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Negotiation is a process by which the involved parties or group resolve matters of dispute by holding discussions and coming to an agreement which can be mutually agreed by them. It also refers to coming to closing a business deal or bargaining on some product. However, it also means exchange of negotiable instruments such as bills of exchange, cheques etc in exchange of goods, service or money.
The negotiation must be looked at as one of the most efficient mean of communication with the advantage of achieving the desired result in the shortest period of time.It refers to the situations in which the engaged parties interact to reach at an acceptable conclusion.This doesn’t neccesarily involve the fact that both parties will be entirely satisfied and with ”a smile on their faces” with the results.However,in most cases in a closed aggreement both parties come to a solution which offers mutual advantages.Actually,the negotiation starts from the fact that each party has direct or indirect need that need to be satisfied.When the partners have the same desire,the negotiation ends succesfully and the contracts are signed in normal conditions.When the demands of one party are ignored,the results of the negotiation are not the expected ones.
Begining from these aspects, the negotiation could be defined as being a main form of communication, a concurrence of processes and activities composed of contracts,meetings,consultations,talks between two or more partners in order ot close a deal.
An other definition is that the term negotiation represents a process in which the points of view of both parties are adjusted to the ideal results which they want to reach, reducing them to the level of some results that can be reached.
The negotiation is a dinamic process of adjustment through which both parties,with their own objectives,discuss to come to a satisfactory mutual agreement on the basis of their common interests.In every bussines transaction,each party has to win,has to have a bigger or smaller advantage depending on the corcumstances, of the merchandise,of the skills and abilities of the negotiation team.The mutual advantage doesn’t assume the advantage of one party to be equal with the advantage from the other party,but that every party has to win from the deal.
Bussines negotiations are actions in which the demand and supply confrunt in order to reach at a favourable mutual understanting,at the signing of a demand-supply contract.In every negotiation there can be identified a series of interests,namely:
-Common interests:of the participants,sometimes on long term
-Specific interest:different from the other participants and sometimes opposite to them.
-Negotiable interests:which come from the economical ,organizatorical and political caracteristics imposed by the commercial or economical politics of some states
-Real interests:which differ from those declared in the initial stage of the negotiation and which in fact are to be harmonized during the transactions in mutual advantage.
Negotiating power plays a major role in every type of negotiation, whether it's a labor negotiation, political negotiation or a buy-sell negotiation. Both the buyer and the seller have power in a negotiation. Power is each side's perception of its strength or weakness in comparison to the other. This perception of power affects the ability of each party to achieve its own goals, and the more negotiating power you have in comparison to that of your buyer, the fewer concessions you'll have to make.
The negotiating power consists of all the means which the negotiatior can use with the view of obtaining a suitablesolution which is the closest to hid own position of negotiation.This depends of the following factors:
-the demand-supply report
-the speed and capacity of reaction
-the possibility of drawing useful allies
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