Different Negotiation Strategies

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Negotiation Strategy Article Analysis

Using the Internet, find at least two articles that describe a negotiation situation that employs different negotiation strategies. Describe the negotiation processes used in your selected articles. Compare and contrast those two strategies and how they might apply in your work setting.

The first article is from the Eagle Tribune: "Fate of Detroit's Big 3 will trickle down locally" retrieved on November 26, 2008 from: http://www.eagletribune.com/punewsnh/local_story_331020106.html?keyword=topstory
The negotiation is between the three car companies namely Ford, Chrysler and General Motors. The main strategy is that the three competitors have united in asking for a bailout package from the government. They use arguments like if the companies fail a quarter million workers and more than 730,000 workers will be unemployed. This is a pressure tactic used to compel the government to give the $25 billion loan.

The second article is from Bloomberg.com "Saudi Oil Tanker Owners in Negotiations With Pirates (Update1) " retrieved on November 26, 2008, from: http://www.bloomberg.com/apps/news?pid=20601087&sid=aXa_OnogQU2A&refer=home
The negotiation is between the pirates that have captured the Sirius Star and the owners of the Saudi Arabian supertanker. The negotiation is very different; the owners have to pay ransom money for the safe delivery of the supertanker to the pirates. The pirates have an upper hand because they have the passengers of the ship as hostages and the ship has $110 million worth of cargo. The pirates can literally coerce the owners into paying a large ransom money.

There are differences in the two negotiation situations. The government of USA cannot be coerced into giving a loan to the three auto companies, it is only the possibility of increased unemployment, defense use of the auto industry, national industry argument and national pride that can be used to persuade the government to give $25 billion. On the other hand the pirates are able to coerce the owners by threatening to kill the hostages or by blowing up the supertanker.

The similarity between the two situations is that in both the cases arguments are being used to persuade the other party to part with money. In one case it is the owners of the supertanker in the other case it is the US government. In both the cases the position taken by the negotiating party is "pay or otherwise". In both the situations, counter offers, terms and stipulations will be placed by the party from which the payment is demanded.