EFFECTIVE BUSINESS

NEGOTIATION

OVERVIEW
Negotiation
“All life is full of
negotiation”
 Some things we negotiate in
life.
Salaries / higher pay
Promotions
 Prices
 Working conditions
 Even love………..
 Keys to good negotiation
 Know what u want
 Preparation
 Know minimum and maximum u can go.
 Know the other party objectives / goals
 Know yr starting points
 Be creative other than competitive.
 And others as we shall see
Basic rule:
Win – Win (Come up with a solution agreeable to both
parties)
Others as we shall see………..
 Factors influencing
negotiations
 Goals and interests of parties
 Interdependence between parties
 History between parties
 Personalities involved
 Persuasive ability of parties
 Approaches to Negotiation

 Win/win

 Win/lose

 Mixed approach
 4 Phases of Negotiation
 Preparation

 Opening

 Bargaining

 Closing
1. PREPARATION PHASE
 Information gathering
 Answer questions of
when and how to
open, how to move on
and how long to hang
on.
 Do your homework.
 Set objectives.
 SWOT Analysis.
 2. OPENING PHASE
 Avoid opening first
 If first, use friendly or question
approach.
 Don’t reveal too much at this point.
 Observe behaviour and careful
listening.
 Tough but credible opening position.
 Body language
 3. BARGAINING PHASE
 Narrow gap between the two positions.
 Use a clearly thought out and logical
debate.

 How???
 Agree the agenda
 Time element
 Time element….
 Allocate fixed periods of time to specific
issues.

 Beware of wasting time on non-issues.

 Don’t be rushed

 Delay is a powerful tool.

 Bargaining cont….
 Bracketing
 Take notes
 Negotiation style
 Analytical
 Aggressive
 Persuasive
 Inclusive
 Bargaining cont…..
 Bargaining guidelines
 Be willing to make small concessions
 Don’t talk too much
 Creative not competitive.
 Don’t overstate your case.
 Don’t highlight yr short comings
 Don’t deny obvious weaknesses- downplay them.
Bargaining guidelines cont….
Never fall for a leading question.
Piecemeal approach
Avoid making the first major concession
Know when to walk away.
No negotiation is final- with new
knowledge things can change.
 4. CLOSING PHASE
 Capitalize on all work done in earlier phases.
 Deal with deadlock. stay calm.

 Timing your request.

 Stay professional.
 Value of the relationship.
 Know when to leave.
Walk Away when…..
 Final offer made
but not accepted.
 Deadlock
 You have achieved
your objectives.
 Other side
unreasonable in
their demands.
 THANK YOU!!!
 SEMAKULA GEORGE
 KAKAI ELIZABETH
 NAIGA MARIETTA
 SERUKUMA EDWARD
 NYUMBA JOHN BAPTIST
 BASEESA TOM
 KAGIMU MESAKI.