Sunday, November 21, 2010
CH 2:Tactics& Strategy of distributive Bargaining Negotiation
Since distributive bargaining has people trying to get their own advantage using whatever techniques they can, this can cause situation where the 2 sides are hostile against each other. But to have effective negotiations, both sides need to feel they achieved something and that the end can be accepted.
Distributive Bargaining deals with opening bids, setting target points, and using resistance points. Most of time we don’t know the other party’s resistance point until close to end of negotiations. Resistance points are the most critical, it defines the bargaining range. The bargaining range can be positive bargaining range (the resistance points are inside each other range) or negative (the resistance points are outside each side’s range) For these points could define the area of negotiation either will occur or not.
To close the deal, some things that will help are having alternatives to pressure other side. Assume the close will happen. You can split the difference to go in the middle. Exploding offers by saying the offer will expire soon to pressure the other side.
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