Negotiation Strategy Article Analysis Paper Andres Zangara MGT/445 University of Phoenix Every negotiation starts with a process followed by a strategy because without either, then it would be just a disagreement with any kind of resolution to the issue. Making sure that you get what you set out for is important but does not necessarily mean that the other person has to lose in the negotiation so making sure to go through the process and then coming up with a strategy ensures that all parties come out with a win-win rather than a win-lose negotiation.
During the negotiation process parties begin with an analysis of their needs, desires and interests. The individual also takes outside issues into consideration such as culture, background and experience. All these information will help the individual form the basis of his/her negotiation which leads them into the planning stage. During the planning stage goals, terms and gains or lost are looked at, all issues that are crucial for the negotiating process (Ezine Articles, 2010).
Once all the information has been gathered during the negotiation process, the individual must take into consideration the strategy that he/she plans to implement during the negotiation. When parties negotiate they come to the understanding that there will be some kind of give and take and even though parties share some interlocking goals, they do not always want thing. Negotiation can have an outcome of either win-lose or win-win and even outcome will vary on the parties or strategy that was used to achieve it.
Key things that parties focus on when negotiating are interests, issues, and positions, as well as cooperative and/or competitive processes. Examples of cooperative and competitive processes are positional bargaining, which is competitive and interest-based bargaining, which is primarily cooperative. Positional bargaining is a negotiation strategy that is considered to be the win-lose negotiation because individuals that take this approach are fixed on a position regardless of any interest by the other party involved.
Example of positional bargaining is the haggling of a buyer and seller at a car dealership where the buyer does not want to pay full price and seller does not want to negotiate down on the price of the car. The second strategy the parties may use during a negotiation is Integrative bargaining which is referred to as the win-win negotiation because all parties work together to find an agreement that benefits all sides and neither party feels as they had to give in to finalize the negotiation.
Example of an integrative bargaining is when a couple decides that they want to go out for dinner and their teenager wants to go to the movies with friends, the problem is that they cannot get a babysitter for the youngest so the agreement is the teenager goes to the movies as long as the youngest tags along, allowing everyone to do as they had planned (Beyond Intractability, 2010).
The two articles that I reviewed was “Experts advice on preparing for your next supplier negotiation” and “Preparation, the key to successful negotiations” which describes negotiations that take place between supplier/customers and the importance of preparation before a negotiation. In “Experts advice on preparing for your next supplier negotiation” talks about the common mistake many making during the negotiation process just to rush to develop the plan, soon finding out that forgetting to ask key questions such as penalty clauses, payment terms, and quality.
Also, discounts, training, specifications, and back-up service can be costly. The article also suggested that taking the cooperative approach is the best way to develop a customer/vendor relationship but not to forget the negotiation process that will determine the needs of all parties (Nancy H. Wendorf, 2010). The second article in the opinion of Vic Catalano, a purchasing consultant, speaks also about the importance of preparation during the negotiation process that answers questions such as the wants and needs. Having the brief up front makes it a lot easier to know what you can give up in a negotiation when you’re in it rather than trying to think about it at the time,” Catalano explained (Supplier Selection & Management, 2005) When looking at the process and strategy examined in the two articles, it is clear to understand that preparation is the key component to a successful negotiation and in my industry negotiation is very important when dealing with vendors, customers and sometime even employees.
I personally like taking the interest-based bargaining approach because I believe I get more accomplish that. With vendors I am able to get good rates over long term versus battle it out for an exceptional price one time because the relationship ended bad, with customers and employees I noticed that the win-win situation allows for better relationship and flexibility which is great for getting last minute projects done without hassle and an extra day to get the product out without penalty. Reference:
Beyond Intractability (2010) Negotiation. Retrieved August 29, 2010, from http://www. beyondintractability. org/essay/negotiation/ Ezine Articles (2010) The Negotiation Process. Retrieved August 29, 2010, from http://ezinearticles. com/? The-Negotiation-Process&id=1348653 Experts advise on preparing for your next supplier negotiation. ” Supplier Selection & Management Report Jan. 2004: 4. General OneFile. Web. 30 Aug. 2010, from http://find. galegroup. com. ezproxy. apollolibrary. com/gps/retrieve. do? ontentSet=IAC-Documents=RESULT_LIST=Locale%28en%2C%2C%29%3AFQE%3D%28KE%2CNone%2C11%29negotiation%3AAnd%3AFQE%3D%28TX%2CNone%2C20%29negotiation+strategy%3AAnd%3ALQE%3D%28RE%2CNone%2C3%29ref%3AAnd%3ALQE%3D%28AC%2CNone%2C8%29fulltext%24=None=true=DateDescend=BasicSearchForm=T004=IPS=R3=5=uphoenix=A111871985=IAC=IAC-Documents Preparation, the key to successful negotiations. ” Supplier Selection