Introduction
Conducting negotiations implies several essential components that must be considered before entering into them. Economic fundamentals, preparatory steps, possible barriers, and unexpected events lead to this area. The bargaining process becomes a valuable source of knowledge both directly about the procedure and about individuals as negotiators. Thus, negotiations involving an economic component require special attention and research of each step to achieve the most successful results.
Case Background
The negotiations that formed the basis of this essay formed the artwork sponsorship review process. So, the creative agency was offered to finance the work, but there was a problem due to the communication problems between the parties. Moreover, the barriers were dissatisfaction with the proposed conditions by the owners of the artwork and too high cost. The problem of authorship was necessary; the creative organization refused to place the artists’ logos, and there was a general lack of transparency in the bargaining process. These challenges have become obstacles to achieving the most complete and adequate agreement between the parties involved in the negotiations.
Case Analysis
First, when considering this case, it is necessary to analyze the economic fundamentals of both sides. These aspects include reservation values, BATNAs, targets, ZOPA, interests, and priorities. Reservation values imply the most minor point of the bidding procedure that participants can agree to. Thus, this indicator was appropriate in the negotiations under study since the artwork sellers were not satisfied with the proposed conditions. This aspect also affected the zone of possible agreement, which is determined at the stage of preparation for negotiations.
Consequently, the parties determined this economic fundamentalism in advance, which had to be announced during their interaction. In the preparation process, the interests and priorities of each of the stakeholders are also identified. For example, the owners of artwork assumed that the price they offered for the work would be met and their logo would be located. However, the creative agency prioritized the refusal to place identification marks and did not agree to a price that was too high.
Case Resolution
BATNA, or the best alternative to a negotiated agreement, is essential for negotiations involving an economic exchange between participants. The development of these aspects is an important step in the preparation process. That is, both sides should develop alternatives they can offer if there are problems with reaching a consensus. However, during the negotiations under the study, the participants disagreed, resulting in their termination. Thus, the “success” in the negotiation for me is finding the most beneficial solution for the parties that will most satisfy both of them. It is worth noting that this condition for the bargaining process also depends on how effectively each party solved the problems that arose and found alternatives.
Case Reflection
As noted, the negotiation process has the most practical value and influence on interaction outcomes. For me, the key stage is the collection of the necessary information. This process involves studying data and statistics about the art market and the price often offered for artworks. In addition, it includes the study of the legal aspects of the use of logos and the transfer of copyrights of the creators of the works.
The second key is acquiring information about the second participant in the negotiations. In other words, it implies understanding how a creative company works with other artists with which it cooperates. Equally important is the study of agency statistics, such as profit and competitive position in the market. These aspects provide an opportunity to gain the value that negotiations can bring and the benefits each party can have.
Areas for Improvement
The lack of transparency is the main obstacle to achieving a positive outcome in the negotiations. This is because the bargaining procedure’s most valuable component is information exchange. If participants conceal any valuable data or knowledge, trust in these participants is lost. Thus, conditions become a barrier to reaching a mutual agreement on the discussion. Thus, the thing I would do differently would be to gain more information about the creative agency and be more persuasive when obtaining the information I need. I believe that the use of advanced negotiation techniques could contribute to obtaining a different outcome; however, the problem depended on the honesty and openness of the second party.
During the negotiations, the creative company unexpectedly refused to place the artwork logo. This resulted from the fact that I expected full compliance with the copyright rules for the work. To better prepare for this circumstance, it would be possible to study similar cases that implied similar conditions of negotiations. In addition, it is necessary to independently identify which may appear for the greatest prevention of possible unexpected situations. This aspect depends on the other party’s motivations, objects, interests, priorities, and negotiation tactics. Further, directly in the negotiation process, listening as carefully as possible to what the second participant says and asking additional clarifying questions is necessary. By doing so, I may be able to identify the underlying concerns behind their unexpected approach or action.
In the event of an unexpected situation, it is necessary to maintain a calm state. Thus, the participant can make it clear that he is confident and prepared and can provide an answer to the difficulty that has arisen. Negotiation can be emotional, but it’s important to remain calm and composed. This can be helped by the skill of emotional intelligence, in which individuals are allowed to understand both their own and others’ feelings and motivations. It is possible to involve a third party to react most effectively to unexpected events. A skilled mediator can help facilitate communication and find common ground between both parties. In such a process as negotiations, compliance with these conditions will allow you to observe a favorable environment for making a satisfactory decision.
Conclusion
In conclusion, the negotiation process for the sponsorship of artwork included several vital aspects. One was economic fundamentalism, which must be considered in the preparation process. The most important bargaining or conflict management lesson from this exercise was gaining awareness of the importance of conducting research. In future negotiations, I will use this aspect to solve emerging problems and barriers more effectively. The problems that have arisen have become valuable lessons I can use in my activities.