Unit 1: Introduction to Business Negotiation

Question 1

What are situations in which negotiation may occur?

Answer 1

Business situations but also in daily life; deciding what to eat, selecting a movie to watch, etc.

Question 2

TRUE or FALSE
The final agreement of a negotiation is optimal for everyone

Answer 2

FALSE

Question 3

What is the goal of negotiation?

Answer 3

To solve a conflict

Question 4

When do you intend to achieve the most in a negotiation?

Answer 4

By actively participating in the negotiation

Question 5

Which communication styles are essential within negotiation

Answer 5

verbal and non-verbal

Question 6

What are the characteristics of negotiation? (4)

Answer 6

• Two or more parties
• There is a conflict of needs/wishes
• Parties negotiate with the assumption that the agreement will benefit them
• It is a ‘give-take’ game, the final agreement will be different from the initial approach

Question 7

When is negotiating inadvisable? (7)

Answer 7

When..
* a party can lose everything
* a firm’s stock is finished
* there are non-ethic demands
* you do not have time to negotiate
* you are acting in bad faith
* your own position may improve
* the negotiation is not prepared

Question 8

Why is it not advisable to negotiate if a firm’s stock is finished?

Answer 8

Because there is no win for you in negotiating, you are already performing really well, and you sold everything you produce. In this case, your product is so good it has a vertical demand curve.

Question 9

Why is it inadvisable to negotiate if you have no time?

Answer 9

Because rushing drives to mistakes

Question 10

What are the 7 elements of negotiation?

Answer 10

• Object
• Subjects
• Power of each party
• Objective of each party
• Environment
• Level of confidence/trust
• Level of information

Question 11

What is the object of a negotiation?

Answer 11

What is negotiated about

Question 12

What is meant by: the subjects of the process?

Answer 12

The people that represent the parties involved

Question 13

What is meant by: the power of each party?

Answer 13

The power that each party has can be of impact to the negotiation.
Party of scale - increases power
Power with need or urgency - decreases power

Question 14

What is meant by: the objective of each party?

Answer 14

The claim of each negotiator

Question 15

TRUE or FALSE
It is possible to have more than 1 objective

Answer 15

TRUE

Question 16

What are the requirements of an objective? (3)

Answer 16

• Must be well-defined and delimited
• They should be hierarchical, essentials first
• They must be realistic, leading to a balanced result

Question 17

What are the types of objectives when negotiating? (3)

Answer 17

• Acceptable minimum
• Medium or reasonable
• Utopian (idealistic)

Question 18

What is meant by: the environment of the negotiation?

Answer 18

A set of circumstances where the negotiation takes place

Question 19

Which two aspects are there to the environment of negotiation?

Answer 19

Time and Place

Question 20

How can time affect a negotiation?

Answer 20

The lack of time tends to affect negatively to the weaker party

Question 21

How can place affect a negotiation?

Answer 21

It may take place in any of the part’s offices or a third place. Being in the own place could be an advantage, by creating a certain sense of leadership.

Question 22

How can ‘the level of trust between parties’ affect the negotiation?

Answer 22

Mistrust creates misgiving that can harm the negotiation process

Question 23

How can ‘the level of information that each party has’ affect the negotiation?

Answer 23

The higher the information, the lower the uncertainty and thus the likelihood of finding unexpected results.