Some Internal and external factors of the negotiation Can be, on the one hand, the characteristics of personality, information and scenario, and on the other hand, the financial, political, technological and socio-cultural environment.
Negotiation is a process whereby two or more parties, having goals and objectives in common or in conflict, establish a space to discuss their proposals and propose terms to reach some type of agreement.
It is an interactive communication for take decisions And actions whenever someone needs something from another person and / or vice versa, trying to achieve a most satisfying outcome for all involved.
Negotiations are part of the daily lives of all human beings; Parents and children negotiate terms at home, among friends, teachers and students, employees and employers, clients and vendors, politicians, partners, among others.
A good negotiation ends with the parties recognizing the interests and needs of the other and establishes a good relation to the future.
The business world is distinguished by having this area very studied and developed, ensuring that to achieve financial success is taken as serious negotiations as if it were an art in itself.
Internal factors that influence a negotiation
For stakeholders, these elements or variables usually have some level of control before or during the negotiation.
Time and experience in the area of negotiation, improve the mastery of these points to become a skill.
Information and preparation
This factor is one of the most important because it is the basis of the previous preparation. Before going to the negotiating table, each party should focus on the investigation of data, facts, trends, studies, calculations, projections, etc. Information is power.
This includes knowing the strengths and weaknesses, both the own and the other party; As well as devise contingency plans, predict the greatest number of scenarios and have possible counter-offers up their sleeves.
Any interested party who is better informed will have the advantage in negotiating.
Persuasive and logical arguments can never be adequately exposed with the absence of relevant information.
Scenario and time
The space where the business meeting takes place may or may not help the confidence of the interested parties. Anyone who chooses a family or friendly site for himself will have an advantage.
If it is an area of the office, the host can extend social courtesies as gestures of goodwill that would end up moving the negotiation in a fruitful and pleasant way.
Thanks to the digital advance of telecommunications, many negotiations are currently made through some audio or audiovisual media, such as the telephone or video call, especially by distances.
Although it is a trend of modernity, striving to conduct the negotiation in person offers a very important weight in relation to trust and commitment.
Also the timing and extent of the meeting presents an element of care. To establish without pressure a schedule of mutual agreement and taking into account external and competitive factors, can be the difference between effectiveness and failure.
Personality
Both the qualities and abilities of both parties are important in the moment of sitting down to negotiate.
Excellent strategies may have been studied and designed, but knowing how to present and use them persuasively is as important.
The adaptability, patience, kindness, humor, Control of emotions , Until knowing when to apply a quota of silence can be decisive to close a deal. Getting a balance between personality dichotomies is very important.
The firmness or the flexibility have both their moment, as well being introverted or spontaneous, empathic The distanced, daring the reserved, aggressive or passive .
Knowing how to read and interpret the intentions and expressions of the opponent is crucial in deciding how to proceed.
Having the authority to keep pace with negotiation is the best way to bring it to a conclusion. For all this is necessary well developed communication skills that convey trust, respect and credibility.
It should be noted that factors such as personal appearance, motivation, safety, interests and goals, level of commitment, scales of values, attitude in general, among others, also lead to the negotiation table of each stakeholder.
External factors that influence a negotiation
These elements are those of which stakeholders have little or no control at the time of a negotiation; Do not depend on the preparation, the study or the skills.
Depending on the case, whether positive or negative, it establishes new scenarios with different conditions. If they are favorable, they are taken as an advantageous opportunity.
If not, and taking into account that no one wants to lose money, investment or costs, these points are often grounds for cancellation, freezing or restructuring the terms of a business transaction.
The financial environment
The behavior of the local or global economy has an important effect on the environment of a negotiation.
Relying on the guarantees of a contract or relying on projections will always be a challenge in economies with currency fluctuations.
Inflation and devaluation will always reconsider previously established terms. The economic instability of a country is a great risk when it comes to establishing a business partner.
Political changes
A change of government, of local or international policies, can massively influence decisions about who is being sold or bought and who is invested and who is not.
Generally changes of government are followed by economic reforms or new regulations. Legal and institutional support is necessarily reevaluated in order to seek a representation that is similar to the previous one.
All of this impacts on how companies structure the production chain, supply, import, how they must comply with employees, with taxes, social security, health, environment, among others.
A country with political instability is a business risk. On the other hand, a new trade opening of a country presents new market opportunities and interesting challenges for companies and companies.
Technological advances
Technology platforms are constantly evolving and at an unmatched speed. This makes producers, sellers and investors run their business faster and look to stay connected and up-to-date with breakthroughs.
The impact of technology spans all levels of an industry. Organizations need to keep up to date, implement and adjust their business functional structures so that their negotiations are not adversely affected.
Socio-cultural elements
The world is entering an era of acceptance, progressivism and recognition in many sociocultural dimensions.
Paradigms on gender and race are breaking every day and create new trends and ethical standards in populations.
This has drastically changed the expectations and behavior of audiences and consumers in certain markets.
Environment
Especially the energy industries and companies dependent on supply chains and distribution of goods, merchandise and products; Are at the mercy of the environment.
Whether by sea, land or water, accidents or natural disaster are inevitable. High-risk areas are often subject to many difficulties in closing negotiations on terms acceptable to both parties.
References
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