Negotiation Strategy: Article Analysis
Every person will eventually have made a negotiation within their lifetime, whether it be at home or at work. It is crucial to know and understand the processes of negotiation, especially in today's aggressive market. A negotiation can be made while shopping, at work, and at home with a family member. In this paper two articles dealing with a negotiation will be analyzed, then contrast the two strategies of negotiation that were used in the articles. Last but not least an example of how the two strategies can be applied at the workplace.
The first article is titled "Selling Water for China". This article is about a company by the name of Acqua International, a company who sells potable water, wants to increase its investments in China. Acqua wants to become China's lead potable water supplier. In order to become China's favorite and lead potable supplier there are some issues that need to be resolved and negotiated. Some of the issues are; Initial water charges, demand for water, annual water tariff, and the company's structure. Acqua's strategy was to target the water charges last because it was not well accepted by the Chinese. After many meetings between the Chinese and Acqua they had come to an agreement of all other issues. Acqua felt that having an agreement with the Chinese was having their support and Acqua was correct. When the time came to negotiate the last issue of the water charges, the Chinese were already on the Acqua side and had agreed to keep the initial cost of the water but Acqua will have a five-year tax plan. Instead of lowering the water charges Acqua agreed to the conditions made by the Chinese. In this case it was a win-win situation.
The name of the second article is "Bargaining Price with the Chinese". The Chinese want to integrate a piece of technology that was developed in the 1980' called the Trilliamp Process. The Trilliamp Process is a multi-million dollar contract, but the price needs to be right before coming into an agreement.
The first article is titled "Selling Water for China". This article is about a company by the name of Acqua International, a company who sells potable water, wants to increase its investments in China. Acqua wants to become China's lead potable water supplier. In order to become China's favorite and lead potable supplier there are some issues that need to be resolved and negotiated. Some of the issues are; Initial water charges, demand for water, annual water tariff, and the company's structure. Acqua's strategy was to target the water charges last because it was not well accepted by the Chinese. After many meetings between the Chinese and Acqua they had come to an agreement of all other issues. Acqua felt that having an agreement with the Chinese was having their support and Acqua was correct. When the time came to negotiate the last issue of the water charges, the Chinese were already on the Acqua side and had agreed to keep the initial cost of the water but Acqua will have a five-year tax plan. Instead of lowering the water charges Acqua agreed to the conditions made by the Chinese. In this case it was a win-win situation.
The name of the second article is "Bargaining Price with the Chinese". The Chinese want to integrate a piece of technology that was developed in the 1980' called the Trilliamp Process. The Trilliamp Process is a multi-million dollar contract, but the price needs to be right before coming into an agreement.