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Best Practices in Negotiation
negotiation strategies and their strenghts and weaknesses
Best Practices in Negotiation
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Dirty tricks
Since time immemorial, business activities have continuously been controlled by the forces of demand and supply. In light of this, it is evident that prices of commodities are achieved through an in-depth analysis of demand and supply. Nonetheless, driven by selfish reasons as well as in the quest to increase profits and consequently reduce losses, thus maintaining relevance in a competitive business environment, entrepreneurs’ apply dirty tricks as ingredients in the negotiation process. In a business environment, negotiation is prevalent as parties involved apply various strategies to achieve a win-win or win-lose situation to an argument. The negotiation process can be a tiresome experience. In this regard, it is important as
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For this reason, to counter the theatrics of dirty tricks there is need to separate personalities from the problem. This means that a negotiator should be inclined towards settling a problem but not the person engaging in the process. In an example, when negotiating on the best president of the United States, the general populations as the negotiators should desist from securing thoughts of the personality thus concentrate on the political manifesto brought forth. Additionally, to deal with dirty tricks; a negotiating party is advised to focus on interests as opposed to positions. This means that parties should concentrate on arriving at mutual interests for better decision making. According to the authors of Getting to Yes book, there is need to enlighten the parties involved in the bargaining process on the demerits of going against a particular school of thought. In essence, politicians are the best bargainers when it comes to soliciting votes from the electorate as they try to outshine one another. Using this as an example, politicians devise strategies to swindle the perceptions of many voters by providing the costs involved in agreeing to a contrary version. For example, opponents to President Obama’s leadership capitalize on his origin as opposed to the fantastic and development-conscious policies that he has increasingly put across …show more content…
For this reason, it is evident that parties to a business negotiation are able to field various questions as well as look out for tactics. In this regard, the author points out that the meeting place should be open. This is meant to propagate confidence on the deals. On the other hand, making the first offer is tricky particularly because of the costs involved in the negotiation process notably monetary and time-wise. In essence, making an offer sends signal on the desired expectations. Nevertheless, it is proportionally relevant to quote a figure or else make an offer that is justifiable. For example, when selling a car, it is important to quote a particular amount of money that is commensurate to the inbuilt capacities. This makes the other negotiating party to partly negotiate from a known standpoint unlike beating around the bush. Conversely, it is incongruent to overprice a commodity or service especially in modern day liberalized business environment (Fisher, Ury and Patton 1991).
Question 4: “How do I try out these ideas without taking too much risk?”
In business, risks are inevitable. This means that for a business idea to flourish, one is expected to put extra energy into it including and not limited to injection of adequate capital as well as engage in limitless advertisements. The authors point out that making an investment is an indelible ingredient to ensure that business survives harsh economic
Deere & Company (Deere) has been experiencing a decrease in its profit margins for one of its aftermarket resale products, specifically the gatherer chain, over the past couple of years. Currently, the cost-price ratio is at 80% compared to last year’s 50%. The purchase cost for the gatherer chain has been steadily increasing, while the aftermarket price has been decreasing. Deere has been budgeting its price to match that of a major competitor, which has been causing the decrease. The company’s main supplier of its gatherer chain is Saunders Manufacturing, with which Deere has established a long term relationship. The owner of Saunders has a reputation of being a tough negotiator, and is someone who is known for not willing to share financial information about the company. However, the U.S. Department of Commerce has provided financial estimates in Saunders’ industry as follows: material spend, 42%; direct labor, 16%; indirect labor, 6%; Overhead, 20%. These percentages are helpful to Deere because they can be used in the negotiation process with Sanders. Since Sanders will not share any specific cost information, Deere is able to use these estimates as a way to justify Sanders reducing its prices. Using these estimates during the negotiations might also incentivize Sanders to provide accurate numbers for its specific manufacturing costs.
Lewicki, J. R., Barry, B., & Saunders, M. D. (2010). Negotiation: Readings, exercises and cases
Planning for this negotiation was more difficult than the first negotiation in class. The first negotiation had a point system; therefore I knew what the maximum, minimum and average amount points were. Not only does the Texoil negotiation not have a point system, but there were two people on my side (sellers) and only one on the other side (buyer).
The power of manipulation is a very powerful tool and can easily be misused to benefit
Negotiations are a part of daily life whether we are aware of them occurring or not. In everything that we do there are preferred end results and the end results are likely to affect more than one person. The goal in this however, is to ensure that all parties are equally benefited from the actions and reactions that occur to create that end result. While some dealings are done in a more subtle manner without a great deal of negotiation per say there are other situations that would warrant more vocalized mutually acceptable compromises. The purpose of this paper will be to effectively explain a situation of which required negotiation on the part of both parties that almost all of us have endured and that would be the process of buying a vehicle.
Lewicki, R., Saunders, D.M., Barry B., (2010) Negotiation: Readings, Exercises, and Cases. 6th Ed. McGraw-Hill Irwin. New York, NY
best price for the car. Instead, the confident buyer of the car will take the price quoted by the salesman as the negotiations starting point. It would therefore be wrong to imply that bluffing is unethical since both the seller and the buyer are positioning them self to maximize their opportunities. The buyer negotiates the price in order to purchase the car at the lowest price possible, while the seller does his best to sell the car at the highest possible price. Therefore, there is no violation of ethical conduct. In the business game, everyone is looking for an opportunity to get the best out of the
...istic and ambitious enough to avoid setting wrong limit and target. A common tactic is that people ask for a price (S1) that is higher than their intended target (Stp). However, making an unreasonable demand is not beneficial at all because “Trades would not take place unless it was advantageous to the parties concerned” (Benjamin Franklin). In fact, it is not a mistake in case the negotiators think that they need to ask for more. To get appropriateness, good reasons are the key for the negotiators to demonstrate to the other side that the price is reasonable and credible. In our negotiation, the other group sets a weird price ($53m). This price was certainly rejected by our group as the buyer. The final price was only $16m. Therefore, asking for something strange is not a wise tactic. It can undermine the reliability of the negotiator and maybe hurt the other side.
Getting interests is not always easy or to one’s best advantage. Critics of the “interests approach” to negotiation have often identified the difficulty of defining interests and taking them into consideration.
Negotiation occurs almost every day in our personal and professional life. Having superior negotiation skills can be critical to the success in our personal and professional life. This essay will illustrate the negotiation style, the planning and the execution of my negotiation skills. I planned on using my negotiation skill on reducing the cost of monthly rent for the apartment. After the reading from Negotiating for Success: Essential Strategies and Skills by George Siedel, one gains success through initiating and stirring the process, and excepting there to be room for change. So, off I set to meet the landlord to negotiate a new price for the monthly rent agreement on the Lease
Negotiation is an important strategy and plays an indispensable role for people to solve the problem in our lives. It is a good way to make both parties find acceptable solution by each parties use tactics to persuade another party to approve his or her viewpoint. The application of the advanced negotiation skills definitely not only brings success in our daily life but also improve people’s work ability. This essay will show my natural preferences for different types of influence tactics which have been utilized in in-class, the understanding of the negotiation and analyze how to use proper tactics at different situations which are based on the role-play activity in tutorial.
Fontaine and Mr. Gaudin were not effective for what they were trying to accomplish. The style of Fontaine and Gaudin was an integrative bargaining style. The textbook illustrates integrative negotiation as managing “both context, and the process of the negotiation in order to gain the cooperation and commitment of all parties” (Lewicki, Saunders, & Barry, 2011).
Jeremy, G. T. (1989). How to negotiate better deals. London, UK: Gold Arrow Publication Ltd.
But, at the same time, investment is an addition to the capital equipment, and right from birth it competes with the older generation of this equipment. The tragedy of investment is that it calls forth the crisis because it is useful’.
Access to capital and credit at various stages in the business life cycle is identified as the major hurdle by the entrepreneurs. For many small firms and most start-ups, the personal funds of the business owners and entrepreneur and those of relatives and acquaintances constitute as the major source of capital. For many small businesses, especially during the early years of their operation, credit is simply not available. For many others, the limited available credit is not through bank loans. Due to this many of them rely on multiple credit card balances and home equity loans as major sources of credit for start-up firm. Because banks are bound by laws and regulations to prudent lending standards that require them a risk management assessment for each loan made. These regulations were made more vigor during the late 1980'' and early 1990 . Banks always found that lending to manufacturing firm with hard asset such as property, equipment, and inventory has always been easier than lending to today's expanding service sector firms. Because the service sector firms own few hard asses, therefor lending judgment have to be based in terms of character, markets, and cashflow, which make it difficult to the bank to meet the regulations for the approval of the loan. Additional, the banking industry, as well as the entire financial sector of the