Planning Business Negotiations

Introduction

Planning business negotiations entails preparing a comprehensive plan to ensure that maximum payoffs are secured by the negotiation team on the negotiation table. This is why it is critical for a firm that seeks to engage in a business negotiation to prepare and familiarize with the issues that appertain to the negotiation. This takes place in the prior stages of negotiation; the pre-negotiation phase where a firm sets an agenda for negotiation and prepares the negotiation team by ensuring that the team is fully knowledgeable about a given business agenda and that they know how to present and back arguments during the negotiation. This paper explores the preparations that need to be done by a company before a negotiation.

Rehearsing the negotiation plan

The payoff that is desired in business negotiations is win-win. This results from the fact that firms operate based on minimizing costs and increasing return on investment. In this case, the negotiation of a business contract is viewed as an investment by the company. This implies that the company expects results that will favor business outcomes. Therefore, the rehearsal of a business contract negotiation is a critical stage in the process of negotiation. It is critical to understand all the issues and concerns of the parties to the negotiation; in this case, the two companies. Therefore, these issues have to be revisited by the negotiating team to ensure that the team fully grasps them. The most important thing for the team is to understand the critical stages in the negotiation process when they can give up on some of the demands of the company as present in the negotiation plans to allow the other company to gain; win-win. In this regard, the negotiation plan has to study the other company and anticipate the demands that will be raised by the other company as part of rehearsing the negotiation plan. Communication styles play a substantial role in the enhancement of the negotiation. The bargaining strengths and weaknesses determined of the company are determined through the rehearsal phase, and modalities of dealing with the weakness are identified (Watkins, 2002).

Agenda for the negotiation session

As observed earlier, the negotiation issues form a central basis for negotiations. Successful business outcomes are attained when the negotiation team sticks to the issues and the business objectives of the company. The agenda for the negotiation entails four critical points. These are sets of the topics for discussion in the negotiation, identification and enlisting of the participants, identification, and confirmation of the location for the negotiation, and the schedule for the negotiation (Sethi & Adhikari, 2010).

The topics for the negotiation are based on the objectives of the company. This is a contract negotiation. Thus the aim of the company is to establish a relationship besides winning the company. Therefore, the topics are based on the real contract and the possibilities of establishing a trusted and sustainable relationship. This can result in other business deals (Watkins, 2002).

In a business negotiation, the negotiators are assigned to different roles based on the area in which individual negotiators are specialized. Also, it should be noted that there are other third parties that are involved in business negotiations, for example, the specialists who draw the final accord. Therefore, the roles will be specified to ensure that each negotiator remains on course during the negotiation. This is one way of differentiating roles. It also ensures that the negotiation process flows as per the expectations. It prevents a stalemate in the negotiation process (Sethi & Adhikari, 2010).

Confirmation of the location and the timelines of the negotiation are more vital if the negotiation has to flow. The confirmation of the location ensures that the parties to the negotiation do not miss on the venue. The timelines of the negotiations are critical in determining the pace at which the negotiation is flowing (Sethi & Adhikari, 2010).

Justification of negotiation tactics

Several communication tactics will be deployed in the negotiation to ensure that the broader goal of the negotiation; that is, the win-win payoff is attained. One of the tactics that will be highly deployed in the negotiation is to ensure that enough facts are gathered by the company to open the scope with which the company approaches the negotiation. Facts about the other company involved in negotiation are critical in ensuring that the Gauls of the negotiation are considerate of broader business objectives of the company. Facts are important in addressing the concerns of both parties. The other tactic that will be deployed in the negotiation is ensuring that the negotiators control the negotiation. This convinces the other party to accede to the argument that is presented by the company. It also increases the company’s opportunity to convince the negotiating partner, thereby maximizing the payoffs. The company will also try to press for conclusions in negotiations done within a single day. The business environment is quite dynamic, and the dynamism of the environment results in quick shifts in business goals and objectives. Therefore, concluding the agreements reached is critical in securing the negation (Cellich & Jain, 2012).

Negotiation challenges and strategies of dealing with the challenges

Reaching and concluding the outcomes of negotiations within short timelines is a critical step in ensuring that the negotiation progresses. However, this may also be a constraint in negotiations because such conclusions are bound to be a stalemate to the process of negotiation by closing the doors for unearthing other underlying issues in the negotiation. Therefore, it is critical to ensure that the conclusions are reached after maturity; after critical issues have been explored and a determination made by both parties to negotiation (Guasco & Robinson, 2007).

While it is important to ensure that the negotiating team controls the negotiation, this can also be one of the factors that can contribute to the creation of a stalemate. It is vital for the negotiating team to ensure that it gets attention to the negotiation table, while at the same time giving the other negotiators attention (Guasco & Robinson, 2007). The more the partners realize that their concerns are not being given attention, the more they are bound to challenge the points that are presented by the team, This results in hardening of positions, making it difficult to attain the desirable deal out of the negotiation. As long as the controlling part of the negotiation is concerned, friendliness and accommodation of others’ interests and observations must be maintained throughout the negotiation.

From the discussion, it can be argued that negotiation is a complex process. The success of the process is determined by the nature of plans that are made and the kind of tactics that are employed by the negotiation team.

References

Cellich, C., & Jain, S. C. (2012). Practical solutions to global business negotiations. New York, NY: Business Expert Press.

Guasco, M. P., & Robinson, P. R. (2007). Principles of negotiation: Strategies, tactics, techniques to reach agreements. Irvine, CA: Entrepreneur Press.

Sethi, A., & Adhikari, B. (2010). Business communication. New Delhi, India: Tata McGraw Hill.

Watkins, M. (2002). Breakthrough business negotiation: a toolbox for managers. San Francisco, CA: Jossey-Bass.