Category: Informative


The term ‘negotiation’ originates from a Latin word ‘negotiatus’. A negotiation refers to a process of indulging in a lengthy discussion or conversation which main reason includes achieving a lucrative agreement. In addition, negotiations can occur when people want to settle business arguments or in management of conflicts. It involves bargaining between two or more individuals each of whose aims include benefiting in one way or another from the transaction. Negotiations occur mainly in trading fields, and they work on suiting the needs of both the buyer and the seller.

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Various Reasons

Negotiations usually occur for various reasons.

  • First, a negotiation may occur when two people or companies involved possess one common aspect. The common basis of the negotiation is the main point of consideration in any negotiation.
  • Secondly, time as a factor needs consideration before any negotiations occur. If time is not on their side, then the negotiations will be cancelled. In situations when one cannot work on their own, negotiations come in handy and helpful in settling agreements. Thus, such a person seeks the assistance of another through negotiations.

A negotiation may also occur when one possesses the ability to have things happen to their own benefit in the short term. In addition, they occur when one looks forward to a long- term relationship. Finally, negotiations occur when one seeks to gauge whether their ideas occur appropriate and lucrative.

A negotiation always occurs as a time consuming activity. However, a well-planned negotiation tends to bare a better result. Before carrying out a negotiation, one is required to carry out adequate research based on the other party with whom they should negotiate. Such research could get retrieved from the website and past negotiations done with the same body. Secondly, one should involve their manager in the preparation processes. In addition, the negotiations should possess the dedicated support of the manager. The parties must also consult the other party in the preparation processes and inform them of their intentions to negotiate with them. This provides convenience on the other side since they possess adequate time to prepare for the negotiations too. A budget of all expenses that will get incurred should occur. Failure to plan a negotiation well always leads to unsuccessful and meaningless outcomes. One may end up applying weak attempts of luring their counterpart.


There exist several theories used in different kinds of negotiations. In the example here, the best theory includes the Game Theory. In this type of theory, the opinion of both parties involved counts to the end. This occurs as a fundamental theory since it leads to achieving a BATNA (best alternative to a negotiated agreement). One of the rules involved in this theory includes the fact that either party should not reveal their BATNA unless it appears better than their counterpart’s does. Revealing a better BATNA benefits the one who possessed it. However, in case one reveals a poorly though out BATNA, this may lead to a failure on their part.

In the case of purchasing 120 desktop computers, this theory occurs lucrative. Despite the fact that the opinion of both parties counts, both the buyer and the seller must achieve their goal. Say, the initial selling price of the computer appears as US $250 per desktop, the buyer could try bargaining at US $180 per desktop. Regarding that the necessary preparations are made before the negotiations will begin, the process occurs flexible and accommodative to both buyer and seller.

To enhance the success of the negotiations and ensure that one’s side gains, transparency occurs as a key factor. All the necessary details should be laid down on the table. Each party should occur available in case a question arises. When handling the amounts, one should either increase or reduce amounts in small portions.


In conclusion, to possess a successful negotiation, a good agenda should be provided. This helps in proving a perfect plan of how the negotiations should occur. In addition, one should not set a fixed price before the negotiations since immense alterations may occur during the negotiation. Finally, a good negotiation goes to extents of providing room for withdrawal in case one party fails to come to a common understanding with the other.

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