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BNS LEARNING DIARY 5

In this, we learnt about the dynamics of the international business negotiations. Also, these negotiations are
influenced by environmental (uncontrollable) and immediate context (controllable).

There are two main factors which has influence on International negotiation
1.

The Environmental Context

This are the factors which influences negotiation and which cannot be controlled by the negotiators.
Political and legal pluralism
Since rules and regulations changes according to the party in rule in the country, even political
and legal pluralism plays an important role in the negotiation process.
International Economics
The Economic state of the countries involved in the negotiation is also an important factor.
Foreign Government and Bureaucracies
Legal implications and government rule will also influence the deal.
Instability
These are the factors like electricity, storage of goods etc. which the parties needs to take into
account while negotiating.
Ideology
How the individual rights of both the countries involved in the negotiation differs.
Culture
In addition to behaving differently, people from different cultures may also interpret the
fundamental process differently.
External Stakeholders
These includes all the external bodies or stakeholders who can influence the deal like business
associates, labour unions, industry associations etc.

2.

The Immediate Context

This are the factors over which negotiator has some influence.
Relative bargaining Power
Presumption about tactics being used.
Conflict Situation
This deals with the different ethnicity, identity or geography which both parties belong to.
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Relationship between Negotiators


The relationship between the two parties dealing in the negotiation will have a great influence on
the result of the negotiation.
Desired Outcome
This are the tangible and intangible factors which play a large role in determining the outcomes.
Immediate Stakeholders
The skills, abilities and international experience of the parties involved in negotiation will make a
difference in negotiation.
Learnings were:

One needs to understand these factors well while going for an international negotiation.
While preparing a negotiation, one should keep in mind the uncontrollable factors of that
particular area.
One needs to have a proper training of etiquette so that the other party feels comfortable in the
process.
One should avoid involving in discussions based on the ethnicity or culture if he/she is new or
going for the first time to meet.

In next 2 sessions presentations were made on different deals. These gave us a practical understanding of
real life scenarios that may occur during the whole negotiation process and how are they dealt with, the
tactics that are used, the negotiation climate and environment, the negotiation styles, the issues discussed,
the value creations and how consensus is achieved.
These are the some points to be considered: While doing SWOT analysis, the deal is considered as a whole and not do swot for individual companies.
Core issues are the one which are discussed across the table at the time of negotiations.
The value analysis of the deal should be in context with a particular issue and not the overall deal.
It is not necessary that a deal have the same negotiation style, it might change according to situations.

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