Chapter 5: Negotiation Strategy

Question 1

Strategy

Long term or mid term

Answer 1

Long Term

Question 2

Strategy impacts….

Answer 2

the outcome

Question 3

Is strategy easy or hard to change?

Answer 3

Hard

Question 4

Tactics

Long term or mid term

Answer 4

Mid term

Question 5

Are tactics easy or hard to change

Answer 5

Easier

Question 6

.

Answer 6

.

Question 7

How is the process of negotiation understood when using a competitive strategy?

Answer 7

It is understood as a zero game

Question 8

What are weak points of competitive strategies (5)

Answer 8

→ Eliminates potential future collaboration paths
→ Mistrust at every moment
→ Fosters the same type of approach in the other party
→ Often no agreement for personal reasons
→ Good negotiators may feel uncomfortable and experience role conflict

Question 9

What 3 competitive strategies are there?

Answer 9

• Promote an agreement close to the seller’s point of resistance
• Persuade the other party to change their resistance point. Do so by influencing the belief of the other party about the value of the product thus increasing the trading range
• Make the other party believe this is the best possible deal and not just ‘all they can get’

Question 10

What happens when you ‘promote an agreement close to the seller’s point of resistance’ (2)

Answer 10

• It produces the largest part of the negotiation range for the buyer
• The buyer may try to influence the seller’s opinion of the agreements, by making extreme offers and small concessions

Question 11

Why is it good to persuade a party into thinking it is the best deal possible

Answer 11

It is important that the other party feels they are getting the best deal. Ego satisfaction is often as important as achieving economic goals

Question 12

What are 4 things important in collaborative strategies?

Answer 12

• Win-win
• Fair-process
• Joint Problem-solving
• Transparency and trust

Question 13

What does it mean to create a win-win situation?

Answer 13

In collaborative negotiation, it’s essentially assumed that the pie can be enlarged by finding things of value to both parties, creating a win-win situation, so that everyone leaves the table feeling like they’ve gained something of value

Question 14

Why is it important to have a fair process? (2)

Answer 14

• Humans have a profound and deep need for fairness. When this does not happen the end is not satisfying even if we are the winning party
• A better feeling and result occur when our needs are being met including the need for fairness

Question 15

Why is joint problem-solving important? (2)

Answer 15

• The collaborative approach strives to convert individual wants into a single problem, bringing both parties together to work on solving the problem.
• The negotiators are able to free themselves of any jealousy or personal attachment to their requirements, in order to take a more objective and equitable position to collaborate from.

Question 16

Why is transparency and trust important? (2)

Answer 16

• While you may not give away all of your information, there’s little tolerance for deceptive practices in collaborative negotiation
  *A simple way to eliminate suspicion is to be open and transparent, giving out most, or all, of your information before the other party requests it.