What is a negotiation? It involves at least two parties which have definite interests, goals and require adequate time to process. We can use different strategies dealing in a less competitive , costly and more satisfied way. The following negotiation situation is in the business market.
The case study is about the cooperation and negotiation of the software project between HyperHawk and JJM . HyperHawk , one of the world’s major providers of global supply management software and services, helps companies reduce costs through efficient product and services sourcing. Shanghai-based JJM, one of the biggest gaming and hospitality companies in Asia, is owned by Chinese businessman Tan Wu Bo. They are going to get start the project.
At first, HyperHawk provided a competitive price package that included services over twelve month . It included three items." First, JJM had agreed that HyperHawk could add value to the projects identified. Second, JJM would sign for a ten-project package to get a competitive price. Third, If HyperHawk could meet JJM’s demand, the latter would sign the contract by May-end 2005." To this, JJM only agreed the first offer in the proposal .
Then , HyperHawk quickly agreed to lower its fee and provide additional program management days at no additional cost in order to pacify JJM. However, HyperHawk said it could not agree to extend the twelve month term without charging extra cost. In addition, HyperHawk knew that Mary Xie ( the assistant of JJM’s Vice-President for Procurement Henry Chow & the purchasing manager of JJM )was not the decision maker and approval had to come from the top management of JJM. However, it knew that the issues had not resolved.
The next problem came to the time period. JJM suggested twenty-four months to implement the ten projects due to lack of manpower. HyperHawk criticized it was unreasonable since it had been taken into account firsty. And HyperHawk gave in a maximum of eighteen months very soon. One week later, there was still no response from JJM company and it explained that it may not guarantee the agreement would be finished by the end of May. Meanwhile, JJM suddenly rose another possible preliminary IT project which JJM wished to undertake first. HyperHawk was ready to negotiate and finalize an agreement, but it could not yet receive the actual reply. The above situation stated that it was a rational negotiations without any emotions. The relationship of both parties was harmonious and mutually beneficial. If it could deal with the definite time, right person and communicate thoroughly, the progress could be accelerated.
Negotiation analysis & Theories application
(I) Tit- for Tat
HyperHawk used the 'Forgiving' technique to JJM. Although there was a sudden IT project before any notices, HyperHawk accepted and negotiated. It kept the positive emotion. HyperHawk did not punish or threat JJM that the time was still stayed at the same period which allowed more information exchanged. HyperHawk hoped to continue the negotiation and cooperation with JJM instead. It was helpful and efficient to both parties if it could finish the deal as soon as possible.
(II) The consistency principle& Door- in- the- face technique HyperHawk was highly commited to the proposal and maintained the competitive price package in a more reasonable way, For example, HyperHawk tried to shorten from 24 months to 12 months. Also, it agreed to lower its fee and provide JJM additional program management days at no additional cost. This was accorded with the proposal and maintained a friendly relationship.
(III) Cooperative style/ Epistemic motivation
It refers to a person's need to understand his/her world. It was not only a cooperative orientation, but also required a deep understanding of the case .For example, HyperHawk and JJM had already signed up for a long term contract which...
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