BUSINESS NEGOTIATION STRATEGIES
When partners involved in a business meet to iron out differences, the target is to affect the process so that each one of them can secure a better deal rather than just buying or rejecting what the other party has to offer. This implies that negotiation is a voluntary process where both individuals can alter their offers and expectations to come closer to a joint conclusion (Zachariassen, 2008). In the same breadth, business negotiations differ from various types of negotiations. In the world of entrepreneurship, it is considered one of the most difficult communication tasks and is regarded as an integral component of the management process that is highly critical to the successful adoption of business strategies. International business negotiations have various unique characteristics that distinguish them from the talks that take place in the domestic market.
This means that an individual will only give out information to the other individual if only it provides him or her with a competitive advantage. Nonetheless, it is more desirable to extract pieces of information from the other individual to improve the negotiation capability. In the business world, distributive negotiation is more of a contest to determine who is going to secure the most of limited resources (Ghanawi, 2013). Nonetheless, the probability of each party realizing his or her objectives will depend on the strategies each of them will employ. Furthermore, there are critical issues that negotiators should know concerning distributive negotiation. Due to its positional characteristic, the Berkshire Hathaway need not prepare for, nor get involved in a dialogue concerned with understanding the interests of the other person.
Instead, the distributive negotiator has a narrow focus on the subject matter but is open to applying various tactics and strategies. Despite the various advantages, distributive negotiation poses severe threats to the interaction between individuals, as well as the reputation of the negotiator. The competitive nature of the interaction can cause severe strains and damage friendships. It can also breed mistrust and heighten tension among the parties (Allen & Burrell, 2015). Integrative negotiation works best when individuals put their focus and attention on the significant part of the deal. Nevertheless, it can be a complicated approach to take considering it requires substantial amounts of compromise from both parties. Integrative negotiation may seem like a complicated process at first. Walmart acknowledged that is a process that provides benefits to both parties.
This is even though most negotiations in the real world take place on a distributive basis. Furthermore, integrative negotiation is also enhanced through focusing on the benefits or advantages of an issue. This has the effect of giving a negotiator some form of legitimacy and purpose. The focus on underlying interests and creating value makes integrative talks a more human endeavor and shifts the attention from victory. Likewise, efforts towards understanding the benefits of the other side may be appreciated by the other party. This can lead to the crafting of a proposal that can be jointly supported by both parties. Both distributive and integrative strategies may be used depending on the situation at hand, as well as the type of interest that is at stake.
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