15 Oct The styles of business negotiation

Posted at 18:51h in Business, E-commerce, Managment by
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Negotiation is a process between two or more parties in which they try to find a common basis and reach an agreement to satisfy the needs of each other.

The goal of each party in a negotiation is to get as much as possible. Hence, the importance of applying the most appropriate negotiation strategy to the circumstances that are being presented.

Here there are some of the styles and techniques most used in the business environment:

Immediate Negotiation: It is done when you want to get the agreement as soon as possible, urgently. It is normally given in a sale-purchase process.

Progressive negotiation: In this negotiation, the personal relationship is taken into consideration. It is important to have an atmosphere of trust where positions gradually come closer together, before becoming fully involved in the negotiation. For example, with suppliers or distributors.

Situational Negotiation: The company adapts to the circumstances. For this negotiation, it is relevant to know in detail the situation of the other company, its strengths, and weaknesses. Also, use the technique that best suits the style of the company.

Negotiation techniques for conflict solutions

 

Accommodative negotiation: “the best in the long term”: The company you want to negotiate with having a conciliatory stance in trying to reach an agreement. Their characteristics are:

    • You get the trust of the other party to establish a relationship in the future.
    • Both are supported as a way of solving conflict situations.
    • It should only be adopted on time so as not to convey an image of weakness.

 

Competitive negotiation: “yes or yes is winning”: The negotiator seeks victory, to obtain the greatest possible benefit. This process usually has the following characteristics:

    • It is an aggressive negotiating process.
    • There is no personal relationship between the parties.
    • They are specific negotiations, which are rarely repeated.

 

Collaborative negotiation: “both parts benefit”: In this type of negotiation, the result is directly proportional to the profit or profit. Both companies cooperate with the parties. The parties show assertive behavior: defend their rights and respect those of others.

Distributive negotiation: “the most traditional”: In this negotiation, both parties are in open competition because they seek the greatest possible benefit from a limited resource:

    • What one gains, the other loses.
    • Strategy and tactics are important.

 

Avoidance negotiation: “non-negotiation”: The parties are aware that any agreement will backfire on them and will not compensate for the problems it causes.

    • The resort to avoidance occurs when there is more to lose than gain from the agreement.
    • The parties know that they will not get anything out of a pact.
    • There are better alternatives to no agreement.

 

References

LABORAL Kutxa. (2020, Septiembre 10). Los estilos de negociación más eficaces para tu empresa. Blog, banca para empresas. https://www.bancaparaempresas.com/te-interesa/los-estilos-negociacion-mas-eficaces-empresa/