Examination and evaluation of a business negotiation and a negotiation in a private environment (case study)
This assignment evaluates two negotiation cases. Please note the cases are theoretical nature, any resemblance to living persons and real actions are purely coincidental. The first case takes place in a private environment, the second in a business environment. The evaluation of each case is based on the four phases of negotiation and describes the preparation for, strategy during and process of the negotiation. The basic theory of negotiation to which the individual cases refer is described. Detailed aspects of the theories and approaches are given in the cases as appropriate.Do’s and don’ts of behaviour in cross-border negotiations will be also discussed.
ABOUT THE AUTHOR
Markus Baum is Group Finance Director at a management consulting firm with focus on business strategy, supply chain management (SCM), manufacturing & logistics, sourcing & purchasing, marketing & sales, financial management and information technology (IT-strategy). The company has subsidiaries in Germany, Switzerland, Belgian, France, United Kingdom and Russia.
Markus Baum earned a MBA with distinction from the University of Surrey (UK), is an international certified accountant, has and graduation in accounting & controlling and an apprenticeship as tax adviser assistant. Markus Baum is a member of the International Controlling Association.
Table of Contents
1 About the author
2 CONTENT
3 Introduction
3.1 1st Phases: Preparation
3.2 2nd Phases: Sharing
3.3 3rd Phases: Haggling and Bargaining
3.4 4th Phases: Closure and Commitment
4 Negotiation in a private environment
4.1 Introduction to the case and background information / problem statement
4.2 Preparation phases
4.2.1 Self-assessment
4.2.2 Assessment of the other party
4.2.3 Assessment of the situation
4.2.4 Negotiation Strategy
4.3 Sharing phases
4.4 Haggling and Bargaining phases
4.5 Closure and commitment phases
4.6 Reflection of the negotiation
4.6.1 Away from the negotiating table
4.6.2 At the negotiating table
4.6.3 Judging Performance
5 Negotiation in a business environment
5.1 Introduction to the case and background information / problem statement
5.2 Preparation phases
5.2.1 Self-assessment
5.2.2 Assessment of the other party
5.2.3 Assessment of the situation
5.2.4 Negotiation Strategy
5.3 Sharing phases
5.4 Haggling and Bargaining phases
5.5 Closure and commitment phases
5.6 Reflection of the negotiation
5.6.1 Away from the negotiating table
5.6.2 At the negotiating table
5.6.3 Judging Performance
6 REFERENCES
Research Objectives and Topics
This work evaluates two distinct negotiation scenarios—one in a private context and one in a business environment—to analyze the application of established negotiation theories throughout the four phases of the negotiation process.
- Application of the four-phase negotiation model (Preparation, Sharing, Haggling/Bargaining, Closure/Commitment).
- Distinction between distributive ("win-lose") and integrative ("win-win") negotiation strategies.
- Identification of BATNA (Best Alternative to a Negotiated Agreement), ZOPA (Zone of Possible Agreement), and reservation points.
- Assessment of cross-cultural negotiation dynamics and behavioral standards.
- Performance evaluation and self-reflection on negotiation outcomes and methodology.
Excerpt from the Book
3.1 1st Phases: Preparation
The first part of the preparation phase consists of a self-assessment in which the negotiator needs to prepare for targets and alternatives in the negotiation. The target or aspiration is preparation that results in an ideal outcome and in which the alternatives involve the preparation of the BATNA (Best Alternative To a Negotiated Agreement) (Fischer, Ury and Patton, 1991).
The second part of this phase is the assessment of the other parties, with regard to the counterparties' interest and position. Evaluating their possible BATNAs is also recommended (Thompson, 1990).
The third part of this phase is the assessment of the situation. This assessment covers the terms and time (one shot, long-term, repetitive), resources (people, third parties), necessity (necessary or opportunistic, legal, contract, official or unofficial), source (exchange or dispute, ratification) and place (place, public or private) (Thompson, 2009).
Summary of Chapters
Introduction: This chapter outlines the theoretical four-phase framework used to evaluate two practical negotiation cases, one in a private and one in a business setting.
Negotiation in a private environment: The author analyzes the process of hiring household service support, focusing on the failure to reach a price agreement due to misaligned bargaining zones.
Negotiation in a business environment: This chapter covers the successful recruitment of a new staff member, highlighting the use of integrative strategies to reach a mutually satisfactory salary and contract agreement.
REFERENCES: A compilation of academic sources and literature providing the theoretical basis for the negotiation strategies and models discussed.
Keywords
Preparation, Sharing, Haggling, Bargaining, Closure, Commitment, Self-assessment, Assessment of the other party, Assessment of the situation, Negotiation Strategy, Reflection, negotiating table, Judging Performance, BATNA, ZOPA, reservation point, Strategic Negotiation, Business and Management
Frequently Asked Questions
What is the primary focus of this work?
The work focuses on the practical application and evaluation of negotiation theory in two different contexts: a private, personal negotiation and a professional business recruitment scenario.
What are the core phases of negotiation discussed in the text?
The author utilizes a four-phase model consisting of Preparation, Sharing, Haggling and Bargaining, and finally, Closure and Commitment.
What is the main objective of the author's analysis?
The primary goal is to examine how preparation, strategy selection, and process management influence negotiation outcomes, identifying both successful and unsuccessful approaches.
Which negotiation methodologies are central to the study?
The study contrasts distributive ("win-lose") strategies, which focus on slicing a fixed pie, with integrative ("win-win") strategies, which aim to expand the value for all parties involved.
How is the negotiation performance evaluated in the text?
The author uses a structured self-assessment framework covering the diagnosis of the situation, the shaping of the negotiation structure, and the overall management of the process.
Which specific key terms are essential for understanding the research?
Key terms include BATNA (Best Alternative to a Negotiated Agreement), ZOPA (Zone of Possible Agreement), reservation points, and the distinction between interest-based and position-based approaches.
Why did the negotiation in the private environment fail?
The private negotiation failed because the service provider's price expectations were outside the author's predetermined bargaining zone, resulting in a negative bargaining zone where no agreement could be reached.
How did the author achieve success in the business negotiation?
Success in the business case was achieved by applying integrative strategies, such as splitting the total salary into fixed and variable components to meet the candidate's expectations while remaining within budget.
- Quote paper
- Markus Baum (Author), 2011, Strategic Negotiation in Business and Management, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/193880
