Negotiation

Negotiation is a very important skill in the business field. Apart from knowledge and understanding of the market and the other party, negotiators should be prepared for a psychological game. This article will discuss what steps a company should take if it is trying to be international and wants to negotiate with a potential partner in an overseas country.

1. Planning

When preparing for the negotiation, a company should first establish the goals it wants to achieve and be fully prepared to form a BATNA. It must identify itself and the other party as well as the location of both to understand, for example, the position of the two sides, both of their advantages, disadvantages, and the cultural differences, etc. Also, to study what strategies the other party may use and what approaches it is suitable for and how to react when the opposite side raises an undesirable condition, and to establish its bottom line of concession. To decide on other issues such as if a company should establish an anchoring bias by raising the first offer or the order of topics to be discussed during the negotiation.

2. Interpersonal Relationship Building

After analyzing and planning, the second stage is to get to know the people on the opposite side. Besides understanding the cultural differences, it is more important to know the people themselves, because it may create stereotypes if it rushes into a conclusion. In the process of communication, constantly analyze the behavior and words of the other party and establish a trustworthy and stable relationship. Be patient, show cultural quality and adopt negotiation strategies suitable for the host country’s environment.

3. [bookmark: OLE_LINK1]Exchanging Task-Related Information

After interpersonal relationship building, the third step is that each group sets forth its position on the critical issues. At this stage, negotiators should focus not only on presenting their situation and needs but also on showing an understanding of their opponents’ viewpoint, which helps them find out what the other party wants to attain and what it is willing to give up. Meanwhile, focusing on the entire situation confronting each party is also important at this point, it encourages the negotiators to assess a wider range of alternatives for resolution, rather than limiting themselves to their preconceived, static positions.

4. Persuasion

Persuasion is the hardest bragging stage in the negotiation process. Typically, both parties try to persuade the other to accept more of their position and to give up some of their own, but each knows that without giving some concessions, it is unlikely to reach a final agreement. According to the textbook, the success of the persuasion step often depends on (1) how well the parties understand each other’s position; (2) the ability of each to identify areas of similarity and difference; (3) the ability to create new options; and (4) the willingness to work toward a solution that allows all parties to walk away feeling they have achieved their objectives. International managers usually find that this process of bargaining and making concessions is fraught with difficulties because of the different uses and interpretations of verbal and nonverbal behaviors. Although variations in such behaviors influence every stage of the negotiation process, they can play a particularly powerful role in persuasion,