Factors Contributing to Negotiation Failure: A Comprehensive Report

This report delves into the multifaceted reasons behind negotiation failures, exploring critical factors such as inadequate planning, unwillingness to bargain, the creation of win-lose scenarios, and ineffective communication. It provides a comprehensive analysis of these elements, supported by a real-world case study of the ongoing conflict between Israel and Palestine, illustrating how these factors have contributed to the breakdown of negotiations. The report further examines the negotiation process, including preparation, opening, bargaining, and closure phases, and identifies essential concepts and strategies for successful negotiation outcomes. The conclusion emphasizes the importance of flexibility, understanding, and a willingness to compromise to achieve mutually beneficial agreements.

Reasons for the failure of Negotiations
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Table of Contents
Introduction:....................................................................................................................................3
Four Reasons Why Negotiations Fail:.............................................................................................3
A situation where a negotiation effort failed:..................................................................................4
The process is taken into consideration in the negotiation effort:...................................................5
Explanation as to how the negotiation failed:..................................................................................6
Concepts or Ideas that should have taken to make a successful negotiation:..................................6
Conclusion:......................................................................................................................................7
Reference:........................................................................................................................................8

Introduction:
Everyone goes through a certain situation which can be best dealt through the use of negotiation,
which may occur at the workplace, home or within friends or peer mates. A situation of
negotiation arises when there is a conflict of interest between the parties. It arises when two
parties don’t agree on a particular decision. In such a situation, the desire or the interest of one
party may be different from the other parties, and therefore there is a requirement to search for a
solution where both the parties agree. However, in certain circumstance, both the parties do not
compromise or adjust with the situation, and the process of negotiation fails. In this assignment,
it has been asked to mention the potential reasons behind the failure of negotiations. In this
assignment, a situation shall be considered, which can be a real-life incident that happened in the
past and this report shall provide an analysis into the reasons of the failure of negotiation in such
circumstances.
Four Reasons Why Negotiations Fail:
There are various reasons for the failure of negotiation in the business process. However, the
most important reasons for the failure of any negotiation are as follows:
 Lack of Proper Planning:
Negotiation is a process which requires effective planning and also efficiently executing such
plans. To successfully execute the negotiation process, adequate planning is must. The process
involves various strategies which help in determining the bottom-line offer, creating an open
offer, demonstration of good faith, bargaining on the offer so made and demonstration of the
value of the offer. Failure of negotiation occurs because the parties to the negotiation do not have
proper planning or strategy to determine the desire of the other party (Gorman, 2020).
Therefore, if any of the party to the negotiation does not have the idea what the other party
expects from each other, then there arises a sense of distrust and the confidence between the
parties break which results in the failure of the negotiation. Therefore, the parties are required to
plan which should be in the best interest of both the parties.
 Refuse to Bargain:
If one party to the negotiation process is unwilling or does not show its power to bargain, then
the other party may feel that the party is not interested in working with the other party. This
creates a negative impression on the party who does not show or refuse to bargain in the
negotiation process. Refusing to bargain in the situation f a negotiation process may send the

gesture to the other party that the party is not interested in the business or is least responsible for
learning the needs and requirements of the other party which will not create a strong working
relationship (Magzter.com., 2020). Therefore, refusal to bargain breaks the confidence over the
other party and prioritize the feeling of mistrust between the parties. The parties on the
negotiation table must be flexible and dynamic to their needs and want, which will help them to
create a good partnership.
 No winning to Winning Situation:
When both the parties in the negotiations do not receive any benefit from the deal or transaction
and one party to the negotiations losses. When a negotiation ends up creating a winner and a
loser, then such negotiation breaks or generally fails and ends at that stage. If one cannot
compromise on a particular object, then the party should make an offer of compromise or
provide benefit on the other side to meet the equilibrium (Bayt.com., 2020). For instance, if one
party cannot lower its prices, then the party should provide better opportunities for credit or some
other benefit which will be beneficial for the other party and will create a win-win situation for
both the parties.
 Improper Communication:
There is various way to communicate to the negotiating parties regarding the offers. However,
the manner in which the communication is made is very important in the negotiation process
which includes the voice, contact of eye, language or gesture of the body or the designation of
the personnel also matters in the negotiation process. The other factors such as using of mails
instead of letters also create a differentiation in the level of sincerity, trust and the intention of
the parties to negotiate. Lack of proper information or insufficient communication may break the
trust or confidence of the parties to the negotiation, which results in the failure of the negotiation
process (Shapironegotiations.com., 2020). Therefore, to make the negotiation successfully, the
parties must communicate in a proper manner with all the benefits that the parties may receive
from the deal. Moreover, the communication should be made in such a manner which will
inform the negotiating party's regarding the value of the deal.
A situation where a negotiation effort failed:
One the example from the contemporary times, which shows the failure of a negotiation is the
relationship between Israel and Palestine. After the nation's establishment in the year 1948, both
the countries are in a state of war against each other, and the sustainable peace between the

countries end up in violence against each other particularly with respect to the ownership of the
Gaza Strip, and this is the biggest example of the failure of negotiation between the parties. The
process of negotiation started between the countries in the year 1970 which has been intervened
by various nations of the world and has made an attempt so as to encourage the leaders of both
the countries to main peace and stability. However, the effort of each negotiation between the
parties ends up in violence against each other, killing several innocent civilians (AlleyWatch.,
2020). From the point of view of negotiation, the major reason behind the failure of the
negotiation process between the states occurs because of rigid personal agendas of both the
states. They both refuse to bargain or compromise or adjust by understanding the cultural,
political and economic situation of each other. Both the parties being shortsighted and their
unwillingness to compromise and communicate has ended in the failure of the negotiation. Both
the governments of Israel and Palestine refused to agree to the terms with respect to the opinions
of the other and could not build a common ground to settle peace and harmony.
The process is taken into consideration in the negotiation effort:
The process that has been taken into consideration in the above-mentioned negotiation between
Israel and Palestine are as follows:
 Preparation:
Planning and preparation is a fundamental step in the negotiation process. The parties to the
negotiation must be well prepared before coming into a negotiation (Diva-portal.org., 2020).
They should have all plans prepared. In the above-mentioned scenario, both the parties were not
at all prepared for the negotiation with each other.
 Opening Phase:
In this phase, both the parties come face to face, and both the parties try to influence the thinking
of the other party of the negotiation. In the above-mentioned scenario, both the parties did not try
to influence the other to make any arrangements or compromise on the matter of negotiation.
 Bargaining Phase:
In this phase, the parties to the negotiation come closer to make a compromise or trying to
convince the other party regarding the demands (Harroch, 2020). As per the above-mentioned
facts, both the governments did not try to convince each other to make a certain compromise or
make the other understand regarding the situation.
 Closure Phase:

This phase indicates the opportunity to gain from the works done in the previous phases of
negotiation. In this phase, either the parties will end up dealing with each other, or the
negotiation will fail at the end. According to the above-mentioned scenario, both the parties did
not rely on each other requests, and therefore, the negotiation between the parties failed
(Kukreja, 2020).
Explanation as to how the negotiation failed:
The negotiation between Israel and Palestine failed because of both the parties stubborn stand to
their decisions and were unwilling to make any adjustments or compromised in relation to their
wants. Moreover, both the parties did not want to understand the objective behind such
negotiation, which was affecting the cultural, political and economic scenario of both the states.
Moreover, the shortsightedness of the parties connected with unwillingness to communicate and
compromise with each other resulted in the failure of the negotiation process. The negotiation
process failed in the bargaining phase, where both the parties were unwilling to bargain or make
any adjustments by understanding the wants of the other party. Both the governments of Israel
and Palestine refused to understand and compromise on the terms of the other so as to meet on
the common ground and establish between the states. In this case, both the parties dishonoured
each other's views on the subject matter of negotiation and trying to exert their own terms over
the other. There was no sign of effort from either side to create a ground of similarity by
listening to each other’s views empathetically and working on the needs and wants of the other
which has resulted in the failure f the negotiation.
Concepts or Ideas that should have taken to make a successful negotiation:
The concepts or ideas that should be taken into consideration for the purpose of making a
successful negotiation are as follows:
 Planning and Preparation should be made in a proper manner taking into consideration
the wants and desires of the parties to the negotiation.
 The negotiators should listen and also try to understand the views and opinions of the
other parties. The negotiator who tends to listen to the other parties and understand the
key issues and respond upon understanding the issues make the negotiation successful
(Europarc.org., 2020).

 During the negotiation, the parties must not keep them rigid to their decisions or
opinions, the decisions or opinions must be flexible and dynamic so as to adjust and
compromise with the need of the others.
 Moreover, the parties must think things ahead of time and make the decision accordingly
or else the parties might end up failing the negotiation (Europarc.org., 2020).
 From the scenario that has been explained above the most important thing which has been
analyzed is that negotiation becomes successful when the parties to the negotiation have
the willingness to negotiate and compromise and adjust on the matters.
Conclusion:
Therefore, from the above study, it can be understood that not all negotiations succeed or not all
negotiations fail due to the behaviour or attitude of the parties to the negotiation. However, the
parties to the b=negotiation should adhere to the facts and circumstances and keep a flexible
mind before coming to negotiation or else the negotiation will end up as a big failure. The most
important element of negotiation is the true bargaining of the position. However, at certain times
the parties must adjust their bargaining considering certain elements of the situation of the other
party. Moreover, the parties must always resort to an alternative solution before ending a failed
negotiation. The parties must put themselves in the shoes of the opposition to understand the
others demands and make the appropriate decision.

Reference:
AlleyWatch. 2020. The Biggest Negotiation Failures In History - Alleywatch. [online] Available
at: <https://www.alleywatch.com/2013/07/the-biggest-negotiation-failures-in-history/>
[Accessed 7 April 2020].
Bayt.com. 2020. What Are The Main Reasons That Make Most Negotiation Fail? - Bayt.Com
Specialties. [online] Available at: <https://specialties.bayt.com/en/specialties/q/118999/what-are-
the-main-reasons-that-make-most-negotiation-fail/> [Accessed 7 April 2020].
Diva-portal.org. 2020. INTERNATIONAL BUSINESS NEGOTIATIONS. [online] Available at:
<https://www.diva-portal.org/smash/get/diva2:15960/fulltext01> [Accessed 7 April 2020].
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<https://www.europarc.org/communication-skills/pdf/Negotiation%20Skills.pdf> [Accessed 7
April 2020].
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fail/> [Accessed 7 April 2020].
Harroch, R., 2020. 15 Tactics For Successful Business Negotiations. [online] Forbes. Available
at: <https://www.forbes.com/sites/allbusiness/2016/09/16/15-tactics-for-successful-business-
negotiations/> [Accessed 7 April 2020].
Kukreja, S., 2020. Characteristics Of Negotiation And Steps Of Negotiation Process |
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<https://www.managementstudyhq.com/characteristics-and-steps-of-negotiation-process.html>
[Accessed 7 April 2020].
Magzter.com. 2020. A Skill And A Responsibility. [online] Available at:
<https://www.magzter.com/article/Business/Indian-Management/6-Reasons-Why-Negotiations-
Fail> [Accessed 7 April 2020].
Pon.harvard.edu 2020. Why Negotiations Fail. PON - Program on Negotiation at Harvard Law
School. [Online] Available at: <https://www.pon.harvard.edu/daily/negotiation-skills-daily/why-
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Shapironegotiations.com. 2020. 3 Reasons Negotiations Fail. [online] Available at:
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