Chapter 4: Negotiation Strategy and Planning

Question 1

What happens when you fail to plan? (List 4) ***

Answer 1

1. Goals are vague
    You do not know what you want or achieve
2. Targets/objectives serving as benchmarks not in place
    Negotiations have waypoints/benchmarks/milestones
    Example: first receive current goods before submitting new order – demonstrates good faith on the sender’s part
3. Not aware of own and opposition’s SWOT
    Might compromise own interests or lose opportunities
4. Not aware of alternatives
    May not know when to walk away
5. Intellect and wit not sufficient
   What if opposition wears you down?

Question 2

Whats the difference between strategy and tactics?

Answer 2

Strategy: refers to the overall plan to achieve one’s goals in a negotiation

Tactics:
Short-term, adaptive moves designed to enact or pursue broad strategies
 Tactics are subordinate to strategy
Tactics are driven by strategy

Question 3

Difference between unilateral and bilateral approach to strategy

Answer 3

Unilateral: made WITHOUT ACTIVE INVOLVEMENT of other party

Bilateral: considers impact of other strategy on one’s own

Question 4

Explain the flow of negotiations

Answer 4

Beginning Phase - initiation

Middle phase - problem solving

Ending phase - resolution

Question 5

What are the key steps to an ideal negotiation process

Answer 5

Phase 1: Preparation
- what are the goals
- how will i work with the other party

Phase 2: Relationship building
- Understanding differences and similarities
- Building commitment toward beneficial set of outcomes

Phase 3: Information Gathering
- Learn what you need to know about issues

Phase 4: Information Using
- Assemble your case

Phase 5: Bidding
- each party states opening offer
- each party engage in give and take

Phase 6: Closing the deal
- building commitment

Phase 7: Implementing agreement

Question 6

Explain the field analysis (imagine football field) A-E

Answer 6

A: Direct Actors - own reps
B: Opposition Actors - their reps
C; Indirect Actors - who controls them: AKA manager/supervisor
D: Who are the interested parties - other observers/shareholder/media
E: What are the environmental factors - Using PESTEL Analysis?