As a general rule in a negotiation, which strategy is likeliest to produce the best outcome-bidding first or letting your counterparty show their hand first? Consider the situations that favour either the bid first or bid second strategy and what the benefits and dangers are.
Negotiation is when two or more people get together to reach an agreement whereby it should be mutual and should be able to solve any problems. It arises from our own personal wish to achieve goals when there is an obstacle. Negotiation is every important as it touches all aspects of a business.
Negotiation is made up of a three- phase model which involves planning, Negotiating and Consolidation. Firstly, the planning phase involves the identification of issues faced by the negotiators, a lot of research, obstacles and solutions to these problems. A good planning and important information are of great importance in this case. Secondly, there is the negotiating phase involving four key stages; Exploration, Bidding, Bargaining and Settling. This is mainly concerned with the exploring the situation further and making deals to come to an agreement. Lastly, Consolidation phase finishes of with the agreement being translated into a formal document ratified by higher authorities whereby you must ensure that the actions are taken on time and you also need to explain the outcome of the negotiation.
Accordingly, the bidding process involves bringing forward your suggestions or proposals. For example price, pay rates, quality of products ect..You must ensure that the right structuring is being used as you only have one chance to make the right impression. By making the first move, gives you the right to make the highest bid. One the other hand, if you do not make a counter bid, your opponent may set a higher bid which is probably in their best interest. At times, negotiators tend to be shy which results in them not being taken seriously or some people get offended. When making bids, it should be...