Negotiation

Negotiation
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Negotiation is scheduled to take place between two small agencies from Ontario. This was the government’s ruling that they should do so because they needed to reduce the operations cost. In order to come up with an agreement to merge, the agencies are required negotiate about the whole operations and terms and conditions applied to their merger. A negotiation meeting has been scheduled to take place between Jordan, a negotiator from one agency and I from the other. There is a personal determination to make negotiation successful to protect the reputation and employees’ welfare. In order to reach an agreement and avoid conflict during the negotiation, there is a detailed plan that will drive the negotiation process. It is equally beneficial to identify the issues and interests that need to be addressed. There are the ground rules that a negotiator should institute to ensure a productive and positive outcome (Lewicki et al, 2011). Moreover, certain strategies and tactics are applied to remain principled and integrative in negotiation approach.
In order to have a mutual understanding and successful negotiation of merger, an appropriate approach to acquisition negotiation is needed. Firstly, a friendly approach is mandatory for a fellow negotiator who is hostile. This will help both parties to feel at ease before engaging further in talks. In that case, negotiators are required always plan about how to deal with the hostile parties, psychologically and mentally in order to avoid offense or outburst. Building trust in the beginning is always fruitful because the counter negotiator will cooperate in the entire negotiation. In addition, it is good to understand the financial connection that lies beneath any agreement made between the two agencies (Churchman, 1995). This will enable them to understand the financial position and agreement of both agencies and plan on what to discuss during the negotiations. As a competent negotiator, it is wise to prepare legal, financial and the other necessary presentations required during negotiation. The acquiring agency requires expressing its corporate objectives in precise terms. It is necessary to extend the interest of the seller in non-financial features. These interests will play a vital role because it would be easy to identify and analyze the features and regard the other agency in a more considerate manner. In addition, making resolutions concerning financial facts is advisable. This will assist to make sensible agreement on terms between the two agencies. It is right to say that even if the partners can involve in their negotiations, every wanted to have their issues listened and solve first hence their BATNA and WANTA solved on their own ways.
Developing corporate goals and criteria of acquisition is composite and immensely valuable. These corporate goals may include financial averages on the returns per annum, amount of earnings concerning share growth rate. The acquisition agency needs to consider these financial standards in order to stand a chance of making an agreeable deal. When reasoning, an agency that annually make a growth rate per share of nine percent compounded will be considered better than the agency that makes a five point five percent and targeting for a growth rate of eight percent (Churchman, 1995).
For an agency that intends to be an acquirer, it is mandatory to set goals of return on investment and earnings growth rate, which leads to the emergence of many factors for thoughtful assessment. It is advisable to have a financial analysis of the involved agencies for good reasoning. Evidence is needed for both agencies such as certified accounts of returns and other earnings prepared by certified accountants. Convincing skills are helpful when it comes to negotiation, and the negotiator ought to be persuasive. A comprehensive study of the other agency is a good step to establish the strong and weak spot and point them out with the motive of convincing the fellow negotiator why your agency should be the acquirer (Churchman, 1995).
Graph preparation is one of the easiest ways to negotiate, so making one would be wise. Both parties take a quick glance at the short elaborate graphs to understand and determine the financial position of both agencies before engaging in the talks. The graphs also become tools of persuasion for the ...