Explain each stage of the negotiation process and the role that culture plays in each stage. Give examples to support your answer.
Explain each stage of the negotiation process and the role that culture plays in each stage. Give example to support your answer
There are 6 distinct stages to the negotiation process and they are all about effective communication. Since people's culture has a strong bearing on how they communicate, the culture of the negotiating parties impacts how they negotiate and also determines whether they are successful in achieving the goals of their side.
": (1) preparation; (2) establishment of negotiator identities and the tone for the interaction; (3) information exchange; (4) exchange of items to be divided; (5) closing the deal; and (6) maximizing the joint returns." (Craver, 2004)
Gather the relevant facts on economic issues, and, where applicable, any legal or political issues (Craver, 2004). Example: Car buy - How much can you spend on a down payment? Can you afford adequate insurance? Does the car you want comply with the clean air standards in your state?
Know your bottom line- What will you settle for and under what circumstances? Remember that no deal is better than a bad deal (Craver, 2004). Example: Will you settle for any red sports car or does it have to be a Mustang? Will you take a blue Mustang if the price is right or does it also have to have the top of the line engine?
Know your opponent's bottom line (Craver, 2004)- Same as above only for your opponent. Know what the dealer price range is on the model that you want. The dealer maybe more likely to give you a better deal if he is desperate to clear out last year's ...
The expert examines cross cultural negotiation stages. Examples of each stage are provided.