Case Study on Rules of Negotiation

CASE STUDY: RULES OF NEGOTIATION


Part A: Summary

Negotiations plays a very significant role in any business that is conducted between two or more parties or firms. Negotiations help the parties to get the best outcome in terms of quality and quantity. It also provides them with an opportunity to make the deal as economic as possible. We are going to analyse and understand 15 rules of negotiation.
The first rule helps to understand the fact that almost anything and everything can be negotiated. One should not only focus on one particular issue while negotiating, but at the same time, he must have a broad vision about the other possible issues that are to be negotiated. After observing various issues, one can develop and guide the other parties in the deal as well as carry negotiation as per the issues that he wants to deal in.
The second rule contains having a clear vision and this would help the deal to be cracked as per one’s will and requirements. One must have the ability to visualize the outcome of the deal and this will help him to negotiate accordingly with the counterparts in the negotiation.
The third involves getting as much information and in-depth knowledge of the terms that are going to be used in the negotiation from one’s side. One should also know the importance and value of the things that he is going to negotiate with the parties.
In the fourth rule, there is a clear provision to be made for asking questions on topics that one does not understand and in order to understand the needs of the other parties. One has to be clear about the understanding that he develops from the counterparts in the negotiation.
The fifth rule is an important one and it focusses on the power of listening. One has to be a good listener in the deal because this motivates the other person while he is trying to communicate something while putting forward his point in the negotiation.
In the sixth rule, one has to develop an estimation of the level of acceptance that would be appropriate from his point of view in the negotiation. This will give a limit of the acceptance that one has to observe in his negotiations.
The seventh rule inculcates the feeling of aspiring high in terms of goals and ambitions that are to be set up while carrying the negotiations. This will help to estimate the outcome in terms of one’s will power and firmness. The aim of the individual should be high while carrying negotiation with the counterpart and observe that the results are achieved as planned by the individual.
Eight rule displays that there has to be various alternatives from the individual that have the potential of proposing an adaptable strategy from the negotiating point of view between the parties. The individual should possess various strategies at the back of her mind while negotiating with the counterparts in the deal.
In the ninth rule, it is proposed that one should be highly adaptable in terms of development of strategies with respect to the counterparts in the negotiation. This is described by providing an example of dolphin where it can adapt itself in the sea that consists of sharks and carps. One should be flexible in understanding the needs of the counterparts so as to develop strategies in the negotiations.
The tenth rule emphasizes on being honest as well as fair enough while carrying the negotiations. This will help to maintain a good relationship with the counterparts and also helps to gain their trust in the negotiation. The concept of honesty is felt by the counterparts during the negotiations while developing their point and this principles will not go neglected and unseen by the counterparts.
In the eleventh rule, the author states to be firm by not accepting the first offer that is made by the counterparts in the negotiation. This might be a trap by the counterparts to check if the party actually knows what he wants in the negotiation.
In the twelfth rule, one has to observe firmness and strength of opinion from the negotiations point of view. The counterparts should not feel that during the negotiation the other person does not have a firm hold on the requirements that he wants from the negotiation. One has to be strong in the power of decision over what he needs to choose from the things that are provided during the negotiations from the counterparts.
In the thirteenth rule, one has to analyse slowly and understand the needs of the party or the counterparts in the negotiation. One should not provide concessions too easily which ensures that the counterpart does not take it for granted. This makes sure that the concessions are not very often asked by the parties in the negotiations.
Fourteenth rule involves developing a friendly attitude in the negotiation without losing one’s focus of the subject. One also has to be cooperative enough to give other counterparts a chance to put forward their point in the negotiation and feel that they are not neglected and neither is their opinion. One should not be aggressive or rude while expressing his point of view to the counterparts in the negotiation.
In the fifteenth rule, the influence that the competition has on the counterparts while carrying out the negotiations is to be considered. It will to help to understand its power and the counterparts will provide more number of concessions that it has planned earlier in order to sustain themselves in the cut throat competitive field and ensure that they have got the deal even after making so many adjustments from their side.
These are the rules of negotiation that one has to observe and understand while carrying a negotiation with the counterparts. These also supports the concept of understanding the behaviours of the counterparts in the negotiation. Along with the consideration of the rules of negotiation, they also have to develop an in depth knowledge of the points regarding the deal that an individual is going to be carried out in the negotiations with the counterparts.

Part B

1) There were few mistakes made from both the sides, from the commercial as well as project manager. There were few rules of negotiation that were broken and not understood by the characters in the scenario.
The project manager should not have been frustrated at the pints that were put forth by the commercial manager in front of the suppliers while explain in the different risks that he undertook in performing various tasks. The commercial manager had not discussed complete matter from the supplier’s point of view with the project manager. This breaks the third rule which involved preparing and planning things in advance. At the same time, there was breaking of the second rule too, which involved a clear vision from the outcome point of view from both the managers especially the project managers. They also missed on the 14th rule where they were supposed to be cooperative and friendly with their counterparts, whereas here they were having clashes within their views while negotiating with the suppliers about their demands and risks. There was no understanding and bonding among the commercial and project managers in terms of their tasks and risks that they took while developing the tasks and then negotiating about them with the suppliers.
There should have been a proper understanding and clear communication among the two managers while developing their point which was to be put forth against the argument that was to be made with the supplier.

2) The customer and the supplier were not having a clear understanding of the points that were to be mentioned at the time of design by the two parties while carrying the deal.
In this situation there is a violation of the second rule of negotiation where there has to be clarity among the vision that the party wants from the other parties involved in the negotiation. The supplier and the customer did not have the clarity about the product where the customer was not satisfied with the design that was provided by the suppliers. Suppliers from their side, thought that they had done their bit in designing the product and it was as per the requirements mentioned by the customers. He also described that the changes that were demanded by the customers required expertise and were extremely complicated from the design point of view. There is also breakage of the 9th rule in the development of design between the supplier and the customers. They were not at all flexible from the suppliers side to involve the needs of the customers in their design and at the same time customers were also supposed to have feature of adaptability while accepting the deal from the suppliers about the design of the product. From the supplier point of view, there was not proper understanding of the needs of the customers and this violates the 13th rule of negotiation which involves proper understanding of the client’s needs.

3) The companies were struggling and striving hard to get the job that involved getting greater work, higher volume of effort and at the same time greater price from their side. The lead company had to observe these criteria in the meeting that was going to be held between the four companies.
Firstly, the absence of the project manager in the meeting that was set up for preparing and planning for the negotiations that was going to be held between the four companies. This violates the 3rd rule of negotiation which involves considering the needs of the counterparts in advance and developing strategies for the negotiations with the other companies. There was observed as the project manager was not involved in the preparatory meeting that was done for the negotiations. The lead negotiator was not having a clearance of his goals and arguments with reference to the project manager. This violates the 2nd rule of negotiation where the vision of the same members have to be on the same line and lead to a similar outcome by following the same pattern of arguments. However, there was a huge problem in the management where there is a lack of synchronization between the lead negotiator and the project manager. These serves to be the major loophole in the negotiation that was provided by the company which actually depicts the lack of communication among the team members.
4) This involves a case where there is a negotiation between the supplier’s team and the customer. Customer wanted to place an order for an electronic equipment and at the same time they did not have clearance of the requirements from their side.
The supplier is found to have an advantage over the customers in negotiating the deal with the customers and resulting in either extension of the delivery date or asking for a bonus if it is to be completed on time. The suppliers from their side involving the project manager and the commercial manager would involve following of the 6th rule which involves setting up of goals for individual deal points. This was not carried by them and this led them in a critical situation where the customer asked for a delivery plan as per his wish and the supplier agreed to that without negotiating on that. There is also violation of 8th rule which involves developing alternate strategies to the customer’s demands. This is observed from the negotiating point of view from the suppliers where they are found to be having no potential alternate strategy to answer the demands of the customers. Also there is a breaching of the 12th rule of negotiation, where the parties in the negotiation were supposed to have strength of opinions which is not found from the supplier’s point of view.

Conclusion:
The rules of negotiation which were observed in the article and were applied on the case study provided in the coursework. We have use d the rules of negotiation were found to be violated in different ways which has been described above. This will also help in better understanding of the negotiation concept.

Skills

Posted on

March 9, 2018

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