PowerPoint Unit 303 (B&A 42): Negotiate in a business ... · presentation Understand the principles underpinning negotiation Unit 303 (B&A 42): Negotiate in a business environment

Level 3 Diploma in Business Administration

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PowerPoint presentation

Understand the principles underpinning negotiation

Unit 303 (B&A 42): Negotiate in a business environment



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Today’s objectives •  Introduction to the course and scheme of work

•  General housekeeping •  Understand the requirements of a negotiation strategy

•  Understand the use of different negotiation techniques

•  Understand how research on the other party can be used in negotiations

•  Understand how cultural differenced might affect negotiations



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Introduction to negotiation

What is negotiation?



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Introduction to negotiation Negotiation is a used by people to get to a desired outcome for both parties.

Specific forms of negotiation are used in many situations such as international affairs, government and disputes in the workplace. However general negotiation skills can be applied in a wide range of activities and scenarios.

When have you had to negotiate?



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Negotiation strategy In order to get a desired outcome, its important that you have an effective strategy in place.

Plan Tactic Approach



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Plan You should always start with a plan, this will help you lead to your desired outcome.

You should ask yourself some questions:

•  What is the issue?

•  What is your position on each issue?

•  What is the opening offer for each issue?

•  What is our guess the other party will settle for?



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Tactic It is important to understand what your tactic will be when negotiating. Things you could consider include:

•  researching on the other party

•  consider alternatives

•  anticipate the other parties needs

•  break down the items that need to be negotiated

•  identify your leverage points

•  identify the decision-maker.



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Approach When you start to negotiate you will need to consider your style. There are many different styles to negotiation including:

The factual negotiator

Knowing all the facts, sticking to the facts and providing information

The relational negotiator

Being sensitive to the other parties needs, building trust and being sensitive

The intuitive negotiator

Coming up with unexpected solutions, seeing the big picture



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Approach The logical negotiator

Set the rules for negotiation, discuss in a logical rather than an emotional way

The lead negotiator

This could be you, or someone within your organisation that has the ultimate decision



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Negotiation techniques – the Persuasion Tools Model

Bargaining Emotion

Compromise Logic

Low High

Low

H

igh

Influencing

Intu

ition



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Negotiation techniques – Win–Win A win–win negotiation technique ensures that the deal is positive for both parties. This is the most commonly uses technique when negotiating.

I win You

loose

I win You win

I loose You

Loose

I lose You Win



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Negotiation techniques – Lewicki and Hiam

Avoiding (lose–lose) Accommodating (lose to win) Competing (win–lose)

Collaborating (win–win) Compromising



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Research of the other party

Why is it important?



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Research the other party It is important to research the other party to understand what their interest are.

Here are some tips:

•  Brainstorm a list of their possible interests.

•  Prioritise those possible interests.

•  Compare their interests with your own list of interests, noting which are shared, conflicting or just different.

•  Prepare questions to ask and/or statements to make, the responses to which will help you determine if your list is complete and accurate.



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Cultural differences Culture influences how people think, communicate and behave. It also affects the kinds of transactions they make and the way they negotiate them.

When planning you negotiation you will need to consider this.

Here are some tips:

•  Consider your style: Formal / Informal.

•  Consider your communication: Direct / Indirect.

•  Consider emotionalism: High / Low.

•  Consider risk taking: High / Low.



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Cultural differences You will need to ensure you consider:

•  company culture

•  values

•  beliefs

•  etiquette.

What else can you think of?



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Any questions?

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PowerPoint Unit 303 (B&A 42): Negotiate in a business ... · presentation Understand the principles underpinning negotiation Unit 303 (B&A 42): Negotiate in a business environment