Negotiation Strategy
CHARACTERISTIC OF A NEGOTIATION SITUATIONnegotiation is a process by which two or more parties attempt to resolve their opposing interest1. THERE ARE TWO OR MORE PARTIES negotiation is a process between individual and groups2. THERE IS A CONFLICT OF NEEDS AND DESIRES BETWEEN TWO OR MORE PARTIESwhen one party have differ in needs and desire – the parties must search for a way to resolve conflict3. THE PARTIES NEGOTIATE BY CHOICEnegotiation in voluntary process – they negotiate because they can get better deal rather than accepting one’s idea4. WHEN NEGOTIATE, WE EXPECT GIVE AND TAKE PROCESS compromise: leads to modifying decision- in order to justify position to reach mutual agreement5. PARTIES PREFER TO NEGOTIATE AND SEARCH FOR AGREEMENT RATHER THAN FIGHT OPENLYnegotiation occurs when parties prefer to invent their own solution for resolve conflict6. SUCCESSFUL NEGOTIATION INVOLVES MANAGEMENT OF TANGIBLES (PRICE AND THE TERMS OF AGREEMENT) ALSO THE RESOLUTION OF INTANGIBLEStangibles: the price or the terms of agreementintangibles: the underlying psychological motivation that may directly or indirectly influence the parties during negotiationfor example: a. the need to win, beat the other party b. the need to look good for the people you represent c. the need to defend important principle
DISTINGUISH BETWEEN BARGAINING MIX AND BARGAINING RANGE, PROVIDE ONE EXAMPLEBARGAINING MIX- The bargaining mix is the package of issues up for negotiation. Each item in the bargaining mix can have its own starting, target and resistance point. Agreement is necessary on several issue (bargaining mix) such as the price, the closing date of sale, renovation to the café and the price of valuable item in café.[pic 1]BARGAINING RANGE – is the spread between resistance point, which is particularly important because anything outside this point will be summarily rejected by one of the two negotiators+ Bargaining range: when buyer’s resistance point is above the seller – buyer minimally willing to pay moreBargaining range: when seller’s resistance point id above the seller – buyer wont pay more – seller will minimally acceptTHREE MISTAKES THAT NEGOTIATIOR MAKEFailing to negotiate when they shouldNegotiating when they should notNegotiating when they should, but choosing in-appropriate strategyWHAT METHODS OR TECHNIQUES THAT MULTIPARTY NEGOTIATION CONCLUDES SUCCESSFULLYMultiparty negotiation which more than two parties are working together to achieve a collective objectiveEFFECTIVE GROUP DO THE FOLLOWING THINGS: 1. Test Assumptions and inferences2. Share as much relevant information as possible3. Explain the reasons behind one’s statements, questions, and answer4. Be specific – use examples.5. Disagree openly with any member of the group6. Agree on meaning of the important words7. Expect to have all members participate in all phases of the process