Business Negotiation Strategies | International Management | From A Business Professor

Summary

In this video, viewers learn about the significance of business negotiations, which occupy a large portion of managers' time. The video defines negotiation and discusses two main types: distributive and interactive negotiations. It outlines a five-step negotiation process—planning, relationship building, information exchange, persuasion, and agreement—while providing general guidelines to enhance negotiation outcomes. Additionally, it offers practical tips, emphasizing preparation, understanding one's bottom line, maintaining a friendly demeanor, controlling emotions, and effective listening. This comprehensive overview equips viewers with essential skills for successful negotiations.

Takeaways

• 😀 Business managers spend over 50% of their working hours in meetings and negotiations.
• 🤝 Negotiation is a process where parties with different needs discuss to find a mutually acceptable solution.
• 🔍 There are two major types of negotiations: distributive (win-lose) and interactive (win-win).
• 📝 A typical negotiation process includes five steps: planning, relationship building, exchanging information, persuasion, and agreement.
• 📊 Effective planning involves identifying objectives and exploring possible outcomes.
• 👥 Building interpersonal relationships helps to identify reasonable counterparts in negotiations.
• 🔄 During negotiations, each party sets forth their positions, which may evolve over time.
• 💬 Successful persuasion relies on understanding each other's positions and creating new options.
• ⚖️ General guidelines include separating people from the problem and focusing on interests over positions.
• 📈 Effective negotiators prepare thoroughly, know their bottom line, maintain a friendly demeanor, and practice active listening.

Q & A

What percentage of their working hours do business managers typically spend on meetings and negotiations?

Business managers usually spend 50% or more of their working hours on meetings and various types of negotiations.

What are the two major types of business negotiations?

The two major types of business negotiations are distributive negotiations, which are competitive and often result in a win-lose situation, and interactive negotiations, which involve collaboration for a win-win outcome.

What is the primary goal of distributive negotiations?

In distributive negotiations, the primary goal is for one party to gain value at the expense of the other, resulting in a win-lose situation.

What does the interactive negotiation process focus on?

Interactive negotiation focuses on cooperation between the parties to maximize benefits for both sides, aiming for a mutually beneficial agreement.

What are the five steps in the typical negotiation process?

The five steps in the negotiation process are: 1) Planning, 2) Building interpersonal relationships, 3) Exchanging task-related information, 4) Persuasion, and 5) Agreement.

Why is planning crucial in negotiations?

Planning is crucial as it helps negotiators identify their objectives and explore possible outcomes for reaching those objectives.

What should negotiators focus on during the interpersonal relationship-building phase?

During this phase, negotiators should focus on getting to know the other party, identifying who is reasonable, and establishing a rapport.

What is the importance of generating options in negotiations?

Generating multiple options helps avoid pressure to agree quickly and allows for better decision-making by providing alternatives if some proposals are unsatisfactory.

What are some general guidelines for successful negotiations?

General guidelines include: separating people from the problem, focusing on interests over positions, generating options, and using objective criteria when interests differ.

What are some practical tips for effective negotiations?

Practical tips include being prepared, knowing your bottom line, using a friendly approach, avoiding desperation, and practicing active listening.