Professional Documents
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Negotiation Strategies
Negotiation Strategies
Negotiation Strategies
Prepared By:
BURCU MEK ELF AKKURT SMEYRA KARATA TRKAN COKUN F. BETL EKREM
BURCU MEK
NEGOTIATION STRATEGIES
Strategy is the overall approach for
conducting the negotiation. Tactics are particular actions used to implement a strategy.
NEGOTIATION STRATEGIES
Whereas a strategy provides the overall
approach used throughout the negotiation, a tactic is particular action used at a specific time during the negotiation to serve a more limited role or purpose.
NEGOTIATION GOALS
Negotiation goals encompass a wide
range of both tangible and intangible desires. Categories of goals which in turn affect the negotiators choice of strategy and tactics.
AGGRESSIVE GOALS
Seeks to undermine, deprive, damage
or otherwise injure a rival or opponent. Example: Taking a customer or supplier away from a competitor in order to hurt the competitor.
AGGRESSIVE GOALS
Aggressive goals seek to damage an
opponent.
COMPETITIVE GOALS
One side seeks to gain more from the negotiation
than the other side. In fact the negotiator hopes to obtain as large a comparative advantage as possible. Example:
Receiving the highest possible price. Paying the lowest possible price.
COMPETITIVE GOALS
A competitive goal means getting more
than the other party.
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COOPERATIVE GOALS
Cooperative goals are achieved through an
agreement that leads to mutual gain for all negotiators and their respective sides. This achievement is also referred to as win-win negotiating. Example: Forming a joint venture, partnership, or corporation to engage in business opportunities to achieve a mutual profit.
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COOPERATIVE GOALS
With cooperative goals, agreement leads
to mutual gain.
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SELF-CENTERED GOALS
Self-centered goals are those that depend
solely on what ones own side achieves.
Scenario: two large accounting firms merge. The
tremendous size of the new firm raises a self centered goal to find sufficient prestigious space in a single location. The goal is reached when the new firm negotiates a lease for 15 floors in a major midtown New York office building.
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SELF-CENTERED GOALS
Self-centered goals seek a particular result
regardless of what the other side receives.
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DEFENSIVE GOALS
One seeks to avoid a particular outcome. Examples: Avoiding a loss of respect. Preventing a strike. Avoiding the loss of a customer or
supplier.
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DEFENSIVE GOALS
Defensive goals seek to avoid a particular
result.
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The choice of strategy also may be affected by the answers to a number of questions, such as: Does the negotiation involve a transaction or a dispute? Is there more than one issue involved? Can new issues be introduced into the negotiation? Are the parties interests short-term or long-term? Are the parties relationships long-term, limited to one negotiation or some where in between?
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MAIN NEGOTIATION STRATEGIES AVOIDANCE STRATEGY COMPETITIVE STRATEGY COLLABORATIVE STRATEGY ACCOMMODATIVE STRATEGY
ELF AKKURT
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1. AVOIDANCE STRATEGY
Reasons of why negotiators might choose not to negotiate: 1. If one is able to meet ones needs without negotiating at all, it may make sense to use an avoidance strategy.
Avoidance Strategy
3. The decision to negotiate is closely related
to the desirability of available alternatives. Alternatives are the outcomes that can be achieved if negotiations dont work out
4. Avoidance may be appropriate when the negotiator is responsible for developing others into becoming better negotiators.
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Active-Engagement Strategies
Competition Collaboration Accommodation
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2. COMPETITIVE STRATEGY
Distributive Bargaining Win-Lose Bargaining (I win, you lose)
Zero-sum game: whatever extent one party wins something, the other party losses
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Competitive Strategy
Distributive Bargaining refers to the
process of dividing or distributing scarce resources
Distributive Bargaining
The essence of
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territorial negotiation
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3. COLLABORATIVE STRATEGY
Integrative Bargaining Win-Win Bargaining (I win, you win)
Positive-sum situations are those where each party gains without a corresponding loss for the other party.
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Integrative Bargaining
The law of win/win says Lets not do it your way or my way; lets do it the best way
Greg Anderson
The 22 Non-negotiable Ways of Wellness
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4. ACCOMMODATIVE STRATEGY
Win-lose strategy (I lose, you win) The negotiator wants to let the other win,
keep the other happy, or not to endanger the relationship by pushing hard to achieve some goal on the substantive issues
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Accommodative Strategy
Accommodative Strategy is often used;
to build or strengthen the relationship and the negotiator is willing to sacrifice the outcome. If the negotiator expects the relationship to extend past a single negotiation episode.
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situation to a "win-win" even if it looks like a "win-lose" situation. Almost all negotiations have at least some elements of win-win. Successful negotiations often depend on finding the win-win aspects in any situation. Only shift to a win-lose mode if all else fails.
Professor E. Wertheim, College of Business Administration, Northeastern University
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NEGOTIATION STRATEGIES
1. 2. 3. 4.
5. 6. 7. 8. 9.
No-Concessions No Further Concessions Making Only Deadlock-Breaking Concessions High Realistic Expectations With Systematic Concessions Concede First Problem Solving Goals Other Than To Reach Agreement Moving For Closure Combining Strategies
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SMEYRA KARATA
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1. NO-CONCESSIONS
A No-Concessions Strategy is tough and
dangerous, since concessions usually are expected.
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NO-CONCESSIONS
A no-concessions strategy is suitable
for aggressive, competitive and self-centered goals. A no-concessions strategy is not suitable for cooperative and defensive goals.
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your favor. When you are in a disproportionately weak position. When the dollar amount is too low or time is too short. 1) Cost Efficiency 2) Available Time
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3.
4. 5. 6.
to change the partys position. Ignore it and proceed as if concessions are possible. Present cost saving or win-win measures that justfy a concession. As a seller, offer less (such as fewer services), thereby effectively increasing the price. As a buyer, demand more, thereby, in effect, reducing the price. Terminate the negotiating session.
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2. NO FURTHER CONCESSIONS
A No-Further-Concessions Strategy is possible when the other party can be forced to make the final concession, or when the situation has changed.
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NO FURTHER CONCESSIONS
The no-further-concessions strategy is
implemented after some concessions have been made. The countermeasures to this strategy are the same as those for its parent, the noconcessions strategy.
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to break deadlock is the next toughest strategy after the no-concession strategy. This strategy generates an atmosphere of tension and difficulty. Because of this one should be very careful to use this strategy.
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TRKAN COKUN
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realistic expectations with small, systematic concessions It entails a planned approach both to the objectives of the negotiation and to the compromises that may be employed to reach those objectives Strategy which achieves the best results
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HRESSC (cont.)
It has three components: The size of the concessions The use of apparent concessions which actually involve no cost to the negotiators side The advance planning of concessions
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5. CONCEDE FIRST
It is used to reduce tension, create an
atmosphere conducive to reaching an agreement and allow one to demand a reciprocal concession We made an important concession at the outset of this meeting and you still have not given us anything significant in return Difficult and sometimes impossible to withdraw a concession
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6. PROBLEM SOLVING
It is a strategy for creating a procedural
agreement to solve a common problem that has been identified It is the most useful strategy after
HRESSC
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Brainstorming
Brainstorming for problem solving is a process which requires that the participants: Speak spontaneously or think out loud (as long it is relevant and constructive) Retrain from evaluating or criticizing the statements of others until after all initial ideas are elicited Be willing to repeat ones ideas if others want to hear them again Persist in the effort even if there is a prolonged silence
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F. BETL EKREM
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9. COMBINING STRATEGIES
Generally usage of a
single strategy isnt efficient
For e.g.: first concession and moving for closure are efficient in specific parts of the negotiation
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For 1st one, HRESSC and for 2nd one problem solving strategies are chosen.
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