2. Strategy in Negotiation

Question 1

Strategy

Answer 1

The overall plan to achieve one’s goals in a negotiation

• Unilateral: made without active involvement of the other party
• Bilateral: considers the impact of the other’s strategy on one’s own

Question 2

Tactics

Answer 2

Short-term, adaptive moves designed to enact or pursue broad strategies.

Question 3

Four Pillars of Effective Negotiation

Answer 3

• Build a productive relationship
• Pursue outcomes, not points
• Seek solutions, avoid blame
• Focus on fairness

Question 4

Critical factors in distributive negotiation

Answer 4

• Well-defined bargaining range
• good alternative
• good tactics (bluffing, being aggressive, threatening)

Question 5

Critical factors in collaborative negotiations

Answer 5

• Understanding the other party’s goals and needs
• Providing free flow of information
• Finding solutions that meet both parties

Question 6

Principled Negotiation Model

Answer 6

1. Participants are problem solvers
2. The goal is to reach a wise outcome; efficiently and amicably
3. Separate people from the problem
4. Be soft on the people, hard on the problem
5. Proceed independent of trust
6. Focus on interest, not positions
7. Invent options for mutual gain
8. Insist on using objective criteria

Question 7

Key phases in Negotiation

Answer 7

1. Preparation
2. Relationship building
3. Information gathering
4. Information using
5. Bidding
6. Closing the deal
7. Implementing agreement

Question 8

Planning process

Answer 8

1. Define issues
2. Assemble the bargaining mix (combined list of issues) and priorities
3. Define your interests
4. Know your limits
5. Know your BATNA
6. Set objectives and opening bids
7. Assess elements and the social context (who is on my side?)
8. Analyse the other party (resources, issues, bargaining mix, what do they want, what is their strategy, what is their reputation etc)
9. Define the protocol (agenda, who will be there)
10. Present your case