Effective Negotiation Strategies and Techniques

This assignment provides a comprehensive overview of negotiation strategies and techniques in business. It explores different purposes, scopes, and objectives of negotiation, as well as the importance of understanding both parties' perspectives. The report mentions preparing fall-back stances and aligning with priorities to optimize opportunities in negotiations. References from books and journals are provided, including studies on business networks, e-business, and corporate responsibility for sustainable development.

BUSINESS
ADMINISTRATION
7

Table of Contents
INTRODUCTION................................................................................................................................3
TASK 1.................................................................................................................................................3
1.1 Describe the requirements of a negotiation strategy.......................................................................3
1.2 Explain the use of different negotiation techniques...................................................................3
1.3 Explain how research on the other party can be used in negotiations.......................................4
1.4 Explain how cultural differences might affect negotiations......................................................4
TASK 2 ................................................................................................................................................5
2.1 Identify the purpose, scope and objectives of the negotiation...................................................5
2.2 Explain the scope of their own authority for negotiating..........................................................5
2.3 Prepare a negotiating strategy....................................................................................................5
2.4 Prepare fall-back stances and compromises that align with the negotiating strategy and
priorities...........................................................................................................................................6
2.5 Assess the likely objectives and negotiation stances of the other party.....................................6
2.6 Research the strengths and weaknesses of the other party........................................................7
TASK 3.................................................................................................................................................7
3.1 Carrying out negotiations within responsibility limits in a way that optimises opportunities. .7
3.2 Conducting negotiation in accordance with changing circumstances.......................................8
3.3 Maintaining records of negotiations, outcomes and agreements...............................................8
3.4 Organisational policies and procedures, and legal and ethical requirements when carrying out
business negotiations.......................................................................................................................8
CONCLUSION....................................................................................................................................9
REFERENCES...................................................................................................................................10

INTRODUCTION
Negotiation is a method, which is used for settling the differences by people. It is a method
of agreements and compromise which help in avoiding the arguments and disputes between people.
This report will explain about requirements of negotiation and it's techniques, it also explain that
how study of other party is helpful in negotiation. A discussion will take place on the way by which,
negotiation will get affected by cultural difference, along with it's purpose, scopes and objectives. A
negotiation strategy will get designed along with fall back stance and compromise. This also asses
the likely objectives and negotiation stances of other parties, along with their strengths and
weaknesses (Abrahamsen, Henneberg and Naudé, 2012) . A discussion will also take place on the
ways that can optimises the opportunities along with policies and procedures and legal and ethical
requirements while conducting a negotiation.
TASK 1
1.1 Describe the requirements of a negotiation strategy.
Negotiation is a process, which make the included parties satisfied on a specific term, in
other words, it leads an agreement between the people coming in a transaction, so that they can
avoid the arguments. In business, negotiation is very much important, as the entrepreneur must have
the skill of negotiation in informal as well as in formal conditions like, sale, lease, service delivery,
and other legal contracts. Negotiation help two or more different parties to get settle on some
compromise over a service or product, which is being profitable for every one. Good negotiation
help an entrepreneur to make good relations with the stakeholders, this will lead them in making
long term sustainability of business in market (Ashurst, Cragg and Herring, 2012) . This also help
business persons, in avoiding the problems that their business can face in future. Negotiation help
parties in making long term and quality solutions, this process help parties in ignoring the short
term solutions, and also those solutions where either one of the parties is not satisfied (Negotiation
Strategy, 2019) . This help parties to come at a situation known as win – win situation, where every
party involved in deal get some thing and no one think that, the decision is wrong.
1.2 Explain the use of different negotiation techniques.
There are different negotiation techniques which can be use by individuals for enhancing
their negotiation skills. Use f some negotiation techniques are as follow :-
1. Prepare, prepare, prepare – This is technique can be used by a person for making them self
prepare before going for a negotiation. It says that, going in negotiation without preparation
can make an individual loss (Banerjee, 2012) . Therefore, it is very much needed for an

individual to have clear about they need from the negotiation.
2. Pay attention to timing – Knowing what to say is very important, but knowing when to say
is also very important. Therefore, it is very important for a negotiating person to put their
points on a specific time, so that the effect of that point goes higher (Lewis and et. al., 2017)
. It says that, wait until the right time of presenting the point do not come, and as it come
present the point.
3. Ramp up your listening skills - The use of this techniques is, it make an individual a good
listener. It says that person who is a good negotiator, has good listening skills. Therefore, it
help an individual in increasing their listening skills.
1.3 Explain how research on the other party can be used in negotiations.
Research on other party can help an individual to negotiation in many ways. A party can
study the nature and needs of another part, so that they can adopt the techniques and required skills.
Then they can use those negotiation techniques that they have to apply on that party, this will lead
them to achieve the win – win situation in very less time. For example, two parties involving in a
negotiation, party A and B, then if A make study on the requirements of B then, it will be easier for
A to gain the knowledge that will help him in gaining success in very less time. Individuals can also
study the techniques of negotiations that were used by other parties in past which had the same
goals. This will make it easier for parties to know the techniques that are more effective in specific
situations (Bansal and Hoffman, 2012) . For example, if A has used a negotiating technique in past,
which help them in gaining success in difficult situations. Abyssinian SILhen B can study that and
can use that technique in the negotiation done by them.
1.4 Explain how cultural differences might affect negotiations.
Negotiation is a process which is used by different parties for ignoring the arguments, and
make a contract or agreement between all the parties involved in that deal. The deal get lock where,
all the parties come to a satisfaction level and think that every one get some time from deal.
Negotiation is a process which might get affected by cultural difference, which are as follow :-
1. Negotiation goal : Contract or relationship – In different cultures, the aim of negotiations
are different. According to a survey of 400 peoples of 12 nationality, business from nations
like, America and Europe, think that they make a contract after negotiating, where as
business from nationality like India, they think that, they do not need a contract, they have
established relationship.

2. Negotiation attitude : win – win or win – loss – When businesses use to make negotiation
between different culture, then they may can lock the the deal where the situations come to a
win – win. But some time, due to need of one party, another do not get much interested in
negotiating in huge amount, in such conditions deal may get lock in win – loss condition,
where party in need have to adjust with their wins (Campling, 2012) .
TASK 2
2.1 Identify the purpose, scope and objectives of the negotiation.
Negotiation is an essential process for a business. This help a business to make deals and
improve relations with different parties, which can make some profit for them. The main purpose of
negotiation for businesses is to provide the view points of all the parties and make a common
decision which is good for all. This will help them in ignoring the conflicts and arguments by
making contract or agreement of points that have finalised. The main objective of negotiation is to
bring out more profit in the favour of all the parties which get affected by the deal. In this, all the
parties put their pints in front of every one, and the final decision will take on the mutual discussion.
This will help every one in growing their business in efficient manner (Conrad and Newberry, 2012)
. The scope of negotiation can be said that, it help a business in increasing their sustainability in
market, which can help them in making long term goals. It also help them in improving
relationships between different parties, and also help in making strong relations which can benefit
them in future.
2.2 Explain the scope of their own authority for negotiating.
Scope of authority is a legislation, which is use for solving the conflicts between the parties
while presenting their points at the time of negotiation. Authority has power to make decisions
according to the points given by different parties. They take decision which are best for every one
and which is profitable for every party (Kutvonen, Norta and Ruohomaa, 2012) . For example, two
parties come together for performing negotiation. A is a party which is buyer, where as B is a
supplier. Then they both are trying to making their points and trying to negotiating the deal little
more towards their point, so that they can take some extra benefits of that. But C ( authority ) is
presented over their for making the final decision. Here, C will make the decision after getting all
the points from A and B, and the decision will be like to make a win – win situation for both of
parties.

2.3 Prepare a negotiating strategy.
Strategy refers to overall approach in order to conduct negotiation. Under this, there is a
negotiation among company and supplier. In context to this, there is a competitive strategy develop.
In this, different steps are mentioned below:
Step 1 : Identification of negotiation goals
Under the first step, there is a need to determine goals of the negotiation and goal should be very
specific and measurable, so that the business goals can be achieved efficiently and on time.
Step 2 : Developing examining questions to protect goals
Both the negotiators may have different questions and this could directly impact upon goals.
Henceforth, different questions could easily defend goals and they can be attained in specific time
frame (Jayaraman and et. al., 2013) .
Step 3 : Answering questions
Where the two communicators stand, definitely the question arises. Therefore, it is necessary for
both the negotiators to consider questions so that effective plans could be easily developed.
Step 4 : Identification of appropriate tactics
Considering all the questions directly gives the right decisions and through this appropriate plan of
action could easily be developed to resolve issues among the negotiators.
Step 5 : Integrating these tactics in negotiation strategy
After evaluating all above steps, last stage is integrating various tactics for negotiation strategy.
Thus, it is important step for preparation of negotiation strategies through help of strategies.
2.4 Prepare fall-back stances and compromises that align with the negotiating strategy and priorities
Fall back stances refers to alternative or select a second option. Under this, there is a
negotiation between supplier and company about the cost as well as quality of raw materials. Buyer
of company purchase goods and services from suppliers (Conrad and Newberry, 2012) . They both
have different perspective regarding price and quality of product. The supplier wants to provide its
raw material to company in £20 but company wants to purchase it in £18. So, there is a situation of
negotiation arise between both the parties and it is known as fall- back stances. On the other hands,
they both can be compromises with the help of using the compromising strategies. When
manufacturer as well as customer both agrees upon same cost then it is called compromise. Here,
supplier and buyer decide price which can be $19 which is beneficial to both parties. Among many
suppliers, this is the one supplier that provide the better quality of raw materials. Company purchase
raw material for producing the products as well as services which can satisfy needs and demands of
consumers in an effective manner. As main purpose is to provide benefits to supplier and buyer in
terms of negotiation and achievement of goal and objective. Thus, it is possible only if both are

ready to purchase and sale product as common price
2.5 Assess the likely objectives and negotiation stances of the other party
It is very important to gather much background information about other parties. It can be
done through interviews with those they have done business in past. Information can be exchange
about targets on initial proposals with other party before happening of negotiation. Also consider
parties negotiation style and strategy which they commonly use. Individual past negotiating
behaviour helps in knowing about the behaviour in future. The objectives and negotiation stance of
parties can be different from one another. So here, buyer need to understand objectives and
negotiation instance of other party. Objectives can be earning profit, capturing market and
sustainability, supplying high quality products, and negotiation instance can be very less because of
good quality and service. Buyer should go through objectives of other party very carefully and
make negotiation accordingly for attaining goal and objective for both parties in terms of profit,
success and sustainability (Ferraro and Briody, 2013) . Thus, through help of market image,
goodwill and past experience objectives can be well known by one party.
2.6 Research the strengths and weaknesses of the other party
There are two different parties involved in the process of negotiation like supplier and
company. There are some strengths and weaknesses of supplier is mention below as above:
Strengths- It means characteristics of party that provide it an advantage over others. Here
supplier provide goods at $20 to buyer possessing high quality value. There are no any other parties
in market who could provide better quality than this. Party has full right to charge any prices from
buyer. Purchaser is stimulate to pay $20 which is high than other supplier for products.
Weaknesses- It is characteristics that party have disadvantages relative to others. Supplier
has only limited individual who purchase goods from them. There should not be loss between both
parties. If in case buyer refuse to purchase products from supplier then they have to bear loss. Thus,
suitable price should be decided by both of them and supply should be done.
TASK 3
3.1 Carrying out negotiations within responsibility limits in a way that optimises opportunities
Negotiation refers to formal discussion among people which have various intentions or aims
in business when they are trying to reach at an agreement . There are various responsibilities which
are lies between supplier and buyer for optimizing resources and gain competitive advantages. It is
a kind of set up or settlement. In the negotiation, two different parties find a common solution on
specific area. It will be helpful in maximise profit level of company (Greco, Baldissin and Nonino,
2013) . Here, supplier responsibility is to provide high quality goods to buyer. Negotiating team

should possess skills and responsibility for carrying out task. For example, supplier has set target to
sell product at high $20 to buyer but they want to purchase at $18 which should be negotiated and
accepted by both parties for achieving final goal and objectives. In case of performing any
activities, it should be within limit of parties. Both should get chance for optimising maximum
opportunities in terms of quality, price and outcome.
3.2 Conducting negotiation in accordance with changing circumstances
During negotiation, party should adapt negotiation style, behaviour or strategy. This can be
done through effective planning and understanding positions. Environment changes frequently as it
is dynamic. Party should prepared themselves about circumstances which can be occurred in future.
Here, supplier is ready to sell buyer at $18 but in case of change in price of raw materials,
transportation, policies they should be prepared to adopt situation. In order to remove conflict at
time of changing conditions, it is better for both parties to make agreement which include sign of
party, price, cost. Agreement is an indication which is kept by both parties in order to avoid future
conflicts. It is very important for party to adopt changing need and want of people as well as society
for growth, success and sustainability (Hacklin and Wallnöfer, 2012) . Thus, every individual,
business and parties should accept dynamic situations for better negotiation for goods and services.
3.3 Maintaining records of negotiations, outcomes and agreements
It is important to maintain records end-to-end process in negotiation. Here all three terms
separately mentioned below:
Maintaining accurate records Outcomes- In order to following negotiation and gain better
outcome, it is necessary to record the meeting minutes in a better manner. It is essential that all
parties which involved in negotiation should sign on agreement
Maintaining accurate records Agreements- If any agreements has made because of negotiation
then it is vital and documented and signed by all parties. It helps to reduce risk when it come up in
future. It can be in form of contract of an agreement. It is very important for contracting paper to be
signed by all parties involved in performing task (Hamilton and Webster, 2018) .
Maintaining accurate records Negotiation- Effective way for keeping record of negotiation is
taking minutes for discussion of problems. Minutes are tangible records of meeting and information
source for parties. After analysing all data and information from discussion negotiation can be done
very effectively and efficiently.
3.4 Organisational policies and procedures, and legal and ethical requirements when carrying out
business negotiations
In order to carry out business negotiation and achievement of better results, policies,
procedures, legal and ethical values should be followed. Every organisation have different policies

and procedures which need to be followed. Under rules and regulations and stages of company
following points should be covered to get better results. Similarly, in terms of legal consideration
there are number of laws and acts that should be considered in negotiating business, such as data
protection. Data protection means keeping all relevant and necessary information for business and
bribery act guide for not taking pay-off for any activities of business while conducting negotiation.
Ethics means moral principles which governs a person behaviour or conducting activity
(Heikkurinen and Bonnedahl, 2013) . It is necessary to follow principles of ethical negotiation. It
assist in providing reputation, sustainability and growth of firm. Here, scenario of supplier and
buyer is taken so that they both need to follow policies, procedures, legal and ethical values
required in business negotiation.
CONCLUSION
From the above report, it has been concluded that negotiation is helpful in solving disputes
and develop the positive relationship among the workers and create a positive working
environment. In this report, there are some strategies that are made in order to resolve conflicts
between parties such as avoidance, competitive. In this, described about different purpose, scope
and also objectives of negotiation in better manner. There has been prepared fall- back stances as
well as comprises align with priorities and negotiating strategies. Negotiations with in the
responsibilities which limits in way that optimises opportunities has been mentioned in given report.
Thus, it is very important to understand between both parties for doing negotiation and surviving in
market.

REFERENCES
Books and Journals
Abrahamsen, M. H., Henneberg, S. C. and Naudé, P., 2012. Sensemaking in business networks:
Introducing dottograms to analyse network changes. Industrial Marketing Management.
41(6). pp.1035-1046.
Ashurst, C., Cragg, P. and Herring, P., 2012. The role of IT competences in gaining value from e-
business: An SME case study. International Small Business Journal. 30(6). pp.640-658.
Banerjee, S. B., 2012. Critical perspectives on business and the natural environment.
Bansal, P. and Hoffman, A. J. eds., 2012. The Oxford handbook of business and the natural
environment. Oxford University Press.
Campling, L., 2012. The tuna ‘commodity frontier’: business strategies and environment in the
industrial tuna fisheries of the Western Indian Ocean. Journal of Agrarian Change. 12(2‐
3). pp.252-278.
Conrad, D. and Newberry, R., 2012. Identification and instruction of important business
communication skills for graduate business education. Journal of Education for Business.
87(2). pp.112-120.
Conrad, D. and Newberry, R., 2012. Identification and instruction of important business
communication skills for graduate business education. Journal of Education for Business.
87(2). pp.112-120.
Ferraro, G. P. and Briody, E. K., 2013. The cultural dimension of global business. Upper Saddle
River: Pearson.
Greco, M., Baldissin, N. and Nonino, F., 2013. An exploratory taxonomy of business games.
Simulation & Gaming. 44(5). pp.645-682.
Hacklin, F. and Wallnöfer, M., 2012. The business model in the practice of strategic decision
making: insights from a case study. Management Decision. 50(2). pp.166-188.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Heikkurinen, P. and Bonnedahl, K. J., 2013. Corporate responsibility for sustainable
development: a review and conceptual comparison of market-and stakeholder-oriented
strategies. Journal of Cleaner Production. 43. pp.191-198.
Jayaraman, V., and et. al., 2013. Offshoring Business Process Services and Governance Control
Mechanisms: An Examination of Service Providers from I ndia. Production and
Operations Management. 22(2). pp.314-334.
Kutvonen, L., Norta, A. and Ruohomaa, S., 2012, September. Inter-enterprise business
transaction management in open service ecosystems. In Enterprise Distributed Object
Computing Conference (EDOC), 2012 IEEE 16th International(pp. 31-40). IEEE.
Lewis, H., and et. al., 2017. Design+ environment: a global guide to designing greener goods.
Routledge.
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