International Business Negotiation: Strategies And Types Of Negotiation

Discuss about the International Business Negotiation.

Negotiation is an important aspect of everyone’s life. A negotiation with a customer about the product, a negotiation with the boss about a hike in salary, international negotiation between two countries, or simply a negotiation with friends to hangout. All these are examples of negotiation. It is a process which is reserve for the skilled diplomat, top salesperson, or ardent advocate. They are practicing negotiation on the daily basis. It is an inherent quality seen in the all the negotiators. It is due to their continuous practice, which brings the deal in their favor. Negotiation is a routine affair. Although it happens daily, it is not an easy task to achieve. Every business desires to make huge profits in long run. It depends on the negotiation skills of the entrepreneur. (Lewicki et al. 2011)

It is a process of making combined decisions in a different atmosphere. One can achieve their goals through negotiation. It is an art of deciding, where two or more parties discuss with one another the effort to determine their opposite interest (Mehnert, 2008). The purpose of negotiation is to share the limited resources, to create something new or to resolve the dispute. Effective negotiation strategies are important to manage difficult situation. In simpler terms if the problem is not solved than the motive is not achieved.  By negotiation, common interest is fulfilled. If done, in a significant manner, it creates long-term relationship between parties. It is a basic method to achieve what one want through communication. Negotiation is carried in respect of the corresponding interest of the parties. The term bargaining is sometimes confused with negotiation. The term bargaining is used to describe the temporary situation of win and loss. It is mostly used to describe the distinctive way of dealing at the flea market or the other market. Negotiation is not merely give and take; it is a comprehensive process which requires lots of skills. It is develop through continuous practice and dedication (Reardon, 2014).

The successful negotiator has imbibed the skill of negotiation due to continuous practicing the techniques. The most effective method of negotiation is by making the other party engage in talks. These processes involve an active participation of the parties to understand the reason behind the deal. It is important to be flexible and disciplined while negotiating. Language and culture is not a barrier in negotiation by the skilled person. They depend on the listening and understanding skills of the negotiator to identify the goals and to assess their BATNA. One needs to create a report depending on the available information (Silva, 2016).To achieve success in a negotiation, one should remember to set the bargaining range, before making an offer. It should be started at a right place to achieve the successful result. Secondly, one should not disclose any significant information about the subject matter. Thirdly, information about the other side is an added advantage to win the interest (Negotiation, 2007).

Case Study 1

Integrative negotiation is one, where the parties assist to get benefit by combining their interest in harmony .In integrative negotiation; one should be good at both creating worth and claim. It is a twofold negotiation theory where one has to create as much value as possible and to claim the value. It is mostly referred as win-win situation; every party gets what they want. Thus, the ability to claim or win does not minimize others ability (Luecke, 2003).

Multiphase transactions are advantageous to those who want to encourage cooperative behavior. In its early phase, the parties are allowed to build trust on each other. It helps in providing required skills. Earlier familiarity helps in seeking future smooth advancement. Multiparty negotiation involves more than two parties. It helps in gathering information at an early stage .The major challenge is to hold together individual interest. It is important to understand the goals, interests, and relationships of the other parties (Wheeler,2013).).

Negotiation is a process reserve majorly for the skilled people. The Microsoft- Nokia deal in 2013, was the most shocking negotiation deal. The business negotiations were undertaken by the negotiator at Microsoft and Nokia to overcome the challenges. Rather than engaging in the reconciliation of difference in identity, they negotiated for maintain their own identity. The negotiator played a significant role in addressing the individual interest and successfully implementing the individual identity of the company (Lutz, 2016). It is majorly practiced in daily life whether it involve a minute issue or major global issue. A sales deal can only be converted if carried through proper negotiation skill. A salesperson focuses majorly on the negotiation skills. It is an essential part of the sales journey towards a mutually beneficial outcome. The reason why almost everything is negotiable is because if one party have certain skills which the other party don’t have. The goal of a professional salesperson is a responsibility towards relation building. A professional salesperson delivers the set of best negotiable skills which the other person doesn’t have. This differ them from the other negotiators. They have an inherent capability to negotiate. They understand how to convert a deal in their favors. Top sales executive has a quality to decide a deal in their favors. They know how to make the best opportunity out of the available resources (Barmak, 2007). A majority of the company are successful due to their professional negotiator. Firstly the company has to establish a wide negotiations area to apply the knowledge gained by the sales personnel through past experiences, by evaluating the performances beyond the parameter of costing and pricing. Company’s behavior towards the deal makes it fruitful in the favor of the company. Where the companies have reengineered different process, negotiation remains the single domain which separates an industry from rest of the other companies. Every negotiation deal is unique in itself. The deal majorly depends on the individual interest of the negotiator. It is due to continuous years of practice, a company achieves individual goals.  It’s their personal set of skills which distinguish them from rest others. Continuous years of practice help the negotiator to achieve the desired results (Kuttnig, 2009).

Case Study2

The civil war in Syria has become one of the notorious issues in the past decade. In September 2013, US Secretary and Russian corresponding person announced a deal to prevent US interference in Syria. Diplomatic negotiation leads to the success of Russia over the USA. The word diplomat represents images of international power and strategy (International Negotiation.2016).A diplomat has to deal in a positive manner for resolving the international dispute. His role is to resolve the international disputes about social, political, economic, etc. International negotiation focuses on resolving complex issues. While transnational issues the global challenges they pose are increasingly important, it is their skill of the international negotiable on which the majority of deal focuses. Diplomats have a set of skills which distinguishes them from the rest of the world. While discussing the serious issue with each other, it is noticed that one with a good set of negotiation can come up with a better remedy rather than others.  The major interest of both countries needs to be taken care while negotiating Starkey, et al. 2010).

Researchers have confirmed that, culture negotiation style and success are related to each other .cultural tendencies are responsible for majority of cross-cultural negotiation (International Negotiation, 2016).

Learning to negotiate is a part of advocacy process. The traditional approach to negotiation is through the best possible way. For an advocate, it is very important to be a good negotiator which is inherited due to several year of practice. An advocate has a set of skills which distinguishes him from the rest of the world. Negotiation is a practice done to carry out the better result. For an experienced advocate it is an easy task to convert a deal in his favor. It differentiates him from rest of the world. Only one side can win while the other loses during the negotiation process.

Negotiation style can be either aggressive or co-operative depending on the individual quality. Each individual has to adopt the different set of skills in different kind of negotiation. It focuses on building long term relationship. One needs to express the goals essential before negotiating. A goal determines the outcome, an individual want. An outcome below the bottom line is unacceptable .A negotiation completely depends on the individual interest. It has to be kept in mind before making any type of negotiation. The needs and necessity need to be given importance while doing the negotiation (Gosselin, 2007). 

Every individual has a different set of negotiating skills. In case of cross-cultural negotiation, every country has a different cultural pattern. For example: every country has different culture of negotiation. A negotiator from US and Japan create more value than the other. Negotiating doesn’t depend on the place of birth of an individual; it rather depends on the individual skills of bargaining. The ability to interpret the information is of much importance while negotiating deals on cross borders. Individual convincing skills are very much important while negotiating on the international field. In case of international negotiation it is the duty of the negotiator to carry the negotiation in his/her favor (How to Overcome Cultural Barriers to Communication in International Negotiations, 2016). Instead of getting into deep arguments it is very important to find a middle way while deciding on the international negotiation. Negotiation ethics across the borders shows a unique challenge for negotiating with the counterpart with the different background. Language is not a barrier while deciding over the international agreement. The different ethical perspectives are necessary to understand while communicating the negotiation on the international ground. Globalization is a concept which understands the political and international economy. The major question is how the world works in the global platform. The concept of globalization has changed people perception while making any international deal. The world is now a small place. Apple, apologized in April, 2013 for the warranty issues and promised o rectify them. In country like China an apology is an effective way of negotiation. Their study showed that apology can resolve the conflict much faster than the financial compensation (Apple’s Apology in China, 2016)

An important example of the negotiation is in between Microsoft and AOL. They were the active competitors’. Microsoft has the sight to change the negotiation in their advantage. The deal was in between two of the giants. Microsoft lost an amount of shares but has made a gain on a long run. It is only due to its negotiation skill the organization makes a difference the deal is an important while making an important negotiating deal. It focuses on an equal win-win situation for both the companies. It is completely on the individual set of skills which makes negotiation an important task in making a deal in their favors. A deal can only be converted well, if negotiated by the skilled person. The majority of deals are carried by the senior staff, which has a lot of negotiation experience. It is necessary to have a good amount of experience in the field of negotiation, to make a favorable deal (Microsoft Finessed Netscape in the Browser War, 2016).

In case of international negotiation of Mitsubishi and Chrysler for a joint venture in Japan some time back. There were multiple parties whose interest was under conflict. Government and trade policies are an important aspect while dealing with the negotiation. It has to satisfy multiple interests while making any such international collaboration. Government policy plays an important role while negotiating on the international ground. Mitsubishi –Chrysler collaboration has become a case which could affect the future dealing with the country.

It is the personalized set of skills which encourages negotiation behavior. Everyone practice it in daily life, while buying the goods from vendor or from flea market. Negotiation is practiced in our daily life. Negotiation focus on the core interest of the parties. One who has perfect skill and knowledge has maximum chance to win. A negotiation requires eminent skills which makes a person different from others. While discussing the major cultural negotiation, there is a need to have an exemplary skill. Every individual has different set of skills. While making an international deal, it is necessary to understand the cross cultural interest. The skilled diplomat and salesperson and advocate excel in negotiating. For others it may be a time consuming and difficult process but for skilled person, it is an easy task. It is due to year of practice and hard work which make them different. Negotiation is a continuous process which focuses on building relationship. Cross cultural negotiation are important of dealing international business. All the majority of deals can only be cracked with the help of skilled negotiators (Hofstede, 2002). Negotiations are necessary to be carried out on the cross cultural borders’ with the set of personalized skills. The reason behind the success of majority of internal and external negotiation is due to their personalized skills (Edwards and Rees,2011). 

Conclusion

One can only achieve in negotiation if he or she has personalized skills in negotiation. A negotiator has those skills which make him different from the other people. It is due to their years of practice and continuous hard work. The essay explains the qualities and case studies which involve personalized quality of negotiation. It is an art achieved through years of practice. It is an age old practice which focuses on individual capacity to conquer. The major terms of negotiation are decided by the party’s. One that has an experience in negotiating can bring a significant change. This art can only be achieved through continuous hard work. In term of cross-cultural and international negotiation the personalized skills of negotiator to settle the deals play a significant role. Hence Negotiation is a process majorly for the skilled entrepreneurs. They are the one who creates a difference in the society. The majority of negotiations are carried out with the help of personalized experience in this field. 

References:

Apple’s Apology in China.2016. Available on:  https://www.pon.harvard.edu/daily/international-negotiation-daily/top-negotiation-case-studies-in-international-negotiations-from-business-and-global-politics/ .( Accessed on: 14/09/16)

Barmak, A.2007. The Accidental Salesperson: The Handbook for Selling Like a Professional in Everyday Life. The Accidental Salesperson

Edwards, T. & Rees, C., 2011. International Human Resource Management: Globalization, National Systems, and Multinational Companies,

Gosselin, T.2007. Practical Negotiating: Tools, Tactics & Techniques. John Wiley & Sons

Hofstede, G. & Usenier, J.C., 2002. Cultural Aspects of International Business Negotiations. In International Business Negotiations. pp. 97–136.

How to Overcome Cultural Barriers to Communication in International Negotiations .2016. (Online).Available at: https://www.pon.harvard.edu/daily/international-negotiation-daily/cultural-notes/ (Accessed on 14/09/16)

International Negotiation .2016. (Online). (Available from:   https://www.pon.harvard.edu/category/daily/international-negotiation-daily/ Accessed on : 15/09/16)

Kuttnig, C., (2009). Negotiation as Corporate Skill. GRIN Verlag

Lewicki, R., Saunders, D. and Barry, B. (2011) Essentials of Negotiation. London, McGraw Hill. Chapter One.

Luecke ,R.2003.Negotiation.US: Harvard Business Press

Lutz, K.2016.Top Negotiation Case Studies in International Negotiations from Business and Global Politics. (Online). (Available at: https://www.pon.harvard.edu/daily/international-negotiation-daily/top-negotiation-case-studies-in-international-negotiations-from-business-and-global-politics/ / (Accessed on: 14 September 2016)

Mehnert, M.2008. Negotiation: Definition and Types, Manager's Issues in Negotiation, Cultural Differences and the Negotiation Process. GRIN Verlag

Microsoft Finessed Netscape in the Browser War.2016. Available on: https://www.negotiations.com/case/browser-war/ .(Accessed on 14 September 2016)

Negotiation.2007.Available on: https://www.cimaglobal.com/Documents/ImportedDocuments/cid_tg_negotiation_mar07.pdf.pdf    (Accessed on 14 September 2016)

Reardon, K. (2014). The Skilled Negotiator: Mastering the Language of Engagement. USA:John Wiley & Sons

Siedel, G. (2014). Negotiating for Success: Essential Strategies and Skills. Van Rye Publishing, LLC

Silva,B. 2016.Negotiation: How to Successfully Negotiate Anything! Technique, Motivation, Sales, Business and Money. CreateSpace Independent Publishing Platform

Starkey, B., Boyer, M. and Wilkenfeld, J.(2010). International Negotiation in a Complex World: New millennium books in international studies. Rowman & Littlefield

Wheeler,M.(2013). The Art of Negotiation: How to Improvise Agreement in a Chaotic World. Simon and Schuster