The Negotiation Process

Topics: Negotiation, Contract, Regulatory Focus Theory Pages: 5 (1126 words) Published: March 9, 2015

The Negotiation Process
Israel Rivera
Dr. Anwar
International Management 4335_70

The term negotiation is the process of discussion by which two or more parties aim to reach a mutually acceptable agreement (Deresky 2014, p. 145). In chapter five this week Deresky discusses the five step process of negotiation. The steps are preparation, relationship building, the exchange of task-related information, persuasion, and concessions and agreement (Deresky 2014). Everyone uses negotiation everyday of their lives and of course negotiation is a great part of how an MNC functions and is used internationally for a major deals. Stage One: Preparation

In this step the company or person doing the negotiation would have to carefully prepare for the negotiation which would in include getting a translator because of the culture difference if there is one, as well as preparing and comparing profiles of the negotiator (Deresky 2014, p. 146). For example in the article from the Wall Street Journal about Germany and the Urging of Ukraine to start the negotiation process once again for the line separating the government-controlled areas, they need to have background information before starting this process (Dauer 2014). For example if they negotiation came to a halt what caused the stop. Also if they what to negotiate they need to look back at the past negotiation and see if they can pick back up where they left off or if they need to begin again and redo the whole negotiation. They also need to take into consideration the variables in the negotiation process. For this particular case Germany would have to consider the basic conception of the negotiation process, significance of the type of issues, nature of persuasive arguments, and value of time (Deresky 2014, p. 147). The reason those are important is because in the basic conception of negotiation process they need to know if it is a competitive process or problem solving approach, in their case it would be problem solving (Deresky 2014, p. 147). The significance of the type of issue is important because Germany needs to who to approach the issue if it is price or focus on the relationship (Deresky 2014, p. 147). Next the nature of persuasive arguments would be how Germany would influence Ukraine to decide on the line agreement and should they solely base it on rational arguments (Deresky 2014, p. 147). The last variable that pertains to the Germany and Ukraine negation is the value of time, do they need more time or what is the flexibility (Deresky 2014, p, 147). After preparation they can continue onto the long term effects of the negotiation process. Stage Two: Relationship Building

Relationship building is the process of getting to know one’s contacts in a host country and building mutual trust before embarking on business discussions and transactions (Deresky 2014, p. 147-148). In Germany’s case they already know most of Ukraine’s contacts since they have dealt with them in the past. Their contact groups actually include Russia, Ukraine, and the Organization for Security and Cooperation in Europe, or OSCE (Dauer 2014). In the book Deresky talk about the connection with relationship building and preparation and if you don’t prepare it could go south for you in the end like Fisher and Ury (Deresky 2014, p. 148). In this article Mr. Steinmeier’s even did an exchange of hundreds of prisoners to the Ukraine government which could be a beneficial step in the relationship building (Dauer 2014). Stage Three: Exchanging Task-Related Information

This step Deresky describes it as each side making a presentation and stating their position, having a question and answer session, and alternatives may be presented (Deresky 2014, p. 148). In the case for Germany and the Ukraine this exchanging of task-related information may have already happened once before but it is important it happen again just in case any one idea has changed or any information has changed....
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