Outline

I. II.

Negotiation is an art
The definition of negotiation and its importance in business

1. The definition 2. Some negotiation styles 3. Role of negotiation in business III. How to have success in negotiation Pre-Negotiation
Knowing what you REALLY want. Knowing your opposition. Considering the impact of timing and methods of negotiation. Preparing your presentation ... point by point Preparing options rather than ultimatums

Negotiating
Remember whos the customer Admit what you dont know Keep the negotiation in your control As high as you feel necessary Remain flexible throughout the negotiation Getting comfortable with silence Dont be rushed into anything

End-Negotiation
1. Closing all negotiations by clearly outlining agreement * Some key phrases to help in the process

IV. Conclusion

Topic
Why is it said that negotiation is an art? Give your own definition of negotiation and its importance in business and what should be done to have success in negotiation
I. Negotiation is an art
Negotiation is said to be an art because as other arts, negotiation is an interactive environment between the people having emotion and different values. Moreover, negotiation also provides sudden opportunities, creation as well as inspiration. We could say that negotiating is "reaching an agreed settlement between two or more parties" or "reaching a compromise between conflicting needs". We can also say negotiation as the art of getting what you want, even when you don't have direct control over the person who will give it to you". Negotiation needs experience wisdom, flexibility and dexterity in all cases which need in all other art.

II. The definition of negotiation and its importance in business

1.

Definition

Etymology The word "negotiation" is from the Latin expression, "negotiatus", past participle of negotiare which means "to carry on business". "Negotium" means literally "not leisure". Negotiation is a dialogue intended to resolve argument, to produce an agreement upon courses of action, to bargain for individual or collective advantage, or to craft outcomes to satisfy various interests. It is the primary method of alternative dispute resolution. Negotiation occurs in business, non-profit organizations, and government branches, legal proceedings, among nations and in personal situations such as marriage, divorce, and everyday life. Professional negotiators are often specialized, such as union negotiators, peace negotiators, or may work under other titles, such as diplomats, legislators or brokers.

2. Negotiation styles
There are identified five styles to negotiation. The styles are used during negotiation which depends on the context and the interests of the other party, among other factors. In addition, styles can change over time. 1. Accommodating: Individuals who enjoy solving the other partys problems and preserving personal relationships. Accommodators are sensitive to the emotional states, body language, and verbal signals of the other parties. They can, however, feel taken advantage of in situations when the other party places little emphasis on the relationship.

2. Avoiding: Individuals who do not like to negotiate and dont do it unless warranted. When negotiating, avoiders tend to defer and dodge the confrontational aspects of negotiating; however, they may be perceived as tactful and diplomatic. 3. Collaborating: Individuals who enjoy negotiations that involve solving tough problems in creative ways. Collaborators are good at using negotiations to understand the concerns and interests of the other parties. They can, however, create problems by transforming simple situations into more complex ones. 4. Competing: Individuals who enjoy negotiations because they present an opportunity to win something. Competitive negotiators have strong instincts for all aspects of negotiating and are often strategic. Because their style can dominate the bargaining process, competitive negotiators often neglect the importance of relationships. 5. Compromising: Individuals who are eager to close the deal by doing what is fair and equal for all parties involved in the negotiation. Compromisers can be useful when there is limited time to complete the deal; however, compromisers often unnecessarily rush the negotiation process and make concessions too quickly.

3. Role of negotiation
Negotiation is a skill that most everyone uses often in life. Whether you are negotiating the best deal for your new car, skills to swing the deal in your favor come in handy. Negotiation skills are important for everyone, no matter what they do for a living. Especially, in business it is very important. The importance of negotiation in business is an invaluable component in any great business attempt. In the competitive field of business you want to be sure that the importance of negotiation in business is not only stressed within

the company you own or work for. Naturally, the importance of negotiation in business can be the difference between companies that thrive and companies that soon falter and often go out of business. For example: Your company has a consultant who possesses exceptional negotiation skills in business can and will help your company make wise, financially sound deals with other vendors, consultants, and business associates that will help keep your business afloat and financially lucrative. With the a skilled negotiation consultant, your business will be able to ask the right questions and find solid final prices for company supplies, contracts with consultants, and other such important financial decisions that can make or break a companies financial standing. Without a skilled negotiation consultant, many companies have blindly purchased or entered into contracts and deals that they could have spent significantly less business dollars on. With every dollar that is spent needlessly, a companys security is placed in risk. This is why having a skilled business negotiation consultant is so crucially important. So, the importance of negotiation in business is to make sure that your company can and will continue to thrive, grow and become leaders in your field of business

III. How to success in negotiation

time to pay off the loan). You have to take into account how it will benefit the other party by offering some sort of reward or incentive. What is involved (money, sales, time, conditions, discounts, terms, etc)? Know your extremes: how much extra can you afford to give to settle an agreement? Although you are not aiming to give out the maximum, it is worth knowing so that you will not go out of your limits. You should prepare by:
1. Knowing what you REALLY want.

Many people enter negotiation only to find they did not have a clear desired outcome defined in their own mind. Write down your desired outcome as concisely as possible and use this outcome as the center point of your preparation.
2. Knowing your opposition.

Learn as much as possible about who you are negotiating with, what they want, their strengths and weaknesses, and their likes and dislikes.
3. Considering the impact of timing and method of negotiation.

Whenever possible, negotiate face to face. It is easier to say NO over the telephone and in writing. Initiate the negotiation process so that you have the advantage of preparation and timing.
4. Preparing your presentation... point by point.

Outline your presentation carefully. Place emphasis on benefits to the other party.
5. Preparing options rather than ultimatums.

An ultimatum should be used only as a last resort when you are sure you can back it up and the other party knows you can back it up. Even then, in virtually every negotiation there are options and alternatives that reduce defensiveness and lead to positive resolution for all parties.

Negotiating
1. Remember whos the customer As a paying customer, you are entitled to the persons time and expertise. Tell them what you want and let them explain your options. Have a calculator and notepad ready, and take the time to do whatever calculations you find necessary. 2. Admit what you dont know If you need something explained, ask. 3. Keep the negotiation in your control: this can mean within your price range, your delivery time or your profit margin. If you fail to do so, you will end up on the wrong side of the agreement, and with nothing more out of the deal other than maintaining trading relationships 4. As high as you feel necessary in order to gain the best deal for yourself. The other party may bring this down but it is a good tactic, as it is always easier to play down than to gain 5. Remain flexible throughout the negotiation in case the opposition decides to change the direction of the agreement (they may want different incentives or even change their objectives. Youll need to turn it around quickly if things start to go against you 6. Getting comfortable with silence. Many negotiators feel compelled to jump in with arguments and comments each time there is a pause in the interaction. Practice holding back on comments and responses. Silence can be a very powerful negotiation tool. 7. Dont be rushed into anything. If youre happy with the deal, get them to draw up the paperwork and tell them youll be back in a day or two. At the very least, you should read the small print and sleep on it.

If its complex / full of legal terms, you might consider taking it to an independent specialist. Dont feel pressured. You can always walk away from the deal. If youre not impressed with their final offer, thank them for their time and say you need to look elsewhere. (If they offer you a better deal at this point, so much the better.)

End-Negotiation
Closing all negotiations by clearly outlining agreement When agreement or conclusions have been reached and you are ready to end your negotiation, do not allow the other party to rethink things review the agreement that has been reached. Then, end your negotiation on a positive note, do not allow the other party to rethink things commending those involved and emphasizing the progress made. Here are some key phrases to help in the process: -Help me understand. -Talk to me. (ie encourage them to open up) -I need a little more information. -I need a little help. (I want to understand your perspective) -What is it thats frustrating you right now? -What is it youre trying to accomplish? -Lets recap.

IV. Conclusion
Negotiation is not only an art, but also very important in our lives with many styles of negotiation. A company which wants to develop, must have

managers with good skill negotiation. To success in negotiation, you should be well- prepared before negotiation. Try to enrich your knowledge by reading newspaper, researches, book everyday is very useful for you during negotiation. I hope our presentation will help everyone to become wise negotiators