ENGLISH FOR INTERNATIONAL BUSINESS (B2-C1)
RAQUEL GONZÁLEZ GUARDIOLA
THE NEGOTIATION PROCESS
Five Basic strategies:
Split the difference
Pinpoint the need
Other negotiation strategies:
Good guy/Bad guy
A negotiation is when two parties deal with discussion. Another definition of negotiation is discussion that ends the meeting. Negotiation styles relate to how people deal with conflict. There are different approaches: * The adversarial approach (win-lose). When you think “I must win”.
* The Accommodating approach (lose-win). To just give in. Agreeable, non-assertive behaviour. Cooperative even at the expense of personal goals.
* The compromising approach (give-get/take). In order to get what you want in the negotiation you must give up something. Both parties are willing to give something in order to get what they want, and they enter the negotiation with that plan in mind. How much, and when they compromise are the details to be worked out.
* The collaborative approach (win-win). When both parties are winning.
When people prepare for bargaining encounters, they spend hours on the factual issues, the legal issues, the economic issues, and the political issues. They spend no more than ten to fifteen minutes on their negotiation strategy. When they begin their interaction, they have only three things in mind relating to their negotiation strategy: 1) Where they plan to begin?
2) Where they hope to end up?
3) And their bottom line.
Some of the concepts that we have to consider before you begin a negotiation are: * BATNA’S: it is the Best Alternative to Negotiate an Agreement. If an initial negotiated agreement is not reach, you should first identify your BATNA. * Bottom-line: is the lower (worst) offer that you can accept. * ZOPA: is the area between the bottom-line A and the bottom-line B (common ground). It is the zone where is possible an agreement. Also it is called contract zone, is the set of all feasible alternative solution for the negotiation problem that are preferred over BATNA in a single issue negotiation or it is the distance between the reservation levels of the two opposing parties.
The proponent is trying to sell us something. This can be a product, a business idea, services, an organizational concept or a combination of these things. The proponent is more commonly called the 'seller'. The prospect, on the other hand, is more commonly called the 'buyer'. 2. THE NEGOTIATION PROCESS
Before the negotiation you must plan and prepare the meeting. It is necessary to know the type of negotiation, the purpose of negotiation, targets, know facts and prepare visuals, strengths and weakness (calculate your bargaining position), possible concessions (plan your bargaining strategy) and opening statement (state general objectives, priorities, independent objectives and be brief).
There are seven distinct stages of the negotiation process: 1) Preparation.
2) Introduction. Establishment of negotiator identities and the tone for the interaction. Making a statement of goals and objectives. 3) Interview. Information exchange. To know the other parts wants and needs. The best way to obtain information from others is to ask questions. People who wish to get new information know how important it is to get the other side talking. 4) Presentation and Discussion.
Bibliography: Class notes.
Student’s Book English for Business Communication. Simon Sweeney. Cambridge University Press.
The negotiation process. By Charles B. Craver
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