Topic 8 IB
Victor Alejandro De
Created on September 22, 2023
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September 25, 2023Teacher Victor De la Garza
Module 02.- Negotiation in the international context
Topic 8
Negotiation Development
“In business, you don't get what you deserve, you get what you negotiate”Dr. Chester L. Karrass.
What is a negotiation?
Introduction
Negotiation is considered by many people as an art because talent and hard work is required for its structure and for the way it is carried out to achieve the expected outcomes.A good negotiation will allow each of the parties to win.- XV años or Wedding. What to you need to organize? Is it complex? -
Introduction
The negotiation process can be complex.It is recommended to do a detailed planning expressing and considering every possible option that might be presented, including all the alternatives for the initial plan, and is also recommended to defend the objectives clearly. Every detail in negotiation strategies should be carefully analyzed for achieving the set goals.
8.1 Negotiation: concept, process, and scope
Negotiation is the process in which two parties attempt to reach their goals, which generally are opposites, and reaching an agreement with the counterparty is needed.The scope of negotiation is very wide. International or labor negotiations, differ in their complexity, number of the parties involved, and topics of discussion.
What are the elements of an international negotiation?
- There are two or more parties involved.
- Which can be composed of people or groups of people, organizations, or nations.
- There is an underlying conflict of interest.
- Negotiation appears as one possible way for handling a conflict.
Regardless the negotiation level of its type, all of them share the same elements according to Jaca and Díaz (2014).
Elements of an int. negotiation
- There is a specific relationship of power between the parties.
- Some balance of power is required for having a successful negotiation without it being an imposition.
- There is a systematic process of offers and counteroffers, which is a tit for tat between the parties.
Regardless the negotiation level of its type, all of them share the same elements according to Jaca and Díaz (2014).
Elements of an int. negotiation
There are tangible and intangible aspects.
- An example of a tangible aspect is any financial agreement achieved.
- An intangible aspect can be the way a person feels regarding the achieved outcome.
Regardless the negotiation level of its type, all of them share the same elements according to Jaca and Díaz (2014).
Elements of an int. negotiation
Assistance
Process of a negotiation
The basic process of a negotiation includes the following:
- Before negotiation
- During negotiation
- After negotiation
Process of a negotiation
BEFORE NEGOTIATIONa) Preparation
- Research on data an training. It is important to define:
- What do I want to obtain?
- Why do I want to obtain it?
Process of a negotiation
BEFORE NEGOTIATIONb) Planning
- To define every point that is going to be negotiated.
- To do a list for contingent matters.
- To define priorities (what is most relevant to negotiate, and the less relevant for negotiation).
- To gather information about the counterparty’s style and the negotiator’s background (strengths and weaknesses).
Process of a negotiation
BEFORE NEGOTIATIONc) Defining your agenda
- Defining objectives.
- What we would like to achieve.
- What we pretend to achieve.
- What we must achieve.
DURING NEGOTIATIONa) AntagonismDuring this stage, opponents expose their maximum level of expectations. The purpose is to confirm to the opponent the strong determination of our stands.
Process of a negotiation
DURING NEGOTIATIONa) AntagonismThe functions of this stage are the following:
- To keep intact how the negotiator is perceived before those who he/she represents.
- To help clarify the own goals and priorities.
- To observe and try to which extent the other party can be forced to make concessions.
- To show how resolute you are about your own goals.
- To explain the existent differences.
Process of a negotiation
DURING NEGOTIATIONb) Acceptance of common frameworkThere is a moment in which the parties must clarify if they are adopting a competitive, collaborative, or unilateral assignment position. Since the goal for both parties is to reach an agreement, positions can be presented as long as there are signs of reciprocity from the elements on dispute.
Process of a negotiation
DURING NEGOTIATIONc) Presentation of alternativesDuring this stage, offers and counteroffers are presented by the other party, until positions that promote a final agreement are presented.
Process of a negotiation
DURING NEGOTIATIONd) ClosureOnce the positions are presented, and when the final agreements are displayed, the negotiation is now concluded.(Jaca and Díaz, 2014)
Process of a negotiation
Process of a negotiation
AFTER NEGOTIATIONa) Monitoring
- Research on data and training.
- A follow-up of the agreements.
Process of a negotiation
AFTER NEGOTIATIONb) Evaluation
- Analysis of results
- What happened?
- What does it indicate?
- What should I do the next time?
8.2 Negotiation styles
Since any negotiation is a human interaction, there are different styles for carrying it out, according to each person. These styles are detailed by Ávila (2008) as presented in the chart.
Negotiation styles
This is to identify the root of the problem and to find together acceptable solutions for both parties.
Cooperation
This is to concede on some aspects and to give partial or total concessions.
Subordination or acceptance
Julio Cesar Chavez case
Negotiation styles
This is to solve the conflict under our own terms, without considering the other party’s interests.
Confrontation
This is to delay any action that might lead to the solution of the conflict, thinking on resuming those actions a later.
Inaction
Putin declares military offensive in Ukraine as invasion starts
According to Chamoun (2003), there are 6 P’s of negotiation that we must identify to design a negotiation strategy.
- People
- Process
- Product
- Problem
- Power
- Prediction
8.3 Techniques and strategies of negotiation
8.3 Techniques and strategies of negotiation
People
- Their culture, ego, attitudes, interests, and behaviors, and how to understand the aspirations and psychology of the counterparty.
- Which sequence must be used when beginning the negotiation process? Which is the framework for action and reference that we can use?
8.3 Techniques and strategies of negotiation
Product
- What we are negotiating.
- Knowing in great detail its characteristics.
- The reason for carrying out the negotiation.
- This includes the external forces of the market.
* If we analyze the 6 P’s of negotiation, we can have a better understanding of each stage of its process. Therefore, we can obtain a positive outcome for the negotiation.
8.3 Techniques and strategies of negotiation
Power
- The perception one team has of another (strengths and weaknesses).
- There are sources which give power, such as information, time, background, knowledge, a good relationship with the counterparty, among others.
Closure
A proper preparation will make the negotiation process easier. Although each step of the negotiation is different and has its own characteristics, the general recommendations will lead to the achievement of the desired goals. The negotiators group must consider every possible detail and alternative for making the process easier.
Thank you!
This is the end of the class.Victor De la Garza victordlgp@tecmilenio.mx