L4M5 CHAPTER 2 2.3 Analyse criteria that can be used in a commercial negotiation

Question 1

Why do negotiations fail?

Answer 1

Failure to:-
Develop and prioritize objectives and limits
Seek TOP’s objectives
Develop concession plans
Plan the resources and logistics required and agreeing team roles

Question 2

What are the steps in the development of negotiation strategies?

Answer 2

1. Identify the overarching objectives
2. Define positions/outcomes using MIL
3. Identify all the variables (negotiation issues or tradeables) to bargain with, this is known as the bargaining mix.
4. Seek to understand the needs of TOP

Question 3

Why is it good to invest time in understanding the needs of the individuals in a negotiation.

Answer 3

We do not negotiate with organizations, we negotiate with individuals.

Individual needs largely influence the outcomes of the negotiation.

Question 4

What are the two (2) levels of need?

Answer 4

The organization - what the organization wants to achieve.

The individual - what is in it for the individual?

Skilled negotiators are aware of the needs that occur at both levels, and develop creative options and strategies that attempt to satisfy these needs.

Question 5

What are the four (4) quadrants in a concession plan?

Answer 5

Difficult - High to TOP, High to buyer

Easy to give away - High to TOP, Low to buyer

Easy to win - Low to TOP, High to buyer

Low-value - Low to TOP, Low to buyer