MGMT Bruce Final - 10 best practices of negotiation PDF

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10 best practices of negotiation...

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MGMT- 3070-03-20W

BRUCE STEAD

FINAL ASSESSMENT

KARANDEEP KAUR

0912719

April 21, 2020

INTRODUCTION: The North America countries United States of America, Canada and Mexico negotiated a treaty known as North American Free Trade Agreement (NAFTA). This treaty is considered as the largest free trade agreement in the world. This is the first agreement for which two developed country have trade pact with a developing market country. The agreement was implemented since the year 1994 with the signature of president Bill Clinton in the year of 1992. Along with the president of the other two countries. But the agreement was later updated to a new version called United States Mexico Canada Agreement (USMCA). This treaty majorly consists the changes for cars new rules and regulations for labor environment. (from vox.com Jen Kirby, Feb4 2020) 10 best practices to good negotiation: 1. Be Prepared: Before negotiating one should always have a good understanding of the discussion which they have will be having with the other countries but prior articulation of the goals which they have set for themselves is very important. For the matter of keeping goals our country should have in mind that being realistic is very important alongside having achievable goal. As determining goals is the most important point before beginning the process of negotiation. Few points that Mexico, should have in mind while preparing for the process is properly defining the bargaining mix. Which would include all the points of the issues being faced like tariffs, degradation of our environment in low cost. Making attainable goals for the country alongside defining the interests which would help in the analyzing the other countries social context for the negotiation. 2. Diagnose the fundamental structure of the negotiation The nature of the negotiation is integrative as Mexico tries and understand the actual objectives of the other party, meanwhile according to me I would suggest forward to sharing the information as the three country would be looking forward to emphasize the commonalities Mexico shares and alongside the differences the countries have will be tried to minimize as working for this agreement together will be the goal from all sides. As the negotiation consists more than one issues of the three countries, and it is looking forward to. Repeated again over time with better solutions to the issues between three countries. In the point of view f negotiator, I would try and identify a negotiator’s dilemma by determining the point of worry between the competitive and cooperative between the three countries. Also, to have the knowledge about, where is the point where here is no agreement making the other countries efficient without reducing the outcomes of the other party as per the pareto point of efficiency.

3. Identify and work the BATNA To manage the impressions for the other countries few points that I would suggest speaking as less as possible and also presenting more facts just to enhance the position (McGraw-Hill Education, chapter 3, PowerPoint slide 11) Identifying the best alternative to a negotiated agreement every country when up for negotiation has to have an alternative plan ready for action. Because these alternatives when attractive can help negotiator in setting high goals also making less concessions. This alternative is important as without an alternative our country, Mexico might have less or no bargaining power. Meanwhile being aware of the other negotiator’s BATNA is also quite helpful this can help assess the termination costs for the other two countries. Not only this but proper managing and modifying the other party’s impressions. 4. Be willing to walk away. The power to walk away can be given to a negotiator by the alternatives. If our country has a strong negotiation, then the will to walk away will be strong coz not making agreement is better than making a poor one. Because the objective of the negotiation is to obtain a valuable result and not to make agreements. 5. Master the key paradoxes of the negotiation The concerns which would make Mexico go under concern would be two according to the dual concern model: 1) Concern for the own result 2) Concern for the other party’s result Along with the above concerns while in mutual adjustments dilemma of honesty and trust also play vital role which would be helpful for my country to think about how much to be honest with the other countries for the contract and also what amount to believe on the information the other country gives.( McGraw-Hill Education, chapter 1, PowerPoint slide 14) Often in negotiation practices contradictory aspects does take place together. The challenge is for the negotiator to handle the following paradoxes to balance them along with the contradictory aspects like I would suggest the Mexican government to be creating value as being an integrative nature of negation the Mexico’s purpose should be creating a value, and also to make way in such a way that all the goals for the other two countries also meet and there is a share of the price or outcome as well. The concerns with the managing these conflicts of negotiations the concerns in the dual concerns model dealing with two concerns.

6. Remember the intangibles I would suggest Mexico to deeply see over the matters which are not included along with asking questions constantly in intervals. Not only this I would also suggest them to take along a third party as a listener or as an observer to the negotiation. 7. Actively manage coalitions Coalitions are either against or in support of you. So, I would suggest the country to make good coalitions as good mutual bond will be advantageous for the negotiation. Moreover, negotiators are in need to stop the other different parties to apprehending a coalition which is loose, for their purpose. And also because when negotiators share coalition with someone communicating becomes analytical to make sure their power is in line with the goals. 8. Savour and protect your reputation I would suggest the Mexican government to begin the negotiation with a positive and good reputation so that it can lay a good impact as public image is something on which country is judged. So, I would suggest them to sensibly follow the face threat sensitivity as there are threats from the competitive side to affect the image and make it negative so the way be deal it can help the country to protect the image they have in public. Secondly, I would also like to suggest not to try and dilute the arguments while adding reasons which are not strong while trying to persuade other party. I would say that public image is like glass easy to break but difficult to rebuilt so the above points can be helpful for protecting the public image while acting effectively. 9. Remember that rationality and fairness are relative. I would suggest that while fairly responding to can make sensible and reasonable approach to the other country. sometimes the reactions can be way more than violation of simple fairness concerns while touching on disagreeing morally. Because usually people are tended to see the world in a self-serving method defining rational things which can be done which would lead to fair results. 10. Continue to learn from your experiences Lastly, I would say after each negotiation is made every country can learn lots of valuable points from the weakness and strengths from the other country which could be helpful in some way or the other. This is because no negotiation can be identical to the other. Talking proper training from hired professionals. Making and jointing personal reflections can also be a good point if inculcated to followed during the time of each negotiations taking place.

CONCLUSION: Keeping in mind the above stated points, which can be best helpful for Mexico to negotiate with US and Canada. Proper knowledge and practice of the above points would be helpful for the country to do a successful negotiation. As the points include proper details of the negotiation can be helpful in mastering the key concepts and principals of negotiation maintain a strong stand in the process of the while negotiation cycle. Moreover, the points above are explained on the basis on NAFTA keeping in mind the three countries, their commonalities and differences. The agreement includes many pros and cons with certain rules and regulations. According to me the most important step for a negotiation is planning as it is the first step to every process under negotiation so that proper understanding of the case can be analysed for further steps o be followed and also to get an idea as where to be careful.

REFRENCES: Amadeo, K. (n.d.). 6 Things NAFTA Does. Retrieved from https://www.thebalance.com/naftadefinition-north-american-free-trade-agreement-3306147 Kirby, J. (2020, February 5). USMCA, Trump's new NAFTA deal, explained in 600 words. Retrieved from https://www.vox.com/2018/10/3/17930092/usmca-mexico-nafta-trump-tradedeal-explained...