Mgmt3721 Negotiation Skill
Introduction This essay explains the negotiation rationale behind the role of Excalibur Engine Parts Company. Several important issues of the negotiation were chosen to be explained in more details here. They included the goals, strategies, tactics chosen, resistance point, target point, opening offer, concession plan, why certain questions would be asked and answered and an analysis of the other party.
Excalibur Engine’s goals
According to Zetik & Stuhlmacher (2002), each negotiator has unique goals which exist at abstract levels, such as values, and at more concrete levels, such as task goals. Also, the symmetry of the other party’s goals could influence the outcome of negotiation as well (Zetik & Stuhlmacher 2002). As a result, during the negotiation, new information or feedback received from the other party will change the goals of a negotiator. Negotiator should always remember what goals should stay firm whatever information is received and what goals can be flexible. In this case, I reckon the most important goal is to obtain an excellent reputation from the Government, which is an intangible goal, to secure long-term profit in the future. Therefore, it is more important to get Knight to indicate on the chassis that their engines, which will be sold to the Government, were fitted with quality Excalibur parts than having a profit margin in this transaction. This goal should stay firm throughout the negotiation and one should make compromises in other areas so as to achieve this goal. Also, convincing Knight the necessity of purchasing the insurance program can strengthen the image of our company from the Government. One should achieve this even in the need of giving up profit margin. An alternative for this is to persuade Knight to buy more pistons in case there are a number of defects of their purchase.
Excalibur Engine’s strategy To develop integrative potentials, it is necessary to build initial trust expectation (Butler, 1999). This can be done
Excalibur Engine’s goals
According to Zetik & Stuhlmacher (2002), each negotiator has unique goals which exist at abstract levels, such as values, and at more concrete levels, such as task goals. Also, the symmetry of the other party’s goals could influence the outcome of negotiation as well (Zetik & Stuhlmacher 2002). As a result, during the negotiation, new information or feedback received from the other party will change the goals of a negotiator. Negotiator should always remember what goals should stay firm whatever information is received and what goals can be flexible. In this case, I reckon the most important goal is to obtain an excellent reputation from the Government, which is an intangible goal, to secure long-term profit in the future. Therefore, it is more important to get Knight to indicate on the chassis that their engines, which will be sold to the Government, were fitted with quality Excalibur parts than having a profit margin in this transaction. This goal should stay firm throughout the negotiation and one should make compromises in other areas so as to achieve this goal. Also, convincing Knight the necessity of purchasing the insurance program can strengthen the image of our company from the Government. One should achieve this even in the need of giving up profit margin. An alternative for this is to persuade Knight to buy more pistons in case there are a number of defects of their purchase.
Excalibur Engine’s strategy To develop integrative potentials, it is necessary to build initial trust expectation (Butler, 1999). This can be done
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