Art of Negotiation - Research Paper Example

Art of Negotiation Table of Contents Introduction 3 1.Possible Approach in Negotiation 3 2.Preparation for Negotiation Considering the International Context 4 3.Strategies for Negotiation 6 3.a. Unwillingness to Engage in Face to Face Negotiations 7 3.b. Alternatives Available 7 4.Ethical Considerations in Negotiation 8 Conclusion 9 References 11 Introduction Based on the scenario provided, it can be seen that Matt has a potential entrepreneurial skill and thus established an Australian brand known as “Mr. Urban.” The sophisticated and the stylish designs of Matt have certainly leaded the brand to cover a niche market in a very short period of time. Moreover, Matt has certain objective of importing fabrics from Red Star Holding in China for availing better quality of the same. However, the negotiation could not be successful due to the lack of consensus regarding the cost and the timings of delivery of fabrics. Moreover, focus could also be laid on the fact that the fabrics are repellent in nature and hence, cause rashes to the users. However, there also exists another concern for Matt about the delay in any deal might result into bankruptcy. Contextually, the research paper intends to guide Matt about his respective business by elaborating varied negotiation theories and principles. 1. Possible Approach in Negotiation Matt, in order to develop his business in Australia, needs to avail quality supply of fabrics from Red Star Holding in China. The negotiation between the two is essential from the perspective of Matt, as the delay in the deal could cause bankruptcy. However, it is important to note that the fabrics used for the purpose of making shirts also cause rashers to the users. In this regard, there is a need for effective negotiation between the two parties. The effective negotiation would only occur if there is a collaborative approach between the two and hence, seeking for a win-win scenario for both. In this regard, the theory of Integrative Based Bargaining can be applied in the negotiation process between the two parties. By taking into concern this theory, Matt should focus on the goals of each party and hence, consider the negotiation. Matt should negotiate with Red Star Holding by ensuring that the later promises to deliver fabrics, which do not cause rashes to the users. This negotiation should be as such that it creates a win-win situation for both the parties. In this regard, Matt should promote the flow of information between the two parties and hence, understands the need of other party. This would lead towards emphasising the attainment of common objectives and the minimisation of any sort of difference prevailing between them (Chern, 2014; Shiring, 2012). 2. Preparation for Negotiation Considering the International Context In the course of considering the international context of engaging with business partners from China, it can be affirmed that it is essential to consider certain important factors before the negotiation round. This is similar in the case of Mr. Matt while negotiating with Red Star Holding. One of the major considerations in the negotiation process, which is advisable to Matt, is identifying the cultural differences. This can be justified with reference to the fact that the two involved parties belong to different countries and hence, certain cultural differences are deemed to be persisting. This cultural difference eventually causes barriers to negotiation process between the two parties at large. It is worth mentioning that such differences impose significant impact on the information exchange process, cognition, ethics, tactics and conflict resolution strategies. Hence, it is advisable to Matt that he should consider the cultural differences and negotiate accordingly. The cultural differences also lead to the differences in the ideology of the two parties of different nations. The ideological differences create distinctions in the ideas and the strategies of the two parties and hence, create barriers in the negotiation procedure (Muhlen, 2010; Starkey & et. al., 2010). Moreover, the political differences and the distinctions with respect to foreign government control and bureaucracy are also important to be taken into concern in the negotiation process. Furthermore, disparities in the legal policies also contribute towards causing barriers in the negotiation procedure. Hence, Matt should also be prepared with a firm knowledge regarding the legal policies of fabrics export persisting in China. It can be apparently observed in this similar context that varied international laws are readily accessible about trading of goods amid different nations. Hence, in order to have an effective negotiation with Red Star Holding, Matt should be prepared with the knowledge of such legal aspects. Further, Matt should also be prepared with the knowledge regarding foreign exchange and the currency fluctuation trend. The fluctuation in the exchange rate might cause a significant risk for Matt, as being an importer of fabrics from China. The exchange currency rate is also an essential factor to consider, as it determines the profitability of the two parties. Unfavourable currency exchange rate would not entertain any of the party to undergo with the deal. Hence, after the preparation of all these aspects regarding international negotiation, Matt needs to convey the same to Red Star Holdings. Consequently, this might lead towards a collaborative approach, which would find alignment with the notion of Integrative Business Bargaining as the negotiation strategy. It is anticipated that by taking into concern the aforesaid aspects, a win-win situation can be generated favouring both Mr. Matt and Red Star Holdings, considering all the essential aspects of negotiation (Muhlen, 2010; Starkey & et. al., 2010). 3. Strategies for Negotiation Matt, in order to undergo successful negotiation with Red Star Holding, needs to adapt certain strategies. In this similar concern, it is essential to consider that Matt belong to Australia, while Red Star Holding is from China. Thus, there exists a significant cultural difference between the two parties in the negotiation process. This cultural difference might significantly influence the decisions of Matt and Red Star Holdings to successfully undergo the negotiation procedure. The reason behind this is that the cultural differences might lead towards causing distinctions in the ideologies of the two parties, establishing different thoughts and ideas regarding the business process. Thus, based on the above notion, it can be affirmed that cultural considerations have significant impact on the choice of the two parties in the negotiation process. However, Matt should apply certain strategies in resolving issues regarding cultural differences that lead towards ineffective negotiation. The reason behind this is that the agents or the advisers might possess the adequate knowledge of the culture of China and hence, would be able to communicate effectively. Apart from this, Matt also has the option of bringing in a mediator, who would encourage him or his team to adopt the culture of the other party. Moreover, if Matt is moderately familiarised with the culture of China, then it is advisable that he should adapt to the approach of Ms Zhang. This approach might prove to be quite appealing to the other party, as this would make Matt to be more interested in the deal. Another such strategy will be formation of effective coordination and adjustment between the two parties involved in the deal process. This might be duly considered as a mutual attempt to resolve issues regarding cultural differences that acts as a barrier in the process of negotiation (Wheeler, 2013; Gates, 2011). 3.a. Unwillingness to Engage in Face to Face Negotiations Mr. Matt should also make an attempt to have a face to face negotiation with Ms Zhang. This would lead towards greater understanding of the appropriate reasons for the unwillingness of Ms Zhang about the contract. Moreover, it is important to note that face to face communication is the best method in this regard. Face to face communication leads to immediate feedback scope to each of the party involved in a contract. Moreover, this type of communication leads to resolving of several issues that are of severe concern for each of the party. Thus, it is the best method of communication and hence, Matt must consider in applying the same for an effective negotiation (Thompson, 2013). 3.b. Alternatives Available Mr. Matt has certain other alternatives for the purpose of successfully launching “Mr. Urban”, besides conducting an effective negotiation with Red Star Holdings. One of such alternatives can be duly considered as the search of other suppliers from China that would provide sophisticated quality of fabrics, resulting in sufficing the needs of Matt. The successful negotiation with the new party might bring positive outcomes for Matt and his business. Moreover, Matt, in order to launch his brand successfully must familiar with such countries wherein higher quality of fabrics is produced, which do not cause rashes to the users. It is worth mentioning that a successful negotiation by considering all the above stated aspects would lead towards successful launching of the brand (Fisher & Ury, 2012). 4. Ethical Considerations in Negotiation For any negotiation to be effective, it is essential that the involved parties consider certain ethical perspectives. It is quite important to note that certain aspects are deemed to be ethical in one country, but these might not be the same in other country. Thus, in undergoing any of the international negotiation, it is important that the negotiators must consider other country’s ethical concerns. There are several ethical concerns that arise in the process of negotiation between the two parties. One of such aspects that the organisations should consider is the use of deceptive tools. The deceptive tools used in the contract negotiation are often tends to be unethical in nature and hence, this leads to the situation wherein one of the parties suffers extensively from the negotiation. Hence, in the negotiation process, it is essential that Matt should undertake certain legal formalities in order to encounter the possible deceptive tools that might be undertaken by the other party. In this regard, it is also important that Matt should possess adequate knowledge of the legal policies that are related to international trading. Matt should have adequate knowledge of the legal policies of Australia and China as well. In addition, Matt should also remain much cautious regarding each and every aspect in the negotiation process, so that he might not get deceived by the other party. Moreover, it is also important to note that ethics in a contract enables maximum professional standards amid the partners and thus, lead towards mutual benefit (Aristotle, 2014; Shaw, 2010). It is worth mentioning that the formation and the maintenance of long-term partnership is beneficiary for both the partners, as this might lead towards greater sustainable development. Furthermore, ethical negotiation can also lead towards the development of a good brand image of “Mr Urban”, the brand of Mr. Matt, from the perspective of the stakeholders and most importantly the customers. This would further attract the customers towards the brand and thus, higher revenue can be earned through the business process. Furthermore, the establishment of an ethical negotiation might also lead towards raising employee motivation and hence, the overall performance of the personnel can be developed by a considerable extent. Thus, Matt should undertake proper consideration of the ethical aspects in the procedure of contract negotiation. This would enable the entrepreneur Matt to reap several significant benefits in terms of business (Aristotle, 2014; Shaw, 2010). Conclusion In the course of the study regarding the negotiation process by Matt for the success of his business, there have been several aspects being unfolded. Thus, in this context, it can be ascertained that the notion of Integrative Based Bargaining is the best method considered for negotiation. This is a collaborative approach and hence, creates a win–win situation for the involved parties. Moreover, in relation to the case of Matt, it can be ascertained that in the international process of negotiation, there is a need for consideration of cultural differences between the two parties. Apart from this, there also lays the requirement of considering varied political aspects, currency exchange rates and fluctuations among others. Hence, in order to remove cultural barriers or disparities, it is important to develop communication and thus, face to face communication can be duly considered as one of the best approaches in relation to the above context. Furthermore, in a negotiation process, it is also essential to consider varied ethical aspects, which would lead towards the establishment of a successful negotiation. In conclusion, it can be affirmed that Matt has certain other alternatives apart from undergoing through negotiation based on which he can launch its brand in the respective business markets effectively. In this regard, one of such alternatives includes working with numerous suppliers who possess greater understanding about varied cultures and the business or operational procedures. References Aristotle, 2014. Nicomachean Ethics. Hackett Publishing. Chern, C., 2014. The Commercial Mediator's Handbook. CRC Press. Fisher, R. & Ury, W., 2012. Getting to Yes: Negotiating an Agreement Without Giving in. Random House. Gates, S., 2011. The Negotiation Book: Your Definitive Guide to Successful Negotiating. John Wiley & Sons. Muhlen, A., 2010. International Negotiations: Confrontation, Competition, Cooperation with Many Intercultural Facts and Case Studies. LIT Verlag Munster. Shaw, W., 2010. Cengage Advantage Books: Business Ethics: A Textbook with Cases. Cengage Learning. Shiring, S., 2012. Professional Catering. Cengage Learning. Starkey, B. & et. al., 2010. International Negotiation in a Complex World. Rowman & Littlefield. Thompson, L., 2013. The Truth about Negotiations. FT Press. Wheeler, M., 2013. The Art of Negotiation: How to Improvise Agreement in a Chaotic World. Simon and Schuster. Read More