DEBRE BIRHAN UNIVERSTY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MARKETING MSNSGEMENT
Negotiation Management Individual Assignment

Course code (MKTM4052)

Name ID
Argaw Dagne DBUD/521/12

DEBRE BERHAN , ETHIOPIA

NOVEMBER, 2023

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 Negotiation Management

Assignment 1

Part: I Say True if the statement is correct or False if it is incorrect (1 Point Each)

False 1. Negotiation is a process reserved only for the skilled diplomat, top salesperson,

or ardent advocate for an organized lobby.

True 2. A collaborative strategy is one in which both parties consider the relationship and

the outcome to be equally important.

True 3. Conflict can occur when the two parties are working toward the same goal and

generally want the same outcome or when both parties want very different outcomes.

True 4. Preparation increases your chance of success, whether in combat, sports or

Negotiations

True 5. Negotiation is a dialogue between two or more people or parties intended to reach

a beneficial outcome over one or more issues where a differences / disagreements or

conflicts exists with respect to at least one of these issues.

Part: II choose the correct answer from the given alternatives (1 Points Each)

B 1.Regarding some of the major shortcomings that negotiators struggle to overcome,

"lose-lose" negotiation occurs when negotiators:

A. Settle for too little by making concessions that are too small

B. Leave money on the table because they fail to recognize and exploit
opportunities for mutual gain.

C. Accept all terms offered by the counterparty

D. Do not sign a binding contract

A 2. Which of the following is a myth that negotiators often hold about negotiation?

A. Whatever is good for one party must be good for the counterparty

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 B. A good negotiator should always approach a counterparty as if they were of
equal status

C. Good negotiators play it safe and do not take risks

D. Good negotiators rely on intuition

E 3. Negotiation is a mixed-motive enterprise, which refers to the fact that parties:

A. Manage both economic and psychological dimensions

B. has incentives to cooperate as well as compete

C. use both deliberate thought and intuition

D. Balance rewards and costs.

E. All of the above

F. None of the above

C 4. Being a successful negotiator depends on:

A. "Outsmarting" the counterparty

B. the counterparty's lack of preparation

C. experiential learning, feedback, and learning new skills

D. always letting the other party tip their hand first

C 5. A key reason why business people need negotiation skills is due to the increased

specialization of skills. This skill specialization increases the need for negotiators to
understand the motivations behind another's behavior because:

A. People are less dependent on each other for project success

B. People are becoming less competitive with one another in the workplace

C. People are more dependent on each other in the workplace

D. Managers must customize incentive and punishment structures for all

employees.

Part III: Discussion Question

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1. List and explain level of conflicts. (2.5 Points)

Conflicts can occur at various levels within an organization or between individuals.

Understanding these levels of conflict is essential for effective conflict management. Here
are common levels of conflicts:

1. Intrapersonal Conflict:

Explanation: This is an internal conflict that occurs within an individual. It involves a

person experiencing competing demands or emotions, such as conflicting values or desires.
Intrapersonal conflict can arise when an individual is torn between two courses of action
or is dealing with personal stress.

2. Interpersonal Conflict:

Explanation: This type of conflict occurs between two or more individuals. It may stem
from differences in personality, communication styles, values, or goals. Interpersonal
conflicts can affect relationships and collaboration within a team or between colleagues.

3. Intragroup Conflict:

Explanation: Intragroup conflict occurs within a group or team. It may arise due to
differences in opinions, goals, or approaches to tasks. Managing intragroup conflict is
crucial for maintaining a positive team dynamic and ensuring effective collaboration.

4. Intergroup Conflict:

Explanation: Intergroup conflict involves conflicts between different groups or

departments within an organization. It may result from competition for resources,
conflicting interests, or differences in organizational priorities. Resolving intergroup
conflict is essential for fostering a cohesive and cooperative organizational culture.

5. Intraorganizational Conflict:

Explanation: This type of conflict occurs within an entire organization and involves
disputes or disagreements between various departments, teams, or levels of management.
Intraorganizational conflict may be related to issues such as resource allocation,
organizational culture, or strategic priorities.

6. Interorganizational Conflict:

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Explanation: Interorganizational conflict occurs between different organizations. It may
arise from competition for market share, conflicting interests in joint ventures, or disputes
over contractual agreements. Effective conflict resolution is important for maintaining
healthy business relationships.

7. International Conflict:

Explanation: This level involves conflicts between different nations or international

entities. It can range from political and economic disputes to cultural clashes. Diplomacy,
negotiation, and international relations strategies are essential for managing and resolving
international conflicts.

Understanding the levels of conflicts allows individuals and organizations to tailor their
conflict resolution strategies accordingly. Effective conflict management involves
addressing the root causes of conflicts, promoting open communication, and finding
mutually acceptable solutions to ensure positive outcomes.

2. Differentiate various alternative Negotiation Strategies (2.5 Points)

There are various negotiation strategies, each with its own approach and tactics. Here are
some common alternative negotiation strategies:

❖ Competitive (Distributive) Negotiation Strategy:

Focus: Maximizing individual gains.

Approach: Treats the negotiation as a win-lose situation. The goal is to claim as much value
as possible for oneself, often at the expense of the other party.

Tactics: High assertiveness, low cooperativeness. Involves making strong demands, using
power, and making few concessions.

❖ Collaborative (Integrative) Negotiation Strategy:

Focus: Maximizing joint gains.

Approach: Treats the negotiation as a win-win situation. The goal is to find solutions that
satisfy the interests of both parties and create value.

Tactics: High assertiveness, high cooperativeness. Involves open communication, active

listening, and problem-solving to identify mutual interests.

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❖ Compromising Negotiation Strategy:

Focus: Finding middle ground.

Approach: Involves making concessions to reach a mutually acceptable agreement. Each

party gives up something to meet in the middle.

Tactics: Moderate assertiveness, moderate cooperativeness. Both parties make concessions

to reach a compromise.

❖ Accommodating Negotiation Strategy:

Focus: Maintaining relationships.

Approach: Involves prioritizing the relationship over individual gains. One party
accommodates the other's needs and preferences.

Tactics: Low assertiveness, high cooperativeness. One party makes concessions to satisfy
the other's interests.

❖ Avoiding Negotiation Strategy:

Focus: Postponing or avoiding conflict.

Approach: Involves sidestepping the negotiation or postponing it to a later time. Used when
the issue is not critical or when emotions are high.

Tactics: Low assertiveness, low cooperativeness. Parties avoid the conflict rather than
engaging in direct negotiation.

❖ Forcing (Competing) Negotiation Strategy:

Focus: Achieving personal objectives at any cost.

Approach: Involves using power and authority to impose one's will on the other party. Can
be confrontational and may damage relationships.

Tactics: High assertiveness, low cooperativeness. One party uses authority, threats, or other
power tactics to achieve their objectives.

The choice of negotiation strategy depends on various factors, including the nature of the
relationship, the importance of the issue, and the goals of the parties involved. Effective

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negotiators often use a combination of strategies, adapting their approach to the specific
context and dynamics of each negotiation.

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 Assignment 2

Part: I Say True if the statement is correct or False if it is incorrect (1 Point Each)

TRUE 1, An accommodating strategy is used when the relationship is more important

than the outcome of the negotiation. In a competitive strategy, the outcome of

the negotiation is more important than the relationship.

TRUE 2, The prescriptive characteristics of culture simplify a consumer's decision

making process by limiting product choices to those which are socially

acceptable.

Part: II choose the correct answer from the given alternatives (1 Points Each)

B 1.Besides language and currency issues, one of the main challenges that globalization

presents for negotiators is:

A. The tendency of people to see what they want to see when appraising their
own performance

B. Learning and adjusting to different norms of communication between parties

C. Finding housing for employees

D. Controlling the economic forces within the country

D 2.Negotiators who have developed a bargaining style that works only within a narrow

subset of the business world will suffer unless they can:

A. act more competitively

B. act more cooperatively

C. takes risks

D. broaden their negotiation skills across businesses, industries, and cultures

D 3.Negotiation experience in the absence of_________, is largely ineffective at

improving negotiation skills.

A. optimism

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 B. successful outcomes

C. high profile parties

D. diagnostic feedback

C 4 Effective negotiation involves all except which of the following?

A. Deliberate planning

B. Thoughtful preparation

C. Use of a "gut feeling" or intuition

D. Systematic reasoning.

D 5.Which of the following is/ are considered as a Keys to Successful Collaboration

A. Understanding the other party's goals and needs

B. Provide a free flow of information

C. Finding the best solution(s) to meet the needs of both sides

D. All of the above

E. None of the above

B 6.Which one of the following is an Obstacles to the Collaborative Strategy

A. One party does not see the situation as having the potential for collaboration.

B. One party is motivated only to accomplish its own ends.

C. One party has historically been competitive; this behavior may be hard to change.

D. One party expects the other to be competitive and prepares for negotiation based on

this expectation.

F 7.To employ collaborative strategy one of the following circumstances should be

fulfilled

A. One party does not see the situation as having the potential for collaboration.

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 B. One party is motivated only to accomplish its own ends.

C. One party has historically been competitive; this behavior may be hard to change.

D. One party expects the other to be competitive and prepares for negotiation based on
this expectation.

E. All of the above

F. None of the above

D 8.The major reasons to choose a compromising strategy as a default strategy

when______

A. A true collaborative strategy does not seem to be possible

B. The parties are short of time or other critical resources necessary to get to
collaboration

C. Both parties gain something (or don't lose anything) on both dimensions

D. All of the above

E. None

Part III: Discussion Question

1. What are the key reasons why effective negotiation skills are increasingly important in
the business world? (2.5 Points)
✓ Effective negotiation skills are increasingly important in the business world for
several key reasons:
1. Globalization: As businesses operate on a global scale, negotiators often interact with
individuals from diverse cultures and backgrounds. Effective negotiation skills are
essential for navigating cultural differences, understanding diverse perspectives, and
building successful international partnerships.
2. Complex Business Environments: Business transactions and relationships have
become more complex. Negotiators must deal with intricate contracts, regulatory
requirements, and multifaceted agreements. Skilled negotiators can simplify complex
situations and ensure mutually beneficial outcomes.

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3. Increased Competition: The business landscape is highly competitive, and companies
need skilled negotiators to secure advantageous deals, partnerships, and contracts.
Negotiation skills contribute to gaining a competitive edge in the market.
4. Collaboration and Relationship Building: Building and maintaining positive
relationships with clients, suppliers, and stakeholders is crucial for business success.
Negotiation is a key tool for fostering collaboration, resolving conflicts, and
strengthening long-term relationships.
5. Resource Allocation: Businesses often face resource constraints, and negotiation skills
are vital for securing favorable terms in resource allocation, including budget
negotiations, project funding, and resource distribution.
6. Innovation and Creativity: Effective negotiation involves finding creative and
innovative solutions to problems. In an ever-changing business environment,
negotiators who can think outside the box and propose novel solutions contribute to
business growth and adaptability.
7. Risk Management: Skilled negotiators are adept at assessing and managing risks.
They can identify potential challenges, anticipate issues, and negotiate terms that
mitigate risks, ensuring the overall success of business ventures.
8. Strategic Decision-Making: Negotiation is a strategic process that requires careful
decision-making. Effective negotiators align negotiation outcomes with overall
business strategies, contributing to the achievement of organizational goals.
9. Conflict Resolution: Business environments inevitably involve conflicts and
disagreements. Negotiation skills are crucial for resolving disputes, whether they arise
within teams, between departments, or in external business relationships.
10. Customer Satisfaction: Negotiation plays a role in customer interactions, from sales
negotiations to addressing customer concerns. Skilled negotiators can enhance
customer satisfaction, loyalty, and retention.
In summary, effective negotiation skills have become a fundamental competency in the
modern business world. They contribute to global business success, strategic decision-
making, relationship building, and overall organizational effectiveness. As the business
landscape continues to evolve, the ability to negotiate skillfully remains a valuable asset
for professionals at all levels.
2. With regard to how people fall short in negotiating, what are the most common "traps"
of negotiation? (2.5 Points)

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 ➢ Negotiation can be complex, and individuals may fall into various traps that hinder their
effectiveness. Some common traps in negotiation include:
A. Fixed-Pie Bias:

Description: Assuming that one party's gain must come at the expense of the other party. This
mindset limits creativity and exploration of mutually beneficial solutions.

Impact: Hinders the search for integrative, win-win solutions.

B. Overconfidence:

Description: Excessive confidence in one's position or abilities, leading to unrealistic

expectations or refusal to make necessary concessions.

Impact: Can result in failed negotiations, damaged relationships, or suboptimal outcomes.

C. Anchoring:

Description: Giving too much weight to the first offer made in a negotiation, whether it's one's
own or the counterpart's.

Impact: Can influence the entire negotiation process, leading to less favorable terms.

D. Escalation of Commitment:

Description: Persistence in a course of action despite evidence that it's not working, often due
to a desire to justify previous investments.

Impact: Can lead to suboptimal outcomes if negotiators are unwilling to change their approach.

E. Confirmation Bias:

Description: Focusing on information that supports one's pre-existing beliefs or assumptions,

while ignoring or discounting contradictory information.

Impact: Limits the ability to objectively assess the situation and consider alternative
perspectives.

F. Competitive Mindset:

Description: Approaching negotiations as a win-lose competition rather than a collaborative

problem-solving process.

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Impact: Diminishes the potential for finding mutually beneficial solutions and may harm long-
term relationships.

G. Failure to Listen:

Description: Not actively listening to the other party's needs, interests, or concerns.

Impact: Leads to misunderstandings, missed opportunities for collaboration, and a breakdown

in communication.

H. Satisficing:

Description: Accepting an agreement that is "good enough" rather than exploring options to
maximize value.

Impact: Results in suboptimal outcomes and missed opportunities for creating additional value.

I. Neglecting BATNA:

Description: Failing to assess and leverage one's Best Alternative to a Negotiated Agreement
(BATNA).

Impact: Weakens one's negotiating position and limits the ability to walk away from a less
favorable deal.

J. Lack of Preparation:

Description: Failing to thoroughly prepare for a negotiation, including understanding the other
party's interests, options, and potential solutions.

Impact: Diminishes the ability to make informed decisions and compromises negotiation
effectiveness.

Being aware of these common traps and actively working to avoid them can enhance a
negotiator's ability to achieve successful outcomes and build positive relationships

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