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Distributive Negotiation ‘Fixed-pie Competitive Sometimes adversarial Short term gains Little relationship benefits Distributive Negotiation Goals of one party are in fundamental, direct conflict to another party. Resources are fixed and limited. Maximizing the share of resources is the goal. Distributive negotiation is all about who gets (or pays) how much. It is also where more for me means less for you. Integrative Negotiation Create a free flow of information. Attempt to understand the other negotiator抯 real needs and objectives. Emphasize the commonalties between the parties and minimize the differences. Search for solutions that meet the goals and objectives of both sides. General structure of negotiations 1 oDetermine interests and issues 2 design and offer options 3 introduce criteria to evaluate options 4 estimate reservation points 5 explore alternatives to agreement 6 reach an agreement BUSINESS NEGOTIATION Negotiations occur for several reasons: To agree on how to share or divide a limited resource To create something new that neither party could attain on his or her own To resolve a problem or dispute between the parties Negotiators need to: Set a clear target and resistance points Understand and work to improve their BATNA Start with good opening offer Make appropriate concessions Manage the commitment process Sales contract contents Description of good/service(name number; quality; discounts (cash/volume); packing) Payment (unit total; due date; terms of payment; late payment penalty ) Shipping Warranties or guarantee Inspection Boilerplate provisions (amendment ; force majeure; dispute arbitration; jurisdiction; integration; headings; severability; confidentiality; indemnity) Invoice payment terms Net monthly account Payment due on last day of the month following the one in which the invoice is dated PIA (Payment in advance) Net 7(Payment?seven days after invoice date) Net 10(Payment?ten days after invoice da