Three aspects of negotiation
...tion environment, the negotiation setting is somewhat under the control of the parties involved in the negotiation. The negotiation setting includes: the relative bargaining power of the negotiating parties, the levels of conflict involved in the negotiation, the relationship between the negotiators, the anticipated outcome of the negotiation, and the style of the negotiations. Those negotiations that seem to commence and move forward with little conflict are those negotiations in which the parties involved have a positive working relationship. When working together in a positive relationship, both parties are able to propose solutions that will satisfy the needs of both parties and lead to a win-win situation for all involved in the negotiation process. When negotiating occurs globally, a positive setting can expedite the negotiating process between parties. Negotiation Process The negotiation process involves several different phases, these phases are: pre-negotiation planning, initiating negotiation, negotiating price, closing the deal, and renegotiation. When negotiating globally corporations need to invest in resources that will allow for better understanding of foreign company business practices. Corporations need to be seen as credible by the opposing party, research into foreign culture can aide an organization in obtaining such credibility. Corporations that have previous win-win negotiations with a foreign company are also often seen as having credibility, this may help said organization in the pre-negotiation phase. Initiating negotiation and negotiating price is also easier when there is a precedent set by a previous favorable negotiation. As stated in the list of negotiation phases, negotiation between two parties is often never completely finalized, as parties often wish to revisit agreements to renegotiate terms that may have initially been overlooked. Negotiation Infrastructure The negotiation infrastructure consists of two parts, one, the current status of the company, and, two, establishing the BATNA, or best alternative to a negotiated agreement. Before a negotiation begins, the negotiation infrastructure should be put in place (Cellich & Jain, 2004, p. 19). A SWOT (strengths, weaknesses, opportunities, and threats) analysis is often used to examine the current status of an organization. After examining the current status of their own organization, negotiators are better prepared to enter into negotiations with a second party. Negotiators can use strengths t...