FINGERTIP FACTS

Ezgi KARABİLECEN – 20212081

Gonca HAZIR – 20212057

Neşe ÖZKAN – 20212459

Ömer Faruk AYDIN – 20112663

Tactic• A planned action for accomplishing an end.• In terms of negotiation; an activity designed

to achieve a desired result.

Tactic• 3 things to know about tactics in a

negotiation:– Which tactic we want to use– Which tactic would be appropriate– Which tactic is used by the other party

Preparation• Negotiation requires a preparartion first• If a negotiation hold inattentive, the

effectiveness of negotiator would be low.

Preparation• Preparation step:

– What is important for the other party in decision making?

– Where do they want to meet for negotiation?– What kind of factors would be important? (cost,

price, amount, delivery...etc)

Preparation• Good negotiators has ideal objectives

depending on Win-Win situation. Also, they consider the lower limits or the worst scenario

Preparation• Preparation step of an effective negotiation

contains those determinations:– Other party’s position and opening– How the negotiator acts to achieve the objectives– Other party’s problems, opportunities,

preferences and needs– The lower limits– Other party’s compensations

Information

• The facts and principles obtained as a result of learning, searching and observation

Information• Allows us to adapt new situations• Provides competetive advantages• Information should be recordable, observable,

obtainable• A valuabel information is specific, tested, confirmed

and shared.

Information

• It allows the negotiator;– To define his/her position– To select his/her arguments– To have data for desired result

• Information as a powerful tool

Information Sources• Formal and informal sources• We can reach information by

– Libraries– Internet– Newspapers, magazines and other publications– People– Public institution’s publicaions– Company Profile from Rating Corporations

GATHERING INFORMATION AT PRENEGOTIATION

•Our goals

•Negotiation Subject

•Related market information

•Both sides’ interest

•Depth line of other side

•Influence and pressure of current economic,social and political environment

Person who gives a technology licence must gather information about;

• Is there any potential buyer effort about improve or get hold of same or equivalance technology by itself.

• Economic benefits that arise from buying this technology decision of potential buyer.

• Cost of technology application to potential buyer.

Analyzing the Other Party

Several key peaces of backround information will be of great importance in aiding in our own preparation.

Analyzing the Other Party• The other party’s current resources, interest, and needs.• The other party’s objectives.• The other party’s reputation and negotiation style.• The other party’s BATNA.• The other party’s authority to make an agreement.• The other party’s likely strategy and tactics.

FINGERTIP FACTS

The best negotiators are well-trained persons who can recall facts immediately that will aid them when they require those facts.

The ability to quote facts at the most proper time in the negotiations can assist negotiator in achieving the desired result.

DISTANT NEGOTIATION

Arrange the office and files appropriately so that required information can be obtained instantly.

Case:

“ I’ll get back to you “ isn’t enough satisfying.

To answer quickly;

-rearrange the office

-access all the required files by moving only the chair

The danger of using the telephone is the inference that speed is essential.

Counterparty expects immediate answer

and makes pressure on the other side.

“competitive goals”

FACE TO FACE

• It is possible to use files and computer loaded information during discussion.

• With laptops the required information can be reached.

• Say “ excuse me for a moment, I have some information here about that”

• Aide-memory are also useful

• all required information exist in available form for both parties.

• Nothing can be happen without the knowledge of the other side

• None of the sides can plan to hurt the counterparty; and collaborative goals can be achieved.

REFERRAL TO HIGHER AUTHORITY

“ I’m not sure how my boss will take it”.

Force the other side to decide

Use once per negotiation

“self-centered goals”

Sometimes, people are forced to negotiate without any real scope for them to exercise any real authority

This places them in an invidious position particularly where this is known the other side

This is a situation waiting to be exploited.

For negotiator; not to be exploited by the counterparty

“defensive goals”

For counterparty; seek to detect a weak point of the negotiator to hurt him

“aggressive goals”

BLUFFING

Spotting other side’s bluff wolud be a great opportunity.

“competitive goals”

Become the “win” side of the win-lose situation.

CASE STUDY

VALUED EMPLOYEE

• Martin is a valued employee of Printco.

• His employment contract has six months left to run.

• There is a substantial accrued bonus to Martin within eleven month but only if he is still employed by Printco.

Rumours

1. Company will be sold to a big conglomerate in the near future.

2. Printco’s competitor is trying to lure Martin away from the company.

What Information Are You Seeking?

Assume you are boss;

• Does Martin enjoy working at Printco?

• Has Martin actually been approached by competitors to jump ship?

• Does Martin control his customers personally or are they actually loyal to Printco?

• What attitude does Martin have toward his accrued bonus?

Assume you are Martin;

• There are still six months for the contract to end, why Printco starts negotiations?

• Is Printco about to be acquired?

• What is the Printco’s assumption about the loyalty of your customers?

How will you reach the required information?

• Low key style

• The more you talk, the less information comes to your way.

Two ways to seek information:

• Direct style– Disadvantage: Highlights the subject.

• Indirect style– Disadvantage: One can not reach any useful

information unless putting the other side on the spot.

Mr. Cellar (seller)

• asks 200.000$, but ready to get at least 185.000$

Mrs. Byre (buyer)

• wants to pay 175.000$, but ready to pay 190.000$

Information Wrap-Up

1. Keynote

2. Blunder

3. Lapse