Negotiation Strategies and Tactics

Chapter 6
Negotiation Strategies and Tactics

Key Points
1Understanding position and environment in
international business negotiation
2Developing and implementing negotiation
strategies and tactics under different situations
3Knowing and applying five common negotiation
strategies
4Knowing and applying negotiation tactics well
Negotiation Strategies and Tactics

Structure of the chapter

6.1 An Overview of Negotiation Strategies
6.2 Developing Your Strategy
6.3 Strategic considerations
6.4 Common Gambits and Tactics
6.5 Useful Negotiation Strategies
6.6 What tactics will I use?
6.1 An Overview of Negotiation
Strategies

Negotiations are about finding which

agreement, of the ones available to you, is
most acceptable to both parties.
Strategy is the game plan you use to
achieve your objectives.
Tactics are the individual elements of your
game plan.
6.2 Developing Your Strategy

6.2.1 Five Strategic Approaches in

Negotiation
6.2.2 When to Use the Five Negotiation
Approaches
6.2.1 Five Strategic Approaches in
Negotiation

(1) Collaborating
(2) Compromising
(3) Accommodating
(4) Controlling
(5) Avoiding
6.2.2 When to Use the Five Negotiation
Approaches

Controlling is best when:

Quick, decisive action is vital (e.g. in emergencies).
An important issue requires unpopular action.
You know you are right.
The other party would take advantage of co-
operative behavior.
6.2.2 When to Use the Five Negotiation
Approaches

Collaborating is best when:

The issues are too important to be compromised.
The objective is to integrate different points of view.
You need commitment to make the solution work.
You wish to build or maintain an important
relationship.
6.2.2 When to Use the Five Negotiation
Approaches

Avoiding is best when:

The issues are not important.
There are more pressing issues to tackle.
There is no chance of achieving your objectives.
The potential aggravation of negotiating outweighs
the benefits.
People need to cool down and regain their
perspective.
You need time to collect more information.
6.2.2 When to Use the Five Negotiation
Approaches

Accommodating is best when:

You find out that you are wrong.
You wish to be seen as reasonable.
You wish to build credits for later issues.
The issues are more important to the other party.
You wish to minimize loss when you are in a weak
position,
Harmony and stability are more important.
6.2.2 When to Use the Five Negotiation
Approaches

Compromising is best when:

Issues are important but you cannot afford to be too controlling.
The relationship is important but you cannot afford to
accommodate.
Opponents of equal power are committed to mutually exclusive
goals.
You need to achieve temporary settlements to complex issues.
You need to find an expedient solution under time pressure.
It is the only alternative to no solution.
6.3 Strategic considerations

6.3.1 The Repeatability of a negotiation

6.3.2 The strengths of negotiating parties
6.3.3 The importance of a deal
6.3.4 The time scale
6.3.5 The negotiation resources
6.4 Common Gambits and Tactics

For Example:
Unless you agree immediately to we are
not prepared to discuss anything else.
6.5 Useful Negotiation Strategies

6.5.1 When Strategy

(1) Forbearance
(2) Surprise
(3) Fait accompli
(4) Bland withdraw
(5) Reversal
(6) Limits
6.5 Useful Negotiation Strategies

6.5.2 How Strategy

(1) Feinting
(2) Release and Catch
6.6 What tactics will I use?

6.6.1. Where to negotiate?

6.6.2. When to negotiate?
6.6.3. How to start the first meeting?
6.6.4 Suggestions

To obtain information
To support your arguments and position
To undermine the arguments of the other
party
To generate movement
To save face or reduce tension
Summary

The following key points should be considered in

developing and modifying your negotiation
strategies:
1. What questions should we ask in the first session?
2. What questions are they likely to ask?
3. How will we answer these questions?
4. What is our opening position?
5. Do we have enough factual data and information
to support this position? If not, what extra
information could be available?
Summary

When you are negotiating as a team, also

consider the following questions:
1. Who will lead the discussion?
2. Who will check understanding (verify fact)?
3. Who answers the other sides questions?
4. Who will work to reduce tension and show
concern for people? Who should be
responsible for rear services?
Key Words

1. Negotiation Strategy
2. Collaborate
3. Compromise
4. Accommodating
5. Control