Negotiation Strategies Paper
April 28, 2011
Negotiation Strategies Paper
Winston Churchill once said, “However beautiful the strategy, one should occasionally look at the end results.” Although this is implied toward war, one can apply it to the art of negotiating. Negotiators use different tactics and strategies when trying to achieve a desired result. To understand how strategies in negotiating affect the outcome of the results, two articles that employ different negotiation strategies are reviewed and discussed. The discussion includes the negotiation processes used in the selected articles, a comparison and contrast between two ...view middle of the document...
When a negotiation is that of the distributive kind, there is one issue negotiated. Distributive negotiations usually involves money and referred to as a ‘win-lose’ situation (Negotiation Experts, 1996-2010). Building a relationship with the opposing side is not a key attribute. One example that can be used as a distributive negotiation is a civil lawsuit. Many times civil lawsuits are settled outside of court between both parties (Negotiation Experts, 1996-2010). One example of distributive negotiation is a lawsuit from 1968, involving a young woman who crashed her vehicle. The attorney suing the dealership claims the faulty repair job caused the accident and was seeking damages from the dealership, which had done recent work on her car. After a couple of rulings that saw the defendant win and a reversed decision, both parties came to an agreement in the end. One issue was negotiated, money. Neither party is looking to build an ongoing relationship with each other.
The processes used in the first article of integrative negotiation
1. Preparation-Noticed the plaques of other naval ships in the boardroom with brochures featuring the ships and plaques. Gathered information about the contractor, knowledge is power
2. Open-Prepared a strategy that involved creating a plaque.
3. Argue-Presented the strategy to the skipper that it would save $25 thousand.
4. Close-Given the plaque to the shipyard and wrote a letter of appreciation on the ship’s letterhead
5. Sustain- The shipyard hosted a presentation ceremony, including photographs. The brochure produced by the company for the next year prominently displayed the plaque, letter of appreciation, and a photo of the presentation.
In case two the process used are
1. Preparation- Knowing what they want, which is the maximum dollar they could receive helped them prepare their strategy on how to go about obtaining their goal.
2. Open-They opened the negotiation by filing the lawsuit for over $1 million, more than the insurance was covering. This set the tone how they wanted the negotiation to go.
3. Argued-Will not settle for anything less than the max amount the insurance company will pay.
4. Signal-The signal that implied one side was ready to negotiate was the insurance company increased their initial offer. The counter-offer by the lawyer, lowering their price, signaled the other party negotiation was a possibility.
5. Close- The new attorney hired by the plaintiff closed the deal before entering the courthouse