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International Business Negotiations Final Paper
International Business Negotiations Final Paper
Contents
1. Introduction......................................................................................................................3
2. Negotiation: An Overview...............................................................................................3
2.1 Negotiation Tactics........................................................................................................4
2.2 Negotiation Skills..........................................................................................................4
3. Negotiation Process.........................................................................................................5
5. Conclusion.....................................................................................................................10
BIBLIOGRAPHY..............................................................................................................12
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1. Introduction
2. Negotiation: An Overview
Every individual has been involved in negotiations at some point in life. The negotiation
process knowledge and skills are not reserved for specific people, and this means anyone can use
the skills for survival purposes in the workplace and normal life situations. People need to grasp
some basic concepts of negotiation to enable them to be successful in negotiations (Brett &
Thompson, 2016). Scholars describe negotiations as a process of reaching an agreement,
bringing change and sometimes a process that can be used to acquire what one wants. However,
negotiation is a method used by two or more parties to come up with a neutral ground whereby
everyone will benefit through mutual consent. The research will define the negotiation process,
tactics, skills and actions lead to successful negotiations. It also goes deep into the cultural
influence and the barriers that may hinder the negotiation process from being a success.
In recent time there has been a lot of research in the different field on negotiations by
scholars. And the common definition is that negotiations take place when a party requires the
corporation of the other party for it to achieve's its goals. According to Coates (2000),
negotiations are used in decision making to resolve a conflict between two parties that may
hinder them from achieving their aim. The purpose of negations is clearly outlined as a way to
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resolve disputes and enhance the achievement of goals that a party cannot achieve on its own
(Lewicki et al. 2006).
Despite several different definitions, all the scholars agree that for negotiations to take
place successfully there must be two or more parties involved. There are several contrasting
views over negations, and different scholars have come up with theories try to explain and
answer questions raised over negotiations. According to Fox (2013), when negotiations are held
in one's inner self without the interference of external agents, it makes them valuable. The more
the scholars try to explain negotiation skills and tactics, the more they raise questions about
negotiations through critics, the first common definition loses meaning and perhaps the
definition in Oxford (2016) is not valid.
cooperative negotiators into submission and agreeing with the competitive negotiator’s demands.
“If the cooperative party decides to become competitive, it may lead to the negotiations lasting
for a long time, and this may lead to disputes and at times negotiation deadlock". The
competitive negotiators employ unethical tactics such as lying about offers and exaggeration of
the outcome facts to lure the other party into their trap of taking their offer by making them
believe that they will gain maximum from the negotiations.
Cooperative negotiations are designed in a way that both parties can cooperate and
collaborate to gain jointly. The negotiators combine their views to make the right decisions when
trying to solve the disputes between them. Social utility is maximized when the parties consider
their interests and try to gain from the mutual ground found between them. Cooperative
negotiations require both parties to be willing to compromise to enhance agreement and avoid
having prolonged consequences. Parties are most likely to adopt a cooperative strategy if they
lack a strong bargaining position in a negotiation. "Cooperative strategy is well suited to reduce
disputes and to reach agreements quickly and avoid loses on either side of the negotiations."
The two strategies have been accepted widely despite the critics from other scholars who
state that the strategies are just for experiment purposes and they were never designed to be used
in day to day negotiations activities which have been proved to be complicated. And thus due to
the complex nature of the humans, the two strategies cannot be relied on entirely as the only
tactics in negotiations, and this is because the negotiators cannot be predicted due to their
different characters in different scenarios.
come up with the right plan to enhance the success of the negotiations, formulation of strategies
that favor both sides, teamwork and the use of right tools during negotiations.
Scholars in the past omitted an important aspect in negotiation which is trust. " even if the
negotiators had all the above skills during a negotiation process it will be difficult to reach an
agreement if there is lack of trust between the two parties (Smith et al., 2007). According to
Friedman et al., (2004) there is need to take into consideration the emotions, and the reputation
of the negotiating parties in play as this will help to determine the rational social aspects after the
negotiations have been concluded. It is also essential to highlight the importance that new skills
and techniques plays in a negotiation.
3. Negotiation Process
The process of negotiation involves the parties coming up with an agreement that will
help to prevent them from arguments that may bring the dispute between the individuals or the
groups involved in the process (Weiss, 1997). In most instances, if not all, the aim of people
having to negotiate is for them to be able to achieve a solution that is best for the individuals and
should be a fair decision that keeps the mutual relationship among the individuals intact. In a
negotiation, both parties should feel the decision being reached upon merits both parties for it to
be accepted. Negotiation needs to be between two parties who can be people or a group and is
caused due to both of them having a conflict of interest. Negotiation comes into place so that the
individual's grievances are taken into consideration and the final decision is not entirely based on
what one wants but the best way forward of solving the conflict of interest without biases.
According to O'Faircheallaigh, (2018). The agreement to be reached upon can take longer and
may have difficulties due to the divided opinions, but the process of attaining common ground
through continuous negotiation process should be completed. The process of negotiation requires
that the parties be flexible to avoid the negative impact of the outcome of the process through
understanding each other by communicating well with each other to create a common
understanding that will be credible to each of the parties involved.
Negotiations have stages that it goes through to be effective; these include preparation for
the negotiation to take place. Through identification and planning on the need for the negotiation,
they are establishing all the ways possible of solving the conflict and determining the long term
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solution and consequences if there may be any. This stage basically consists of three phases: 1)
self assesment. 2) assesment of the counterpart’s strength and weaknesses and 3) situation
asessment. A skilled negotiator in this phases involves in designing and structuring the BATNA (
Best Alternative to a Negotiated Agreement) and WATNA (Worst Alternative To a Negotiated
Agreement), which are the crucial parameters that determine the outcome of a negotiation.
BATNA accentuates the point till where the negotiator is willing to accept the terms and
conditions of the counterpart’s proposal, whereas the WATNA helps in minimizing the risk and
loss involved in the worst case scenario and make the best out of a worst situation. Furthermore,
the counterpart’s and situation assesment helps a negotiator to structure his/her tactics and
accordingly help him/her to gain a larger share of the pie in a negotiaon.The other crucial stage
involves the discussion on how to solve the issues through and to formulate the best available
options on negotiating and both parties to have a position. The next stage is the parties or
individuals giving out their proposals according to the needs they have. The agreements can be
done in writing to be more credible and also to make the parties avoid conflicting — the
negotiation due to the concession that has to be reached among the parties. Finally, an agreement
has to be made after the negotiation process is over between the two parties, and after that, each
party should stick to the proposed rules. The agreement should be able to address all the
concerns that are raised by the parties, and the negotiation should set fair policies to all the
parties to feel equal.
4.1Cultural Considerations
According to Gelfand et al., (2004) Different cultures have different forms and understanding on
how people should do negotiation, which may be different from how they negotiate the use of
their diverse languages. In many cultures, the reason for them to have negotiation is to discuss
how to have a share of the resources. Many have come to understand those negotiations are used
broadly to solve issues of the relationship between people and to make decisions on how to
operate without creating a negative effect on their counterparts. Different people in every culture
have their way on how they take upon negotiation by having a particular perception and
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interpretation process. After a negation has been made, people will think of the outcome
differently according to the culture especially when the issue being negotiated is on social
interaction which has a direct impact on the thinking and the behavior of the people's way of life.
The culture forms the basis on where the negotiator will base his or her arguments to find
common ground which will keep the relationship among the parties intact and reconstructing all
broken ones in the equal allocation of resources. Culture has been the most important pillar of
helping negotiators knowing how to negotiate to avoid a lack of agreement and failure after it is
done; hence, it been a foundation of successful negotiations.
the other party has a predictable cultural standpoint view about you it is wise to make changes
the way you approach the negotiations and this will knock them off their perception and create a
chance for a better outcome from the process. No party in the negotiations should allow the
cultural differences to divide them and prevent the negations from having a positive outcome.
Thus there is a need to find a way to bridge the cultural gap between the parties in negation and
find common ground where everyone will feel their goals have been taken into consideration.
outcomes. The scholars state that the counterparts are likely to counter which actions one takes
with close or similar actions, and that's why it's important to value each other during the process
and to treat each other with respect.
4.5 The Effectiveness of Emotions
According to Wilson (2016) If one party has exactly what the other party has been
looking for and are contented with the asking price, then a cold transaction takes between the
two. However human beings are full of emotions, and during the process of negotiations, there
are a lot of emotions involved when making decisions but amazingly its how the relations and
satisfaction feelings are rare in the process of negotiations. Different emotions lead to specific
perception or behaviors during the negotiation process (Pfetsch & Landau, 2000). Individuals
judge and make decisions according to their emotions and thus if someone was presented a
chance to make a decision about a specific when he/she happy and on the other hand when
he/she is feeling sad the individual is likely to make two different choices depending on the
emotions. Therefore it's advisable for the negotiators to be able to learn how to control their
emotions during the negotiation process (Brooks, 2015). Long-term relationships may be
affected if negotiators are unable to control some emotions such as aggression and anger perhaps
that’s why Diamond (2011) states “if emotions are not well controlled they may prove to be
one’s enemy during the negotiation process”.
5. Conclusion
The research report depicts that negotiation is not a process reserved only for the skilled
diplomat, top salesperson, or ardent advocate for an organized lobby; it is something that
everyone does, almost daily. Negotiations are relevant to the daily life of individuals in homes at
work. The individual negations at homes are less complicated as family members know each
other well, and they can easily predict the outcome. It's wrong to assume that negotiation skills
are something an individual is born with. Therefore if someone wants to be the best negotiator,
there is a need to learn and acquire the skills through practical involvement. The negotiations in
an organization or between different groups prove to be complex as they need both parties to be
prepared and also the formulation of a well-outlined plan. Cooperative and competitive strategies
are crucial for a negotiation process to be successful. But above all, the parties must be willing to
establish a common goal, and they should also be willing to be committed to the agreement from
the negotiations. Gender and cultural factors should not be ignored as they can largely affect and
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add a twist to the expected outcome or even lead to prolonged disputes between the negotiating
parties.
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