Amity Business School

AMITY BUSINESS SCHOOL

MBA General, Semester-4
BUSINESS COMMUNICATION-
NEGOTIATING ACROSS CULTURES
Dr. Smrita Sinha

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NEGOTIATION
The term ‘Negotiation’ actually means a discussion intended to produce an
agreement. This discussion may encompass parties whose needs being
different, come to an interface where they achieve a common solution.
the use of dialogue to resolve disputes, produce agreements or achieve goals.

A negotiating party may as well be :

• a consumer at one end and the seller at the other end.
• A transaction is not carried out unless the wants and needs of the customer
are not given certain taste of satisfaction, keeping in regard of the profit
earned.
• Make a sale of goods or services
• Open new market /create a partnership
• Secure supply
• Maintain / expand an existing business

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Negotiation Process:
The process of negotiation is instrumental in achieving the desired results in the
company’s run of transactions. It is therefore necessary for a business deal to
adhere to strict stages in the negotiation. The basic stages of negotiation may be
enlisted as:
(a) Preparation: The preparation for a negotiation may involve:
• Identifying what the needs are.
• Planning thoroughly.
• Identifying alternatives and prioritizing issues (BATNA-Best alternative to
negotiated alternative).
• Establishing a settlement range (ZOPA- zone of possible agreement). • Focusing
on long-term goals and consequences.
(b) Discussion: The next stage involves further discussion of the issues with the
members so as to choose the best strategies before the actual negotiation.
This again involves the following:
• Being aware that "no" can be the opening position and the first offer is often above
expectations.
• Being aware of the reluctant buyer or seller ploy.
• Revising strategies. • Considering many options. 3
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(c) Proposal: The proposal that is to be presented depends upon the existing needs
of the presenter and revolves around a set of issues and alternatives that maybe a
threat or opportunity. The proposal is designed keeping in view that it appeases the
parties at the other end of negotiation table. As such, the ultimate goal being a Win-
Win negotiation.
The few key points under this are:
• In handling an impasse, offering to set it aside momentarily.
• In handling a stalemate, alter one of the negotiating points
. • In handling a deadlock, bring in a third party.
• When asked for a concession, asking for a tradeoff.
• Being wary if the other party uses a "higher authority" as a rationale for not meeting
negotiating points.
• Being aware of the "vise" tactics.
(d) Agreement: The agreement finally comprises of the accepted negotiated
proposal that is in accordance with the norms of both the negotiating parties. This
agreement follows certain steps as under:
• Counter the other party's asking for more concessions at the end by addressing all
details and communicating the fairness of the deal in closure.
• Do not expect the other party to follow through on verbal promises.
• Congratulate the other side
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Strategies for negotiating

Understanding the other party's interests and tactics is integral to good negotiating.
Choosing a strategy that best responds to their interests and tactics will help you achieve
the best outcome.
Matching the strategy to the situation
Some of the different strategies for negotiation include:
• problem solving - both parties committing to examining and discussing issues closely
when entering into long-term agreements that warrant careful scrutiny
• contending - persuading your negotiating party to concede to your outcome if you're
bargaining in one-off negotiations or over major 'wins‘
• yielding - conceding a point that is not vital to you but is important to the other party;
valuable in ongoing negotiations
• compromising - both parties forgoing their ideal outcomes, settling for an outcome
that is moderately satisfactory to each participant
• inaction - buying time to think about the proposal, gather more information or decide
your next tactics.
For example, what level of cooperation and common interest exists between you, and
how will each party behave during the negotiation? It will also depend on what you are
negotiating, and the time frame and setting you are negotiating in.
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How to approach a negotiation?

As well as choosing a strategy, you may wish to consider your approach to the issue being
negotiated. There are 3 key approaches to negotiations:
hard, soft and principled negotiation.

Many experts consider the third option - principled negotiation - to be best practice:

The hard approach involves contending by using extremely competitive bargaining.

The soft approach involves yielding, where one party tries hard to meet the interests of the
other party and foregoes their own interests.
Principled negotiation focuses on achieving a lasting, win-win outcome by:
separating the people from the problem focusing on interests not positions generating a
variety of options before settling on an agreement basing the agreement on objective criteria.

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