Negotiation Strategy

CHARACTERISTIC OF A NEGOTIATION SITUATION
negotiation is a process by which two or more parties attempt to resolve their opposing interest

1. THERE ARE TWO OR MORE PARTIES
negotiation is a process between individual and groups

2. THERE IS A CONFLICT OF NEEDS AND DESIRES BETWEEN TWO OR MORE PARTIES
when one party have differ in needs and desire – the parties must search for a way to resolve conflict

3. THE PARTIES NEGOTIATE BY CHOICE
negotiation in voluntary process – they negotiate because they can get better deal rather than accepting one’s idea

4. WHEN NEGOTIATE, WE EXPECT GIVE AND TAKE PROCESS
compromise: leads to modifying decision- in order to justify position to reach mutual agreement

5. PARTIES PREFER TO NEGOTIATE AND SEARCH FOR AGREEMENT RATHER THAN FIGHT OPENLY
negotiation occurs when parties prefer to invent their own solution for resolve conflict

6. SUCCESSFUL NEGOTIATION INVOLVES MANAGEMENT OF TANGIBLES (PRICE AND THE TERMS OF AGREEMENT) ALSO THE RESOLUTION OF INTANGIBLES
tangibles: the price or the terms of agreement
intangibles: the underlying psychological motivation that may directly or indirectly influence the parties during negotiation
for 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 EXAMPLE

BARGAINING 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.
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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 more

• Bargaining range: when seller’s resistance point id above the seller – buyer wont pay more – seller will minimally accept
  

THREE MISTAKES THAT NEGOTIATIOR MAKE

1. Failing to negotiate when they should
2. Negotiating when they should not
3. Negotiating when they should, but choosing in-appropriate strategy

WHAT METHODS OR TECHNIQUES THAT MULTIPARTY NEGOTIATION CONCLUDES SUCCESSFULLY

Multiparty negotiation which more than two parties are working together to achieve a collective objective

EFFECTIVE GROUP DO THE FOLLOWING THINGS:
1. Test Assumptions and inferences

2. Share as much relevant information as possible

3. Explain the reasons behind one’s statements, questions, and answer

4. Be specific – use examples.

5. Disagree openly with any member of the group

6. Agree on meaning of the important words
7. Expect to have all members participate in all phases of the process