International Buying and Selling Negotiations
David Keach posted Jun 19, 2018 1:15 PM
The international world of buying and selling is one of ever changing methods and technologies.
In this day and age with automated information systems allowing companies to negotiate online
and eliminate the traveling aspect, both money and time can be saved. But, with automated
technologies it is hard to show emotion or send and receive non-verbal messages making it as
much of a hinderance as it is a benefit in some cases. This makes the human aspect, in my
opinion, almost irreplaceable. But, when it comes to meeting the buyers, is it more advantageous
to negotiate solely or is it a hinderance?
According to Maude, “A sole international sales negotiator is at a considerable disadvantage
when bargaining against a team of foreign buyers due to the inherent imbalance of bargaining
power and resources.” While I understand this, I don’t necessarily agree that this is a huge
disadvantage for the sole negotiator. Of course, when you have a team you can dole out the
responsibilities, organizing the negotiations without having to pick and choose on what your
primary focus should be. But, negotiating as a sole negotiator also has some advantages that
you can’t replicate with a multi-member team.
The case study: “Sole Negotiators” from page 218 in the text gives us a prime example of the
benefits of negotiating with only one sales representative. The second negotiator in the
situation, with the freedom of negotiating alone, makes a great effort to learn about the culture
of the organization while not being held back by the possibilities of a multi-member buying
team. When you have a team, all team members must be on the same page, they must
communicate and if everything is not planned out in accordance, the deal could fall apart.
As a lone negotiator, you have the advantage of relying on yourself to seal the deal. If you study
the culture and understand the nuances, this prepares you for dealing with multi-member teams
of buyers. Lone negotiators also have the freedom of appealing to the organizations needs
without further approval by other members. And, as teams need to have members with different
skill sets to really be effective, a sole negotiator with many skills can be flexible and adjust to
many in-negotiation situations.
Now in conclusion, I think that the advantage goes both ways when you have a sole negotiator
working with a team of buyers. If the sole negotiator is skilled and prepared for not only the
organization but the for culture as well, then they have the advantage. Especially if they meet
with all buying members sequentially, this takes away the teams simultaneous bargaining
advantage and leads to more tradeoffs. But, if the team is multi-skilled and they work well
together, playing off of each other, then the team holds the advantage.
References:
Anonymous. (2010). What are the advantages and disadvantages of team negotiation? Retrieved
June 19, 2018, from http://www.negotiationskills.com/qaprocess43.php
Maude, B. (2014). International Buying/Selling Negotiations. In International Business
Negotiation: Principles & Practice (pp. 206-230). London: Palgrave Macmillan.
International Buying and Selling Negotiations
Michael Morales posted Jun 19, 2018 3:41 PM
Being a sole sales negotiator or apart of a team has its advantages and disadvantages. In this
case, I think a sole sales negotiator is at a disadvantage when faced with a small team of buyers.
Maude points out that there is an inherent imbalance of bargaining power and resources when
negotiating as a sole sales negotiator. (Maude, 2014) Sole negotiators have more on their plate
than those working on a team. Greater preparation needs including cultural research, technical
knowledge, and being able to answer questions without hesitation. Some advantages of team
negotiations include better coordination, more experts, moral support, better listening ability,
and better plans. (Anderson, 2008) Tasks can be distributed throughout a team to ensure all
aspects are covered thoroughly. It will also reduce confusion as each member has their own
task. A team can provide a much broader collection of experts and this should help the
discussions move much faster. (Anderson, 2015) A sole negotiator is limited to his/her own
knowledge and experience. I can equate this to having SMEs on a team. What one person may
not have experience in, another my be an expert. If negotiations aren't going as planned,
members can rely on each other for motivation and keep the negotiation process going. Having
multiple sets of ears can enhance the negotiation process. If one member misses something,
another will be there to pick up the slack. A plan from a sole negotiator is only as good as the
negotiator them self. Having team input enhances the plan to creates a better solution.
I'm leaning towards team negotiations, however, team negotiations are not useful in every
negotiation. Sole negotiators take on more of the process than would a team. According to
Maude, decisions taken on by a sole negotiator affect both the process and the outcomes of an
international buying/ selling negotiation. (Maude, 2014) (S)He is required to make decisions
based on their own experiences and knowledge. Their skill set needs to be boosted as they may
be required to answer questions regarding entities they have minimal knowledge in.
All in all, I don't think there is a correct answer the above posed question. I think it's dependent
on the topic of negotiation and the ability of the negotiator(s) to provide a positive outcome.
Anderson, J. (2008, December 11). Single vs Team Negotiation: Which Is Better? Retrieved
June 19, 2018, from http://theaccidentalnegotiator.com/preparation/single-vs-teamnegotiation-which-is-better
Maude, B. (2014). International business negotiation: Principles and practice. New York:
Palgrave Macmillan.
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