Assignment

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NEGOTIATION

Part I

Introduction

I work as a chief negotiator for Safy (fictitious) Company. Safy Company is a well-known Global Company that started in American and has diversely spread in many other nations across the globe. Safy has expanded in cultures such as Canada, Australia, Costa Rica, Japan, Guan, Netherlands, Germany, France, Sweden, UK, Switzerland, Australia, Belgium, Brazil, Singapore, Spain, Taiwan, South Korea, Zambia, Morocco, and Saudi Arabia, among others. Safy produces powered soap and has been successful for offering these services to their clients. The company has realized the strength and opportunity of going global to the culture of China. China has companies that offers powered soap but there is an opportunity of competition since most people in the country complain regarding the kind of services offered by these companies. In China, there is a small growing company known as Qīngjié Company (fictitious) that deals with production of liquid soap, the organization has been successful and is doing well in liquid soap production. However, Safy is looking forward to negotiating with the organization to start producing powered soup instead.

Background

Safy Company is that is known for its best detergents. It offers all types of detergents however it only offers the powered detergents. One of the reasons it has risen to the top is the fact that the company only deals with one line of the product and avoids being in confusion by joining other industries. This company has spent most of their time trying to come up with relevant powered soap that will be effective and efficient to their customers. The company has the best stain remover element that also work in the washing machine for whitening clothes. The company has grown over years for the best services they offer to their clients. The organization has been advancing globally and, in every nation, it has assimilated with, it has shown success and a positive advancement. The products offered by Safy Company guarantees to get rid of stains whereby the stains can be removed with only one wash. Safy holds a good market share across the globe (Stevens et al., 2018).

On the other hand, Qīngjié is an upcoming liquid producer company that is known to offer liquid soup to their client on time. Qīngjié means clean and that was the main reason they gave the name to the Company. The organization has been doing well and is diversely expanding in a way that it is productive successful for the few years it has been in the market. It has posted threats to the existing companies in the region since it is rising with a huge impact. The company began 5years ago but has established a strong foundation and connection with their customers. The company producing the washing liquid soap as well as for the utensil use. Their soap is preferred since it has no side effects and does not affect the hands. However, the company has not yet expanded enough to accommodate more advancement. It is a local company that has no plans of going global.

Demographic

Currently, Safy has a huge market share across the globe. The Company has dealt with diverse population. The company produces powdered soap for so many countries that it has based itself in. the company is widely accepted by a huge population for the good products and services it gives to their clients. It is a leading company for powdered detergents. Currently in America it serves over three million people who buy the products. Dealing with many people explain that the product offered by this company are real and available products, most of the people prefer using Safy since it can be utilized to wash clothes that have small cycle. The powdered soap has been success for quick wash cycles. There are diverse collections of this soap such as there is the biological product that is mostly used to wash the heavy winter wools and the light summer clothes. The soap help clothes to maintain their initial color without decolorizing which explain why it is preferred by wide range of people. As people continue to adopt the use of washing machine, the use of aerial becomes relevant since the powdered soap is relevant to be used along with the washing machine (Stevens et al., 2018).

Qīngjié in China is a growing company that have not yet reached a great population since it is just beginning. The company has reached around 200,000 people in the last five years which shows that it has grown at a faster rate and an impressive way. However, most of the population prefer using the powder soap other than the liquid soap. This was confirmed by a research carried out the past months. After carrying out a research it was evident that 60% of the Chinese have their own washing machine posting the need of utilizing powdered soap. Qīngjié has not expanded around China yet and the best opportunity might to grow along with the Safy products.

Setting of the negotiation

As the chief negotiator of Safy Company, I will meet with the chief negotiator of Qīngjié Company. I will call the chief negotiator to our initial culture where we opened our first firm and take them round the company before presenting my interest to them. My main job is to convince the chief negotiator and his team that switching to the powdered detergent and discontinuing the liquid soap product would be beneficial and profitable. I personally believe that we believe by seeing and hearing about what we are seeing. Taking the chief negotiator of Qīngjié around our company will be a way of controlling his mindset to the need of expansion. The American organization is large and very productive and if in case there is a chance of expanding or transforming the company culture to accommodate our products, it can only be done best by setting the negotiation platform in our company where we can offer relevant proof(Stevens et al., 2018).

However, this negotiation will take place after visiting their firm and inviting them to our firm weeks later. Visiting their firm will give me enough information that I will need for the negotiation to take place (Stevens et al., 2018). I will present the interest of negotiation at their firm but will not settle for the negotiation on the same day, I will prepare the negotiation after I already know their strengths, weaknesses, opportunities and threats and use them to my own advantage during our negotiation. For a growing company the negotiation process will not be easy since they believe that there is a huge probability of them expanding by themselves and hence that will post a huge challenge, but doing a lot of preparation for the negotiation day will give us ideas on how to win them to our side.

Part II

Negotiation skills

As the chief negotiator of Safy Company I will incorporate several skills during the negotiation process so that I can manage to win the China Company to lure them to work with us. Some of the skills that I will use to win my opponent are.

i. Communication: as the chief negotiator I need to have all the required information concerning the goal of the negotiation, the place of negotiation and the need of the negotiation. I will present my opponent will evidence of information concerning our Company position alongside with their position and the need of them joining us or working with us. Negotiation is not easy but having the relevant communication skill is important, I will actively present my point and ensure that I maintain respect during my presentation (Moore, 2017). I will ensure that my communication is clear and fully understood by the other negotiator. The other thing I will practice is active listening, I will listen keenly on the questions presented by our negotiator and respond to each question in a wise manner.

ii. Persuasion: the main aim of this negotiation is to endure that the chief negotiator of the China Company agrees with my plan on working with powdered soap other than the liquid soap. To ensure that the negotiator agrees with me I will use the research that I have carried out on the company and the calculations that I foresee if the company agrees to operate with our company towards the introduction of powder and disposal of the liquid product (Stevens et al., 2018).

iii. Planning: The best strategy to handle a negotiation of this type is doing a lot of planning. Personally, I will plan on ways of answering the questions asked. I will analyze any pitfall that the negotiator might present and learn how to address the issue. As a negotiator, I will carry out a plan that will strategize to the other negotiator on the expectations if they decide to offer products from our company. Having the relevant global knowledge, I will extend the knowledge to the negotiator to encourage them to negotiate.

iv. Building rapport: I will do this through presenting the ideas and the needs that the China Company has and how the negotiation is willing to help them achieve their target goals and objectives over a short period of time without receiving any losses

Qīngjié chief negotiator skills

The chief negotiator form Qīngjié is expected to have the following negotiation skills

i. Active listening: since the negotiation is based on buying out Qīngjié to stop selling their liquid soap and start selling the Safy powdered soap, the chief negotiator from this company will do a lot of active listening and thing notes. The chief negotiator will do this to realize the advantages and the disadvantage of this proposal. The negotiator will want to listen keenly so that he or she might be able to bargain the negotiation on their own terms if possible.

ii. Probing questions: after doing too much of listening to my proposal, the chief negotiator will probe a lot of questions so that he or she can have a deeper understanding of the offer (Isbouts et al., 2019). Since the chief negotiator will present the whole firm, they will make sure that their negotiation is fruitful and in case there is anything that he or she doubts, they might ask for a contingent contract (Isbouts et al., 2019).

iii. Contingent contract: the chief negotiator might also present a contingency contact that will act as security just in case the contract by the Safy Company does not go well there are conditions that they will have to follow to ensure that they have gone back to their initial position without their intervention (Isbouts et al., 2019).

iv. Play reluctant: the opponent will play reluctant to settling the negotiation with my terms and hence might be reluctant to agree or will involve further negotiator to help them make final decision. The negotiator will offer their own terms before accepting the offer.

It is important to understand the component negotiation skills so that as the chief negotiator one can be able to defend themselves and the company (Isbouts et al., 2019). Understanding the chief negotiator negotiation skills will assist one prepare and plan for the meeting prior before the meeting, one will have all the relevant responses on the finger tips to ensure all questions are addressed, one will have confidence when addressing the meeting, I will be easy to present views since the reaction from the negotiator was planned for.

Cultural expectations and leadership skills

The leadership skills expected from both parties will incorporate win spirit, decision making, integrity, awareness, innovation, and communication. The chief negotiators are leaders and there is some expectation of leadership that should be depicted through them. They are needed to be decisive; this means that they should know how to make decision. It is expected from both negotiators the ability to present integrity (Isbouts et al., 2019). Leaders are smart and as leaders, the negotiator should carry out the negotiation with respect for both companies (Johnson et al., 2017). The negotiators are expected to be innovated such that they know how to bring out the best with what they have, the knowledge of cultivating more will be effective in the meeting. The leaders should be fluent and use proper language such that it is easy for them to discuss the most relevant issues amid them. The chief negotiators should present cultural awareness such that they understand the country and the needs of the society they are dealing with (Isbouts et al., 2019).

These leadership skills could be a little diverse when it does not involve negotiation. When it involves negotiation there will be no needs of skills such as delegation of duties, motivation, management, and control (Gardner, 2018). The only leadership skills required during negotiations are the skills that are connected to persuasion and the need to improve or defend a side. Motivation can be used on both sides but will not be of great importance during the negotiation meeting. When negotiators meet, they need to show their leadership ability to bring success or to share success with the other team. The main aim of negotiation is either to come up with an agreement or to win the opponent and in our case, we aim at winning the opponent to produce our powdered soap.

Communication style

The best communication style in the process of negotiation is the assertive form of communication. To effectively and efficiently communicate, it is important to use the assertive form of communication. Assertive form of communication is a type of communication that involves open link communication where one can easily express their own needs feelings, ideas, and desires. The assertive communication aims at both side winning and being satisfied with the final solution.

Part III

The major metrics to check the success of a negotiation is focusing on four major areas which include: efficiency, durability, and economic success and relationship reputations.

i. Efficiency: This will involve evaluating the degree to which the advantages of the agreement have wholly been maximized for all the negotiation parties. If the result ends after the both parties achieving the best gain from the negotiation, then it shows that both parties have succeeded not only an individual party. In case the agreement leaves one party satisfied, then the negotiation is open for further improvement. “By adopting a global perspective that looks beyond the potential benefits of a single agreement, negotiators can position themselves and their clients for long-term mutual gains (Gardner, 2018).”

ii. Durability: “Reaching an agreement is not the final step in a negotiation. The agreement must be enacted and honored (Gardner, 2018).” If both parties honor the agreement. Then the negotiation can be termed as successful. There is a lot of attention needed to check the ability of both parties to deliver and remain faithful to the deal. There is need for both parties to show some level of trust and satisfaction according to the agreement.

iii. Economic success: This metric deals with the financial benefits. Negotiation result can be measured by mutual gain of the negotiators. There is need for the negotiators to pay attention to the gains and the expenses expected during or after the negotiation. If both parties attain economic excellence according to the plan, then the negotiation is successful if not the negotiation is open for review.

iv. Relationship reputation: “Beyond the outcome of a specific agreement, it’s important that the process and outcome strengthen the relationships among the parties so that future negotiations can proceed smoothly (Chapman et al., 2017).” If the negotiation stands in between the respect given amid the parties then it is open for review. If both parties, feel respected and satisfied then the negotiation has been a success.

References

Chapman, E., Miles, E. W., & Maurer, T. (2017). A proposed model for effective negotiation skill development. Journal of Management Development. Retrieved from https://www.emerald.com/insight/content/doi/10.1108/JMD-01-2016-0002/full/html

Gardner, R. (2018). Bibliography on Negotiation Skills. Austl. L. Libr., 26, 201. Retrieved from https://heinonline.org/hol-cgi-bin/get_pdf.cgi?handle=hein.journals/auslwlib26&section=51\

Isbouts, L. N., Muijtjens, A. M., van Mook, W. N., & Busari, J. O. (2019). Exploring medical residents’ perceived need for negotiation skills training. International journal of medical education, 10, 45. Retrieved from https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6766400/

Johnson, E., Gratch, J., & DeVault, D. (2017, May). Towards an Autonomous Agent that Provides Automated Feedback on Students' Negotiation Skills. In Proceedings of the 16th Conference on Autonomous Agents and MultiAgent Systems (pp. 410-418). Retrieved from https://link.springer.com/chapter/10.1007/978-3-030-23207-8_23

Moore, N. (2017). Agents stand out on negotiation skills. REIQ Journal, (Apr 2017), 20. Retrieved from https://search.informit.com.au/fullText;dn=864232916657768;res=IELBUS

Stevens, C. A., Daamen, J., Gaudrain, E., Renkema, T., Top, J. D., Cnossen, F., & Taatgen, N. A. (2018). Using cognitive agents to train negotiation skills. Frontiers in psychology, 9, 154. Retrieved from https://www.frontiersin.org/articles/10.3389/fpsyg.2018.00154/full