Preparing for negotiation of commercial agreements

Question 1

name 3 dimensions of negotiations:

Answer 1

1. Interpersonal skills, communication tactics
2. Deal dimension/ agreement structure
   3 process setup (away from the table); the right parties, the right issues, etc.

Question 2

What is concessions:

Answer 2

When a party is yielding or compromising on issues

Question 3

What behavior fits high co-operation with low and high assertiveness

Answer 3

Low assertive: accomodating

High: integrating

Question 4

Behavior with low cooperation and low and high assertiveness:

Answer 4

Low: Avoding

High; Asserting

Question 5

Best accomodating strategies:

Answer 5

Treat other party with respect
Avoid cycles of angry retalitory behavior
Not using positive words as reasonable and generous
Not responding immediately to the other party

Question 6

Best integrating strategies

Answer 6

Compromise on something lesser important to get something more important
Being firm in insisting that ones interests are met
Engaging in collaborative consideration instead of positional barganing

Question 7

Avoiding strategy

Answer 7

Avoding needless pleaseantries

Question 8

Best assertive practice

Answer 8

improve one’s BATNA

Using a few of best arguments to support position

Working to see where possible one owns needs are met.

Question 9

Seduction:

Answer 9

Uses various tools as job opportunities etc not really issues in the negotiation

Question 10

Psychological warfare

Answer 10

Use unfair measure not within the ethics of negotiation

Question 11

Exerting pressure

Answer 11

Impose unreasonable pressure

Question 12

Hidden agenda:

Answer 12

Topics discussed does not cove true objective of one party. Ask to understand background for concession to uncover real agenda.

Question 13

Shock effect

Answer 13

A sudden surprising information is provided to impact the counterparty’s assumptions for their negotiation position.

Question 14

Information drain:

Answer 14

One party ask for information used to undermine other party. Ask for reciprocity here.

Question 15

War of attrition

Answer 15

One party may drag the negotiation for a long time, when other party is under time pressure. One defensive mechanism is to offer an incentive for a swift conclusion.

Question 16

Budget framework

Answer 16

During financial negotiations, may refer to a budget frameowrk that makes it impossible for more concessions.

Question 17

Salami tactics

Answer 17

One party continuously ask for small concessions that in total become large concessions.

Question 18

Last-minute concessions.

Answer 18

Ask for big concession after the deal has been ended.

Question 19

Four reasons why companies purse a JV

Answer 19

1. to enter markets
2. To gain scale
3. To share risk for risky investment
4. To access skills and labour

Question 20

Five personality types

Answer 20

Visionary: Champion of radical change, but too quick to rush into new things

Guard: Rational with decisions grounded a thoughtfully decided. May be blind to change

Motivator: A compelling leader for change, but may believe in vision over facts

Flexible: Love variation and exploring different options. May overanalyse too many options.

Catalyst: True champion of group making, the less extreme of the different types. May deliver average performance due to average type.

Question 21

Teams lead to higher and better results

Answer 21

Yes

Question 22

Why are multiparty interaction more difficult:

Answer 22

Increased information processing
Greater necessity for complex decision rules
- Search for common ground and coordination complexity
More complex interpersonal process
- Range of knowledge, skills and abilities
- coalition formation

Question 23

high power parties experience:

Answer 23

Bias to action
Insensitivity to social nuance
domination

Question 24

low power parties

Answer 24

Sensitivity to monitor and adapt to social situations

Greater understanding of social realtionshipsf