Negotiation Planning Exercise

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Negotiation Planning Exercise You are a large, highly technological company in one of the industrialised countries. A parastatal corporation in one of the developing countries wants to put up an industrial project for which your company can supply technical know-how and assist in procurement of equipment. You are aware that another company in your country has the same capabilities and good contacts in the country where the project is to be located. While this would be your first entry into this market, your competitor has executed two projects, one of which had some technical problems during the initial years. Your main strength is the latest advanced technology, while your competitor has some price advantage. A delegation from the parastatal organisation is in town with full authority to reach an initial agreement and authorise advance payment for the preparatory work. The chief executive of your company has authorised the high level technology transfer group (of which you are a member) to negotiate the principal terms of the agreement. You have convened a meeting to plan your negotiation. You may use the guidelines below. Your task is to come up with a concrete plan of action with the principal objective of winning this prestigious contract." GUIDELINES A set of key considerations in pre-negotiation planning and preparation Stage One: What do we propose to achieve? Relevant questions to be debated in this regard are: (I) What is our basic objective? (2) What is the ideal alternative to achieve that objective? (3) What are the financial implications? (4) What are the alternative courses of action (limits of flexibility)? (5) Who is competing with us? (6) Do we have enough factual data and information to support our arguments? Stage Two: How do we go about achieving it? Relevant questions: (1) Who will lead the discussion? (2) Who will
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