Mastering Negotiation: Key Strategies and Common Pitfalls
School
Central Peel Secondary School**We aren't endorsed by this school
Course
BUSINESS 100
Subject
Economics
Date
Dec 11, 2024
Pages
4
Uploaded by LieutenantRainStork14
Lecture 13 Negotiation Video1Lecture 13: Negotiation Video TypeBU288Part 1 Characteristics of Negotiating People tend to be overconfident when they start negotiationStarted out with an idea with us vs them People tend also have overcompetitive negotiations → they have the idea of a fixed pie, and thing their win is their loss, and their win is her lossQuick Deal Other party may feel deceived and long term relationship is deteriorated Making first Offer Send a base figure but can also receive a nice surprise if you do not give the first offer The first number presented becomes the anchor and represents the final outcome Do not want to be tied on meaningless anchors First offer: Ambitious and Amendable → need to be in the ball part Part 2 Bargaining Barbra → thinks that giving information therefore giving them power Too much secrecy is a problem Not enough information makes the opportunity to increase size of the pie is harder Better to give an exchange an answer → when you reciprocate you can see what each party values and make a great deal that both likes the deal No requirement to answer every question
Lecture 13 Negotiation Video2Shock to anchor: If there is a shock to the number then it will not hold, if you state another number another range is established nothing said therefore nothing will hold First Meeting: Barba Think she would not pay more than more then 175 00 initially, but now she is thinking about 200,000 range since of the amenities of the felid Despite the shock of the anchor, the anchor still holds of ted for 500000, and then Barbra's anchors are also there which 250000Framing: People react very different to identical proposals when the way you say it changes Focus on net profit, instead of purchase price and the risk Example: Changing Barbra's frames by showing all the amenites, and when looking in The other guys perspective and frame he sees it much difference hence the 500,000 anchor for him Risk Different Preferences Opportunities for different trade off arise People can Receive Risk Difference B Thinks they will not reach the same amount of seats Curry Fields: Guarantee they will reach those seats Need to show that the seats can sell! Integrating Negations: increase the size of the price Price Negation one just one issue Fixed pie and how they can be divided Distributive Negotiations Signals of Interest :
Lecture 13 Negotiation Video3Smaller changes are less willing to change, and faster to respond more likely to change your offer Signals to not changingChanging to Integrating to Distributive Negotiations: Interest are not positions: By focusing on the interest we can look at other points to build good deals Take A break: You can build integrative solutions and reduce tensions Build a third party: Another persons perspective Tendency to negotiate ourselves: When people do not reply, you start assuming what they want and what other people don't like. We need to avoid making another proposal until all points are discussedPart 3 SettlementNibble: Take a bit more when people are celebrating → take a post settlement settlement Common Negotiating Errors Overconfidence → fail to consider with all options Under confidence Fail to value our assets Escalation to Commitments The mythical fixed-pie Anchors Framing → different perspective and wrong perspective Risk Assessment Over and under risk and rewards
Lecture 13 Negotiation Video4Emotions can also help people in positive mood can reach to better agreements where everyone is happy Sometimes the best deal is no deal at all