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CHAPTERFOURNegotiation:StrategyandPlanningMcGraw-Hill/IrwinCopyright?2011byTheMcGraw-HillCompanies,Inc.Allrightsreserved.4-2Goals–TheFocusThatDrivesNegotiationStrategyDetermininggoalsisthefirststepinthenegotiationprocessNegotiatorsshouldspecifygoalsandobjectivesclearlyThegoalssethavedirectandindirecteffectsonthenegotiator’sstrategy4-3TheDirectandIndirectEffectsofGoalsonStrategyDirecteffectsWishesarenotgoalsGoalsareoftenlinkedtotheotherparty’sgoalsTherearelimitstowhatgoalscanbeEffectivegoalsmustbeconcrete/specificIndirecteffectsForginganongoingrelationship4-4StrategyversusTacticsStrategy:
Theoverallplantoachieveone’sgoalsinanegotiationTactics:Short-term,adaptivemovesdesignedtoenactorpursuebroadstrategiesTacticsaresubordinatetostrategyTacticsaredrivenbystrategyPlanning:The“action”componentofthestrategyprocess;i.e.howwillIimplementthestrategy?4-5ApproachestoStrategyUnilateral:OnethatismadewithoutactiveinvolvementoftheotherpartyBilateral:Onethatconsiderstheimpactoftheother’sstrategyonone’sown4-6TheDualConcernsModelAvoidance:Don’tnegotiateCompetition:Igain,ignorerelationshipCollaboration:Igain,yougain,enhancerelationshipmodation:Iletyouwin,enhancerelationship4-7StrategicOptionsPertheDualConcernsModel,choiceofstrategyisreflectedintheanswerstotwoquestions:HowmuchconcerndoIhaveinachievingmydesiredesatstakeinthenegotiation?HowmuchconcerndoIhaveforthecurrentandfuturequalityoftherelationshipwiththeotherparty?4-8TheNonengagementStrategy:AvoidanceIfoneisabletomeetone’sneedswithoutnegotiatingatall,itmaymakesensetouseanavoidancestrategyItsimplymaynotbeworththetimeandefforttonegotiateThedecisiontonegotiateiscloselyrelatedtothedesirabilityofavailablealternatives4-9Active-EngagementStrategiesCompetition–distributive,win-losebargainingCollaboration–integrative,win-winnegotiationmodation–involvesanimbalanceofes(“Ilose,youwin”)4-10KeyStepstoan
IdealNegotiationProcess4-11KeyStepstoan
IdealNegotiationProcessPreparationWhatarethegoals?HowwillIworkwiththeotherparty?RelationshipbuildingUnderstandingdifferencesandsimilaritiesBuildingcommitmenttowardamutuallybeneficialsetofesInformationgatheringLearnwhatyouneedtoknowabouttheissues4-12KeyStepstoan
IdealNegotiationProcessInformationusingAssembleyourcaseBiddingEachpartystatestheir“openingoffer”Eachpartyengagesin“giveandtake”ClosingthedealBuildcommitmentImplementingtheagreement4-13GettingReadytoImplementtheStrategy:ThePlanningProcessDefinetheissuesAssembletheissuesanddefinethebargainingmixThebargainingmixisthecombinedlistofissuesDefineyourinterestsWhyyouwantwhatyouwant4-14GettingReadytoImplementtheStrategy:ThePlanningProcessKnowyourlimitsandalternativesSetyourobjectives(targets)andopeningbids(wheretostart)TargetistheerealisticallyexpectedOpeningisthebestthatcanbeachievedAssessconstituentsandthesocialcontextofthenegotiation4-15TheSocialContextofNegotiation:“Field”Analysis4-16GettingReadytoImplementtheStrategy:ThePlanningProcessAnalyzetheotherpartyWhydotheywantwhattheywant?HowcanIpresentmycaseclearlyandrefutetheotherparty’sarguments?Presenttheissuestotheotherparty4-17InformationNeededtoPrepareEffectivelyforEngagingtheOtherPartyResources,issues,andbargainingmixInterestsandneedsWalkawaypointandalternative(s)TargetsandopeningbidsConstituents,socialstructure,andauthoritytomakeanagreementReputationandnegotiationstyleLikelystrategyandtactics4-18GettingReadytoImplementtheStrategy:ThePlanningProcessDefinetheprotocoltobefollowedinthenegotiationWhatistheagenda?Whowillbethere?Wherewillthenegotiationoccur?Whatisthetimeperiod?Whatmightbedoneiftheneg
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