Negotiation Stages and Examples

Confrontation:

In this stage, it is focused on winning/losing, forcing the positions against the counterpart, the positions are inflexible, the parts have little time to resolve the problems, so the negotiation will be easier for me, due to the power control that I have. Example: “Mr. Ballmer expressed a belief that Microsoft and Nokia could innovate more quickly in the mobile market if their products were produced by a single company, Microsoft”

Subordinated:

In this stage, the company is submitted to the interest of the other party, it tries to get something from the situation, it is a conflict without an exit, and I have to accept it. One party can make a concession. Example: “The future is likely to be relatively grim for employees in the Nokia phones division. There have already been reports in the Finnish press that many are worried about losing their jobs”

Inaction:

Here there is no negotiation between the parties, it is postponed the meetings, the parties are not in a position to adapt to the other, and there is a difference that is not negotiable. Example: “Nokia declined to have more formal deal talks with Microsoft unless it agreed to a handful preconditions, including a commitment to set up a source of financing for Nokia”

Collaborative:

This is a creative negotiation win/win, there is a huge exchange of information and trust, it also is a difficult negotiation due to the culture differences, both sides look for continuing business in a long-term, and the main goal is agreement on objectives. Example: “Collaboration between Microsoft and Nokia hence became a natural fit, notwithstanding the fact that Microsoft and Nokia had collaborated before in offering productivity solutions for Nokia smartphones”

Reasoned:

In this stage, the companies have to solve significant differences more than concessions, the high power of both companies, it is based on interests and not positions, and it looks for benefits for both parties. Example: “Merging distinct cultures can be a confusing, lengthy process- even without the added complexity of joining together two of the world’s largest companies, each of it emblematic of its mother country in its own way”