Business Negotiation
Content
Negotiation Tactics – One of the most important segments of business negotiation.
Counter Tactics – It consists 3 major noticeable steps: I. Identify the tactics used against you. (Makes you ready and comfortable before the actual negotiation, you can strategise your moves.) II. Possible process options to plan. (Slowing down the process will help in thinking and acting accordingly.) III. Depending on the outcome the party want to achieve, it can decide the appropriate counter tactic and get the desired results. If the other party starts snubbing or putting pressure then we can start talking about competitors, the OP’s business and current situation along with our strong points to be offered. Planning Counter Tactics – By asking Hypothetical questions, try to disclose OP’s tactics. Referring Deadline would be a good tactic. Acknowledge & Deflect. Using Time as a weapon to postpone the process according to our
convenience. Taking Position – Ignorance and Resistance Breaking Deadlock – Identifying other party’s needs. Rechecking the attitude, tone and communication style. Creating process movement. Concession –
a) Sometimes we should let the OP to initiate the concession. (Whoever makes st the 1 move, they somehow losses the psychological advantage.) b) If at the end of negotiation the OP losses its face or suffers loss, then it is a part of professional duty to cheer them up to retain the good relationship. c) Analysis the sequence of concessions. To make concessions – Careful planning. Check the responses of OP by offering different concessions. Exchange concession to make a long term relationship. Offer concession as a reward for motivation. Keep in mind the short term and long term consequences. Retain sufficient to offer at final closure of the deal.
Communication –
a) Appropriate body language. b) Right words at right time. c) Attitude. d) Style. Using Question as a tool:
Open ended question [To break the ice]
Reflective [To build rapport or to be empathetic]
Hypothetical. [Creating a hypothetical situation]
Phases of Negotiation: Introductory – Place, Mood and Time do count in this stage. o
Process control from outset.
o
Settling in to start negotiation by basic introduction, flattery and talking about the business.
o
Building common ground to have a comfort zone.
o
Climate development.
Differentiation Phase – o
Creating outer limits and ZOPA.
o
Clarification of issues and interests.
o
Conflict management.
o
Discussion of differences (Making it only in the organization and professional level not in personal level)
o
Separation of conflicts.
Integration Phase – o
Surveying the range.
o
Taking position to problem solving.
o
Changing focus from past to future.
o
Monitoring the climate.
o
Avoid deadlocks.
o
Tactical concession making.
Settlement Phase – o
Summarizing the deal.
o
Final offering.
o
Locking in both professional and personal level.
o
Agreement.
Post Settlement –
o
Implementation of the entire process.
o
Holding OP’s esteem and closing the deal.
Dynamics of International BNS:
Environmental Context – 1) Political and Legal aspects including taxes and contract law. 2) International currency. [Vulnerable and fluctuating, that’s why Dollar remains best choice] 3) Different governmental policies. 4) Political and resource instability. 5) Individual or group rights. 6) Different cultures and practices. 7) External stakeholders’ interests. Immediate Context – 1) Relative bargaining power – Who invests more equity and fund, has the upper edge. 2) Geographical, cultural and ethnicity related conflicts. 3) The relationship between the parties. 4) Tangible and intangible outcomes. 5) Immediate stakeholders.
Counter Tactics – It consists 3 major noticeable steps: I. Identify the tactics used against you. (Makes you ready and comfortable before the actual negotiation, you can strategise your moves.) II. Possible process options to plan. (Slowing down the process will help in thinking and acting accordingly.) III. Depending on the outcome the party want to achieve, it can decide the appropriate counter tactic and get the desired results. If the other party starts snubbing or putting pressure then we can start talking about competitors, the OP’s business and current situation along with our strong points to be offered. Planning Counter Tactics – By asking Hypothetical questions, try to disclose OP’s tactics. Referring Deadline would be a good tactic. Acknowledge & Deflect. Using Time as a weapon to postpone the process according to our
convenience. Taking Position – Ignorance and Resistance Breaking Deadlock – Identifying other party’s needs. Rechecking the attitude, tone and communication style. Creating process movement. Concession –
a) Sometimes we should let the OP to initiate the concession. (Whoever makes st the 1 move, they somehow losses the psychological advantage.) b) If at the end of negotiation the OP losses its face or suffers loss, then it is a part of professional duty to cheer them up to retain the good relationship. c) Analysis the sequence of concessions. To make concessions – Careful planning. Check the responses of OP by offering different concessions. Exchange concession to make a long term relationship. Offer concession as a reward for motivation. Keep in mind the short term and long term consequences. Retain sufficient to offer at final closure of the deal.
Communication –
a) Appropriate body language. b) Right words at right time. c) Attitude. d) Style. Using Question as a tool:
Open ended question [To break the ice]
Reflective [To build rapport or to be empathetic]
Hypothetical. [Creating a hypothetical situation]
Phases of Negotiation: Introductory – Place, Mood and Time do count in this stage. o
Process control from outset.
o
Settling in to start negotiation by basic introduction, flattery and talking about the business.
o
Building common ground to have a comfort zone.
o
Climate development.
Differentiation Phase – o
Creating outer limits and ZOPA.
o
Clarification of issues and interests.
o
Conflict management.
o
Discussion of differences (Making it only in the organization and professional level not in personal level)
o
Separation of conflicts.
Integration Phase – o
Surveying the range.
o
Taking position to problem solving.
o
Changing focus from past to future.
o
Monitoring the climate.
o
Avoid deadlocks.
o
Tactical concession making.
Settlement Phase – o
Summarizing the deal.
o
Final offering.
o
Locking in both professional and personal level.
o
Agreement.
Post Settlement –
o
Implementation of the entire process.
o
Holding OP’s esteem and closing the deal.
Dynamics of International BNS:
Environmental Context – 1) Political and Legal aspects including taxes and contract law. 2) International currency. [Vulnerable and fluctuating, that’s why Dollar remains best choice] 3) Different governmental policies. 4) Political and resource instability. 5) Individual or group rights. 6) Different cultures and practices. 7) External stakeholders’ interests. Immediate Context – 1) Relative bargaining power – Who invests more equity and fund, has the upper edge. 2) Geographical, cultural and ethnicity related conflicts. 3) The relationship between the parties. 4) Tangible and intangible outcomes. 5) Immediate stakeholders.
