PowerPoint Unit 303 (B&A 42): Negotiate in a business ... · information about targets on initial...

Level 3 Diploma in Business Administration

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Be able to prepare for business negotiations

Unit 303 (B&A 42): Negotiate in a business environment



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Today’s objectives •  Recap on previous session

•  Understand fall back stances and compromises that align with the negotiating strategy and priorities

•  Understand how to assess the likely objectives and negotiation stances of the other party

•  Understand how to research the strengths and weaknesses of the other party



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Fall-back stances and compromise Before you start negotiating, you will need to consider your positions during the negotiation.

Opening position

Secondary position

Subsequent position

Fall-back position

Bottom line



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Fall-back stances and compromise Opening position

This is where you will begin at the stage of negotiation

Secondary position

This is where you can move to if the party will not agree

Subsequent position

This is the next stage you can move to if the party will not agree



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Fall-back stances and compromise Fall back position

This is the position that indicates that you are close to your bottom line

Bottom line

This is the last stance and you won’t move any further



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Fall-back stances and compromise Things you will need to consider

•  Decide when you will move from one position to another

•  Open at a position which is close to your target point

•  Allow the other side to explain their opening position



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Fall-back stances and compromise

Think of an example when you have

negotiated and discuss your positions within the

negotiation.



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Assess the objectives and negotiation stances of the other party It is important that you think about the other parties objectives and positions for the negotiation. This will aid you in the negotiation discussion.

How could you do

this?



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Assess the objectives and negotiation stances of the other party You should aim to gather as much background information as possible.

This could be done through preliminary interviews with those who have done business with the other party in the past. You could also exchange information about targets on initial proposals with the other party before negotiation begins.

You should also consider the other parties negotiation style and strategy that they commonly use.

An individuals past negotiation behaviour is often a good indicator of how they will behave in the future.



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Strengths

Research the strengths and weakness of the other party It is important that you understand the other parties strengths and weaknesses before you begin negotiations.

A common way of doing this is through SWOT analysis.

Weaknesses

Opportunities Threats



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Research the strengths and weakness of the other party Strengths: characteristics of the business or project that give it an advantage over others

Weaknesses: characteristics that place the business or project at a disadvantage relative to others

Opportunities: elements that the project could exploit to its advantage

Threats: elements in the environment that could cause trouble for the business or project



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Any questions?

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