Negotiations are an integral part of the conduct of any business since, in order to achieve its goals, the company must constantly find a compromise and come to a mutual solution. Thus, they help to come to the most balanced and effective solution for both sides. However, a valuable aspect of conducting negotiations is drawing up a plan that includes a strategy and expected end goals, which can significantly facilitate this process. The critical condition, in this case, is the fact that all actions of the plan must be determined in advance. Furthermore, this work aims to compile a guide for planning negotiations, which can help the company achieve the desired results when finding a solution to the problem. An example of the negotiation process that will be investigated in this paper is the solution to the problem of setting the price and terms of sale of goods.
Negotiating Goal
First, it is necessary to determine the difference between such concepts as negotiation goals and strategy. So, what a company wants to achieve in the process of resolving disagreements with another organization is called goals. Among them, substantive, psychological, or procedural stand out, and their definition should occur even before negotiations start. They are valuable because they directly influence the choice of the strategy that the negotiator will adhere to. Hence, an example of an important goal may be the desire to come to a mutual agreement without conflict, for which the strategy of coming to a compromise is best suited.
Major Issues Related to Achieving the Goal
The next step is to identify the main points that need to be resolved in the negotiations. In the proposed example, such indicators are mutual agreement on the price at which the product will be sold and what conditions must be met when distributing it. This may include aspects such as they share, which, each company receives, and all the links involved in this process. It is worth noting that it is also essential to assess the level of relations with the negotiating party at this stage.
Issues, Importance, and Bargaining Mix
After identifying such valuable indicators as critical points for discussion, the company should accurately determine the importance of each of them. This should be done so that the most meaningful goals are achieved first and are not overlooked. The last step at this stage is to determine the range of negotiations on each issue in the complex. This step will help determine the best possible and minimum acceptable outcome for each goal. Henceforth, the most important thing for the company should be to determine the price of the goods, the best outcome is an agreement on the cost that the organization itself will offer, and the minimum is the price that the opponent will offer.
The Interests
Further, it is vital to determine the underlying interests that the company will inherit during negotiations. For example, you can imagine that the desired price for a product will be thirty dollars, and the interest will be in determining the price that will be more profitable than competitors, but not lower than the average, in order to attract the most significant number of customers.
BATNAs
A precious aspect of developing a negotiation plan is the availability of alternative solutions. They may be needed for cases when the second party refuses to accept the company’s offers. Thus, before the start of the process, the organization should have several best alternatives to a negotiated agreement (BATNAs) that will help to come to a mutual agreement (Lewicki et al., 2020). In the example under study, difficulties may arise with profit sharing, so the company should be ready to make some concessions.
Limits and Resistance Point
It is also essential to determine the point of negotiations that will be final or unacceptable for continued interaction. To do this, the company must have a limit on the price of the product and acceptable conditions for its sale, which will not bring it any benefit.
Other Party’s Goals, Issues, and Resistance Points
Despite the importance of the previously listed steps, the definition of the opponent’s goals, issues and resistance points is also of critical importance. This will help to adjust the plan so that both sides of the negotiations have a positive result that will bring satisfaction. Hence, for example, digging should know the minimum acceptable price that the opponent is willing to accept, the desired results, and the point at which the organization will not have the desire to continue negotiations.
Setting Targets and Opening Bids
One of the final stages of development is the formation of target and opening bids. These aspects imply reaching a negotiation point that will suit the company. That is, with respect to the example, the establishment of the desired price of the goods and conditions that satisfy the organization.
Social Context
The step of defining a negotiation plan cannot be completed without considering the social context. This includes consideration of aspects such as all stakeholders and higher-ranking individuals (Lewicki et al., 2020). This is necessary due to the fact that negotiations affect many aspects and are a phenomenon of the social context. In other words, it is crucial to know the laws, customs, standard business practices, and cultural norms of the opponent.
Presenting the Issues
Ultimately, the last stage is to determine how the company’s issues will be presented to the other side of the negotiations. Determining the most crucial goal will help you choose where to start in this interaction, but it is important to take into account social factors and the chosen strategy. Thus, it is necessary to define the sequence, framing, packaging, and the formula for the presentation of arguments.
Reference
Lewicki, R. J., Barry, B., & Saunders, D. M. (2020). Negotiation (8th ed.). McGraw-Hill Education.