Negotiation
Negotiation is a procedure or situation where two or more groups come to talk trying to solve their different interests in decision-making. There are essential characteristics of bargaining, which include the nature of the conflict, relative power, number of parties, importance of relationship and lastly degree of interdependence (Lewicki et al., 2001). I will do this essay by discussing the successful outcome of the negotiation, different tactics used for claiming and creating value to maximize joints, relationship between the five parties, process of team coalition, observation of emotions and resolving ethical dilemmas present during the negotiation.
Main Body
How successful were you in this negotiation? How do you know you were successful?
Successful negotiation is the situation in which you receive or give something. Successful negotiation you make concession by giving that is little in your part but to other party it means a lot to them they need it so bad (Archibald, Johnson, \\\" Stirling, 2006).\u00a0 There was an achievement of an 88% score rate of the negotiation. I knew I was successful by the score rate calculation above (Maddux, 1995). Total points obtained were 4575 out of 5150 with a share price of $5.75 per share, 90% of the jobs were holding and five years of management contract acquired. There was a mutually beneficial settlement between the fund manager of EI and DUA (Davis, Smith, \\\" Erman, 1988). A successful negotiation ends when all parties involved leave satisfied and if later they meet they are ready to offer business together (Ganesan, 1993).
How did you claim value in this negotiation? What tactics did you use to advance your interests?
I used hardball tactics such as having extreme demand by stating high price per share then I followed it up with small and slow concessions (Menkel-Meadow \\\" Wheeler, 2004). BATNA assessment and improvement: Assessed my BATNA before negotiation and improved in claiming value for the talks (Neale \\\" Bennett, 1994). Over the past year, Aussie Air paid a dividend of $0.5 and with this; I offered other parties an increase with the rise in share prices as claiming value (Neale, \\\" Bennett, 1994). I used unreciprocated offers where I gave an offer and waited for a counter offer then I viewed the offer and reduced my demands slowly without bidding against myself.
Scoring system and other party's interest
Aussie Air outstanding shares are 50 percent any increase in price will lead to a rise in the value of the deal for the shareholders. If DUA purchases the shares, it would mean that they buy the other stocks at the same price causing a win-win situation for the members (Rubin \\\" Brown, 2013). I used the other parties to support my claim and strengthen my interest in that DUA would not acquire the 65% without any of the other parties. Sticking to my principles versus being hardened to the flow helped me advance on my interests (Stirling, Archibald, \\\" Johnson, 2006).
How did you create value in this negotiation? How did you maximize the joint gains?
Value creation is a situation where parties in a negotiation attain mutual and gaining outcome preventing a battle to occur (Sebenius, 2007). Interest-based bargaining: My creation of value was by identifying my interests that is a price of more than $5.25 for a share in the negotiation (Raiffa, 1982). Cost is the centre thing that one wants to acquire in bargaining. Over the past two years before the talks, the company has been doing well with an increment in shares price from $3.20 to 4.00 then retaining to around $3.40 then shooting to $4.20. These claims my value in that the company has been doing well in the recent years and it is not necessary for them to sell (Ganesan, 1993).
Fixed pie: I used the fixed pie in the negotiation as a way to maximize my joint gains. Fixed pie is the total amount of value available versus the parties involved (Lax \\\" Sebenius, 1992). I used the tactic of convincing the other sides that the offer on the table is because of acquiring what they have than what the other party's want.
How did your relationship with other parties change throughout the negotiation? How did you update your strategies and tactics as the negotiation progressed and new information came to light?
Connection with further gatherings altered in a right way because it was a win-win situation for the four parties on DUA. There was positive mood with the coalition of the parties with a common interest of long-term benefits (Brams, 2003). At first, the Union was aggressive in job keeping where they wanted to maximize it to 100% but we negotiated, and they were satisfied with 90% of jobs kept.
Negotiate Process Before Substance: I negotiated process before substance where I used the strategy of achieving a target price of $6.25\/share. Before starting the negotiation, I introduced my roles and goals in this negotiation (Saunders, 1985). I listened, understood and asked questions about the other party's interest during the negotiations. I capitalized on the dissimilarities inclinations of the Union, government, shareholder, union, buyer, and seller. I formed a partnership to evade the lack of response on negotiating (Rubin \\\" Brown, 2013). I stated our importance and apprehension in stock prices and gave the significance of winning a high rate. It did obtain feedback from the diverse parties and understood the prime value to capitalize on the company's welfare and evade any approval bias. When the deal does not comply, I was assertive to walk away for the company's best concern (Lax \\\" Sebenius, 1992). I showed reciprocity towards DUA intention to win the other party's attention and told parties how it would severely shake our company if it were a win-lose condition (Ganesan, 1993).
On what basis did you join or refuse to join a coalition? How did you strengthen it? How did you weaken it?
I combined a partnership centred on support (Zartman, 1977). DUA had acquired 15 percent from the third party that is not directly involved in the negotiations. These meant that if DUA purchased my shares compulsively, I would receive the points linked with the price paid to the other parties. Besides, if I sold the shares alone, the shareholders will not be with Aussie Air profit growth and no extensive direct financial interest (Young, 1991).
Strength:
Aussie Air is the critical offertory in this negotiation; it meant that I am high in power compared to respondents and have a strong influence of the coalition. I used this as a tool to strengthen the alliance, and they could listen to me. I did elaborate to the parties that DUA an unknown company and unpredictable group, therefore, the call for the coalition (Thompson, 1991). The recent growth helped me strengthen since the share prices showed a firm rising stock price drift that is enduring. Two years ago, it was at the market value of $3.20, and the recent charge is $4.20 per shares with a $0.50 dividend payment.
Weakness:
I weakened it by offering a 90% jobs kept to the union that was aggressive in acquiring a 100% jobs retained in Australia. I gave the obligation to avoid sick out and maintain financial interest to keep a good status (Neale \\\" Bennett, 1994).
What cognitive biases did you observe in yourself and the other parties? How did they affect the negotiation and how did you manage these biases?
Cognitive bias was present where the higher share price was my main agenda, and I was in for the price (Corvette, 2007). The other parties considered just selling their shares at a little bit higher than the initial market price ((Kahneman, Slovic \\\" Tversky, 1982). These affected the negotiation where the parties supposed to form a coalition were against each other (Young, 1991). I managed these biases by acquiring each group interests and discussed how we could get the best offers (Nickerson, 1998).
What emotions did you observe in yourself and the other parties? How did they affect the negotiation and how did you manage these emotions?
There were deleterious feelings of fear, frustration, and anxiety in me and other parties (Maddux, 1995). I was in doubt that the other parties would not form a coalition during the negotiation, and they had concern for the offers provided by DUA (Konovalov, Melamud, Artstein, \\\" Dagan, 2016). These affected the way to negotiate for at first every party was in for themselves (Archibald, et al, 2006). I managed this by establishing a ground offer that satisfied each party when we form a coalition together (Fatima, Wooldridge, \\\" Jennings, 2001).
What ethical dilemmas did you face in the negotiation? How did you resolve them?
Ethical dilemma by Aussie Air workers: These were the case forward by the Union sacrificing 10-percent jobs to be outside Australia (Menkel-Meadow \\\" Wheeler, 2004). They were aggressive in wanting to maximize at 100% than the offered 90% jobs keeping (Zartman, 1977). I resolved this by letting them know it would be of greater good for the remaining 90% than the 100% held positions and not having an agreement at all (Sebenius, 2007). In addition, I offered them a solution of no sickout so that the negotiations would move forward and smooth (Young, 1991).
Conclusion
In the course of the negotiation, there were conflicts and challenges all through but this did not cause me to stop but kept me strong in moving forward and achieving more success. At the end, I have gained skills in research and negotiation tactics with Aussie Air case. I believe class work will help me in achieving future negotiations than not only involve business but also in real life.
References
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