NEGOTIATION

STRATEGIES
Prepared By:
BURCU MEK
ELF AKKURT
SMEYRA KARATA
TRKAN COKUN
F. BETL EKREM
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 NEGOTIATION GOALS
PROCESS OF STRATEGY
DETERMINATION

BURCU MEK
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NEGOTIATION STRATEGIES
Strategy is the overall approach

for conducting the negotiation.

Tactics are particular actions used
to implement a strategy.

NEGOTIATION STRATEGIES
Whereas a strategy provides the

overall approach used throughout

the negotiation, a tactic is particular
action used at a specific time during
the negotiation to serve a more
limited role or purpose.

NEGOTIATION GOALS
Negotiation goals encompass a wide

range of both tangible and intangible

desires.
Categories of goals which in turn
affect the negotiators choice of
strategy and tactics.

Categories of
Negotiation Goals
Aggressive goals
Competitive goals
Cooperative goals
Self-centered goals
Defensive goals
Combinations of goals
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AGGRESSIVE GOALS
Seeks to undermine, deprive,

damage or otherwise injure a rival

or opponent.
Example: Taking a customer or
supplier away from a competitor in
order to hurt the competitor.

AGGRESSIVE GOALS
Aggressive goals seek to
damage an opponent.

COMPETITIVE GOALS
One side seeks to gain more from the

negotiation than the other side.

In fact the negotiator hopes to obtain as
large a comparative advantage as possible.
Example:
Receiving the highest possible price.
Paying the lowest possible price.

COMPETITIVE GOALS
A competitive goal means getting
more than the other party.

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COOPERATIVE GOALS
Cooperative goals are achieved through an
agreement that leads to mutual gain for all
negotiators and their respective sides.
This achievement is also referred to as
win-win negotiating.
Example: Forming a joint venture,
partnership, or corporation to engage in
business opportunities to achieve a mutual
profit.

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COOPERATIVE GOALS
With cooperative goals, agreement
leads to mutual gain.

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SELF-CENTERED GOALS
Self-centered goals are those that

depend solely on what ones own side

achieves.
Scenario: two large accounting firms merge.

The tremendous size of the new firm raises a

self centered goal to find sufficient prestigious
space in a single location. The goal is reached
when the new firm negotiates a lease for 15
floors in a major midtown New York office
building.

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SELF-CENTERED GOALS
Self-centered goals seek a particular result
regardless of what the other side receives.

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DEFENSIVE GOALS
One seeks to avoid a particular

outcome.
Examples:
Avoiding a loss of respect.
Preventing a strike.
Avoiding the loss of a customer or
supplier.

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DEFENSIVE GOALS
Defensive goals seek to avoid a
particular result.

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COMBINATION OF
NEGOTIATION GOALS
Each negotiation usually has multiple goals.
Case: In a collective bargaining negotiation, a
transportation firm seeks to have its employees
make prompt deliveries in order to maintain its
business volume. This is a self-centered goal.
A defensive goal is suggested if the
maintenance of volume is intended to avoid a
loss of customers. The goal is also aggressive
to the extent that the same activity lures new
customers away from competitors, a result
which is likely to weaken the latter.

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PROCESS OF STRATEGY
DETERMINATION
Strategies are chosen for

use in a particular
negotiation in order to
achieve your sides goals.
The nature of those goals
will affect the choice of
strategy or strategies.
A variety of factors
determine the best
strategy for a negotiating
situation.

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PROCESS OF STRATEGY
DETERMINATION
The choice of strategy also may be affected by
the answers to a number of questions, such as:
Does the negotiation involve a transaction or a
dispute?
Is there more than one issue involved?
Can new issues be introduced into the
negotiation?
Are the parties interests short-term or
long-term?
Are the parties relationships long-term, limited
to one negotiation or some where in between?
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MAIN NEGOTIATION STRATEGIES

AVOIDANCE STRATEGY
COMPETITIVE STRATEGY
COLLABORATIVE STRATEGY
ACCOMMODATIVE STRATEGY

ELF AKKURT

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MAIN NEGOTIATION
STRATEGIES
THE DUAL CONCERNS MODEL
How much concern does the actor have
for achieving the substantive outcomes
at stake in this negotiation?
(substantive goals)
How much concern does the negotiator
have for the current and future quality
of the relationship with the other party?
(relationship goals)
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1. AVOIDANCE STRATEGY
(The Nonengagement
Strategy)

Reasons of why negotiators might

choose not to negotiate:
1. If one is able to meet ones needs
without negotiating at all, it may make
sense to use an avoidance strategy.
2. It simply may not be worth the time
and effort to negotiate.
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Avoidance Strategy
3. The decision to negotiate is closely

related to the desirability of available

alternatives.
Alternatives are the outcomes that can
be achieved if negotiations dont work out

4. Avoidance may be appropriate when the

negotiator is responsible for developing
others into becoming better negotiators.
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Active-Engagement
Strategies
Competition
Collaboration
Accommodation

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2. COMPETITIVE
STRATEGY
Distributive Bargaining
Win-Lose Bargaining (I win, you lose)
Zero-sum game: whatever extent one
party wins something, the other party
losses

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Competitive Strategy
Distributive Bargaining refers to
the process of dividing or distributing
scarce resources

Two parties have different but

interdependent goals
There is a clear conflict of interests
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Distributive Bargaining
The essence of
Distributive
Bargaining is who
gets what share of
fixed pie.

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Examples of
Distributive Bargaining
A wage negotiation
A price negotiation
A boundary or
territorial
negotiation

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Staking Out the

Bargaining Zone

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3. COLLABORATIVE
STRATEGY
Integrative Bargaining
Win-Win Bargaining (I win, you win)
Positive-sum situations are those
where
each party gains without a corresponding
loss
for the other party.
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Integrative Bargaining
The law of win/win says Lets not do it your
way
or my way; lets do it the best way
Greg Anderson
The 22 Non-negotiable
Ways of Wellness

Integrative Bargaining is about searching for

common solutions to problems that are not
exclusively of interest to only one of the negotiators .

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Concepts for
Integrative Bargaining
Separate people from the

problem
Focus on interests, not positions
Invent options for mutual gains
Insist on using objective criteria

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Distributive versus
Integrative Bargaining

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4. ACCOMMODATIVE
STRATEGY
Win-lose strategy (I lose, you win)
The negotiator wants to let the other

win, keep the other happy, or not to

endanger the relationship by pushing
hard to
achieve some goal on the
substantive issues
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Accommodative Strategy
Accommodative Strategy is often used;
When the primary goal of the exchange is
to build or strengthen the relationship and
the negotiator is willing to sacrifice the
outcome.
If the negotiator expects the relationship
to extend past a single negotiation
episode.
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 In a successful negotiation, everyone wins. The

objective should be agreement, not victory."

The key to successful negotiation is to shift the

situation to a "win-win" even if it looks like a
"win-lose" situation. Almost all negotiations
have at least some elements of win-win.
Successful negotiations often depend on finding
the
win-win aspects in any situation.
Only shift to a win-lose mode if all else fails.

Professor E. Wertheim,
College of Business Administration,
Northeastern University

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NEGOTIATION
STRATEGIES

1.
2.
3.
4.
5.
6.
7.
8.
9.

No-Concessions
No Further Concessions
Making Only Deadlock-Breaking Concessions
High Realistic Expectations With Systematic
Concessions
Concede First
Problem Solving
Goals Other Than To Reach Agreement
Moving For Closure
Combining Strategies

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 NO-CONCESSIONS
NO FURTHER CONCESSIONS
MAKING ONLY DEADLOCK-BREAKING
CONCESSIONS

SMEYRA KARATA
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1. NO-CONCESSIONS
A No-Concessions Strategy is tough

and dangerous, since concessions usually

are expected.

With a no-concessions strategy, the

negotiation becomes a unilateral
process.

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NO-CONCESSIONS
A no-concessions strategy is suitable for

aggressive, competitive and

selfcentered goals.
A no-concessions strategy is not suitable
for cooperative and defensive goals.

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WHEN TO USE NOCONCESSIONS

When the balance of power is strongly

in your favor.
When you are in a disproportionately
weak position.
When the dollar amount is too low or
time is too short.
1) Cost Efficiency
2) Available Time

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WHEN TO USE NO-CONCESSIONS

When the same terms must be available
to
everyone.
When bids or written proposals are
sought
When another party is waiting in the
wings.

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DRAWBACKS OF THE
NO-CONCESSIONS
STRATEGY
Might preclude an

agreement the terms of

which, although less
favorable, are still
acceptable.
A strategy shift away
from no concessions
might be read as a
failed attempt at
bluffing, a position to
be avoided.
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DRAWBACKS OF THE
NO-CONCESSIONS
STRATEGY
Avoid inadvertent bluffs by rashly

miscalculating the use of this strategy.

It may also be helpful to accompany
the demand with reasons why your
side is notin a position to offer
anything else, and to explain how the
demand is fair.

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COUNTERING TIPS FOR THE

NO-CONCESSIONS STRATEGY

1. Appeal to a higher level of authority in an

2.
3.
4.
5.
6.

attempt to change the partys position.

Ignore it and proceed as if concessions are
possible.
Present cost saving or win-win measures that
justfy a concession.
As a seller, offer less (such as fewer services),
thereby effectively increasing the price.
As a buyer, demand more, thereby, in effect,
reducing the price.
Terminate the negotiating session.
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2. NO FURTHER
CONCESSIONS
A No-Further-Concessions Strategy
is
possible when the other party can be
forced
to make the final concession, or when
the
situation has changed.
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NO FURTHER
CONCESSIONS
The no-further-concessions strategy

is implemented after some

concessions have been made.
The countermeasures to this
strategy are the same as those for its
parent, the no-concessions strategy.

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3. MAKING ONLY
DEADLOCK-BREAKING
CONCESSIONS
A strategy of Making Only

Deadlock-Breaking Concessions
is okay when the risk of no
agreement is acceptable.
A deadlock is an impasse or
standstill, a state of inaction resulting
from the opposition of equally
powerful uncompromising parties.
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MAKING ONLY DEADLOCKBREAKING CONCESSIONS

The strategy of making a concession

only to break deadlock is the next

toughest strategy after the noconcession strategy.
This strategy generates an
atmosphere of tension and
difficulty. Because of this one should
be very careful to use this strategy.
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MAKING ONLY DEADLOCKBREAKING CONCESSIONS

A making only deadlock-breaking
concessions strategy is viable for
aggressive, competitive and selfcentered goals.
A making only deadlock-breaking
concessions strategy is inappropriate
for cooperative and defensive goals.

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 HIGH REALISTIC EXPECTATIONS WITH

SMALL SYSTEMATIC CONCESSIONS
CONCEDE FIRST
PROBLEM SOLVING

TRKAN COKUN

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4. HIGH REALISTIC
EXPECTATIONS WITH SMALL
SYSTEMATIC CONCESSIONS
(HRESSC)

It is the strategy of combining high,

realistic expectations with small,

systematic concessions
It entails a planned approach both to
the objectives of the negotiation and
to the compromises that may be
employed to reach those objectives
Strategy which achieves the
best results

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HRESSC (cont.)
It has three components:
The size of the concessions
The use of apparent concessions
which actually involve no cost to
the negotiators side
The advance planning of
concessions
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Small concessions depends on:

- the value of that which is being
negotiated while the negotiation begins
- the value which is put during the
negotiation
Small concessions after big concessions
Advance planning helps to maximize
ones results and minimize the pressure
to merely respond to the other
negotiators actions
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5. CONCEDE FIRST
It is used to reduce tension, create an

atmosphere conducive to reaching an

agreement and allow one to demand a
reciprocal concession
We made an important concession at the
outset of this meeting and you still have
not given us anything significant in
return
Difficult and sometimes impossible to
withdraw a concession
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CONCEDE FIRST (CONT.)

It is suitable to apply this strategy when

the position of negotiator is too weak

It can be used in rare circumstances when
any real negotiation may lead the other
party to discover information that will harm
the negotiators client
It is used to achieve competitive, selfcentered, or defensive goals, depending on
the
specific context of negotiation
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6. PROBLEM SOLVING
It is a strategy for creating a procedural

agreement to solve a common problem

that has been identified
It is the most useful strategy after
HRESSC
It is different from other concessionbased strategies which center on giving
up or refusing something of value

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PROBLEM SOLVING
(CONT.)
It focuses on creating a procedural

agreement that the negotiators will work

together to discover and identify problems
that are preventing agreement and to
determine whether any common interests
can be used to resolve those problems
It is described in game theory as a
win-win strategy

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The Four-Step
Problem-Solving Process
1) A procedural agreement to use

problem solving
2) Identification of the problem
preventing agreement
3) Determination of any common
interests and limiting seperate needs
4) Discussion to discover fair, mutually
beneficial solutions
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Laying the Essential

Foundations for the
Problem- Solving Strategy
There must be an agreement by the parties and

negotiators to work together to identify the

problems preventing agreement, and to formulate
a mutually advantageous solution
To ensure good faith, the parties must have a
mutual interest in solving the particular problems in
the same way
The negotiators must identify the same problems
and agree on how to define them
Parties and negotiators must realize that a win-win
solution is possible and that problems will not be
solved by one side yielding to other. Instead the
participants will strive to create a previously
unconsidered, mutually beneficial solution

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Important Points in
Problem-Solving Strategy
Achieving a clear distinction between
objectives and needs
Maintaining attitudes of empathy
and cooperativeness
The related roles of creativity and
patience in problem solving

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Keeping the focus on mutual

interests

Outside forces to avoid:

o Government action
o A jury or a judge deciding the facts at trial
so that one side wins totally while the
other side loses totally
o A competitor gaining an advantage
o The expiration of a financing commitment
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Broadening the pie and trading

concessions across issues

It may be useful to consider the distribution

of resources in terms of:
What will be distributed
When it will be distributed
By whom it will be distributed
How it will be distributed
How much will be distributed
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Brainstorming
Brainstorming for problem solving is a
process which requires that the participants:
Speak spontaneously or think out loud
(as long it is relevant and constructive)
Retrain from evaluating or criticizing the
statements of others until after all initial
ideas are elicited
Be willing to repeat ones ideas if others
want to hear them again
Persist in the effort even if there is a
prolonged silence
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 GOALS OTHER THAN TO REACH

AGREEMENT
MOVING FOR CLOSURE
COMBINING STRATEGIES

F. BETL EKREM
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7. GOALS OTHER THAN

TO REACH
AGREEMENT

Real purpose of a negotiation is to reach

an agreement
But in this strategy it is NOT
Be careful-An exercise in gamesmanship
With cooperative goals

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USAGE OF GOALS OTHER

THAN TO REACH
AGREEMENT STRATEGY
1. A strategy to delay
For eg: a negotiation team is sure that
unionll strike in all conditions. But the
team believe that theyll soften and a
delayll harm seasonal tasks.

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Usage of Goals Other Than

to Reach Agreement
Strategy
2. To gather
information
3. Negotiating as a
forum for
expressing views

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Usage of Goals Other Than

to Reach Agreement
Strategy
4 . Negotiating to influence a third
party
Public
Management of the entity
! Influence of 3rd parties on
negotiation is very important
Powerful people or groups, family
members, etc
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8. MOVING FOR CLOSURE

To finalize a particular issue or the
overall negotiation rather than
risk losing the available terms.

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MOVING FOR CLOSURE

A difficult dilemma between
Risk of losing an agreement
The opportunity of doing better
and balancing by evaluating those:
* Value * Potential
* Risk * Odds

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MOVING FOR CLOSURE

! In negotiations the most important
risk is losing an available deal that
your clients may accept
! To avoid this, the ultimate decision
should be made by decision maker

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TECHNIQUES FOR MOVING THE

OTHER SIDE TOWARD
CLOSURE
A proposal should be close to
other partys bottom-line
Other party should believe
No further concession is possible
Failing to accept may result in no
agreement
Closure is more advantageous
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TIPS FOR MOVING FOR

CLOSURE STRATEGY
Expressing understanding that

agreement exists
Concession-based inducement to close
Minimizing the danger of cancellation
between closure and execution
Closing issues within a larger
negotiation
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9. COMBINING
STRATEGIES
Generally usage of a

single strategy isnt

efficient
For e.g.: first concession
and moving for closure
are efficient in specific
parts of the negotiation

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WHY CHANGE
STRATEGIES?
Tried and failed strategies
may be changed
Changing strategies may
be the main strategy

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CATEGORIES OF
STRATEGY CHANGES

Sequential changes
Issue-oriented changes
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E.G. FOR ISSUEORIENTED CHANGES

A purchaser has a
competitive goal of getting lowest
price for machinery,and
a self-centered goal of good service
production
For 1st one, HRESSC and for 2nd
one problem solving strategies are
chosen.
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A TIP FOR STRATEGY

CHANGES
What is important is:
If the negotiator doesnt do the
change secretly, this change should
be clearly defined not to harm
trustworthiness.

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 You cannot shake hands with a

clenched fist.

Indira Gandhi

[ Clenched Fist - Woodblock by Frank Cieciorka, 1965 ]

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THANKS FOR
YOUR ATTENTION

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