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Selecting a Strategy
After you have analyzed your own position (Chapter 21, that of the other
party (Chapter 31, and looked at the contextual issues of the negotiation
(Chapter 41, you are ready to select a strategy to use in negotiating with
the other party. This lengthy preparation allows you to negotiate strategi-
cally, adopting a style and plan that is best suited to the situation. As we
have noted before, most people skip this preparation; as a result, they ne-
gotiate blind. The right strategy greatly improves your odds of a successful
outcome.
In this chapter, we will look at five basic strategies that can be used
for negotiation, Each strategy applies to a particular set of qircumstances
and has its own advantages and disadvantages. If you have done your
homework in Chapters 2 through 4, you will be well prepared for selecting
the appropriate strategy or combination of strategies for a particular nego-
tiation situation. Note that we say combination of strategies. Most negotia-
tions involve a mixture of issues, and each may be best handled with a
different strategy. There is usually no single "best" strategy. Variations in
the positions of the parties and the context of the negotiation will affect
each negotiation differently. And as negotiations continue over time, each
side will make adjustments that may call for shifts or changes of strategy
by the other side (see Figure 5.1).
KEY FACTORS THAT DETERMINE THE
TYPES OF STRATEGIES
The five basic types of negotiating strategies depend on your combi-
nation of preferences for two basic concerns: the relationship with the
other negotiator and the outcome of the negotiation ftselJ: The strength or
importance of each of these two concerns, and its relative priority, should
direct the selection of the optimal negotiation strategy. The other party
may select a strategy in ahttp://www.ukassignment.org/essayfw/ similar manner. If they do not, you will want to
give serious consideration as to whether you should share this strategic ne-
gotiating model with them. Your chances of a good outcome are often bet-
ter if both parties agree to play by the same rules. The interaction of the
twa parties' choices will further influence the negotiation process that ac-
tually occurs, and this will have dramatic impact on the outcomes. We will
now describe each of these concerns.
1
Relationship Concerns
First, how important is your past and future relationship with the other
party? How have the two of you gotten along in the past, and how impor-
fant is it for the two of you to get along, work together, and like each other
in the future? Perhaps it is very important. Perhaps it does not matter at all.
Perh~ps i: is s in uwhere Setween these extremes. If maintaining a good re-
lationship with the other party is important to you, then you should nego-
tiate differently than if the relationship is unimportant, or if
*Inlikely
that you can repair the relationship.
The importance of the relationship between the two parties wrll be af-
fected by a number of factors: (1) whether there is a relationship at all;
(2) whether that relationship is generally positive or negative (whether the
two of you have gotten along well or poorly in the past); (3) whether a fu-
ture relationship is desirable; (4) the length of the relationship and its his-
tory, if one exists; (5) the level of and commitment to the relationship;
(6) the degree of interdependenke in the relationship; and (7) the amount
and extent of free, open communication between the parties.
For example, if you are negotiating the purchase of a new car, you
may never have met the salesperson before and may not expect to have a
continuing relationship. Therefore, your relationship concerns arc low.
However, if your business uses a fleet of cars and you expect to work with
this person on deals in the future, your relationship concerns are high, and
this will affect negotiations. Or if you are buying the car from your neigh-
bor, and want to continue to have a good relationship with that person,
you may negotiate differently than if you are buying it from a stranger.
In the case of a party with whom you have an ongoing relationship, it
may be congenial, or it may be antagonistic if earlier negotiations have
been hostile. If it is a congenial relationship, you may wish to keep it that
way, and avoid escalating emotions. If the relationship has a history of
hostility, you may prefer not to negotiate, or you may want to lower the
emotional level in the negotiations. This is important if you expect the re-
lationship to continue in the future.
You should have a good sense of what to expect from the other party,
based on your assessment in Chapter 3.
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