You are about to embark on international negotiation. You work for a multinational oil
company, and your company has decided to set up a joint venture with Saudi Arabia
and another one with a company in Russia. You are leading the negotiations.
What are the 5 stages of negotiation, and how might you prepare for them? To
answer this question consider the following:
oIs the preparation different with each country?
oWould inductive or deductive reasoning work better for different cultures?
What cultural differences do you need to be sensitive to in the process?
oFor example, what would you expect from the Arab negotiator versus the
Russian negotiator who will be working with you, the American negotiator?
What would be some of the political, legal, economic, and ideological issues that
may come up?
How would you manage conflict if it should come up in the negotiations?
Answer:
As the lead negotiator for a global oil company seeking to establish a joint venture in
Russia and Saudi Arabia.
Preparation, information sharing, clarification, bargaining, and execution are the five
stages of negotiation.
In the first step, prepare research from both parties to identify the least desirable
venture business outcomes with Saudi Arabia and Russia. Because each country's
culture, customs, and regulations are different, preparation varies by country. Create a
concession list and decide where and under what constraints the discussion will take
place.
The information sharing stage is where both parties communicate their business
perspectives with one other. Because inductive reasoning offers logical thinking based
on specific occurrences, and deductive reasoning helps to supply one or more states to
achieve a logical conclusion, both are useful in this situation.
During the clarification stage, another national group begins a dialogue in which they
exchange facts while explaining their assertions. Political, legal, economic, and
ideological difficulties may arise in these nations, necessitating clarification of these
groups' statements in order to avoid these issues.
They make decisions and confess at the bargain stage, where each negotiation party
proposes distinct counter-offers for the difficulties. Throughout the negotiation process,
double-check every information shared. This stage lays forth a viable plan of action.
