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Negotiation skills - case study report
Negotiation skill process
Reflection on negotiation technique
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To many people, the word sounds familiar, yet confusing so I have decided to explicate further. "Negotiate" comes from the Latin “negotiatus,” which happens to be the past participle of “negotiari,” meaning – “to carry on business”. This original meaning is critical to understand because the goal of negotiating is to continue doing business by conferring with another to arrive at an agreement (Cardone). Negotiation does not mean lowering the price of your product so you can reach a sales agreement with your client because a lower price does not make for a better deal; it only makes for less margin for you and your company. Your goal is to come to an agreement about a proposal, and the way to do this is to build value in your offer. The solution to your product or service offers is the focal point of negotiations, not the price (Cardone). Effective sales and negotiation techniques blend talking to the right people and listening very meticulously to find out what your clients want to buy, and why they want to buy it. Once you 've got both those elements, you can close the deal to mutual benefit – Those were the words of the international sales …show more content…
Eddie painstakingly spoke in details about those techniques and about his experiences with them as a buyer of cars, and as a car dealer. He said that one of the techniques that customers and buyers alike use the most is emotional outburst. He spoke at length about one of his negotiating sessions where the room was filled with mixed signals. Everybody in the room was invested in their personal agendas and selfish emotions.
“In such a situation, it will be in your best interest to remain calm, cool, and collected, because crying, getting angry, calling names and blowing off steam may make you feel good, but such behavior will not benefit you while negotiating – Eddie
Knight. Though it was integrative negotiation, Petersen gained strong lead by opening formula price reduction, TexasAgs could have dampened the “first offer effect” by introducing new negotiator (Lewicki, Saunders, Barry, 2011, p. 41).
Negotiations are supposed to begin in a positive way in which the negotiators consider the needs and wants of the others involved and their shared interests and interdependencies.... ... middle of paper ... ... References Michael R. Carrell, C. H. (2008). Negotiating Essentials: Theory, Skills, and Practice.
Negotiation is a fundamental process used in resolving conflicts, making business deals, and in managing working relationships with others. Negotiations occur for two reasons: (1) to resolve a problem or dispute between parties, or (2) to create something new that neither party could do on its own.
Negotiations styles are scholastically recognized as being broken down into two general categories and those are distributive bargaining styles and integrative negotiation styles. Distributive bargaining styles of negotiation are understood to be a competitive type of negotiation. “Distributive bargaining, also known as positional bargaining, negotiating zero-sum, competitive negotiation, or win-lose negotiation, is a type or style of negotiation in which the parties compete for the distribution of a fixed amount of value” (Business Blog Reviews, 2011). This type of negotiation skill or style approach might be best represented in professional areas such as the stock market where there is a fixed goal in mind or even in a garage sale negotiation where the owner would have a specific value of which he/she would not go below. In contrast, an integrative negotiation approach/style is that of cooperative bargaining, or win-win types ...
We are all influenced by our human nature. Indeed, very often, our natural traits affect more than we would the decisions we think we make rationally. One of these human tendencies is to agree with our neighbor and to some extend, to avoid conflicts with individuals that we know. In other words, we are intrinsically inclined to say yes, especially if we praise the relationship. Even if negotiators are fully aware of this weakness, they cannot get rid of it. On the contrary, when they strongly desire a positive outcome to an exciting or a challenging negotiation, they might yield to any agreement, just to close the deal. Sometimes, they can do so even if the agreement does not meet their objectives. In order to address this human propensity that might be painful both in negotiation circumstances and in everyone’s private life, William Ury wrote the book The Power of a Positive No.
Negotiation, as we’ve learned, is the process of communicating where parties can discuss problems and/or targets and attempt to solve them via dialogue in order to reach a resolution. While many individuals feel successful negotiations are due to a natural skill, the truth behind reaching a prime agreement is preparation. You need to know the issue, know yourself, and know your party. This type of preparation also includes knowing your needs and limits, understanding what the other party wants and anticipating their limits, asking the right questions, and being creative in your counteroffers.
Negotiations and back-room dealings happen in any possible setting at any possible moment. Regardless of whether a bargain is two people negotiating a business deal, eighty people silently weighing the pros and cons of drawing attention to themselves, or one single person unconsciously deciding to give up individuality to wrest some semblance of power from the system, a choice is being made between various options.
Lewicki, R. J., Saunders, D. M., & Barry, B. (2010). Negotiation: Readings, exercises, and cases. New York: McGraw-Hill Irwin
The negotiation revolved around three main individuals, Terry Hardel, Josephine McNair, and Joe Abernathy. For this negotiation, my partner played the part of Joe while I played Terry. We were both given the same general instructions. However, an additional set of secret instructions were given to each of us separately.
During this course, I have learned a lot about negotiating. We learned about almost every negotiating technique there is. We learned about cross-cultural negotiations, body language, Best Alternative To a Negotiated Agreement (BATNA), variables in negotiating, and many more. Before this course, I did not know that much about negotiating. I thought that negotiating was just about trading or convincing someone to give you what you want and you did not care about the other side, resulting in a win-lose. I now know that negotiating is about getting what you want, but also giving the other side what they want as well to result in a win-win. This paper is about how I am going to improve my negotiating skills over the next six months. In order for me to improve my negotiating skills, I believe I need to improve the following skills- my body language, communication, planning, and my interpersonal communications. By improving those skills, I can become an effective negotiator.
The topic for my real world negotiation is to come to an agreement with my supervisor for a promotion as well as an increased salary. I currently work as a student assistant at the student services Planning, Enrollment Management, and Student Affairs (PEMSA) department. My goal is to increase my hourly pay from $10.15 to $12.70, a 25% increase. Having worked in this department for three years, I have taken on tasks not part of my job description such as processing return mail, data entry, and supervision.
Negotiation has been used as a vital communication tool not only in business but also in social intercourse. It helps people make common agreement and avoid conflict. So we need to use the tactics which we learned from this course and books to do more practice, only in this way we can gain advantages in negotiation.
Sia’s maximum that he would be willing to pay, is $12,000 and Mike’s minimum he would be willing to accept is $10,000. An agreement, if one is reached, will create $2,000 in integrative value compared with no deal, because Sia one-sidedly values the car $2,000 more than does Mike. How that $2,000 is divided between them whether, let 's say, the price agreed to is $10,000, $11,000, or $12,000 is a matter of distributive negotiating: any gain for Sia means pain for Mike, and the other way around. It’s, therefore, fair to describe this as generation of $2,000 in distributive value, distributed in accordance with distributive negotiating skills. On the other hand, what if Mike is an exceptional mechanic and enjoys spelunking in his spare time. Sia, conversely, can’t fix anything, and he hates having to take his car to unfamiliar mechanic shops since he fears that they will take advantage of him. These details propose that more integrative value might be created by the sale of the car if Mike will guarantee to repair any item that breaks for 9 months after the transaction. Let’s assume, for example, that this would cause Sia’s maximum price to increase to $12,500, while Mike minimum price would increase only to $10,200. Any deal that incorporated the repair agreement would be collaborative because it would generate more integrative value than the parties could achieve through the sale of the car alone. The additional $300 can be explained as the value that can be created by the negotiators’ integrative negotiating skills. “In addition, positive emotions make the parties less contentious and more optimistic about the future, which, in turn, increases the chances they will search for multiple alternatives and find a better integrative—win–win—agreement.
Jeremy, G. T. (1989). How to negotiate better deals. London, UK: Gold Arrow Publication Ltd.
Negotiation approaches are generally described as either distributive or integrative. At the heart of each strategy is a measurement of conflict between each party’s desired outcomes. Consider the following situation. Chris, an entrepreneur, is starting a new business that will occupy most of his free time for the near future. Living in a fancy new development, Chris is concerned that his new business will prevent him from taking care of his lawn, which has strict requirements under neighborhood rules. Not wanted to upset his neighbors, Chris decides to hire Matt to cut his grass.