Strategies and Emerging Markets

Strategies and Emerging Markets

Strategies and Emerging Markets Negotiation can be defined as a mutual discussion involving two or more parties or individuals who strive to identify common ground to resolve or settle a difference. There are approaches of negotiation, which include distributive and integrative negotiation.

            Distributive negotiation also known as ‘win-lose’ or ‘fixed-pie,’ entails reaching into an agreement where one party gains at the expense of another. In this case, each party assumes a fixed position on the issue, and each negotiator tends to fight for the best benefit. This leads to a win-lose situation because a gain of one party means a loose for the other party. This type of negotiation is suitable in cases where the involved parties had no previous relationship, and they are not likely to engage in any undertaking in future. Example include negotiating for the price of a car or home in an open market. Integrative negotiation, on the other hand, seeks to create value during the negotiation process by ensuring that each party is compensated for any loss accrued (Jensen, 2012). This ensures there is a win-win outcome. In addition, integrative negotiation seeks to concentrate on the primary interests of the parties involved instead of focusing on their positions. Integrative negotiation is adopted when it is necessary to establish a long-lasting relationship between the negotiating parties.

            It is impossible to use the same negotiation style while in China and Russia. The type of negotiation adopted varies from one culture to another. Each culture has different values that dictate their way of doing business (Peleckis, 2013). For example, the Chinese value interpersonal relationship more than morality and law. This implies that effective negotiation is based on how healthy the interpersonal relationship between the negotiating parties is (Tsang, 2011). On the hand, Russia is country where the law is observed as a tool of maintaining respect and relationship. Effective negotiation would require one to respect their culture as well as their language. In Russia for example, distributive negotiation is effective (Katz, 2006).

            There are various differences between negotiation strategies and tactics.  First, negotiation strategies involve devising and executing an organized plan in order to achieve the desired negotiation outcomes while negotiations tactics refer to the means that the strategy will be executed. The two concepts are both critical to having successful negotiation and they complement each other. Therefore, the effectiveness of negotiation depends on how well negotiation strategies and tactics support each other.

Strategies and Emerging Markets