Notesale: Turn your study into money

Document Preview

Extracts from the notes are below, to see the PDF you'll receive please use the links above

---

Successful Business
Negotiations

Stages of negotiations (Hendon et al
...
Initial planning and
fact finding
2
...
Non-task exchange
4
...
Resistance

6
...
Hard bargaining and
decision making
8
...
Concessions
10
...
Follow-up

Research
• The other person - Knowing your opponent and the
power the other party has (Sun Tzu – Art of War)
• The history - avoiding trouble
• The context - understanding a bigger picture
• The environment/culture - How do they do things
over there?

Rules of Principled Negotiation
• Separate the people from the problem
• Focus on interest, not on positions
• Generate a number of options before making a final
decision
• Make sure the result is based on objective criteria

What makes a Successful
Negotiator
•
•
•
•
•
•

•
•

Sufficient time to prepare
...

Knowledge of the subject matter
...

A clear negotiating strategy or plan
...
g
...

Effective communicating skill, such as listening
...

2
...

4
...

6
...

8
...

10
...
g
...

• Win/lose
• Lose/lose

Acceptance Zones in Negotiating
a) No overlap in acceptance zones
0

100

Company’s acceptable ownership 51% to 100%
49 51

75
51 49
Buyer’s acceptable ownership 51% to 75%

100

0

b) Overlap in acceptance zones
0

100

Company’s acceptable ownership 25% to 100%
49
25

75
51
Buyer’s acceptable ownership 51% to 100%

100

0

When Should You Walk Away From a
Negotiation
•
•
•
•
•
•
•
•

If time pressure is high
When you’re not prepared
A situation where you could lose everything
When you’re running at capacity
If the demands are illegal, unethical or immoral
When you have no stake in the outcome
When the other party acts in bad faith
If waiting would improve your position

Plan the negotiations
To fail to prepare, is to prepare to fail…
1
...

3
...

5
...

7
...

9
...


Prepare yourself and your team
Know the other party
Know the big picture
Identify objectives
Prioritize objectives
Create options
Select fair standards
Examine alternatives
Select your strategy, tactics, and
countertactics
Develop a solid and approved
team negotiation plan

Things to Know About the Other Party
Buyer and Seller
 What is the organization’s overall business strategy?
 What is its reputation?
 What is its current company business environment?
 Who is the lead negotiator?
 Who are the primary decision makers?
 What are their key objectives?
 What are their overall contract objectives?
 What are their personal objectives?
 Who or what influences the decision makers?
 What internal organization barrier do they face?
Seller Only
 When does the buyer need our products or services?
 How much money does the buyer have to spend?
 Where does the buyer want our products and services delivered?
 What benefits will our products and services provide?
 What is our company’s past experiences with this buyer?

Reference Text: Contract Negotiations, by Gregory A
...
(2005), pg
...


International negotiations
• Naive indeed to venture into international
negotiation with belief that “after all people are
pretty much alike everywhere and behave much as
we do
...


Measurement: Hofstede’s 7
Global Cross-Cultural Values
a) Individualism-Collectivism
b) Power Distance
c) Uncertainty Avoidance
d) Achievement-Nurturing
e) Short-Term Orientation
f) Polychronic Orientation
g) Context Orientation
http://www
...
co
...
html

Successful Business
Negotiations



---