Background Information
The executives at Capital Mortgage Insurance Corporation (MCI) are currently planning to merge with Corporate Transfer Services (CTS). The company plans to expand its business into new industries. This move to acquire CTS will ensure the company realizes its potentials.
However, CTS is not a successful company. The positive thing is that the Estate Relocation Industry is currently growing at an unprecedented rate. This situation explains why CMI will eventually maximize its gains. This acquisition requires an effective negotiation process. This discussion discusses the best approaches towards conducting a successful negotiation strategy.
Guidelines to Follow During the Negotiation Process
A successful negotiation process must follow different guidelines. Such guidelines will ensure CMI and CTS realize their targeted objectives. The first guideline is setting the right rules in order to make the process successful. Every participant should be aware of the targeted goals. The individuals should be contented before engaging in the negotiation process.
The other critical guideline is analyzing the issue from every perspective. This approach will ensure the negotiators understand their expectations. This clarification has the potential to offer meaningful solutions to the targeted issue. The third guideline is brainstorming. This approach informs the counterparts about their objectives and expectations.
It is appropriate to understand the issues and stakes surrounding the negotiation process. The other guideline is choosing the right principles to support the final agreement. This practice will deal with most of the challenges affecting the negotiation process.
Steps of the Negotiation Process
Negotiation can take several steps depending on the targeted goals. This issue between CMI and CTS requires a proper negotiation process. The first step of the negotiation process is planning. This step makes it easier for the participants to prepare themselves accordingly. The counterparts should also identify the best methods, ideas, and issues that can the process successful.
The second step is building the best relationship. This approach will ensure the negotiators understand the expectations of their counterparts. The third step is exchanging vital details and information. This step is critical because it initiates the negotiation process. The fourth step is persuasion. The negotiators should be ready to persuade one another.
The must present their views, expectations, and demands in order to come up with the best solution. The fifth step is agreement. During this step, the negotiators identify the best agreement or agreement to the issue.
Guidelines for Facilitating Effective Communication during the Negotiation Process
Communication is critical towards having a successful negotiation process. The first guideline is embracing the best communication skills. Some of these skills include proper listening strategy and critical thinking. Every negotiator should use both non-verbal and verbal aspects of communication.
This approach will promote the nature of communication. The individuals should not display their emotions. They should analyze every issue before presenting their arguments. The counterparts should also display their desires in a proper manner. Collaboration should also be critical towards achieving the targeted goals.
Questions to Ask During the Negotiation Process
Negotiators should ask various questions during the process. Such questions will address the expectations of the negotiation process. Some of these questions include the following:
- How can CMI and CTS benefit from the acquisition?
- What is the problem from CMI’s perspective?
- What are the cons and pros of each side?
- What is the issue from CTS’ perspective?
- What are the best alternatives?
- What can break the deal?
- Which strategy will work the best?
Characteristics of Different Negotiation Styles
Negotiation styles are critical towards addressing different issues. A negotiation style can be smooth or rough. Every negotiation style depends on the counterparts engaged in the process. Individualistic styles occur when some individuals try to maximize their outcomes.
This process affects the effectiveness of the negotiation strategy. Human beings tend to show minimal concerns for the outcomes of others. A cooperative approach focuses on the benefits of every counterpart. Competitive Negotiation (CN) results in rivalry. Human beings tend to engage in individualistic behaviors thus affecting the quality of the negotiation process.
Altruistic Negotiation (AN) occurs when some individuals try to maximize the benefits of their competitors instead of their own. Most of these negotiation styles can succeed if the counterparts have the required experience.
Guidelines to Follow When this Negotiation Becomes Challenging
The negotiation between Capital Mortgage Insurance Corporation (MCI) and Corporate Transfer Services (CTS) can become challenging if the executives use inappropriate strategies. The first approach towards dealing with such challenges is using a win-win approach. This approach will improve the level of cooperation. The negotiators must use effective communication skills.
They should also be ready to listen attentively. They should also find appropriate answers to the above questions. The individuals should also strive for balance. A cooperative relationship will eventually create the best value for the two parties.
The participants should not bluff, corner, or antagonize. Such malpractices can affect the effectiveness of the negotiation process. The executives and managers at CMI should not portray their emotions. They should also remain calm and focus on the targeted objectives. The use of proper problem-solving and critical thinking approaches will support the negotiation process.