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Communication in Negotiation Process

   

Added on  2023-01-18

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Communication 1
COMMUNICATION
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Communication in Negotiation Process_1

Communication 2
Communication
Executive Summary
Communication plays a leading role in promoting the negotiation process in any setting.
Thus, effective communication is essential while promoting the negotiation process. The main
challenge in the negotiation process is cultural differences that hamper effective negotiation
process. This implies that there is the need to develop effective communication skills that will
help eliminate these barriers and ensure successful negotiation. While negotiating across
cultures, it is important to understand the diverse dynamics of the other cultures to ensure that
the interests and concerns of the parties in the negotiation process are respected. In the scenario,
Erika, therefore, has the role of ensuring that he develops the needed communication tools that
will ensure that the concerns of Mr. Feng on the agreement are captured and there will be a deal
at the end of the day. The paper will answer the questions for the Lunar Pens case study based on
the two situations.
Communication in Negotiation Process_2

Communication 3
Table of Contents
Executive Summary.........................................................................................................................2
Situation 1........................................................................................................................................4
Deutsche Grusskarte Gesellschaft (DGG) and Global Service....................................................4
DGG (Represented by Erika Graeper) and Global Service’s Interest.........................................5
Erika Graeper’s Approach to Negotiation with Feng..................................................................6
Situation 2......................................................................................................................................10
What Conflict Resolution Method would you prefer to use, and WHY?..................................10
Which Conflict Management Style should be adopted by Erika, and WHY?...........................13
What further information might you need before contacting Feng, and how might you
realistically obtain it?.................................................................................................................16
Conclusions....................................................................................................................................18
List of References..........................................................................................................................19
Communication in Negotiation Process_3

Communication 4
Situation 1
Deutsche Grusskarte Gesellschaft (DGG) and Global Service
The Luna case functioned as a full of life negotiation procedure as it experienced cultural,
gender in addition to geographical challenges. This was a negotiation process that entailed
different challenges, mainly brought by the cultural differences and needed an effective process
to manage it and ensure that the process is successful. While negotiating across cultures, it is
important to understand the diverse dynamics of the other cultures to ensure that the interests and
concerns of the parties in the negotiation process are respected. This will guarantee a fruitful
negotiation process since the cultural dynamics are taken into consideration before the process
begins. The case provided adequate experience on negotiation on improving the communication
process while looking for a better deal. The book “Getting Past NO” NY William Ury, each of
the five barriers to collaboration were identified that include: your response, their emotion, their
position, their power, as well as their dissatisfaction (Lee, 2009, pp. 12).
Practically, there were several reasonable negotiation approaches that Erika Graeper
would have used to negotiate the deal; however, in my view, DGG’s most important BATNA
was to initiate communication process with Mr. Feng through formal letters along with the phone
calls. It was also feasible to demand payment from Global Services for the past, and prospect
royalties (15 per cent royalties with proof of monthly revenues). Thus, in bridging the
partnership, DGG would perhaps grant Global Services full authorization for Luna pens to be
traded in the Southeast marketplace, Global Services could carry on expanding the marketplace
of pens plus be granted complete independence of the Luna pen devoid of being forced for legal
Communication in Negotiation Process_4

Communication 5
act. This could important in opening up communication towards facilitating the negotiation
process as things will be simply ironed out as the negotiation goes towards the expansion of the
Luna pens to the Southeast market. Communication will play an instrumental role in shaping the
negotiation process by navigating through the cultural differences that comes on the way while
negotiating the deal (Ai & Song, 2019, pp. 278). For Global Services to succeed in the deal, it
has the role of developing effective form of communication towards convincing Mr. Feng to
acquire the company. Erika, therefore, has the role of ensuring that he develops the needed
communication tools that will ensure that the concerns of Mr. Feng on the agreement are
captured and there will be a deal at the end of the day.
DGG (Represented by Erika Graeper) and Global Service’s Interest
The present interest of DGG is not to restore the production of the Luna pen; however,
they are concerned in getting royalties from Global Services for the past, present, as well as
future sales. DGG believes that royalties will be important in boosting its existence in the market
by increasing its sales. DGG is never interested in the manufacturing of Luna pens, but needs
only sales in which this will be attained through allowing Global Services to pay royalties. This
was meant to boost the sales of the company rather than increasing the quantity of the pens. In
the negotiation process, it was important for DGG to remember that their firm discontinued
producing and trading the Luna pens some years back and any kind of compensation must be
acknowledged as a victory. DGG inability to produce and sell Luna pens means that it needs
compensation so that it can benefit. This implies that DGG should endeavour while negotiating
to accept any form of compensation from the Global Services, where this will be a win situation
for the company (Harinck & Druckman, 2017, pp. 31).
Communication in Negotiation Process_5

Communication 6
Another option that could be explored was Global Services’ interests to perhaps expand
the business of pens putting its consideration on the current success in the Southeast market.
Thus, DGG should consider the current success of the Global Service’s success in the market and
ensure that it not file any lawsuit. The litigation of any kind that will be filed by DGG will cause
detrimental effects on the success and reputation of the firm in the market. Therefore, to stop
from legal deed, Global Services are concerned and attracted in negotiation with probable
contract to pay royalty along with licensing fees. Global Services believe that they have what it
takes to negotiate for an agreement without prompting any form of litigation that will better
serve their interests in the market. The litigation will likely to harm the reputation of the
company and any attempt to introduce lawsuit should not be an option, but DGG should press for
compensation through royalties rather than filling litigation in the court (Acuff, 2009, pp. 12).
Erika Graeper’s Approach to Negotiation with Feng
In the case, the parties Erika Graeper, DGG, as well as Global Services had own interests
plus options to the negotiation. DGG interests were mainly to boost its profits, which would
result from negotiating a good deal with the Global Services since their primary goal was to
make profits and expand its markets beyond Southeast Asia. DGG’s best alternative in the deal
to be negotiated accord with the Global Service could be locate another firm to sell the rights to
the product name to or to go via a law suit, which would compel Global Service to associate with
DGG. Thus, for Erika, here interests were primarily her own; Erika needed to get the deal for
DGG to make her name for herself at the firm. Therefore, her main interests were to ensure that
DGG agree with the Global Service and get her name boosted by the deal. The interest of the
Global Services was to maintain the business, which they had founded through employing the
Communication in Negotiation Process_6

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