Goals of Negotiation

Part A

Goals of Negotiation

1. Take the Negotiation seriously

We have a propensity to think that “small” negotiations, such as renting even a small room, dont require the same degree of planning as business transactions, but this is incorrect. If you arent prepared to bargain, you could end up sacrificing more value than is required or missing out on a good offer. Its a smart idea to use your business negotiating skills to solve your current dilemma. Realizing what youll do if you cant get a decent offer will give you leverage in the subsequent negotiations. Your BATNA also aids you in calculating the price highest price youd be willing to pay in a price agreement—as and also your negotiation targets, or they offer youre hoping to even get.

2. Determine the appropriate setting and sound.

Consumer Reports recommends haggling early or late in the day, when stores are typically quiet, and late in the month, when sales representatives may be particularly excited to meet targets. You will need to approach a director at a department store where daily sales workers may not have the power to negotiate a deal.

3. Using Tactics

Consumer Reports advises starting negotiations away from other customers, as salespeople may not want other customers to hear about the haggling. Bring up to date pricing details from competitors, and be prepared for the salesperson to double check it. Youve reached the domain of haggling—the dance of compromises that follows each partys first offer—if the salesperson is willing to compromise and you have a good understanding of the zone of potential agreement, or ZOPA. Keep your BATNA in front of your mind at all times. As a price negotiator, understanding you get a good choice will help you remain calm and reasonable (Schoop, 2021).

Issues in Negotiation

1. Negotiation styles vary across cultures, and its important to keep different cultures in view when negotiating. We dont want to come off as stereotypical
2. When a person is negotiating to obtain something that he or she requires, ethical issues may arise. How far can you go to get the desired outcome? Is it always better to say the truth and expose your strategy, or does doing so jeopardize your stance? In negotiations, tough issues like these often arise.
3. Only the most skilled negotiator will make typical negotiating errors due to a lack of forethought and implementation. The majority of them are due to psychological traits and bad decisions.
4. Chamorro Premuzic writes in his Harvard Business Review essay, The Personality Traits of Good Negotiators, that people with suspicious and Machiavellianism (a phrase that defines a persons ability to exploit and exploit someone else) can anticipate less favorable outcomes at the negotiating table (Geiger, 2017).

Integrative Negotiation

As per the observance the integrative negotiation would work in this case. As side tries to create an arrangement that benefits both parties, ingenuity will contribute to value development for both party leaders in integrative bargaining. Scenarios that seem to be win lose negotiations can also be transformed into incentives for mutual benefit and value creation by integrative bargaining. Integrative negotiating, of course, has its limitations, and the art of bargaining is in simply providing and claiming value, or riding two separate horses at the very same time.

One big obstacle is that negotiators are often hesitant to share much more detail, even though integrative bargaining depends on the disclosure of desires and desires. Integrative negotiating, on the other hand, stresses trust building and is geared toward a long term vision for future agreements with your partner. The study findings will assist you in successfully engaging in integrative bargaining with rivals:

1. Break the issue down into smaller, easier to manage pieces. This turns a solitary negotiation into an inter negotiation by encouraging all sides to make tradeoffs based on different interests.
2. Find “opponents” who share your opinion. Instead of treating the rivals as a monolith, see if any representatives on the other side may be able to partner on a settlement.
3. Be willing to make concessions. Its easier to have some of what you want than none at all, so look for places where your goals overlap and concentrate on small victories. You might be capable of making bigger gains in the future.
4. Making the most of the momentum. Recognize when investors are impatient to close a deal and take advantage of it (Benetti, Ogliastri, & Caputo, 2021).

Negotiation Plan

1. Issues and their importance
2. The length of the contract and the rent the occupant will pay are the most clear starting points for rental contract negotiations. Instead of going for longer term leases, smaller companies can sign one or two year leases with renewal options, while commercial landlords will seek to make the deal by providing bonuses.
3. Longer contract terms could be worthwhile for more developed companies with a near future and growth potential, but small companies with an unknown future and the opportunity for development should be careful. Leasing may seem to be a simple matter, but all parties to a rental agreement should accept rent rises over the course of the lease and in future terms.
4. The separation of liability for services, repairs, maintenance, benefits, and other expenses is one of the reasons commercial leases differ from standard residential leases. Different situations can arise as a result of this separation of expenses.
5. Apart from very briefcases, most leasing companies have contractual escalation clauses that raise the rental rate daily irrespective of whether operating costs have risen. These yearly escalators are designed to encourage landlords to sign long term leases with companies that plan to stay for a long time. Such as tenants being held liable for higher maintenance costs or other charges.
6. Miss Lindeman’s Interest and my interest

Whenever the landlord offers his interest in the business, the buyer becomes the lessee. If residents in an apartment building have contracts, the new owner cannot evict them simply because he has taken title. The owner may split his interest in the company as he sees fit, shifting all or part of his ownership. And I am taking this property on rent for running my business while she will get paid every month for renting her place.

1. BATNA’s
2. Find out how the rented property in question matches up against others. Is it already more expensive or less expensive than comparable properties? Find a feature that makes it less desirable than a similar house.
3. Dont pass off as too enthusiastic. Note that a property manager is looking for a tenant who is responsible, safe, and working. So dont follow the advice of some bloggers and say youre hoping your lender can lower your rent so that you can buy the place.
4. All parties, particularly tenants, should think about clauses that give the lease more flexibility. A sublease provision, for example, allows a company to get out of a lease if it has to move or even shut down, while a professional and non clause allows a company to get out of a lease if a big tenant or main tenant in the same building closes, possibly depriving the business of secondary travel.
5. Limits of Negotiation

For several reasons, your calculation may be way off the mark. Likely, the sources arent trustworthy. You might not be aware of vendor rebates that the dealer gets. You may also be missing out on crucial details about market demand for the vehicle. According to studies on hubris, negotiators forecasts of a rivals price or another quantity—are often excessively specific. It is unlikeable because of its proclivity for overprecision, or undue trust in the accuracy of ones decisions.

5. Land Lord Interest and Resistance point

The landlord should grant the occupant the right to invade the premises. This obligation is violated if a third party has dominant ownership of the property at the time the tenant is bound to claim possession and asserting the title will deprive the landlord of the use expected by the parties. Any legitimate interest in the premises that is not terminable at will is referred to as a supreme name. In addition to maintaining the property in a reasonably satisfactory state, the landlord owes the tenant the responsibility of not interfering with the tenants permitted use of the house.

6. Target and Opening Bids

Our target is to open a cafe in that space and make a place in market, the opening bid from our side to landlord is 40 pounds per square feet.

7. The Social context of Negotiation

Integrative capacity, decision biases, power balance, negotiator relationships, communication mechanisms, and the influence of third parties have all been addressed in the study of relational negotiating. While this analysis may be useful in some ways, The strict rule of findings from dyadic to multiparty negotiation in a multiparty setting Contexts can be tricky. The high level of risk in multiparty relationships is one of the key reasons for this. One of the most noticeable and significant distinctions between multiparty and relational negotiation is the ability to reach a consensus exclude group members from the withdrawal deal (Chertkoff, 1967; Gamson, 1961; Luce & Luce, 1967; Luce & Luce, 1967; Luce & Luce, 1967; Luce & Murnighan, 1986; Raiffa, 1957). Negotiation scholars have called for studies on different issues specific to multiparty negotiation (e.g., the potential for coalitions), that restrict the generalizability of results from dyadic circumstances aspects of multi party negotiation (Ancona, Friedman, & Kolb, 1991; Bazerman, 1990; Ancona, Friedman, & Kolb, 1991; Ancona, Friedman, & Kolb, 1991; Ancona, Friedman, & Kolb, 1991).

Part B

Negotiation Goals

1. Make sure the teams negotiating preparation includes a thorough exploration of the other sides (or parties) goals, roles, and history to avoid overstating, underestimating, or villain zing the team across the table. The more you know about the other side, the more prepared youll be to participate in the kind of in depth, nuanced analysis of both teams desires that youll be able to do.
2. Diversity is an advantage to teams and organizations, according to a large body of study. As per Harvard Business School professor Francesca Gino, when members of the team hailing from diverse backgrounds and have different experiences and skills, they carry opinions and insight to the table which can help with good decision making.
3. If your negotiating team meets, make this one of your negotiation objectives to recognize dissent and disagreement within your team when it arises, to combat the popular inclination among teams to participate in groupthink. Rather than dismissing or ignoring dissenting arguments, allow them to make formal presentations, ensuring that they have the time and money to do so.

Furthermore, your party might designate one or more representatives to play devils advocate by poking holes in the groups prevailing viewpoints. You will broaden your perspective on the negotiation and make better decisions this way (Steinel, & Harinck, 2020)

Issues in Negotiation

1. The most difficult part of negotiating is when people arent able to grasp the other party. Some people are only concerned with their concerns and disregard the desires and concerns of others.
2. Ineffective negotiation is often hampered by a lack of time. It is never a good idea to be in a rush. Youll need some time to persuade others. Never hurry into making a transaction or closing a sale. Analyze everything thoroughly before drawing any conclusions. It is unethical to arrive at a negotiation unprepared.
3. Dont forget the second group. One should pay close attention to his or her homework. Before entering into a negotiation, double check even the tiniest information. Dont assume the other person isnt as intelligent as you; he can ask you something, and hell do whatever he can to persuade you. You must have valid responses to his queries.
4. A bad negotiation can also be caused by a lack of patience. Every person has the right to express his or her opinions, and no one should interfere with that right. You may not agree with him, but at the very least give him a chance to talk. Sit down with the other side and explain how the agreement would help both of you. If at all necessary, bring a notepad and a pen to help describe things.
5. The most serious threats to a good negotiation are criticism, sarcasm, and negative remarks. Never say something that may cause harm to anyone. Remember that everybody is here to make money, so be logical and justified. Dont get too involved or emotional. For a successful negotiation, one must be diplomatic and intellectual.

Distributive Bargaining

Distributive bargaining, also known as claiming worth, zero sum, or win lose bargaining, is a strategic negotiating technique used to determine how a fixed asset, like money, should be allocated.

Since the parties believe there isnt enough to go and they cant enlarge the pie, the more one side gets, the less the other receives. Since certain conflicts cannot be settled in another way — they are inherently zero sum — distributive bargaining is critical. When the stakes are high, such disputes can be exceedingly difficult to resolve. For instance, if a government agencys budget should be cut by 30% and service livelihoods are on the line, deciding what to cut is complex and hard. Distributive bargaining can be used also in collective negotiations.

Negotiation methods such as distributive and integrative negotiation are not mutually exclusive. The interaction of ones walk away value — the upper limit one can consider before walking away from the contract — and the opponents walk away value is central to distributive negotiation.

The key is to figure out what your oppositions leave interest is, and then try to reach a result that is more in line with your objectives than theirs. In a distributive negotiation, knowledge is the secret to achieving a competitive advantage. You should do your utmost to protect your information while still trying to elicit information from your opponent.

Your negotiating power is largely determined by how straightforward you are about your objectives, options, and correct to the best principles, as well as how much you know about your adversaries.

References

Schoop, M. (2021). Negotiation communication revisited. Central European Journal of Operations Research, 29(1), 163 176.

Geiger, I. (2017). A model of negotiation issue–based tactics in business to business sales negotiations. Industrial Marketing Management, 64, 91 106.

Benetti, S., Ogliastri, E., & Caputo, A. (2021). Distributive/integrative negotiation strategies in cross cultural contexts: a comparative study of the USA and Italy. Journal of Management & Organization, 1 23.

Steinel, W., & Harinck, F. (2020). Negotiation and Bargaining. In Oxford Research Encyclopedia of Psychology.

Ancona, D. (1990). Outward bound: Strategies for team survival in an organization. Academy of Management Journal, 33, 334–365. http://dx.doi.org/10.2307/256328

Chertkoff, J.M. (1967). A revision of Caplows coalition theory. Journal of Experimental Social Psychology, 3, 172–177. http://dx.doi.org/10.1016/0022 1031%2867%2990020 0