Negotiation Example

In: Business and Management

Submitted By grtsgl
Words 1452
Pages 6
Part 1: Intro
I was really hoping for a better negotiation to use as an example for this paper but none stick out as much as my first and only brand new car buying experience. I had negotiated with my husband at the time for months on what kind of car we should buy. I had fallen in love with the new body style of Toyota Celica that came out in 2000. My husband wasn’t so sure. So we looked at Mustangs, Acuras, Eclipses, etc. The Mustang we ruled out because it wasn’t the same if you couldn’t get a Salleen or Rousch package and they were just too expensive. The Eclipse interior was lacking in creature comforts and the Acura was just too boring for me. We finally went to test drive a Celica and it was everything I wanted except it was bright red. (I read the statistics – I know better than to buy a red sports car). By this time it is getting late in the year and the 2003 models were coming out. We went in to a showroom to look at the new Celica colors and they had one in the show room in this light blue that looked almost purple on the edges in the lights. It was like one of those moments in the movies when a spotlight shines down on exactly what you have been looking for. My husband took one look at it and was like “Maybe you are right. Maybe we should get a Celica – in this color.” Now since that color was brand new that meant that a used Celica was out. I looked online to see what I could get the car for through my credit union’s car buying service (my parents got an incredible deal this way) but they didn’t have the new blue color so I had to use the 2002 version of blue for the pricing, but I felt like I at least had something.
Part 2: The negotiation
Now that we had decided on exactly what we wanted – 2003 Celica, leather interior (only one color was available), light blue exterior, and sports package (wing and ground effects) and had a basis…...

Similar Documents

Negotiation

...Marie S. Hemsley Contract Negotiations Mon-Wed. 7-8:20pm Chapter 6 – Section VIII NEGOTIATIONS Negotiating government contracts and modifications is an art, a science, and an acquired skill. In order to acquire the skill, the negotiator must have a firm knowledge of the basic rules of government contract law and appropriate contract procedures. A successful negotiation depends on communication, price demands, and complete preparation. Negotiation without adequate preparation invites failure and is, in fact, a breach of the negotiator's obligation to oneself, the government, and to the public trust. Adequate preparation enables the negotiator to negotiate with strength to take and hold the initiative throughout the negotiation conference and to meet any challenge with confidence. It is emphasized that lack of preparation for negotiations places the government in a position of distinct disadvantage. The discussion contained in this chapter is based on the assumption that negotiation after receipt of proposals is considered necessary. That is, for any situation where adequate price completion has not been assured via competitive bids, technical requirements, or proposals taken with the view of an award based upon the lowest reasonable price. VII. Negotiation Exchange with offerors after establishment of the competitive range. Negotiation are exchanges, in either a competitive or sole source environment, between the Government and offerors, that are undertaken with......

Words: 2018 - Pages: 9

Negotiation

...edition of Negotiation: Readings, Exercises and Cases by Lewicki, Saunders, and Barry. This article provides an excellent overview of negotiation techniques, avoiding impasses, and avoiding the pitfalls of hidden assumptions. This article is written for practitioners that conduct negotiations or plan to conduct negotiations in the future. The authors’ do not provide any reference to the academic literature (or any references at all). The portions of this article that cover negotiation techniques and avoiding impasses seem to provide a very thorough list of techniques, but the description of these techniques is generally limited to only one or two paragraphs. The portion of the article that describes avoiding the pitfalls of hidden assumptions is vague and lacking in substance. In addition, there is a glaring factual error in one of the examples provided by the authors, which may imply that there are other errors in this article. Despite these issues, Nierenberg and Calero (2009) have provided an excellent introductory overview of negotiation techniques and techniques to avoid impasses. This article is excellent reading for those that conduct negotiations in the performance of their job as well as those that are involved in negotiations for the myriad circumstances of day to day life. Nierenberg and Calero have conducted negotiations for several years and held hundreds of negotiation seminars (Nierenberg and Calero, 2009). This article describes negotiation......

Words: 1007 - Pages: 5

Negotiation

...together since 1977. Roger Fisher teaches negotiation at Harvard Law School, where he is Williston Professor of Law and Director of the Harvard Negotiation Project. Raised in Illinois, he served in World War II with the U.S. Army Air Force, in Paris with the Marshall Plan, and in Washington, D.C., with the Department of Justice. He has also practiced law in Washington and served as a consultant to the Department of Defense. He was the originator and executive editor of the award-winning series The Advocates. He consults widely with governments, corporations, and individuals through Conflict Management, Inc., and the Conflict Management Group. William Ury, consultant, writer, and lecturer on negotiation and mediation, is Director of the Negotiation Network at Harvard University and Associate Director of the Harvard Negotiation Project. He has served as a consultant and third party in disputes ranging from the Palestinian-Israeli conflict to U.S.-Soviet arms control to intracorporate conflicts to labormanagement conflict at a Kentucky coal mine. Currently, he is working on ethnic conflict in the Soviet Union and on teacher-contract negotiations in a large urban setting. Educated in Switzerland, he has degrees from Yale in Linguistics and Harvard in anthropology. Bruce Patton, Deputy Director of the Harvard Negotiation Project, is the Thaddeus R. Beal Lecturer on Law at Harvard Law School, where he teaches negotiation. A lawyer, he teaches negotiation to diplomats and corporate......

Words: 58279 - Pages: 234

Negotiation

... 1. Why negotiate 3 2. Pre-negotiation 4 2. Planning for negotiation 4 3. Negotiation styles 8 1. Belief-based styles 8 2. Professional styles 14 3. Contextual styles 24 4. Negotiation process 29 5. Obstacles to negotiation 31 6. Negotiation tactics 34 1. INTRODUCTION Negotiation is the process where interested parties resolve disputes, agree upon courses of action, bargain for individual or collective advantage, and/or attempt to craft outcomes which serve their mutual interests. Negotiation is usually regarded as a form of alternative dispute resolution. The first step in negotiation is to determine whether the situation is in fact a negotiation. The essential qualities of negotiation are: the existence of two parties who share an important objective but have some significant difference(s). The purpose of the negotiating conference to seek to compromise the difference(s). The outcome of the negotiating conference may be a compromise satisfactory to both sides, a standoff (failure to reach a satisfactory compromise) or a standoff with an agreement to try again at a later time. Negotiation is something that we do all the time and is not only used for business purposes. For example, we use it in our social lives perhaps for deciding a time to meet, or where to go on a rainy day. Negotiation is usually considered as a compromise to......

Words: 9743 - Pages: 39

Negotiation

...effective negotiation in a customer service environment. This paper provides an overview of the interpersonal and organizational variables that influence a negotiator's behavior and decision-making processes. In particular, it focuses on Customer Service environment and selects the negotiation strategy to be used in a given situation, while identifying a negotiator's behavior and decision-making processes. It attempts to design specific strategies and tactics based on the interests, positions, and standards of each party and defends the negotiating tactics used in order to reach a compromise. Definition Negotiation takes place whenever two or more people or groups desire outcomes which are interdependent. Weather a negotiation concerns a family quarrel, or a peace settlement among nations, people routinely engage for it and makes concession to reach the compromise (Fisher, Ury, & Patton, 1991, p. 3) Negotiation Strategies Customer service environment is all about attitude, negotiation and communications. While communicating one has to take consideration of negotiating strategies, and which strategy would be best in a particular scenario. For example if it is to offer service or a product to a potential client, then the Cooperative bargaining is the best strategy to use. Also known as Integrative strategy focuses on developing mutually beneficial agreements based on the interests of the disputants (Brad Spanqler, 2003). Here both parties involved in negotiation sit down......

Words: 599 - Pages: 3

Negotiations

...TYPES OF NEGOTIATION Everest University Online Professor Zapalski There are many different types of negotiations. I will be discussing what type of negotiation instrument is demonstrated with the following example. This involves Bob’s Auto Emporium. You are interested in buying a new car and Bob let’s you use one of his cars off his lot for a week. Once your week is up, you return the car to Bob and he gives you a document stating the following: May 1, 2015, I promise to pay to the order of Bob's Auto Emporium $20,000 (Twenty thousand dollars) with interest at the rate of 7% per annum. What type of negotiation instrument does this represent? I believe that this is an example of a promissory note. A promissory note is a written promise by one party to pay another party a specified sum. By Bob giving the note that states a promise is what makes this negotiation a promissory note. This is a negotiable instrument because it has all of the following. The document is in writing, an unconditional promise or order to pay, and states a fixed amount of money. I assume that the maker of this document (Bob) has signed it before giving to you to sign it as well. Once you put your signature on this paper you are going to be held accountable in a court of law. This negotiation does meet some of the requirements of the UCC, but not all of them. However, this does not affect the fact that it is a promissory note....

Words: 261 - Pages: 2

Negotiations

...Introduction to Negotiation? Let us start this amazing journey of negotiation with a quote by Sir John. F. Kennedy, “'Let us never negotiate out of fear. But let us never fear to negotiate.” John F. Kennedy By definition, negotiation is an exercise in communication and language where an attempt is made to create mutual understanding as previously the two parties have been in conflicting understandings. It is also a series of episodes, where you consider your counterpart as collaborator or partner on the basis of trust and fruitful and ongoing negotiations. What matters the most is how the game is played rather than who is the winner. Definition 2: The most important thing about negotiations is that it’s all about communications. It is a dialogue where each person explains his or her viewpoints and in return listens to what the other person thinks of his or her viewpoints. During this process, opinions are exchanged, concessions are explored and proposals are made. The end of the negotiation process should create value for both the parties. Key to this is establishing credibility from the outset if the negotiations are to progress smoothly. What is negotiation? Corporations have to negotiate in numerous areas of organizational battle. Negotiation is an open development for two parties to find a suitable solution to a problematical conflict. There are five steps to the negotiation process. There are five steps to the negotiation process, which are: 1.......

Words: 2712 - Pages: 11

Negotiation

...The Art of Negotiation Goals & Objectives: To list examples that require successful negotiating skills in your personal and professional life To explain the elements of successful negotiation To describe the barriers to successful negotiation Outline: Elements of Successful Negotiation Preparation Preparation Goals Preparation Limits Communication Skills Active Listening Clarity Body Language Emotional Control Final Negotiations – Closing the Deal Final Tips Traits of a Great Negotiator Successful Techniques Unsuccessful Techniques Summary The Art of Negotiation Objectives: Successful negotiation is an art form that comes naturally to some, but must be learned by most. This module will discuss skills necessary to successfully negotiate goals and objectives in your personal and professional life. Skills will be broken down into specific elements that may enhance or impede any outcome. Introduction If we poll an audience and ask them for the first thought that comes to mind when they think of the term ‘negotiation’, the most often responses will include labor, contract or political negotiations. Yet negotiations play a major role in all aspects of our professional and personal lives.1 In the workplace we negotiate with our patients and their families and friends to obtain their full consent and cooperation. We negotiate with our peers, managers, physician staff and other healthcare workers, state and federal regulators and the list goes...

Words: 4804 - Pages: 20

Negotiations

...cultural negotiation skills becomes a prerequisite for success. Thus the importance of understanding cultural diffences becomes critical. Cross cultural negotiations are complex and involve both personal and cultural – they have an impact on both perception of conflicts and the methods used to solve them. Many factors influence the outcome of cross-cultural negotiations and should be considered before entering into negotiations with another culture. Negotiators who understand certain aspects of cross-culture negotiations have the advantage over the negotiator who is not well prepared to negotiate with their foreign counterpart. I will discuss a few negotiation factors which constitute a basic framework for identifying cultural differences that was presented during the cross cultural team presentations. Cultures have different views and reasons for setting their goals in negotiations; for example in North America the goal of any business negotiation is to reach a substantive outcome; time is money and the outcome of reaching an agreement is quick and formal. In Italy, quite the contrary is true; the goal for a negotiation is to focus on building long lasting and trustful relationships. Don’t expect to reach an agreement quickly; negotiations with Italians take long, fostering trust comes before reaching an agreement. Communication, both verbal and non-verbal play a very important part of the negotiation process and can hinder the progress of a successful negotiation......

Words: 1201 - Pages: 5

Negotiation

...Negotiation happens every day in everyone’s life. People often refer negotiation only to major business decisions, lawyers settling legal claims, or trade exchanges among nations etc., but neglect the fact that we also involve in a negotiation process when dealing with relatively minor things. For example, friends negotiate where to dine, husband and wife negotiate who to do the laundry. When we fail to recognize that we are in a negotiation situation, or fail to negotiate effectively, we could only take the options whichever left to us. End up with a passive position could undermine our goals, or even put us in a worse-off situation. Throughout the whole week of intensive study in the negotiation course, I learned a lot both from the professor and course materials, and my course mates. Especially through participating in the different exercises and playing different roles, I learned a lot of useful skills from my counterparts. Their feedback also helped me to understand better the kind of negotiator I am and the areas I need to improve on. I currently work as a Financial Advisor at Sun Life Financial. My job is to provide my clients a holistic financial plan to build their financial security. But essentially, I am selling them financial products. In every client meeting, we are negotiating over price and product features. Clients are trying to pay as less as possible. I am trying to convince them to look at the long term benefits, which would cost them more money, but......

Words: 2101 - Pages: 9

Negotiations

...CORE NEGOTIATION CONCEPTS Rex Mitchell Opportunities and requirements for negotiation (and persuasion) are everywhere, everyday Negotiation: * Conferring with another so as to arrive at the settlement of some matter (dictionary) * Negotiation is a basic means of getting what you want from others. It is back-and-forth communication designed to reach an agreement when you and the other side have some interests that are ...opposed. (Fisher & Ury) Negotiation myths (first four from Thompson 1998): 1. Good negotiators are born - they are self-made, requires study and practice 2. Experience is a great teacher - experience can improve negotiation skills to some extent, but have to learn from the experience - not unaided, unreflected, without feedback. Experience tends to improve our confidence, but not our accuracy/effectiveness 3. Good negotiators take lots of risks - while this may work in the movies, it isn’t in the script for real negotiations. Some negotiators may do this occasionally, but after carefully considering risks & potential benefits. They know how to evaluate a situation and make an optimal choice given the information available. 4. Good negotiators rely on intuition - Effective negotiators are self-aware and very conscious of what they are doing and why. Most of the important work of negotiation takes place before meeting (preparation). 5. Negotiations are always win-lose - a vast majority can be win-win. 6. The only negotiations are......

Words: 2983 - Pages: 12

Negotiation

...The Nature of Negotiation 1-1 Introduction  Negotiation is a basic generic human activity  A process that is often used in labor management relations 1-2 Introduction  Business deals ◦ Mergers ◦ Sales  International Affairs  Every Day Activities 1-3 Introduction Negotiation is something that everyone does, almost daily 1-4 Introduction  The Structure and process of negotiation are fundamentally the same ◦ at the personal level ◦ at the diplomatic level ◦ at the corporate level 1-5 Introduction We may fail to negotiate sometimes perhaps because we do not recognize that we are in a bargaining situation 1-6 Negotiations  Negotiations occur for several reasons: ◦ To agree on how to share or divide a limited resource ◦ To create something new that neither party could attain on his or her own ◦ To solve a problem or dispute between the parties 1-7 Approach to the Subject Most people think bargaining and negotiation mean the same thing; however, we will be distinctive about the way we use these two words:  Bargaining: describes the competitive, win-lose situation  Negotiation: refers to win-win situations such as those that occur when parties try to find a mutually acceptable solution to a complex conflict 1-8 Key Principles and Mistakes Achieving a settlement through negotiation is not just a matter of applying a repertory of tactics and techniques......

Words: 3703 - Pages: 15

Negotiations

...Negotiation techniques- types of negotiations Distributive negotiations are negotiations that usually take place between people or companies that have not done business before and it is usually a one-time deal and one person is going to get a better deal than the other. This kind of negotiation could include selling a car or a house or buying something and bargaining the prize down. In this type of negotiations each person has their own interest at heart and tries to get the best deal possible and is not thinking about the other person and since this is a one-time deal with a stranger the way the other person sees him does not really matter. When you enter into a distributive negotiation it is important to try to make the other person make the first offer and then you can counter offer, also not to give out any information that could help the other person get leverage over you and therefor get the better deal. Integrative negotiations are negotiations that take place between one or more individuals and/or company’s. It usually involves dealing with many issues instead of just one like in distributive negotiations. In these kinds of negotiations everyone is going to benefit from the deal and the people involved try to find a solution that will be good for everyone, of course one can have more strength and therefor walk away with the better end of the deal but the purpose of this negotiation is to find mutual grounds that they all can agree on. These kinds of negotiations......

Words: 842 - Pages: 4

Negotiation

...Negotiation Theory Types of Negotiation Table of contents 1. Introduction 2. Negotiation Theory: Foundations and Approaches 2.1. Basic concepts of negotiation 2.2. Negotiation approaches: An overview 2.2.1. Structural approach 2.2.2. Strategic approach 2.2.3. Behavioral approach 2.2.4. Processual approach 2.2.5. Integrative approach 2.3. Summary of approaches 3 Types of Negotiation Negotiation Theory and Practice: A Review of the Literature “major public policies are the outcome of a complex round of negotiation between interests, choices between values and competition between resources… there are no single ‘best’ options for any player in this game, for the ‘best’ outcome depends on what others do and what deals are possible.” (Davis et.al., 1993) 1. INTRODUCTION “Pure” conflict defined as the existence of competing interests between parties in absence of interests that are shared, is an anomaly in international relations where the defining feature of the relationship between states is mutual dependence. Such was the observation of Thomas Schelling, noted international economist, during the height of the Cold War. In the decades that have since transpired, globalizing developments in technology, communications, finance and trade have given rise to a world in which citizens, organizations and governments engage in millions of trans-national interactions on a daily basis. In the modern age, the......

Words: 8991 - Pages: 36

Negotiations

...Negotiations BUS 319 Principles of Federal Acquisition Willie Bossie August 26, 2012 Win-win, the need and goals of both parties are met, so they both walk away with a positive feeling and willingness to negotiate with each other again (Stark & Flaherty, 2004). While trying to negotiate a win-win outcome to manufacture uniforms for all Federal Conservation Land employees you have to methods that you consider what will be best to have a win-win discussion in negotiations. Avoid narrowing the negotiation to one issue. This is my first priority of choice. Focusing on just one issue sets the scene for a win-lose outcome. The most common example is arguing over the price of a product or service (Stark & Flaherty, 2004). We you have multiply issues to discuss you are able to see the whole picture when trying to win the bid to manufacture the uniforms. Talk about quality, delivery, any discounts if being offered if ordering over a certain amount of if payment is paid early. We all know price is always one of the negotiating factors, but other issues are important as well. Second priority is, do not assume you know what your counterpart’s needs. It’s common for negotiators to think they know what their counterpart wants. But each person in a negotiation has two kinds of needs: 1) implicit needs, which involve the negotiator personally, and 2)......

Words: 535 - Pages: 3