Summary
The basis of this analysis was the negotiations that were conducted with the writer and the book publication. The main task of this process was the sale of printed and electronic rights to distribute my book. Consequently, the prominent participants in the negotiations were the writer, me, and the representative of the book publication. The purpose of the meeting was to come to a general agreement that would satisfy both parties as much as possible. Initially, my goal was to receive half of the profits from the sale of my book, and the publisher set himself the task of acquiring 65% of all sales revenue. During the negotiations, the parties came to a mutual decision that I, as a writer, would receive 40% of the sales of my book, and the publisher would receive 60%, respectively. This consensus was adopted by calculating the price matrix and the zone of possible agreement (Macy, 2021). This analysis provided an opportunity to test all possible interest rates for each party and determine in which area they overlap with each other.
Another key aspect of the preparation process was the answer to the seven fundamental questions of the negotiations. This procedure made it possible to clearly understand such aspects as what is expected of the process, what decision is expected from the second participant, and the value that the future negotiation will create. In addition, these issues concern areas such as the criteria and characteristics of why the other party should work with me, alternatives that would be acceptable, possible commitments, and communication strategy for the negotiation. Along with this information, it was necessary to determine the best alternative to a negotiated agreement, where I was willing to accept a 45% profit. This amount was a threshold for accepting the agreement but not the desired one for the publisher. Thus, good preparation allowed for conducting the information-sharing phase productively. Both participants knew the conditions of all parties, expected conditions and outcomes, and the necessary analytical research on the publishing market was conducted. Emotional intelligence has played a role in controlling the climate of the negotiation process (PĂ©rez-Yus et al., 2020). The next step is a more detailed examination of the process under study in order to isolate the most valuable insight.
Structural Components of the Negotiation Event
When conducting negotiations, the final stage or resolution is crucial. This stage implies an assessment and analysis of the negotiated outcome and the entire process that took place between the parties involved (What is the importance of negotiation? n.d.). Moreover, studying the final stage of negotiations provides an opportunity to gain awareness about one’s authentic self in the negotiation process, certain behaviors necessary in such cases, and the most valuable negotiation tools. Therefore, when conducting negotiations, it is necessary to consider each of their stages since each can provide insight to isolate essential lessons.
Structural components occupy a special place in the negotiation process. One of them is the venue for negotiations. The discussion of the future transaction regarding the sale of copyright to the book took place on neutral territory, in a specialized office space of the business center. This choice was due to the fact that holding negotiations directly in the publishing office could give the second participant an advantage. The representative of the publication could feel more comfortable and offer conditions to which I could not agree or would make concessions that would not satisfy my wishes regarding the outcome of the transaction.
The negotiations took about three to four hours, which is quite a small amount of time. During this time, each of the participants had the opportunity to speak about the desired results of the negotiations and possible areas of disagreement and consult with other parties regarding the final decision (What is the importance of negotiation? n.d.). It is worth noting that two people directly participated in the process, but they resorted to the help of third parties. This time has made quite an immense contribution to the development of negotiations since the pre-designated time frame contributed to a more precise and straight-to-the-point procedure for information exchange.
One of the aspects that I may have changed when negotiating in the future is the benefits-sharing strategy for each party. Thus, the negotiation would resort to using integrative negotiations when a common value through mutually beneficial trades is formed and the best agreement for both parties is reached (De Janasz et al., 2021). In other words, I would have invested more in the necessary market research and other similar negotiations, which included the sale of the rights to publish the book. This action would help me better understand what percentage I should expect from the publisher and not rely on my own ideas about how negotiations should end. Moreover, changing this aspect will also help to limit the possible conflict between other participants and me since everyone will take part in negotiations with sober and balanced expectations.
Analysis of the Negotiation Process
The negotiations began with the designation of the initial positions and wishes of the participants. On my part, as a copyright seller, the initial desire was to receive half of the profit from all sales. I felt confident because my work could have significant success in the market. This circumstance was also facilitated by conducting an analysis of the book market, which included studying the preferences of the audience and the popularity of books of the genre I chose. The initial position of the representative of the publishing house was to receive 65 percent of the profit, that is, to provide me with 35 percent. This was due to the need to pay for such costs as printing a book, salaries for employees, marketing, and payment for publication in online sources. It can be said that the second participant also had a reasonably confident position, as he had extensive experience in negotiations on the purchase and sale of copyrights.
The highlighted interests and the best alternative to a negotiated agreement (BATNA) played a significant role. Pinkley et al. (2019) stated that “negotiators with valuable BATNAs set more ambitious goals (higher aspirations and extreme bottom lines), and they make and receive more advantageous first offers than do their poor BATNA counterparts” (p. 35). Therefore, I carefully prepared myself before conducting the negotiation process. I was willing to accept a 45 percent profit, and if these terms were not satisfactory to the publisher, I would not make the deal. This decision was made at the expense of the fact that there were other publishers who might have agreed to a higher percentage. They could not provide other privileges and benefits that the selected publisher had. That is why the BATNA set by me contributed to the choice of the second party to the negotiations and the final solution of this procedure. For the publisher, the percentage I proposed was the threshold for accepting the agreement, but not the desired one due to the need to pay for the work of employees and the costs associated with the sale of the book.
The statement of interests also played an essential role in obtaining the final outcomes of negotiations. Correctly set guidelines contribute to a smoother process since each of the parties will adhere to the set results of the negotiations. I was interested in getting the most significant percentage of the profits, as the book could be a significant success. The same can be said about the publisher, who set himself the goal of getting the best percentage for himself. At the same time, a valuable aspect that minimized stress and conflict situations was that both sides of the negotiations were interested in a neutral decision-making process and were ready for some changes in the contract.
The leading element in the negotiations was the definition of cultural and communication elements. This aspect implied the definition of the nature of this process. Henceforth, it was the building of a relationship with the publisher that led to long-term cooperation. This element of the negotiation culture had a positive impact on communication, as it helped to avoid misunderstandings and conflicts that could contribute to the termination of interaction with the publisher.
During the negotiations, the only problem was determining the interest rate that would satisfy both the writer and the publisher. This was because the initial position of 50 percent was highly unprofitable for the publisher because it did not fit into BATNA. Because of this, there was a certain level of tension, as both sides were counting on a faster completion. This problem was addressed by developing the price matrix and determining the zone of a possible agreement. Both parties have carefully studied these aspects and weighed all possible alternatives to the distribution of interest from the sale. Thus, a mutual decision was made, which satisfied both the writer and the publisher.
These factors also had a positive impact on building the climate during the negotiations. The procedure was kept at a positive level in order to achieve the most satisfactory outcome. This also allowed for finding more creative solutions to the problem, conducting more effective communication and innovative negotiations (PĂ©rez-Yus et al. 2020). Other aspects that contributed to the improvement of the climate were a good level of self-awareness and self-regulation of both participants in the negotiations. These qualities allowed controlling emotions that could interfere with negotiations and contributed to a more substantial exchange of information.
During the negotiations, various strategies and tactics were applied, which allowed for achieving a satisfactory result for each of the participants. An essential component of this process was the determination that the purpose of this procedure was to gain value, not gain (Gates, 2022). Therefore, both sides applied a communicative strategy that implied the mandatory sharing of information and immediate statements of possible dissatisfactions. It is worth noting that no countermeasures were evident, which could significantly affect the conduct of negotiations. Moreover, there was no need for these steps since the negotiations were smooth and positive.
These negotiations have become a good lesson for me, which I can effectively apply in the future. The aspect that I would change in future negotiations regarding the approach to problem-solving would be better prepared. In other words, I would instead explore various strategies and measures that can contribute to creating more value in the negotiation process. Thus, I learned that the preparation process should include not only the study of the market and the second side but also the various tactics and approaches used during the bargaining process.
Description of the Final Outcome of the Negotiation
The negotiations ended with the fact that I, as a writer, would receive 40 percent of the profit; therefore, the publisher would receive 60 percent. This agreement is in the zone of a possible agreement for both parties, which proves its effectiveness. Moreover, the price matrix showed that this percentage ratio between the publisher and the writer is also favorable for both. However, in order to gain a better understanding of why this particular decision became the final one, it is crucial to consider the other outcomes of the negotiations.
Initially, both sides provided elections that would satisfy their interests. For me, it was splitting the revenue from sales in half, and for the publisher, getting 65 percent was satisfactory. The final solution was to split the interest rate of 40 percent for me and 60 for the writer. It can be said that this was a win for both parties to the negotiations since these measures were in the zone of possible agreement (Halton, 2021). The definition of this aspect was facilitated by the study of the market and trends in sales of book products (Macy, 2021; McZell, 2023). Thus, both private negotiators came to a mutual decision and the creation of value in this process.
It is worth noting that during the bargaining procedure, other outcomes that could change each party’s assessment of the negotiated settlement were possible. Therefore, it was important for the publisher to receive a more significant percentage of the profit due to the financial costs associated with the publication of the book. Despite the fact that 60 percent satisfied this participant, it was possible to increase this percentage since 40 percent is quite a big bet for a writer. However, an understanding of the value and prospects for the potential success of the writer’s book contributed to an upbeat assessment of the proposed settlement.
Negotiation Case Study Learning Experience
I believe that I have conducted quite productive negotiations and can assess myself as an effective strategic negotiator. However, this does not mean that I do not have areas that can be improved. This is due to the fact that negotiations within the selected scenario are simple for implementation. For this reason, I need to develop the skills that may be required to conduct a larger-scale bargaining process involving a more significant number of participants and possible outcomes. For example, I want to learn how to hold power better when negotiating. This feature implies having control over resources in the bargaining process (Barry et al., 2019). Thus, it will be my responsibility to conduct extensive research in preparation for the following similar procedure in the future. This action will allow us to better understand at which stages of negotiations it is better to use the acquired skills.
The main changes after the negotiations were gaining more confidence and a sense of my authentic self. I learned to understand myself better and use the capabilities of emotional intelligence. This quality provides an opportunity to determine the emotional state of the opposite party (PĂ©rez-Yus et al., 2020). In addition, it will contribute to greater self-awareness, with which it is possible to derive valuable lessons for future negotiations. The primary tool that I have gained is the ability to build a correct and consistent strategy for conducting negotiations. Hence, the most important of them was the definition of BATNA, price matrix, and zone of possible agreement (Barry et al., 2014). I realized that for me, the most effective is a communicative approach, which implies expressing all concerns about potential results or terms of the agreement.
References
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