Introduction
Negotiating and bargaining are essential skills in today’s global business environment. Chapter 8 of the book, “Management Across Cultures,” discusses several styles and techniques for global negotiating and bargaining (Steers et al., 2010). This essay will compare and contrast two approaches to bargaining and negotiating: competitive and problem-solving. The strengths and weaknesses of each approach will be analyzed, and finally, a recommendation will be made on which approach to use when negotiating with a company from Brazil.
Competitive Approach
The competitive approach to negotiating and bargaining is based on a win-lose mentality. In this approach, the goal is to maximize one’s benefit, even if it comes at the other party’s expense (Steers et al., 2010). Negotiators using this approach often rely on aggressive tactics, such as threats, ultimatums, and deception, to gain an advantage over the other party.
One of the main strengths of the competitive approach is that it can be effective in situations where the parties have very different interests and objectives. For example, if a company is negotiating with a supplier demanding a high price, the company may use the competitive approach to get a lower price (Fousian et al., 2021). Another strength is that the competitive approach can set a precedent for future negotiations. Suppose a company can negotiate a good deal using this approach. In that case, it can establish a reputation for being tough and uncompromising, which may deter future suppliers from asking for high prices.
However, there are also several weaknesses of the competitive approach. One of the main weaknesses is that it can damage relationships between the parties. If a company uses aggressive tactics to negotiate a deal, the other party may feel resentful and less likely to want to do business with the company in the future. Another area for improvement is that the competitive approach may not be effective when the parties have a long-term relationship or need to work together to achieve a common goal.
Problem-Solving Approach
The problem-solving approach to negotiating and bargaining is based on a win-win mentality (McCarty, 2022). In this approach, the goal is to find a mutually beneficial solution that satisfies the interests of both parties. Negotiators using this approach often rely on collaboration and creative brainstorming to find a solution that meets both parties needs.
One of the main strengths of the problem-solving approach is that it can preserve relationships between the parties. If a company uses this approach to negotiate a deal, the other party may feel more respected and valued and more likely to want to do business with the company in the future (Steers et al., 2010). Another strength is that the problem-solving approach can be effective when the parties have a long-term relationship or need to work together to achieve a common goal. However, there are also several weaknesses of the problem-solving approach. One of the main weaknesses is that it can be time-consuming and require much effort from both parties to find a mutually beneficial solution. Another area for improvement is that the problem-solving approach may not be effective in situations where the parties have very different interests and objectives.
Negotiating with a Company from Brazil
If negotiating with a company from Brazil, it is important to understand the Brazilian culture and business practices. Brazil has a relationship-oriented culture, meaning building personal relationships and trust is essential in business dealings (Menkel-Meadow et al., 2020). Therefore, the problem-solving approach may be more effective in negotiating with a Brazilian company as it values relationships and mutual benefits. Additionally, Brazilian negotiators often use indirect communication, so paying attention to nonverbal cues and listening carefully to what is being said is essential.
Conclusion
In conclusion, negotiating and bargaining are essential skills in today’s global business environment. The competitive and problem-solving approaches are two contrasting negotiation styles, each with strengths and weaknesses. The competitive approach is effective when the parties have very different interests and objectives and can set a precedent for future negotiations, but it can damage relationships between them. The problem-solving approach, on the other hand, can preserve relationships between the parties and is effective when the parties have a long-term relationship or need to work together to achieve a common goal. However, it can be time-consuming and ineffective when the parties have different interests and objectives.
References
Fousiani, K., Steinel, W., & Minnigh, P. A. (2021). Effects of power on negotiations: a comparison of collaborative versus competitive approach. International Journal of Conflict Management, 32(2), 223-249. https://www.emerald.com/insight/content/doi/10.1108/IJCMA-05-2020-0081/full/html
McCarty, T. (2022). Collaborative Problem Solving for Sustainability: Analyzing Conversations during a Science-Based Role-Play Negotiation Simulation (Doctoral dissertation, University of New Hampshire). https://search.proquest.com/openview/bc8be4e3e609e26b802093d2ce66f958/1?pq-origsite=gscholar&cbl=18750&diss=y
Menkel-Meadow, C. J., Schneider, A. K., & Love, L. P. (2020). Negotiation: Processes for Problem-Solving. Aspen Publishing. https://books.google.com/books?hl=en&lr=&id=4JScEAAAQBAJ&oi=fnd&pg=PR25&dq=Competitive+and+ProblemSolving+Approaches+to+Negotiating+and+Bargaining&ots=bR7bLA9cDK&sig=vxpGFyV2aiSyvdltI5YmXGQh5Rs
Steers, R. M., Sanchez-Runde, C. J., & Nardon, L. (2010). Management across cultures:
Challenges and strategies. Cambridge University Press. https://books.google.com/books?hl=en&lr=&id=Qr12zT0syf4C&oi=fnd&pg=PR13&dq=Management+across+cultures+by+richard+steers&ots=shd_Dn1zz5&sig=4zjynEE2NpjJvQvQkhnC3z13LE4
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