...Negotiation Analysis Abstract There is an elephant in the room. Working capital in the form of excess inventory has had a debilitating effect on my business over the past ten months. Although the numbers speak loudly and the issue is agreed upon by business leadership and cross functional teams, the actual plan to get the inventory back to meeting goals and business requirements (demand) is not in place. I chose to eat the elephant. In order to do this, I needed to use negotiation skills to get the leadership team partnership and agreed upon vision and strategy. Once this was secured, I need a team of influential, get-the-job-done managers throughout the company to come together as one voice. I have written on my issue awareness, strategy to partner, tactics used to incite the business and working plan to execute. Changing Two Decades of Culture One year ago, I took a new job with the mission of improving business processes for an $8 billion Agricultural company. As I invested my time in relationship building and complete understanding of current state of business, I discovered a gaping issue that affected all business areas and ultimately, our business unit’s bottom line. The issue is excessive working capital in the direct form of excess physical inventory. The business numbers easily state the issue and once a month the leaders meet to discuss why and how to correct for the next month. My company is culturally driven and very people...
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...Negotiation Strategy Article Analysis Carlos Diaz MGT/445 June 28, 2012 Dr. Sheila Christy-Martin Negotiation Strategy Article Analysis Different strategies are used during the negotiation process. The best strategies come from understanding the negotiation process and a sense of awareness of the other people’s strategies and tactics. Before the negotiation begins, preparation is important. This way the negotiator is aware of all the facts and can anticipate any counterarguments. Knowing what the competition wants, identifying the problem, and finding a way to make the other party happy without compromising what he or she wants to see happen are strategies used by negotiators on every day situations. The next two articles are examples of how such strategies were used or could be used to make those negotiations successful. Matt Harrington and the Colorado Rockies An 18 year old Matt Harrington was perhaps considered the best pitcher on the 2000 MLB draft. The Colorado Rockies offered $4 million contract over two years which Harrington rejected. After a disappointing season on the independent leagues Harrington rejected the 58th place on the 2001 draft with the San Diego Padres for $1.25 million In 2002 he did even worse and rejected a deal with the Devil Rays for $100.00.00. In 2003, again talks fell through with the Cincinnati Reds and the New York Yankees did not even make him an offer in 2004. In 2005 he did not receive any offers and in 2006 he received...
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...Negotiations Analysis Negotiation Analysis Paper Ivania Castaneda HR595- Keller School of Management March 2013 Introduction Buying a home is a complicated and time consuming process. The purchase of a home is just one of many examples of negotiations that happen in everyday life. It is one of the few places in life where some form of negotiation is the rule rather than the exception. Not all people are effective negotiators. It takes a keen understanding of the process in order to be good at it. This class has provided tools via the review of key concepts and methodology to allow even the not so adept negotiator to be better at negotiating. By informing yourself, preparing, and keeping an objective mind frame we can all use the tools taught in class to become more successful next time a negotiation situation arises. My paper will focus on integrative bargaining. Integrative bargaining (also called "interest-based bargaining," "win-win bargaining") is a negotiation strategy in which parties collaborate to find a "win-win" solution to their situation. This strategy focuses on developing mutually beneficial agreements based on the interests of both parties. This negotiation approach is important because it usually results in more of a positive outcome in contrast to distributive bargaining. The first step in integrative bargaining is identifying each side's interests. Although distributive bargaining is frequently seen as the opposite of integrative bargaining, the two...
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...Post Negotiation Analysis I started the negotiation with a cordial conversation that I am interested in purchasing the restaurant, the conversation continued but I did not feel that I was gaining any trust or the owner was opening up to me. Noticing that I was still trying to figure out the actual motif and details for this sale, the owner made the first offer of 300k and starting justifying my BATNA of building new restaurant. I brushed off the first offer since my reservation price was 160k and we were no way closer to ZOPA in price. I took over the negotiation and anchored with my of 150k offer. Being confident and showed honesty with my numbers (40% of her salary, 60% overhead and plus another 50% for all the hard work she had put it to establish this place). I further offered a guaranteed 40k salary job upon her return and she finally began to open up saying having the cash is more important and we finally agreed to this deal. Two critical factors affected this negotiation. First; lack of information on the owner which made me determined, probed hard and kept at it to find out more details. The outcome was that the owner begun to shut down because she did not want to show her vulnerability. The second was trust, since there was not much information between these two parties, both wanted to get more information but the questions and the communication style did not provide any venue to build trust. We found that information sharing to build trust between two parties...
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...Negotiation Strategy Article Analysis James Click University of Phoenix Organizational Negotiations MGT 445 Dr. Christina Aleksic April 29, 2013 Negotiation Strategy Article Analysis Negotiations can be an in-depth process that may have a huge effect on an individual’s future. Selecting an effective negotiating strategy is vital when negotiating with other parties. There are numerous styles of negotiation strategies that an individual can use to have a fruitful negotiation. Several negotiation strategies are including collaboration, accommodation, competition, and avoidance (Lewicki, Saunders, & Barry, 2006). Dependent on the situation, one strategy may be more effective than another strategy. Two such examples in which different negotiation strategies were functional are Negotiating New Vehicle Purchases (Craver, 2005) and Town Settles Mall Suit (Chiaramida, 2010). A review of each article, including the application of negotiation strategies and a compare and contrast analysis will highlight the differences from each scenario. Article One (Distributive) In Negotiating New Vehicle Purchases (Craver, 2005), the competitive strategy is used. The article walks through six negotiation stages encountered when purchasing a car. The goal of the article is to prepare the buyer for the dealership’s tactics and maximize the buyer’s negotiation power. The first negotiation phase begins before entering the dealership by determining the true dealer cost for a vehicle. The...
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...Global Negotiations Article Analysis MGT/445 Global Negotiations Article Analysis Globalization has brought the world closer together and almost made it a requirement for businesses to develop plans and strategies to deal with different cultures. Businesses and managers must think on a more global scale and develop a global perspective to expand their businesses. In pursuing opportunities in the global marketplace, managers increasingly engage themselves in international business negotiations (Reynolds, Simintiras, & Vlachou, 2003). In this paper, I have decided to use an article that is an example of how a business failed in their negotiations overseas. I will also analyze the implications of globalization and technology on negotiation. International Negotiation Situation Article The article chosen for this paper involves Enron and their negotiations with the government of India and the Maharashtra State Electricity Board. The project proposal was for the construction of a US$3 billion power-plant in the town of Dabhol, situated on the Indian Ocean. There were many problems with the proposed project and the negotiations process that was undertaken by Enron. World Bank, acting as a consultant to the Indian government said that the project would produce an excess capacity of electricity for years and would be too costly in comparison to the more traditional sources of fuel, such as coal, already in use ("Enron’s Indian Negotiation Debacle...
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...Global Negotiation Article Analysis Shalee K. Kekawa MGT 445 Nov. 21, 2011 Dr. Sanrdra Sessoms-Penny Globalization and technology have played a big part in negotiations and the article that I chose to write about is just one of the many negotiations that globalization has influenced the outcome of negotiations. First, one must know what Globalization is. Globalization is a process of interaction and integration among people, companies and governments of different nations. This process has effects on the environment, on culture, on political systems, as well as on economic development and prosperity that affects societies and people all over the world. Globalization also opens up the boundaries that have existed in the past between countries and provides new opportunities for business ("Cross-Cultural Blog", 2009). Technology also plays a huge role in negotiations and just like globalization; it too has helped influence the outcome of negotiations. With the ever changing tools of technology, machines and systems, negotiations happen every day throughout the world and outcomes often happen through the use of technology. Technology makes businesses able to operate by changing relationships between suppliers, producers, retailers and customers. Gone are the days where negotiating a contract meant that you sat down face –to–face with someone and talked about contracts, and deals. Now days, a negotiation can be met and done in a matter of real time minutes. Technology...
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...Negotiation Strategy Article Analysis Introduction The art of negotiation has evolved throughout the years with the development of theories and practices, which moves beyond competitive negotiations and towards real world problem solving (Cronin-Harris, ¶ 1). Interest based bargaining, known as problem solving, allows the interested parties to review their underlying interests versus an assertion of their positions and demands (Cronin-Harris, ¶ 1). In doing so, both parties will search for solutions which meets those underlying interests, while making concessions consistent with their respective needs and concerns (Cronin-Harris, ¶ 1). In this paper, I will review two negotiation situations that employ different strategies. I will describe the two negotiation processes used, comparing and contrasting them against one another. In addition, I will also discuss how these strategies might apply in the workplace setting. Situations In a situation described by Dr. Bob March (2009), most foreign companies fail in negotiating a business deal in China because they failed to do their research, being unprepared (¶ 1). Preparation requires the negotiator to do research. In doing research the negotiator will have a better understanding of the counter party, in this the Chinese, in hopes of identifying what they really want from the agreement. Additionally, research would allow them to better understand the Chinese culture, understanding the counterpart’s expectations, habits and...
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...Final Report on Union & Management negotiations Q1. Some of our best strategic moves were: 1. Building trust early in round 1 negotiation: We had realized that it is extremely critical in multi-round negotiations that trust-building is of paramount importance. Hence, right from the beginning we concentrated on clarifying our stance and the reasoning behind it. Also, we communicated early in our negotiations that we were ready to consider alternative arrangement and package deals that would work for the benefit of both Management and Union. This open stance created a collaborative environment 2. Being collaborative: In both round-1 and round-2, we could sense that Management had the upper hand and we could have adopted distributive tactics to squeeze out a larger chunk of the pie. But, we understood that taking advantage of the stronger position would only fire back in future negotiations and hence we pushed for more collaborative negotiations 3. Prepared with our planning document for each round: Throughout the negotiation exercise, we were always prepared with our planning document before entering any negotiation session and had the details of the deal accessible for quick reference. The planning document helped us immensely while seeking alternative solutions or package deals to resolve deadlocks. It also helped us greatly in justifying out stance and we could offer the economic or managerial facts in our discussions more often and at right time. 4. Building personal connections...
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...Running Head: NEGOTIATION STRATEGY ARTICLE ANALYSIS Negotiation Strategy Article Analysis Tony Robinson University of Phoenix MGT 445 August 15, 2012 Negotiation Strategy Article Analysis Introduction One experiences the act of negotiating at least once in a lifetime. It happens even in the smallest form of determining what is for dinner and can be as large as buying a home. The importance of understanding negotiation strategies will affect ones competitiveness within the market. Negotiations are made anywhere at any time for the most minute reasons. A negotiation strategy evaluates and analyzes two articles dealing with negotiating. The negotiating strategy also compares and contrast the strategies utilized and how those strategies can be apply within a work environment and the levels of its effectiveness. Article One The title of the first article is “Selling Water for China.” This article documents the actions of Acqua International. Aqua International is a company that sells drinkable water and is seeking to gain higher investments in China and wants to be the leading drinkable water supply in the Chinese market. In preparations of becoming the leading drinkable water supplier, Acqua International has to resolve some standing issues and negotiations. These issues include establishing water rates, consumer demands, annual water prices in regard to foreign exchanges, and revising the structure of the company. Determining water charges are inclusive on the last...
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...28 May 2012 COLLECTIVE BARGAINGING NEGOTIAIONS CASE STUDY #2 BASIC TECHNIQUES KELLY P. MEAUX, JR. COLUMBIA SOUTHERN UNIVERSITY PROFESSOR RICHARD BELL BSL 4160-09A, NEGOTIATION/CONFLICT RESOLUTION CONSULTING ON NEGOTIATION: TEACHING BUSINESS STUDENTS The problem specified in the article is that the author has found that many college students lack the skill in how to negotiate their salary when asked during a job interview or after being hired. If they do know how to negotiate the author often finds that they did not do a very good job with the getting a salary they deserved. The author's recommended solution is listed below: No other factor has had such a direct impact on the success of my consulting business than that of providing resources on salary negotiation. For this reason, I added an activity to my professional business communication class that deals with salary negotiation. What began as a 20-minute discussion in one class is now permanently integrated into the interview exercise and takes three 75-minute class periods. The following is a SWOT Analysis for this case is as follows: After looking at the SWOT Analysis for this article, I find that the author while providing a realistic perspective to her class since was in the "real" world and gives back to her students valuable information need to negotiate a salary they perceive they are worth. I still think that the exercise is somewhat objective in the particular fact the situation...
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...you'd prefer to walk; if it's a dollar higher, you'd do the deal. If you're the buyer, it's the maximum price you'd pay, and you'd be indifferent to doing the deal at that price point. Again, if it's a dollar higher, you walk; if a dollar lower, you'd take the deal. ZOPA (ZONE OF POSSIBLE AGREEMENT) = When the parties are "in the same ballpark" with respect to terms and pricing. Final Assignment We're going to analyze a real, albeit slightly older, deal here from the perspective of the main players (and there are several). Hopefully those players (at least their companies) and the property is familiar to you; this deal negotiation took place in 2001. The case in question is on the Harvard Business School Press site; access it (at a cost of $3.95) using this link. Here are the topics I want you to address in your analysis of this deal negotiation; I'm going to introduce into our work here a couple of new-ish concepts (although they were touched on in Getting to Yes) that I want you to explore on your own. I will include a definition for them in RESOURCES, but make sure you understand what they mean before you attempt to address. So here are the...
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... INBA6110 – NEGOTIATING SKILLS The seat belts in school buses controversy Table of Contents Executive Summary 3 Introduction 4 Problem Statement 4 Analysis of the Negotiation 5 Recommendations and conclusion 5 Bibliography 7 Appendices 8 Simulation Case i Organizational Chart / members of the team ii Opening Letter iii Dates / # of Post made during negotions via CHSB iv Executive Summary The paper discusses the process of the negotiation between the Public Transport Authority and the Mosquito Mums. A negotiation where both parties had defined objectives focused on the seat belts controversy. The study also speaks about the constraints that arise during the negotiation. Both parties presented their proposal however the negotiation reached to no consensus agreement. Furthermore, both groups presented strong factual points but the PTA thinks that the Mosquito Mums still did not raised a strong reason for the petition. In addition, the study discussed about the importance of following the 7 phases in negotiation. Introduction Negotiation is defined as a process by which two or more parties attempt to resolve their opposing interest[1]. The interest in this case was provided as a simulation exercise that occurred during the period October 17th to 23rd 2014 on the conflict of needs...
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...Company Gene Arnold Negotiation Strategy Oklahoma Wesleyan University Pacific Oil Company The Pacific Oil Company went into negotiations with Reliant Manufacturing, and its goal was to sign a new long-term agreement. Pacific assumed that the new contract would be signed with no major obstacles, and that the principal point of negotiation would be price. Jean Fontaine, who is the marketing vice president for Pacific, went into a negotiation process with Reliant. Fontaine started the process three years before Reliant Manufacturing’s current contract was up, hoping to best his competition by offering Reliant a lower price and getting them to agree to a five year contract extension. Fontaine did not adequately research his client’s needs or sufficiently project the outcome of these negotiations. Due to this error Pacific was not prepared to address the concerns and requests that Reliant brought up during the negotiation. Both parties wished to renew the contract in a timely manner, but Fontaine slowed down the negotiations because he did not have a complete negotiation strategy that included a contingency plan or best alternatives. The negotiators for Pacific were not prepared for all the changes that Reliant would ask for at each meeting, and they had no power to make any key decisions to settle the negotiations. Reliant’s negotiators used Pacific’s lack of preparation to negotiate a far better contract. (Lewicki, Saunders, Minton, & Barry, 2015). Analysis Pacific believed...
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...1. Negotiation Trap: I must analyze what type of bargainer I am. Identifying my type helps me avoid fall into the negotiation trap. 2. BATNA: I must analyze what my BATNA is. This is my reference for the negotiation. 3. Focus on Interest: I will approach the negotiation with a focus on interest of the other party. Identifying the possible interest of other party involved in negotiation will help me analyze the possible ways of expanding the pie (creating more value). 4. Integrative Bargaining: Focus more on Integrative bargaining. Analyze multiple issues and interest, creating and claiming value and cooperative problem solving. Consider possible trade-offs to avoid conflicts and have a win-win situation. 5. Bargaining Zone: I must analyze my bargaining Zone. The zone where the buyer’s and supplier’s negotiation ranges overlaps. 6. Reservation Price: I have to write down my reservation price. This determines when to expand the pie create more value and when to walk away from negotiation. 7. Identify the power in negotiation: Identify exactly the type power in negotiation and analyze the persuasive skills required to move from perceived power to realized power. 8. After striking with the initial deal, I will have to keep my options open for re-anchoring. Negotiation Trap: * Identifying the type of bargainer helps to identify the potential traps. * Soft bargainers agree on deals worse than the BATNA and they fail to achieve best...
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