Unit_3_Effective_Business_Negotiations

1.

Prepared by
Ілліш Валерій
Васильович
Academic group
МгКІ-1-26
PowerPoint presentation
Unit 3

2.

Effective Business Negotiations
How preparation, communication and value creation lead to better agreements
Core idea
A good negotiation is not just about
“winning”. It is a structured conversation
where both sides understand interests,
manage emotions and search for a
mutually acceptable result.
Trust
BATNA
Win-win
Main focus: relationship-building + preparation
+ listening.
Unit 3 · Business Negotiations
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3.

Why negotiation skills matter
Negotiation appears in ordinary business decisions: budgets, salaries, contracts and project priorities.
Relationships
Clear decisions
Better outcomes
Trust and understanding make
agreement easier and support longterm cooperation.
A structured process reduces
confusion and helps both parties know
what is being discussed.
When negotiators focus on interests,
they can find solutions that benefit
both sides.
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4.

Preparation before the meeting
Good preparation means entering the
negotiation with a clear plan and realistic
alternatives.
• Define your goals and priorities.
• Research the other party’s needs.
• Plan variables that may influence the outcome.
• Know your BATNA: the best alternative if no
agreement is reached.
Key rule: a weak plan creates weak
concessions.
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5.

Stages of a formal negotiation
A procedure gives direction, but it should still allow flexibility.
1
2
Build
relationship
3
Set
procedure
4
State
positions
5
Ask &
clarify
6
Trade
concessions
Clinch
the deal
After the main agreement, negotiators should still tie up loose ends: final details,
documents and next steps.
Do not skip relationship-building: it makes the final
agreement easier.
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6.

Communication: articulate, listen, clarify
• Articulate your position clearly and calmly.
• Listen actively instead of preparing only your
answer.
• Ask questions to check understanding and
uncover interests.
• Avoid unclear messages because they create
confusion and missed details.
Best habit: speak less, ask better questions, and
take notes.
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7.

Emotional intelligence and questioning
A negotiator should understand emotions without letting emotions control the meeting.
Perceive emotions
Control reactions
Use probing questions
Notice tension, hesitation and
motivation in the other party.
Stay calm, especially when the
discussion becomes difficult.
Discover hidden details and identify
room for manoeuvre.
Balanced questioning
Too aggressive
Too passive
Challenge ideas carefully. If you back someone into a corner, concessions become harder.
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8.

Creating value: expand the pie
The strongest negotiations are not based only on taking value. They create more value before dividing it.
Fixed pie
Expanded pie
“I win only if you lose.”
“We search for extra value.”
• Identify underlying interests, not only fixed demands.
• Trade concessions that cost you less but matter to the other party.
• Aim for trust and a win-win outcome.
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9.

Conclusion
• Prepare before you negotiate.
• Listen before you respond.
• Create value before you divide value.
• Protect relationships for future
cooperation.
Thank you for your attention.
Questions?