PE7003 Principles of Business Communication and Environment

TASK 1

1.1: Explain the importance of negotiation in business environment

In every kind of business environment the need for negotiations arise, without negotiation the situations of conflicts and disappointment may arise. The main purpose behind the process of negotiation is to create and reach an point of agreement which do not cause barriers in the communication process. It also helps in making the operations of business more efficient(Drucker, 2014).

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1.2 Explain the features and uses related to negotiation in business environment

The abilities for being a good negotiator includes many abilities and skills such as preparation, analytic, active listening, and an efficient ability to communicate verbally. There are many different approaches for the negotiation and on the basis of the approaches, the results will be differing every single time, the examples of these approaches include distributive, integrative and compromise( Stanaland, Lwin, and Murphy, 2011). These are discussed as under:

Disruptive Negotiation: This can also be called as zero sum, competitive or the claim of value approach. According to this approach it is assumed that one person can win at the expense of another. This have the following discussed; features:

Feature

• Competitive: Under this approach the negotiation is taken as the approach to treat the process as competition that is to be either lost or won.
• Win-lose: Under this situation, Only one side of the party understand the outcome to be positive. Thus this situation is less likely to be undertaken and accepted voluntarily.;;
• Adoption of extreme position: This is a strategy which involves keeping an fix idea or position of what you are looking for and arguing for it and it alone, regardless of the interest that is underlying in the industry.

Uses

• Gaining competitive advantage: The disruptive negotiation is used for the purpose of acquiring an competitive advantage in the company.
• Maximize own interest: This approach is used in order to maximize their own interest in order to gain most benefits for the company.

Integrative negotiation approach: This approach is also termed as creation of value approach or collaborative approach. This approach is considered superior then all the other approaches. This results in all the negotiating parties feeling that they are achieving what they have wished for. This has resulted in both the parties feeling they have achieved what they wanted. This approach has following features:

Features

Creating value: This is the main feature of the approach as it creates value for the parties that are involved in the negotiation process.

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