Negotiation - Business Strategy

8/2/2019 Negotiation - Business Strategy

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PT TVS Motor Company Indonesia

V Thiyagarajan


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What is the job of a manager

Managers primary job is to manage the

resources allocated to him.


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What is the job of a manager

In Managing his resources effectively, he has to

negotiate with various stakeholders day in and

Day out.


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What is Negotiation?

Negotiation describes the process of discussion

between two or more parties aimed at reaching

a mutually acceptable agreement

It is all about taking a position


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The Negotiation Process

Preparation

Relationshipbuilding

Exchanging

information

Persuasion

Concession&

agreement


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Preparation

Have a role play before negotiation

Budget the time required for completion - e.g

Assign a role to each member in the teame.g. observer, noting minutes, explaining technical details


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Relationship building

Trust building

Establish credibility through genuine efforte.g

Understanding the position of other party - e.g


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Exchanging information

Understand the position of other party

Make your 1st offer when situation warrants

Check the reaction & proceed furthere.g


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Persuasion

Use verbal negotiation tacticse.g

Never play dirty tricks

Beware of the other partys tricks e.g


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Concession & agreement

As a token of appreciation certain concessions

can be agreed upon = e.g

Believe in WinWin situation


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Different Type of Negotiation

Competitive Negotiation

Integrative Negotiation

Problem solving Negotiation

Cross cultural Negotiation


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Competitive Negotiation

Competitive Negotiation prevails when parties

have unequal bargaining powerse.g


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Integrative Negotiation

Integrative Negotiation is a collaborative

negotiation rather than competitive negotiation


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Problem solving Negotiation

Problem solving Negotiation usually result in

win-win solution paving way for long term, mutually

beneficial relationshipe.g


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Cross cultural Negotiation Framework

Negotiationstyles ,Objective,

Negotiatingbehaviour,defence

/attack/trust/de

ception/pressure

Goals

National/CorporatePrinciples

Vs specificdetails

Trust leveland

durationrelations

Compositionof teams &

Level of

preparation

Task VsInternational relations


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Impact of culture on Negotiation

Goal

Attitudes

Personal style Communication

Time sensitivity

Emotionalism

Agreement building

Team organization

Risk taking

Contract

Win/Lose

Informal Direct

High

High

Bottom up

One leader

High

Relationship

Win/Win

Formal Indirect

Low

Low

Top Down

Consensus

Low

Negotiation Factors and attributes

Or


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Key Success Factors

A tolerance for ambiguitye.g

Patience and perseverance

Flexibility and creativitye.g

Cultural understanding or empathy e.g

Acknowledge the flexibility of otherparty

Clarity in communication e.g

Keep in mind the stakeholdersexpectation

Never expose your desperateness

Identify the influencer or decisionmaker in the other parties group


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Profile of a successful Negotiator

Looks for and says the truth

Is not afraid of speaking up and has no fears

Exercises self-control

Seeks solutions that will be win-win situation

Respects the other party

Neither uses violence nor insults

Is ready to change his or her mind and differ with himself

or herself

Understand the cultural differences, act accordingly


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Documents

Negotiation - Business Strategy