Preparing for negotiation of commercial agreements Flashcards
name 3 dimensions of negotiations:
- Interpersonal skills, communication tactics
- Deal dimension/ agreement structure
3 process setup (away from the table); the right parties, the right issues, etc.
What is concessions:
When a party is yielding or compromising on issues
What behavior fits high co-operation with low and high assertiveness
Low assertive: accomodating
High: integrating
Behavior with low cooperation and low and high assertiveness:
Low: Avoding
High; Asserting
Best accomodating strategies:
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
Best integrating strategies
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
Avoiding strategy
Avoding needless pleaseantries
Best assertive practice
improve one’s BATNA
Using a few of best arguments to support position
Working to see where possible one owns needs are met.
Seduction:
Uses various tools as job opportunities etc not really issues in the negotiation
Psychological warfare
Use unfair measure not within the ethics of negotiation
Exerting pressure
Impose unreasonable pressure
Hidden agenda:
Topics discussed does not cove true objective of one party. Ask to understand background for concession to uncover real agenda.
Shock effect
A sudden surprising information is provided to impact the counterparty’s assumptions for their negotiation position.
Information drain:
One party ask for information used to undermine other party. Ask for reciprocity here.
War of attrition
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.
Budget framework
During financial negotiations, may refer to a budget frameowrk that makes it impossible for more concessions.
Salami tactics
One party continuously ask for small concessions that in total become large concessions.
Last-minute concessions.
Ask for big concession after the deal has been ended.
Four reasons why companies purse a JV
- to enter markets
- To gain scale
- To share risk for risky investment
- To access skills and labour
Five personality types
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.
Teams lead to higher and better results
Yes
Why are multiparty interaction more difficult:
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
high power parties experience:
Bias to action
Insensitivity to social nuance
domination
low power parties
Sensitivity to monitor and adapt to social situations
Greater understanding of social realtionshipsf
