Communication Skills
and Business Ethics
Chapter 6: Negotiation
Outline
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Negotiation definition
Features of negotiation
Negotiation process
Negotiation tips
Where do use this skill?
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Everything is negotiated.
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Family and personal
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Academic research
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“ Where should we go for dinner?”
“ Can I borrow the car?”
“ Fund my project.”
“ Publish my paper.”
Business ventures
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“ I want a raise.”
“ Invest in my company.”
“ Pay me a license fee or I’ll sue you.”
WHAT IS NEGOTIATION ?
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The process of conferring to arrive at an
agreement between different parties, each with
their own interests and preferences.
“A give-and-take decision-making process
involving interdependent parties with different
preferences.”
FEATURES OF NEGOTIATION
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Minimum two parties
Predetermined goals
Expecting an outcome
Parties willing to modify their positions
Parties should understand the purpose of negotiation
Why do we NEGOTIATE ?
To reach an agreement
 To beat the opposition
 To compromise
 To settle an argument
 To make a point
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NEGOTIATION PROCESS
NEGOTIATION TIPS
1)
2)
3)
4)
5)
Do not underestimate your power.
Do not assume that other party knows your
weaknesses.
It is a mistake to assume you know what the
other party wants.
Never accept the 1st offer.
Don’t fear to negotiate.
Real Examples
Apple / Samsung
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In August 2012, a California jury ruled that Samsung would
have to pay Apple more than $1 billion in damages for
patent violations of Apple products, particularly its iPhone.
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The judge eventually reduced the payout to $600 million.
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Later, another jury ruled that Samsung would have to pay
Apple $290 million of the amount overruled by the judge in
the 2012 case.
Starbucks / Kraft Foods
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A three-year dispute between Starbucks and Kraft Foods
over the distribution of Starbucks packaged coffee in
grocery stores was resolved with arbitration ruling that
Starbucks had breached its agreement with Kraft.
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The coffeemaker was ordered to pay the food giant $2.75
billion.
Nike/Yeezy/Adidas
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Kanye West has built a footwear and apparel company named “Yeezy”, 2003.
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The Yeezy brand has released a total of three sneaker styles in conjunction with
Nike - two silhouettes, the Yeezy 1, and the Yeezy 2 - along with multiple color
variations of each.
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As sales of the Yeezy collection at Nike started to explode, Kanye felt
underappreciated and approached Nike management with an idea
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As the saga dragged out publicly, Adidas came calling - inviting Kanye and his
representatives to the company headquarters in Germany.
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The offer allowed Kanye to keep 100% ownership in Yeezy - making Adidas the
exclusive producer, marketer, and distributer of all Yeezy shoes. In addition, Kanye
would be given a 15% royalty on all wholesale plus a yearly marketing fee.
References
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Sachin, PM (2011) Negotiation skills
Anderson & Dubinsky, Personal selling:
achieving customer satisfaction and loyalty