Negotiation

Question 1

What is negotiation?

Answer 1

Two parties which to negotiate the price that best meets their own interests

Question 2

What are the fours steps to negotiation?

Answer 2

Preparation
Opening
Bargaining
Closing

Question 3

What happens in the preparation stage?

Answer 3

Collate all our information to use
Most important stage
Look at what both companies want to get out of deal
Look at what other companies may be interested in
See what we would like to offer
Get an understanding of what other companies are offering

Question 4

What happens in the opening stage?

Answer 4

Present a reasonable offer
Don’t want it too high/low that we are not even considered or don’t have enough room to negotiate

Question 5

What happens in the bargaining stage?

Answer 5

Both companies discuss what they want out of deal
Information preparation may become useful

Question 6

What happens in the closing stage?

Answer 6

Win win outcome required for everyone to be happy
Reach an agreement
Draft up agreements and get them signed so parties don’t seek deals elsewhere