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Negotiation: Presented by - Sakshi Badaya (26135) Samyuktha R B (26136)

The document discusses the stages of negotiation: 1. Preparation involves setting a meeting, being well-prepared, and gathering information. 2. Discussion allows each side to present their understanding and listen to the other side. 3. Clarifying goals involves identifying the priorities, interests, and viewpoints of each side to find common ground. 4. Negotiating towards a win-win outcome focuses on solutions that benefit both sides through compromises. 5. Agreement is reached once both viewpoints have been considered. The agreement must then be implemented.

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84 views

Negotiation: Presented by - Sakshi Badaya (26135) Samyuktha R B (26136)

The document discusses the stages of negotiation: 1. Preparation involves setting a meeting, being well-prepared, and gathering information. 2. Discussion allows each side to present their understanding and listen to the other side. 3. Clarifying goals involves identifying the priorities, interests, and viewpoints of each side to find common ground. 4. Negotiating towards a win-win outcome focuses on solutions that benefit both sides through compromises. 5. Agreement is reached once both viewpoints have been considered. The agreement must then be implemented.

Uploaded by

Rashi Gaikwad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Negotiation

Presented by -
Sakshi Badaya (26135)
Samyuktha R B (26136)
Negotiation
Negotiation is a dialogue between two or more people or parties
intended to reach a beneficial outcome over one or more issues
where a conflict exists with respect to at least one of these issues.It
is a method by which people settle differences.
Stages of Negotiation

1. Preparation

Before any negotiation takes place, a decision needs to be taken as to when and
where a meeting will take place to discuss the problem and who will attend. Setting
a limited time-scale can also be helpful to prevent the disagreement continuing.

Being well-prepared generates confidence and gives an edge to the negotiator.

Gathering information , know the people involved, rapport

Benefit- Helps in generating confidence , avoid conflict and unnecessarily wasting


time during the meeting
2. Discussion

During this stage, individuals or members of each side put forward the case as
they see it, i.e. their understanding of the situation.

Key skills during this stage include questioning, listening and clarifying.

Sometimes it is helpful to take notes during the discussion stage to record all
points put forward in case there is need for further clarification. It is
extremely important to listen, as when disagreement takes place it is easy to
and question them.
3. Clarifying Goals

From the discussion, the goals, interests and viewpoints of both sides of the
disagreement need to be clarified.

It is helpful to list these factors in order of priority. Through which it is often


possible to identify or establish some common ground. Clarification is an
essential part of the negotiation process, without which misunderstandings
are likely to occur which may cause problems and barriers to reaching a
beneficial outcome.
4. Negotiate Towards a Win-Win Outcome

This stage focuses on what is termed a 'win-win' outcome where both sides feel
they have gained something positive through the process of negotiation and
both sides feel their point of view has been taken into consideration.

A win-win outcome is usually the best result. Although this may not always be
possible, through negotiation, it should be the ultimate goal.

Suggestions of alternative strategies and compromises need to be considered


at this point. Compromises are often positive alternatives which can often
achieve greater benefit for all concerned compared to holding to the original
positions.
5. Agreement
Agreement can be achieved once understanding of both sides’ viewpoints and
interests have been considered.

It is essential to for everybody involved to keep an open mind in order to


achieve an acceptable solution. Any agreement needs to be made perfectly
clear so that both sides know what has been decided.

6. Implementing a Course of Action


From the agreement, a course of action has to be implemented to carry
through the decision.
How Microsoft out-negotiated Netscape in the browser war
● American webportal American Online (AOL) was seeking for a top notch internet browser to market
their products.
● Both Bill Gates’ Microsoft and Netscape Navigator vying with AOL
● In terms of BATNA,
● Netscape
○ held a decisive advantage
○ Strong technical superiority
○ Presence and dominance in the overall browser market
○ Negotiated with AOL by holding out for a
high per copy fee
○ Based on “browser for dollars” agreement
○ Aggressive about selling the browser
● Microsoft
○ New entrant to the internet market
○ Considered inferior to Netscape
○ Had very limited leverage at the negotiation table
○ MS readjusted their focus by concentrating on business marketing strength, rather than the
technology issue.
○ Microsoft used a creative strategy to change the nature of a weak position or BA to enhance
their position while weakening Netscape’s in the process.
● Microsoft concentrated its pitch on the marketing features it could offer to AOL, which it knew
Netscape could not match.
● MS internet explorer offered to bundle AOL into the Windows OS
and importantly it was done for free!
● MS promised to provide additional technical adaptations, if AOL signed a multi year contract.
● David Colburn, AOL’s chief negotiator and Business Development head, stated that - “
The willingness of Microsoft to bundle… with the Windows operating system was a critically important
competitive factor that was impossible for Netscape to match.”
● An offer that AOL can’t refuse:
○ Despite the fact Microsoft and AOL were competitors, MS had the foresight and negotiation
skill to change the nature of their offering to their advantage, and made AOL an offer it
could not refuse.
● Although Microsoft surrendered some of its market share to AOL in the short term, the company
achieved its loftier goal of making a huge stride forward in gaining a significant share of the
browser market.
Achieving Key Negotiation Skill:
● Planning
○ Define goal
○ Have a clear terms and conditions
○ How consequences will impact both the parties or everyone
in the long term

● Communication
○ Identifying non-verbal cues
○ Engaging conversation
○ Feedback
○ Avoid misunderstandings
● Persuasion
○ Influence other people
○ Define why the proposed solution is beneficial
○ Encourage others to support your point of view

● Strategizing
○ Clear strategy to go ahead with the negotiation
○ Have a BATNA (Best Alternative To a Negotiated Agreement) - "BATNA is
the only standard which can protect you both from accepting terms
that are too unfavourable and from rejecting terms it would be in your
interest to accept.”
and ZOPA (Zone Of Possible Agreement) where both the parties come to an
agreement.
○ Have at least one backup plan
○ Consider all possible outcomes and be prepared for each of those
scenarios.
Measuring Negotiation
● Economic Success
○ Individual gain and mutual gain
○ Attention is given to the expenses and expected outcomes for your own company, as
well as for all parties involved in the negotiation as a whole.

● Relationship Strength and Reputation


○ It’s important that the process and outcome strengthen the relationships among the
parties so that future negotiations can proceed smoothly.
○ Long-term co-operation
○ A negotiator’s standing depends upon the degree to which he or she is respected, and
this respect is fostered through open collaboration and trust.
● Durability
○ Reaching an agreement is not the final step in a negotiation, the agreement must be enacted
and honored.
○ It must perform to expectation, and the durability of the specific agreement and the overall
relationship.
○ A strong long-term relationship can nurture success.

● Efficiency
○ Efficiency can refer to the degree to which the benefits of an agreement have been maximized
for all negotiating parties.
○ In essence, an “efficient” negotiation ends with all parties having received the best gains
possible.
Thank You!

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