectives, building relationships, exchanging information and offers, persuading the other side, making concessions, and ultimately coming to an agreement. Cultural variables and past experiences influence the negotiation process and strategies between different cultures can vary, such as how Americans prefer direct information exchange while Japanese place more importance on relationship building. Preparation, flexible strategies, understanding different perspectives, and ensuring long-term relationships are keys to successful international negotiations.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    162 views11 pages

    Negotiation

    Uploaded by

    Syed Ahmad
    Negotiation refers to a process where two or more entities discuss common and conflicting interests to reach an agreement that benefits all parties. It involves preparing strategies and objectives, building relationships, exchanging information and offers, persuading the other side, making concessions, and ultimately coming to an agreement. Cultural variables and past experiences influence the negotiation process and strategies between different cultures can vary, such as how Americans prefer direct information exchange while Japanese place more importance on relationship building. Preparation, flexible strategies, understanding different perspectives, and ensuring long-term relationships are keys to successful international negotiations.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 11

    Negotiation

    Nature of Negotiation
    Negotiation refers to a process in which two or more
    entities come together to discuss common and
    conflicting interests in order to reach an agreement of
    mutual benefit
    Win-win situation for all parties involved
    A voluntary activity
    The process that is influenced not just by hard facts but
    by the personal values, skills, perceptions, attitude and
    emotions of the parties at the bargaining table
    Time bound activity
    Steps in International Negotiations
    Agreement
    Concession
    Persuasion
    Information exchange & offer
    Building the relationship
    Strategy
    Preparation
    Political Legal Environment
    C
    u
    l
    t
    u
    r
    a
    l

    V
    a
    r
    i
    a
    b
    l
    e
    s

    Patterns Of Past Success and Failure
    O
    r
    g
    a
    n
    i
    z
    a
    t
    i
    o
    n
    a
    l


    P
    r
    o
    c
    e
    s
    s

    G
    l
    o
    b
    a
    l


    E
    n
    v
    i
    r
    o
    n
    m
    e
    n
    t

    Preparation
    Setting bargaining objective
    Know the other side
    Place of negotiation
    Send the proper team
    Developing a strategy
    What question should we ask in the first session?
    What questions are they likely to ask?
    How will we answer these questions?
    What is our opening positions?
    Do we have enough factual data and information to support this position?
    If not, what extra information could be available?

    When you are negotiating as a team, also consider the following
    questions:
    Who will lead the discussion?
    Who will check the understanding? (verify facts)
    Who will ask what questions?
    Who answers the other sides questions?
    Who will work to reduce tension and show concern for people
    Building the Relationship
    Building the relationship means exchange of
    pleasantries between the parties
    Occurs at a place other than the one fixed for formal
    negotiation
    The duration and the relationship building vary across
    cultures
    US businessmen prefer getting down to formal discussion
    straight away; socializing is not so important for them.
    Japanese, on the other hand, believe in socializing
    Exchange of Information and the First Offer
    Both parties exchange information and their needs for the
    agreement. Parties exchange information that is task related
    Arabs Japanese Mexicans Russian
    s
    Americans
    Information
    Exchange
    More focus
    on
    relationships
    than
    technologica
    l details
    Extensive
    request for
    technical
    specification
    s
    More focus
    on
    relationships
    than
    technological
    details
    Great
    attention
    to detail
    Information is
    given directly &
    briefly, often with
    a multimedia
    presentation
    First offer or
    Counteroffer
    20 to 50%
    off goal
    10 to 20%
    off goal

    Fair for both
    the parties
    and close to
    goal

    Extreme
    and
    decisivel
    y unfair

    5 to 10% off goal

    Information Exchange and First Offer Strategies
    Persuasion
    Persuasion is the heart of the negotiation process. At
    this stage, each part tries to get the other side to agree
    to its proposition
    The success of persuasion depends on
    How well the parties understand each others position
    The ability of each to identify area of similarity and differences
    The ability to create new options
    The willingness to work towards a solution that allows for all
    parties to experience a win-win situation
    Concessions
    Requires that each side relax certain demands to meet
    the other partys needs
    Two approaches to making concessions are in use
    Sequential
    Holistic
    Agreement
    Three steps present themselves in the agreement stage
    1. Formulating an agreement
    2. Ensuring implementation
    3. Reviewing ones negotiating experience

    How satisfied are you with the outcome?
    Who was the most effective negotiator?
    What actions hindered the discussion?
    How well was time used?
    What are you main learning points from this negotiation? What should you
    differently next time?

    Tips to Make Negotiation Successful
    Focus on long-term relationships, not short-term
    contracts
    Avoid over-reliance on cultural generalization
    Time is of essence
    Be a good listener, not a speaker
    Use interpreters
    Avoid use of dirty tricks

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