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Lesson1 Stages of negotiation
A negotiation is a discussion between people who want to reach an agreement.
Whether negotiating at a business deal or a salary, a negotiation will normally go through
five stages.
Planning
Before entering a negotiating, the negotiators must plan and prepare their positions.
In the planning stage, negotiators will research the other side’s position and anticipate where
they may agree or disagree.
They will also set goals, establish their bottom line and research the other side.
Clarifying
During the clarifying stage, negotiators will contact each other to clarify what they want to
achieve.
By discovering what the other side wants, both parties can see if they share a common goals.
Once their needs have been clarified, the negotiations can begin.
Bargaining
During the bargaining stage, negotiators make compromises until an agreement is reached.
They often aim for an outcome that benefits both sides without giving up too much.
Settling
In the settling stage, negotiators reach an agreement and decide how to implement it.
After the terms of an agreement have been decided, a contract will be drafted and signed.
If an agreement can’t be reached, negotiators may find a third party for advice.
Implementing
In the implementation stage, an agreement or contract is put into effect.
Implementing an agreement strengthens relationship between both parties.
If both parties follow through on the agreement, it will be easier to negotiate next time.
Lesson2 Negotiating terms
Anchor point
An anchor point is a reference point that negotiations are centered around.
It is the best outcome that one side hopes to achieve.
Normally, the first offer made during a negotiation serves as the anchor point.
Negotiators try to anchor the negotiation to their advantage to gain the upper hand.
Bottom line
A bottom line is the worst outcome that one side will accept.
If someone is pushed beyond their bottom line, they may walk away from the negotiation.
BATNA
BATNA stands for Best Alternative To a Negotiated Agreement.
It is the second best option a side may have in a negotiation.
An BATNA can be used as an alternative if an agreement can’t be reached.
When one side has a good BATNA they can make fewer compromises, so they have more
power.
Leverage
Leverage is the power one side has to influence another.
If you have more leverage in a negotiation, you can persuade people to accept your terms.
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