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TRABAJO DE FIN DE GRADO

The negotiation

(La negociación)

Autor: Jorge Moreno Hernández

Tutor: D. Ignacio Amate Fortes

Grado en Economía

Facultad de Ciencias Económicas y Empresariales

UNIVERSIDAD DE ALMERÍA

Curso académico: 2014/2015

Almería, Junio de 2015

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Index

1. Introduction

2. What is negotiating?

3. The origin of the negotiation

3.1 The Game Theory

3.1.1 Concept

3.1.2 The origin of The Game Theory

4. Types of negotiations

5. Negotiation process.

5.1 Relationship building techniques

5.2 Haggling

5.3 Closing

6. Negotiation techniques.

7. Non-verbal communication and how to detect lies in a negotiation.

7.1 The glance

7.2 Hands

7.2.1 Ways of palming

7.2.2 The handshake

7.2.3 What should I avoid about giving a handshake?

8. International deals.

8.1 Why negotiate internationally?

8.2 What does the culture mean in international deals?

8.2.1 Personal and professional relationships.

8.2.2 Confrontation and cooperation.

8.2.3 Time and punctuality in different countries

8.2.4 Verbal and written agreements.

8.3 Some different culture cases

9. Negotiation in teams.

10. Errors to avoid in a negotiation.

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11. Experiment. Negotiation abilities; who develops better negotiation skills along the

degree?

12. Conclusion

13. Bibliography

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1. INTRODUCTION

This project is based on negotiation. It is about all aspects people should consider

regarding the negotiation such as its pertinent techniques, how to begin or close a deal,

how it should be negotiated with foreign people, etc.

The project consists of four essential parts:

Part I; Key aspects about negotiation such as the origin or the definition itself.

Part II; Negotiation techniques and how to begin and close a deal.

Part III; How to negotiate with foreign people, the negotiation in teams or errors to

avoid when it is negotiating.

Part IV; Negotiation experiment. Male vs female.

Within the mentioned aspects, the most important one is considering an experiment which

was accomplished at the University of Almería, Spain. In this experiment, it is tried to

discover what gender is better at negotiating as the students advance their degree so as to

comprehend if they increase their negotiating knowledge as they grow. To research this,

there will be three objects to negotiate in the first, second and third year of the degree.

(Degree in Economics; University of Almería).

One the one hand, it is decided to analyse the negotiation itself because this fact affects to

our daily life. This is, most of people are continually negotiating in order to achieve what

they desire, therefore I thought it was necessary some standards about how to negotiate.

Thus, this project will show all these aspects connected to negotiation.

If it might return to the main subject of this project, the experiment, it has to be said that

because of the lack of financial and business education to our students, it is decided to

represent an experiment with the purpose of verifying this lack. Accordingly, it is

considered this topic as vital for the future.

Finally, the objective of this project is exhibiting how a person should negotiate in

different situations. Apart from this, the second objective is related to the behavioural

economy. This objective is aimed at analysing how people behave when they try to

negotiate for the lowest price and observe if the students make use of their acquired

knowledge.

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PART I

2. WHAT IS NEGOTIATING?

Negotiate is concerning “Universidad of Alicante” (2007) an activity in which two or more

people who are interested in a matter. Moreover, they agree on particular rules and seek an

agreement with the objective of fulfilling the interests of each other.

Three conditions must be achieved to be a negotiation process:

There are two different points of view about one issue.

Both of the parts want to come to an agreement.

To reach that, they communicate each other by sharing proposals and concessions.

On the one hand and in regard to European Business School (2014), an effective

negotiation is a result from the cession of some elements by both parts in order to keep

their own interests. Moreover, traditional negotiation is sometimes called “win-lose” due to

the toughness of every negotiator with the objective of winning as much as they can for

themselves. But, over 1980, three prestigious teachers called Roger Fisher, William Ury

and Bruce Patton arose the concept “win-win” such as CEFNE, (Centre for studies and

training in business negotiation), points out. With regard to this conception, each part will

be satisfied by obtaining benefits. Therefore, this is an excellent manner to avoid any

future conflicts. These three teachers were the co-founders of “Harvard Negotiation”.

On the other hand, the key to deal with success is the conversation. There are lots of

components that can affect the negotiation but the conversation, the phrases and the

language are the most successful ones. Nevertheless, feelings and emotions play a large

role in the final result when we are negotiating.

According to IE Negotiation Center (Business School, 2014), which is located to Madrid,

explains how negotiation should works. Negotiation must be based on researching new

sources to obtain the mentioned term “win-win”. To explain this affirmation, we will have

as support one example below:

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Imagine that there are two options at the time to negotiate and they do not want to

change their options. Therefore, this is what would happen in the negotiation.

Employee Director of Human Resources

Objective

Increase his/her

knowledge.

Do not employ more staff

Proposal

Be promoted as a Director

of Marketing

Impossibility to promote

somebody.

As it can see, this negotiation will be failed if both refuse to research some resources. To

achieve the success, both parts must ask each other:

Employee: What other options can I achieve my objectives with?

Director of Human resources: What other options can I offer?

• Once they have asked themselves, we are going to see how it would be a win-win

negotiation (according to Harvard negotiation) following with the last example.

Employee Director of Human Resources

Objective - Increase his/her

knowledge. - Do not employ more staff

Proposal

- Study another degree.

-Do a master degree.

- Finance the master.

- Establish a flexible schedule

to work and study at the same

time.

Having seen this mediation, it has been achieved what each part wanted. That is the key of

the negotiation.

To finish with this section, we are going to see how Roger Fisher, who was the director of

the Hardvard Negotiation Project, conceptualised the negotiation in 1985: “The negotiation

is a basic mean to achieve what we want from each other. It is a double procedure to come

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to an agreement, when you and other people share some interests in common but both of

you have some opposite ones.”

3. THE ORIGIN OF THE NEGOTIATION

With reference to Business European School (2013), which is located to Spain, it can be

known that the origin of the negotiation was produced in the nomadic period. Once the

water was discovered, the nomads appreciated this resource in order to develop the

agriculture. It must be said that it is in this period when the barter is created, since the

nomads exchanged meat for vegetables.

3.1 The Game Theory

• 3.1.1 Concept

The Game Theory is connected to the Economics area and this game represents the

probability to succeed by taking account decisions from others. It is necessary to say that

The Game Theory is highly related to the negotiation, since in this one, our opposing part’s

decisions have to be considered in order to achieve better deals.

According to “Expansion” (2015) and within this concept, it can be denominated ‘winning’

as those results which generate one profit for the player. Once this concept has been

assimilated, it must be supposed there are two types of strategies.

• Optimal strategy; it is produced the maximum profit in both players.

• Dominant strategy: it is existed an optimal strategy whatever the opponent

conduct is.

Nevertheless, it should be noteworthy that the typical situation is that one in which it exists

a certain grade of interdependence among the players.

Apart from these strategies, The Theory Game also articulate different sorts of strategies to

consider. The most important ones are the following:

• Sequential strategy; the player has a period of time to effectuate its play.

Therefore, if this kind of strategy is displayed, some player can take advantage

of that and be detrimental to its opponent.

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• Simultaneous strategy; both players interact at the same time and they do not

know the results from each other. In this sort of game, Nash discovered

equilibrium in which each player had to determine what to fulfil and adopt

whether or not a dominant strategy.

It also has to articulate that The Game Theory belongs to the Behavioural Economics,

which according to the newspaper “Expansión” (2013), is the combination among

Economics and Psychology and it is created with the aim of studying what it is happening

on the markets.

• 3.1.2 Origin of the Game Theory

Relating to the virtual economic encyclopaedia, www.eumed.net (2015), The Game

Theory was created by the mathematician John von Neumann by publishing “Theory of

Games and Economic Behaviour” in 1940. At that time, another mathematician called John

Nash defined ‘The Game Theory’ concept. Nowadays, this concept is applied to most of

the areas. These areas comprehend economics, psychology, ecosystems, etc.

Despite these celebrities, Augustin Cournot was also an important person if the Game

Theory is concerned. One famous example to add regarding the Game Theory is the

Prisoner’s dilemma.

Nowadays, the Behavioural Economics is rapidly growing and prestigious teacher like

Alvin Roth and Lloyd Shapley have won the Prize Nobel as regards this theme. (BBC, UK,

2012).

5. TYPES OF NEGOTIATIONS

In reference to Francisco Nieto who works as an associate teacher at the University of

Almería in terms of management and administration, it must be stipulated the different

sorts of negotiations by the book “Habilidades de dirección y gestión”, UAL (2013) which

we can confront at the time of negotiating. There are mainly four negotiating attitudes:

• Competitive negotiation; this kind of negotiation is also known as “win-lose”

and this attitude expects to win what its opposing parts lose.

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• Cooperative negotiation; nowadays, this type of deal is the most famous due to

the Harvard School and it is also called “win-win”. This act treats both parts to

achieve what they wish without losing.

• Accommodating negotiation; it is also known as “lose-win” and in this position

the negotiator treats not to lose in the long-term but this is focused in the short

term, so the negotiator tries to adopt a conciliatory stance in order to achieve it.

• Avoidable negotiation; it is called “lose-lose” and both opponents opt not to

choose because they reckon the negotiation is spoiled and it will carry out bad

results. This type of negotiation is normally accomplished when the negotiator

comprehend they will not achieve anything from the deal.

PART II

6. NEGOTIATION PROCESS

Firstly, it needs to create a relationship with the other part, trying to produce an effective

and fluently communication. It is going to be shown below how a negotiation progress

works in regard to “Universidad Rey Juan Carlos” (2003), the famous blog “Englishtown”

(2012), which is led by different experts regarding the negotiation and finally, George

Fern, author of “How to negotiate” (2003).

The negotiation progress is divided into three parts:

I. Relationship building techniques:

Break the ice: If it does not know the person who we are going to deal with, we

must “break the ice”.

There are some techniques to do these actions: Having a formal dining can facilitate the

relationship between dealers and during the dining, it must talk about unconnected topic

with the real negotiation, for example, it would be excellent if dealers talk about sports,

weather, family, etc. Another magnificent technique to break the ice is telling an anecdote.

By telling this, the negotiator will achieve some laughs from the opposing part and relax to

do business.

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Finally, the third technique to break the ice is asking some questions as the next ones:

• Have you had any troubles arriving here?

• Have you found traffic jam?

• Have you come in car?

These innocent questions are useless at the time to do the real negotiation, but they have a

great use to begin a conversation and break the ice.

Find something in common: Finding one sport, some similar experiences, the

same taste, etc. are some of the keys for a successful negotiation.

The way to achieve this result is observing the opposing part. If we thoroughly observe

him, we will be able to catch some clues about what interests are the opposing part

interested in and finally we will be able to take advantage of it.

Have empathy: We should be kind, transmit naturalness with the objective of

reaching more flexibility from the opponent since if we do, we will achieve more

information about the topic that we are going to negotiate and it will be easier

dealing with it.

State what is important to you: We have to make clear what our concern is and

accomplish some profits. Furthermore, we need to let the opposing part know that

the time is very important to us, for which reason, once two parts have broken the

ice, they have to come straight to the point to clarify that we have the need to do

business.

Additionally, it has to practise before negotiating with the dealer. Consequently, we could

try some of these advice:

Be prepared: We need to research as much as we can about the opponent,

therefore, it will have to be comprehend next aspects:

• Interests and motivations from the other part.

• Identify his objectives.

• Fortitudes and weaknesses.

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• Habits.

• The profile.

Having seen this, we must know which objectives we have to fulfil. Thus, here are some

questions that the negotiators has to ask theirselves before beginning a negotiation.

• What would I want to accomplish from the negotiation?

In this question, we expect the highest expectations that we are going to attain from the

negotiation. We can see an example below:

If we are trying to negotiate the purchasing seven books, we should ask ourselves how

many books we are willing to buy. In this case, we would be willing to buy all seven books

at the lowest price.

• What do I need to achieve from this negotiation?

This is the reason for negotiating, in which we determine what we require to achieve, in

other words, the minimum we are willing to buy/sell. Ultimately, if we do not achieve this

result, the negotiating it is not worth and therefore it will be a failure.

According to last example, we would be willing to buy at least three books. If we close the

deal without reaching three books, the negotiation would have been a miscarriage.

• What are my alternatives if it is not possible to come to an agreement?

Before starting to negotiate, we have to think about the possible alternatives if we fail

dealing with the opposing part. Thus, we should ask ourselves the next questions:

If I fail, where is the competition?

Can I come to an agreement with another negotiator?

What would I do if we interrupt the negotiation?

• What is the worst part if it is not possible to come to an agreement?

We should be prepared in case of not closing the deal and not reaching our aim. In this

case, we might be creative, innovative and propose some solutions to the opponent with the

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objective of not losing in the negotiation. Sometimes, the negotiator has to contemplate

about bad results. Therefore, if we are negotiating and we attained the worst results, it

would be preferable to abandon the negotiating.

In regard to the example, if our minimum was buying three books, the worst part would be

buying one or no book. In this respect, our best alternative would be abandoning the

negotiation to avoid losing time and money.

Use the mirror technique: If we are negotiating with an aggressive dealer and this

one enquire us an aggressive question as: “Do you believe your books are too

expensive?”

Once we had received this question, we have to counteract picking the most important

words the opponent has told us and we must enquire the opponent with these ones. For

instance, we would ask: Too expensive, why do you say so?

This question is useful to let the opposing part reconsider his enquiry and allow us more

time to reflect on another better response.

Improvise to buy time when things get difficult: If we are negotiating and things

are getting wrong, we should ask the opponent about other topics to reflect on our

answers.

If the opposing negotiator is asking so much about the books, which we have mentioned

before, and we have no response about that, we should enquire him some questions as:

• Why do you like these books?

• Why are they so important to you?

• What would happen if you do not finally buy them?

Step back a little and review: As negotiation goes on, we should make the points

clear that both are agreed.

Finally and from my point of view, we might consider one of the most important themes to

review:

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Practise makes you perfect: In most cases, practising is elementary to be

successful. The more we practise, the more experience we achieve to negotiate in a

future.

In connection with last example, if we negotiate the price of some books and we keep

negotiating every day during thirty days, we will be able of knowing different techniques,

attitudes from negotiators (how they react, the price they suggest), ability to know when

we should counteract, distinguish different prices, we ought to be more prepared and

definitely more capable of negotiating.

II. Haggling.

Once we have created relationship with the person who we are going to deal with, we must

begin to negotiate. This is the important part. Furthermore, here are some useful techniques

to make you a great negotiator:

• Make effective questions to achieve crucial information: It is really important to

make a list about what things you need to attain. Therefore, you should make some

questions about these ones and the purpose to achieve them.

• Ask closing questions: From my point of view, this is a fantastic trick to close the

deal. In addition, it is used when you are asked to do something difficult to achieve,

otherwise it is truly effective if it is properly asked. For instance, if the opposing

negotiator asks us: Can you emit seven books for the next week? As a consequence

of this question, we could ask the negotiator: If I emit you seven books for the next

week, would we close the deal? Consequently, it is an amazing strategy to close

deals.

• Get all the details you need: Do not stop asking questions about the product you

are about to purchase because it is essential to demand for the whole required

information. Despite the fact of asking questions, you should be careful about

asking too many questions because of the other part could get annoyed. According

to the example, we could request:

• How did you get the price of the book?

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• How do you mark the price of the book?

• What do you consider important to mark the price of the book?

• 10% is talking, 90% is listening: As we have seen before, we should request

strategist questions, consequently, we have to perform those questions and not to

talk a lot. We should remember that the majority of the time we are negotiating, we

should be listening to the opponent and we might be attentive to participate in the

conversation when it is necessary.

• Making the right questions is important: As we have seen in the first section of

haggling, making the right question is fundamental to obtain all the information we

request.

As a consequence of this, we ought to request appropriate questions to incite the other part

to talk and therefore, obtain information.

For instance, we should request: Why do you sell the book? (From this question, we

should request about the motives of the selling and try to discover if it is because the book

is in a bad condition or the need of obtaining money, etc.) Thus, if one of these causes

does, we will be able to exploit it.

In accordance with Donald Trump, a successful American businessman (2009), here are

some rules which must be followed in a negotiation process:

• Know the object of the negotiation: It is essential to discover all the possible

details about the product that we are negotiating. Otherwise, the opposing part

could take advantage of the negotiation and beneficiate from our ignorance. For

instance, if we are negotiating about the price of a specific book, we should know

how the prices in the market currently are.

• Negotiation is dynamic: As it has been mentioned before, practise makes you

perfect. In spite of the several negotiation techniques, making use of these

techniques could not be beneficial in some cases. Therefore, we have to frequently

practise so as to employ our knowledge from different situations in which we have

been involved. In fact, experience is a great factor of which we can learn.

• Be self-confident: If the negotiator is negotiating without confidence, the opposing

part could detect that lack of confidence and have better possibilities to negotiate.

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Furthermore, if we are not self-confident, the other one will try to persuade us to

accept a lower price. In short, we have to illustrate our confidence.

• Always make questions: This is a big problem for most of employees. Most of

them do not request what they want. For instance, if we desire a pay rise but we do

not request it, we will never attain this one. Consequently, we have not to be afraid

of being answered “NO” because if we do not request what we wish, we will never

obtain our objectives.

• Do not negotiate feeling emotions and know when a negotiation is over: This is

related to be self-confident. A great negotiator never expresses his feelings in a

negotiation progress since could be prejudicial by losing credibility in our offer.

III. Closing.

This is the final part of the negotiation process. We comprehend what the opposing part

wants and we have established our goals. It is only necessary to close effectively the deal.

Hence, here are some sections we should memorise at the last of the negotiation:

Know your strengths: It is vital to know yourself and your strengths with the aim

of persuading the opposing part by making use of our own fortitudes.

They probably did their homework too: You must be prepared because of the

opposing negotiator would surely have researched about you and he would have

obtained information. This is why we ought to be prepared for possible difficult

questions. For example, if we want to purchase a book, we should be ready for

being asked next questions:

• Why do you need so much this book?

• Why is it so important to you?

• What would happen if you do not finally purchase it?

• Do you think the book is worthier?

Do not get intimidated: If we are negotiating with a successful company or

someone who is important, we must not decrease our performance due to if they are

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negotiating with us, is owing to they desire something from us. Therefore, we

might not undervalue our skills.

Set a deadline: Setting a deadline it is always vital in negotiation processes

because there are other important deals we would like to close, therefore we cannot

be waiting for an “imaginative” closing. We should firmly impose a deadline to

exercise an incredibly pressure over the negotiator. From my own experience, this

strategy is one of the most successful one. We must keep in mind that “Time is

gold”.

Do not assume: We may never assume a supposition about the other part. We have

to use the secure information and ought to request all the thinkable information left

we need. Otherwise, if we suppose, we would commit a great fail.

Get it down in paper: I think this is the most significant section we should achieve

in a negotiation process because no deal is valid until this one is formalised. The

more forewarned we are, the more possibilities there are to default on the deal.

7. NEGOTIATION TECHNIQUES

From my point of view, managing some negotiation techniques is a great point to consider

due to our ability to persuade the opposing part, depends on these techniques. Despite this

fact, we have to comprehend that not only we require to handle these techniques, but also

as we have seen before in last section and it must be understood how the negotiation

process is and perfectly executed this process (break the ice, make effective questions, set a

deadline, etc.) If I might return to negotiation techniques, it may recognise that these are

powerful resources to attain a better result. In other words, negotiation techniques try to

achieve the best possible result from the negotiator point of view.

Definitely, these ones are a good strategy to manipulate the negotiator. It can see some of

the best negotiation techniques below by F. Nieto González, who teaches management at

the “Universidad de Almería” in addition to “Escuela de inversión” (2010)

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Table 1: Negotiation techniques. To explain these techniques, two negotiators are supposed, X and Y

Exhaustion

Cling to our own beliefs and do not make

concessions. The purpose of this

negotiation is trying Y patience and

receiving his concessions.

Demand for more

requests than you are

being ordered.

X: “ I require a reduction on

the price apart from

obtaining X quantity of

product at the end of the

month”

Y: “Firstly, you have to pay

in advanced, buy every

month, etc.”

Future

expectations

It consists on visualising the result of the

negotiation in case of is accepted.

Demand for accurate

details and specific

commitments.

X: “Can you see yourself

attracting customers with this

fantastic product?”

Increasing

requests

It is focused on requiring new requests as Y

is ceding independently our objective is

attained.

Order more requests

than the other

negotiator.

X: “I demand for this product

and I want a little discount

on the price”

Set a deadline

Set a deadline to come to an agreement in

order to avoid that Y could be able

negotiate efficiently.

Delay the deal if X

knows that Y is looking

forward to closing the

deal.

X: “If we do not close the

deal by next Tuesday, I will

be not interested in

continuing”

Ultimatum

Tell Y that our concessions are finished.

In words of a negotiator: “Take it or leave

it”

Accept the deal, refuse

it or even propose an

intermediate deal.

X: “Sorry but I cannot lower

the price any longer. Take it

or leave it”

Silence

Remain silent just after hearing Y’s offer.

Right after being asked “Why do not you

respond?”. X will answer: I am expecting

for a better proposal.

With this technique, X achieves disturb Y

and obtain a better offer.

-Do not ask the

negotiator again,

because it would be an

insecure signal.

-Overreact to assume the

control.

Y: This is my offer. What is

your opinion about it?

X: ……….

Be offended

The objective is taking advantage of any

excuse to be offended so as to receive better

concessions.

-Do an over-reaction in

order to feel superior

and try to obtain

concessions.

X: Why do you offer me

such a tiny amount? I cannot

accept that ridiculous

proposal.

Bluffing

It is based on telling Y that X has some

other better offers, when this is really false.

X tries to lie to Y with the aim of

improving the Y’s proposal.

- Require X of showing

the “offer”

- Bluff yourself.

X: “ I have another interested

person in this article who

offers me 5 € more than you”

Y: “If you want me to

equalize the offer, give me a

demonstration about it.”

Negotiation

techniques

Description Example How to avoid it

Source: Nieto González, Francisco. Direction and management skills (2013)

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7. NON-VERBAL COMMUNICATION IN THE NEGOTIATION

This section pretends to demonstrate how important non-verbal communication is. It will

consist on showing how body parts influence in a negotiation process. (Allen Pease, one of

the most famous body language experts)

7.1 The glance

With reference to www.protocolo.org. (2015) which is a website that mostly dedicate its

publications related to the protocol and it is considered such as encyclopaedic portal, it

referrers to the glance when two dealers are negotiating. There are some advice that we

have to take into account:

Look in the eye: It is vital not to avert the eyes from our negotiator because of

this gesture it is a submissive one and it shows a signal of shame and falsehood.

We have to keep our glance but without intimidating. That is why we

sometimes have to look away in order to “relax our eyes”.

Control your glance: In words of the newspaper called “BBC” (from UK), if

we look towards right, it will be tending to lie whereas if we look towards left,

it would be an honest signal and it could be considered like someone is trying to

remember.

This affirmation is widely open, given in words of Jesús Enrique Rosas, as well as I

mentioned before and who shared his work in some countries around the word by creating

www.lenguajecorporal.org, (2015) by being able to say that some negotiators can lie by

concentrating their glance and not avoiding it in order not to be caught. Consequently, the

glance is associated with the tone of voice to detect the lie.

Look at right; Falsehood Look at left; Remembering

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7.2 Hands

• 7.2.1 Ways of palming

With reference to Allen Pease, author of “Questions are the answers” (2011), it is showed

how the hands affect into the negotiation.

Handshaking is one of the most powerful signals to demonstrate the body language. This

can exert influence in the opposing part if it is handled properly.

To begin with, there are basically three types of handshaking, but first of all, we need to

know how the palm works.

Palm up: Palming up means that the dealer is adopting a submissive

position. It treats to give signals of submissiveness.

Questions are the answers, Allan Pease

Palm down: Palming down is an indication of domination. This position

could be dangerous if the other part realises about the non-verbal communication,

since there is no right to receive signals of authority from the opposing part,

therefore, we should be careful in this situation.

Questions are the answers, Allan Pease

In connection with palming down, we are able to discover another dominant position. This

one is based on pointing. If we point at something during our negotiation or speech, it

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would be a proof of aggressiveness. That is why the opposing part, who we are talking to,

would feel less interested because this one will focus his attention on non-verbal

communication rather than our authentic offer or speech.

• 7.2.2 The handshake.

The handshake has been essential since primitive times. This movement can report on our

form of acting. Handshaking is connected to what we have seen in last section. There are

three mainly ways of handshake:

Domination: This gesture is related to control. If the negotiator does this

movement, it will be in poor taste, since the opposing part is conscious about the

signal of domination and this one is going to be in alert to avoid weakness.

Submission: If the negotiator gives a palming up handshake, it will be an

indication of ineffectiveness. In this situation, the opposing part could be

intimidated by the other part, or perhaps is “playing” to give the control to the other

one. In both cases, it has to be careful because of the lack of confidence that the

opposing part illustrates.

Questions are the answers, Allan Pease

Questions are the answers, Allan Pease

Questions are the answers, Allan Pease

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Neutral: From my point of view, this gesture is doubtlessly the best due to

we can demonstrate confidence. Unlike last two situations, this signal is perfect to

close a deal so as to no one is acquiring the control. Moreover, the hand should be

shaken twice to look more confident.

• 7.2.3 What should I avoid about giving a handshake?

In words of Jesús Enrique Rosas, president of www.lenguajecorporal.org and author of

“Lenguaje corporal en 40 días” there are some tricks we should avoid about the handshake.

Limp fish handshake: This handshake consists of shaking hand weakly. It

is a kind of “leaving the hand dead”, therefore it is considered an act of debility.

This is why this opponent could begin the negotiation disadvantageously. Besides,

this sort of gesture is called “dead fish” due to the agitated movement.

Wait for giving a handshake: If the negotiator waits for giving a

handshake, it will demonstrate lack of confidence himself. Consequently, this one

has to be daring taking personal initiative.

Be serious and not keeping the eye contact: To generate self-confidence,

the negotiator cannot give a handshake seriously and look down. This will be a

huge mistake. Otherwise, we have to give our hand to the other part, smile, and

Questions are the answers, Allan Pease

Questions are the answers, Allan Pease

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keep the eye contact. As far as I know, these gestures are the beginning of dealing

business.

Thus, these are three of the worst actions that we can cause in a first impression.

Definitely, we have to avoid them and do the opposite.

PART III

8. INTERNATIONAL DEALS

8.1 Why negotiate internationally?

Trade internationally is vital for the economy development. If we mention the book

“International trade” (2012) written by mostly Paul R. Krugman, which obtained the

Economy Nobel Prize in 2008, we are allowed to say that at the moment, there are

progressively more deals than never had before. Consequently, it exists some theories

about trading internationally, being the most famous one “The competitive advantage” by

David Ricardo.

Not only the competitive advantage is an excellent form to do business, but also there are

some other benefits for which it is basic to do business internationally:

• Businessmen learn more when it comes to trade internationally than in the

own country.

• A bigger motivation within the workers of the company.

• Improvement of the product by reason of the international market requests.

8.2 What does the culture mean in international deals?

To begin with this section, it is essential to comprehend about the different cultures around

the world. This is specifically important when we are ready to negotiate with people from

other countries.

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This is why the culture does not mean the same as in our own country. For example, giving

some presents in Japan is well-approved since it demonstrates assurance whereas in

Germany, giving presents is not appropriate.

Therefore, before beginning a negotiation, we have to consider what it is important for the

foreign negotiator and what it is not.

8.2.1 Personal and professional relationships.

At the time to do business internationally, we ought to consider establishing relationship to

the person who we want to do business with. But this is a huge difference in several

countries since on the one hand, Arab countries or Latin American ones close deals on

companies’ behalf but there are some personal relationships. Thus these negotiations are

focus on people.

On the other hand, in the European countries and North American ones are not likely to

establish personal relationships but professional ones where deals are closed on companies’

behalf due to the executive’s mobility. Consequently, in these countries it is vital to focus

on the enterprises.

8.2.2 Confrontation and cooperation

It is also significant the attitude to the confrontation or cooperation in the negotiation. In

countries like Russia, EEUU or France, the experimented negotiators are comfortable with

tough situations while in Asian countries on Latin American ones are completely contrary

to this situation, since they attempt to avoid them.

8.2.3 Time and punctuality in different countries

Punctuality is not equal in the same countries given in EEUU or Central Europe, the

punctuality is obligatory and be late is a lack of respect, whereas in some Latin American

countries, the unpunctuality is approved.

Continuing on a different vein, when it comes to manage plans and the time to execute

them, there are various forms to do them depending on the country. For example, Asian

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countries (especially China and Japan) take a long time to adopt decisions but at the time to

implement the selected plan, they are very quickly.

On the other hand, occidental countries are totally inversed. These ones take decisions

shortly timed but when they are going to put the plan into effect, they are more delayed.

8.2.4 Verbal and written agreements

There are some differences regarding the contract. For example, in Arabic countries, the

contract is not an agreement to strictly fulfil, but an orientation to follow which is used for

guiding.

If the Asian countries are mentioned, especially Japan, we must know that the verbal

agreement is well-considered instead of signing the contract. Otherwise, English-speaking

countries, also called Anglo-Saxon countries, have a strong mind to sign contracts, in other

words, they are more likely to sign contracts rather than concluding the deal verbally.

8.3 Some different culture cases

To continue with the culture and according to the famous newspapers “El Economista”

(2013), “Expansión” (2012) or “Santader Trade” (2015), here are some of the advice we

should consider when it comes to do business with foreign customers.

In order to clarify this part, it is going to see how business should be done in some of the

most important countries in the world. The chosen countries have been China, Germany,

Republic of India, Brazil, The United States of America and Japan. These countries have

been chosen for contributing with a large GDP to the world. Consequently, I consider that

it is really significant to know how business is done in these magnificent countries.

Additionally, one comparison table is showed below:

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Table 2: How to do business with Chinese, German and Indian people

Country

Greeting - Firstly, we should bend

and after that, shake hands.

- First of all, we ought to

give a handshake to men as

well as women.

- It is common to give a

handshake to the men. With

regard to the women, we

should smile and bend softly

the head. We can give them a

handshake just if they take the

initiative.

How to

generate

confidence

- To begin with business,

Chinese people initially like

to talk about topics so as to

know each other.

- It is well-recommended to

learn some Chinese words

with the objective of

gaining confidence, like Ni-

hao, which means “hello”.

- One of the most important

gestures to generate

confidence into German

people is the responsibility.

- With the aim of gaining

assurance, we have to speak

with Indian people about their

families, their friends. Right

after that, these topics could

derivate on others like

politics; therefore we ought to

be informed. The objective is

gaining confidence.

The

personality

- They are based on respect

and confidence. For them,

these ones are the key to do

a great deal.

- Additionally, before

beginning the negotiation,

they must know us.

-They are thorough,

organised, and solid people.

In addition, they inform

about ourselves before

beginning a meeting.

- They do not change of

opinion, thus we have to

concentrate on his first idea.

- They are people who take a

long time to take decisions.

They usually examine every

section when it comes to do

business.

- Furthermore, they need time

in order to trust us.

Notes to

consider

- Chinese people usually say

“yes” to what they are

listening to, but this gesture

does not mean that they

agree, but they are being

polite.

- It is essential not to look at

the interpreter during our

negotiator’s speech, but

when they are finished.

- They focus on the business

itself, therefore there is no

matter if we suit them.

- Apart from this fact, they

researched quality and

accuracy on the product.

- We have to give importance

to the environment, since

they recognise it in a very

- Do not put pressure on

Indian negotiators, since this

is considered such as bad

manners.

- The punctuality is a very

thoughtful idea, but they do

not always arrive on time to

the meeting. Moreover, it is

very possible being able to

reschedule the meeting for

some days later due to Indian

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well-method.

-At the end of the meeting, if

German people knock the

table twice with their

knuckles, it will be a good

symptom.

businessmen are delayed.

-Meetings are usually taken

place in some private clubs,

golf courses, or restaurants.

-If we count on Indian

associate, it is an added value

for us.

Favourable

gestures

- When a Chinese dealer

who we are negotiating

with, after having been

delivered his business card,

we should observe it for a

while and right after that,

keep it in our shirt pocket as

a signal of esteem, since if

we do this in the wallet or

we write on it, it would be

considered as a lack of

respect.

-Set a meeting four weeks

before this is accomplished.

This act demonstrates

responsibility to them.

- When we are being offered

some food from Indian

people, we must accept it, no

matter if we do not like it.

Clothes

- Given that red colour is

meant as good luck in

China, it would be

recommendable to wear any

red accessory.

- German people do not stand

out by their excellent way of

dressing. Therefore, we

should wear not too much

lavish.

- Indian people usually wear

international branding clothes.

- It is inappropriate to wear

leather clothes and it is well-

recommended to bring some

kerchief to dry our own sweat.

- According to the women, it

is frowned upon wearing

provocative dresses.

Things to

avoid

- Do not give watches as a

gift, since this demonstrates

the remaining time of life

for them.

- It is much better to give

them a national souvenir.

- Do not be late, given this is

considered like a

disrespectful gesture.

- Talking about politics or

privacy topics is forbidden.

- Do not be impatient. This

could worsen the real

negotiation.

- Give a big present, due to it

is uneasy for the other part. It

is better to give accessories

like, calculators, ties, etc.

- Do not give presents with

just one hand; Furthermore,

we cannot wait for the present

to be opened.

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Table 3: How to do business with Brazilian, American and Japanese people

Country

Greeting

- It is common being given

a handshake. In case of

women, they must greet

by kissing each other on

both cheeks.

- To receive American

people, we have to shake

firmly his/her hand and later,

exchange your business card.

However, this exchange is

not always followed by

receiving the American

business card.

- It is principally common to

bend slightly our head instead of

giving a handshake. This

inclination will be larger

depending on the importance of

the person who we are greeting

with. However, if we decide to

shake their hands, this has not to

be firm.

- To introduce ourselves, we will

use our surname followed by

“san”.

How to

generate

confidence

- To generate confidence

with Brazilian

businessmen, we should

say some Portuguese

expressions after being

greeted like: “como vai?,

which means “how are

you? or tudo bem?, which

means “Is everything

alright?

- It is similarly

recommendable to set the

meeting five weeks before

this is started and call to the

other part in order to confirm

it. This demonstrates

seriousness and organisation.

-They take into account the

confidence and the

credibility of the company,

consequently, we have to

show this image.

- Look into our American

negotiator expresses interest,

frankness and confidence.

- To generate confidence, the

greeting is vital, given this one

shows respect and honour.

- It is crucial to mind our

manners either we are in the

meeting, in a party who we have

been invited or in the restaurant.

The

personality

- Brazilian people are

easy-going, open-minded

people who like to

establish networking and

enjoy it.

-They usually have strong

- American people are less

effusive than Latin

American, therefore they are

direct and competitive

people. They also are

considered as excellent

-Japanese people are very

ceremonious people who are

prone to respect everybody.

They also value the manners

who they are doing business

with.

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emotions which usually

influence on the meeting

and thus, delaying this

one.

negotiators.

- After an initial talk, they go

straight to the point. They are

pleased to negotiate in

difficult situations and they

do not care about if they

disagree and say “no”. For

them, “time is money”.

-They do not give

importance to the personal

relationships, but they prefer

to do business as long as is a

correct deal. That is why,

they separate personal life

form business life.

- They are likely to say “NO”

because of their manners and

their peaceful personality.

Notes to

consider

- At the end of the

meeting, we should

deliver our business card.

This one has to be printed

in our mother tongue and

in the back; this card has

to be printed in

Portuguese. It is essential

to deliver one business

card to everybody.

- The key to do business

with Brazilian people is

having a strong

relationship with them,

consequently it is

important not only contact

by e-mail, but also by

phone. It occurs the same

to the product that we are

selling with.

- Brazilian people are not

usually punctual. Hence,

we must to be patient.

This delay is also

expressed during the

meeting because this one

is like to get prolonged.

Therefore it is not

recommendable to arrange

-We have to consider that

most of the American

businessmen do not speak

another language but

English, therefore it is

essential to speak English

fluently. However, this is a

weakness for them. Because

if we do not speak English,

we can distort what the

interpreter is telling us and

take advantage of it.

-Punctuality is essential for

them.

-It is vital to send them

excellent English

promotional materials as a

signal of quality.

-The meeting is usually hold

in our negotiator’s office. As

well, it could be hold at

seven o’clock a.m. during the

breakfast, in the lunch or in

the dinner.

- To American entrepreneurs,

the innovation and the future

are some influential aspects

- In Japan, the hierarchy is

fundamental, being the age, the

role, etc. some aspects to have

into account. That is why, these

are key aspects to establish who

talks first or the location around

the table.

-Punctuality is indispensable. It

is better arrive five minutes

before the meeting.

- Japanese people likes silence in

the negotiation. Therefore it is

normal seeing some Japanese

businessman closing their eyes

in order to concentrate on what

we are talking about.

- Beside the last fact, Japanese

people normally focus on non-

verbal communication. Hence,

we have to control our facial

emotions.

-To them, teamwork is basic.

Therefore all the decisions are

taken in group.

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two meetings very in the

same day.

-The deal itself is treated

by a global vision instead

of reviewing each part of

the business.

-It is not common to enter

in the room and begin

talking about the business.

Hence, we must request

about some topics (non-

personal topics despite we

could be asked about

them)

to consider. Otherwise, they

do search for profitability

and money.

- Persistence and consistency

are some of the principles

that they assume.

Accordingly, they will

research a possible solution

to close the deal and if they

find it, it will be tough to

look for another solution.

Favourable

gestures

- It is frowned upon to

arrange the meeting where

we are hosting. One

favourable gesture is

arranging the meeting near

the enterprise where the

business will be

accomplished. This must

be performed in an

excellent restaurant.

- Not only we ought to

show data, but also show

confidence, closeness and

enthusiasm on our

presentation.

- Pastry sweets are one of

the best presents we could

give them.

- At the first meeting, we will

be able to call the opposing

part by the name of “Dr. Ms.

Miss or Mr” followed by

their surnames.

- Bring an interpreter to the

meeting is regarded as an

agreeable signal.

- Every time we have the

occasion to give to Japanese

entrepreneurs a gift, we have to

do so, provided that this gift is

given privately.

Clothes

- The Brazilian

entrepreneur worries about

being well-dressed and

looking good.

- It is advisable to wear

conservatively.

-American people use to

wear formally. In the first

meeting, we should wear

conservatively.

- Japanese people usually wear

conventionally. Regardless of

this style, foreign entrepreneurs

can wear as they usually wear.

- Nevertheless, it is vital to wear

clean socks, given it is common

to remove your shoes when you

are in a restaurant (for example).

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Things to

avoid

- Neither frown nor begin

a discussion if we

disagree.

- Brazilian people are

often very heated people

and this could be harmful

for us to lose our manners.

We have to show respect.

- Do not be in a hurry for

leaving. We must keep

talking with the attendees

at the end of the meeting.

- Do not talk about politics,

religion, gender, etc.

-Do not look intimidated by

the American power.

Although they are excellent

negotiator, they expect to

find another excellent

negotiator in ourselves.

-Silence. It is indispensable

not to be quiet. It is for the

reason that American

entrepreneurs like to take

quickly decisions and do not

waste the time.

- Do not express a high pitch and

avoid any confrontation.

-Do not give the present at the

beginning of the meeting and

this one has to be delivered with

two hands.

9. NEGOTIATION IN TEAMS

Initially, this section is going to be explained how negotiation in teams works. With

reference to the famous Spanish journal “Expansión” (2005), it is going to be seen some

tips to consider based on negotiation teams.

First of all and from my opinion, I have to stand out that negotiation teams are increasing

their importance nowadays. I believe that it is much better negotiate if we have our team

mate support and this one can analyse the other negotiator behaviour, given the large

importance of the non-verbal communication.

Apart from my own opinion, there are other reasons for which negotiation teams are really

essential:

When we negotiate in teams, we boost greatly our possibilities to succeed in

the negotiation given several aptitudes, knowledge and experiences from our team

mates.

To reach an excellent deal, the number of people who must negotiate is

considered as three or four people, since if we do a five or six people negotiation, it

will be much more complicated to succeed.

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The team has to support the leading negotiator and have their non-verbal

communication synchronized, that is to say, if the main negotiator is affirming one

fact, the team cannot express lack of attention to what he is saying. This fact is

really important because the opposing part can hinder our deal because of this non-

verbal behaviour.

It is indispensable to determine what roles each team mate accomplishes,

meaning that one mate has to speak, another one has to take notes, another one has

to consider the non-verbal communication, etc.

Finally, at the time to do business in teams, it would be appealing to have

rounded tables instead of squared tables. The reason for establishing this fact, it is

that rounded table provides much more proximity than the squared ones.

Accordingly, negotiator teams can interact in a more open way.

10. ERRORS TO AVOID IN A NEGOTIATION

This section is aimed at comprehending what actions we should avoid during the

negotiation process. To explain it, this project is going to have as a support “Forbes

review” (2014), which is specialised in financial business and this one is published in

EE.UU.

Negotiating is not only focus on demanding what we demand or we can offer. It is a very

complicated process in which we have to consider some aspects in order to avoid failing

the agreement. Hence, here we are with some of the avoidable acts:

Let the other part think about the deal during some days: This is a common

mistake which we could have trouble in. From my point of view, this affirmation is

completely true, since I have been in the same occasion. Consequently, our

objective is having the deal closed not allowing the negotiator time to reckon about

other possibilities. We have to be forceful.

Put too much pressure in the deal: If we do this act, we will be sending desperate

signals and this gesture will led to the other part to decrease the price since he is

perceiving that we are in a hurry and therefore, he could take advantage of it.

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Do not listen to what your customer wants: Lots of businessmen are focus on

attaining what they want without considering their customer’s preferences. Thus, it

is recommendable to concentrate the negotiation on what the customer wants so as

to this one feels like the principal.

Control your emotions: One of the best negotiator skills is controlling the feelings

and emotions. Hence, despite being pressured in our negotiation, we have to have

all under control to avoid giving a bad name. Thus, it is essential not to be

convinced by our negotiator’s sentimentality. After all, in words of Donald Trump,

“it is nothing personal but it is just business”.

Do not inform before negotiating: It is vital to get inform about our negotiator

weaknesses and fortitudes. It is also well-recommended to inform about their

hobbies with the purpose of soothing the tension. Furthermore, apart from

informing about our product, our enterprise and the market, we have to research

customers or suppliers in order to be used in the negotiation.

Do not begin the negotiation: We have to be careful about this aspect. Normally,

the negotiator who begins the negotiation is the one who finishes having the control

and ending the deal. Therefore, if our customer or opposing negotiator makes

himself available to begin the negotiation, we could reply: “Sorry to interrupt you, I

really appreciate your goodwill to what you can offer to me but I certainly would

like to share what I have for you (our plan). By doing this gesture, we can have the

control again.

Be lack of certainty: To finish with errors to avoid, being lack of certainty

represents all the aptitudes we have recently seen. Definitely, if we do not have

self-confidence when it comes to do business, we will fail in the negotiation.

PART IV

11. NEGOTIATION EXPERIMENT.

The topic to be analised is the following;

WHO DEVELOPS BETTER NEGOTIATION SKILLS ALONG THE DEGREE?

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Experiment. “Creating a new market”. What gender is better at negotiating?

Idea

The idea of this project is based on a last experiment called double auction. Once this

experiment was accomplished, I thought of modifying it in order to analyse different

matters in the experiment, such as the gender.

The experiment treats the following objectives:

• Replicate how a market works by showing how supply and demand treat to

attain a reasonably price.

• Resolve the student abilities when it comes to search new resources in the

negotiation. The aim is avoiding failing deals if we refer to an accurate price

and otherwise, look for several alternatives in order to benefit each other,

which is known as “win-win” negotiation.

• Verify the gender negotiation, that is, comprehend what gender develops

better negotiation skills along the degree.

Rules

• The student has to comprehend concepts like the demand price, supply

price, reserve price, value, transaction, cost and profit.

• 30-40 students (First, Second, Third year in the Degree in Economics);

groups of 3-4 students. A whole of 8 groups. (4 groups formed by men and

4 groups formed by women in each class)

- There will be four groups formed by three-four women and three-

four men. It must be the same amount of men as women. If there are

three groups of men, there will have to be three groups of women as

well.

- Once the group is created, they will be able to organise themselves

as they prefer; Either two of them could negotiate and the rest of

them might take notes, read the non-verbal communication on the

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seller or some of them could search for information on Internet

about the price range on the market.

The dealers will be able to look for diverse choices at the time of negotiating by

promoting the win-win, this is why as exchanges as other proposals will be

accepted in the negotiation.

There will have three sellers. These ones must be adaptable people and be serious

when it comes to negotiate.

The buyers will dispose five minutes to negotiate each object. The experiment will

be organised by considering the next rule:

• There will be four negotiation rounds. In each round, three groups will

begin the deal by negotiating every object simultaneously. Once the five

minutes are ended (or the agreement between sellers and buyers), these

participators will continue negotiating the next article. Therefore, fifteen

minutes is the maximum time per round to negotiate the items.

• Three objects to negotiate, each one is chosen strategically. These ones are

the following:

- Mobile ZTE Skate. (Due to its mismatch on the market)

- Two English books. (Preliminary English Test and First Certificate

in English, which are related to the B1 and B2 European level).

These ones were chosen because of its increasing demand for the

language level and the obligation to the students for obtaining the B1

before attaining their pertinent degree)

- One ticket for Dream Beach Festival (7th and 8th August), which is

located to Almería. (Huge demand and a lower price if the ticket is

bought in advance)

The manager ought to check every deal by going around the participators while he

is taking notes about the prices, the way of negotiating, the techniques, etc.

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The students will participate on the market and they will do verbal offers to buy or

sell their respective product.

At the end of negotiation, if the members do not come to an agreement, either is

financial, barter, or by other forms of negotiation, therefore, there will not be any

benefit for each other, being detrimental to both corresponding gender.

INSTRUCTIONS

The manager should mention to the class a precise and highlighted description

about the situation which is going to be developed. (Action, time, object

circumstances, aspects, etc.) Moreover, the administrator should tell the number

and the characteristics of the characters who are involved on the situation. The

observers must be sure how they should act during the negotiation and what aspects

they ought to emphasise. It is vital that the participants represent a serious deal,

which has to be full of realism. The buyers can only trade with sellers and vice

versa.

The buyer’s objective as well seller’s objective is obtaining the most benefit in the

trade.

At the end of the round, the buyers must notify to the manager the final price, or if

this one was not closed, the observers must inform the manager about the

negotiators attitude when they were dealing each other.

Indicate the price of each transaction and the manager must watch the transactions.

Each round is independent and it will last at the most five minutes per object to

negotiate.

Before beginning a negotiation, the manager will concede five minutes to the

groups so that they can decide their respective strategies.

The experiment will last over an hour.

To maximise the profit, the negotiators ought to show their real personality during

the deal, for which reason, they have not to be afraid of shouting or gesticulating so

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as to attract attention. The negotiators will be able to move around the available

space in order to be more realistic. Negotiating the prices in whatever the method

they like.

CONCLUSION

• The experiment will be won by the gender which as a whole, that is to say, the six

groups (Either the gender is male or female) have managed to buy the total amount

at the lowest possible price.

• Red and green colours mean the lowest and the highest price respectively.

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Table 3: Negotiation Experiment. First year at the University. Economics area.

First year at the University. Microeconomics. 1ºG. Economics Area.

Mobile phone: ZTE

skate

PET and FIRST

books; English

Dreambeach Tickets.

Men Women Men Women Men Women

Group 1 50 62

- Charger ( 5 euros)

-Earphones (4 euros)

30 60 45

- Networking

60

- One meal to the buyer (3

euros)

Group 2 62,5

- Headphones

(15 euros)

-Micro SD

(4 euros)

-Charger (5 euros)

-Mobile case

(6 euros)

45 80

- 8 hours of

English lessons for a month

(5€/hour)

52

- 2 hours of

English lessons for a month

(5€/hour)

60

-Promotional video

+ ruffle

50

- Two meals to

the seller (6 euros)

Group 3 40

55’5

- Charger (5 euros)

-Earphones (4 euros)

32 70

- 4 hours of English lessons

for a month

(5€/hour)

40

- Buyer gives bus card to the seller as a

present. (Balance: 20

euros)

60

Group 4 55

- 4 free euros to

call any mobile

- Earphones

(4 euros)

70

- Mobile case (6 euros)

- Earphones (4 euros)

- Charger (5 euros)

70

- 2 hours of

English lessons

for a month

(5€/hour)

70

- 4 hours of

English lessons

for a month

(5€/hour)

60 60

TOTAL 207,5

+ 38 euros

(accessories)

232,5

+ 33 euros

(accessories)

212

+ 10 hours of

English lessons for a month

252

+ 10 hours of

English lessons for a month

205

+ new resources

+ 20 euros

(card bus)

230

+ 9 euros

(meals)

MEN

624,5

WOMAN

660

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NOTES

MEN WOMEN

Buyer Seller Buyer Seller

- There were four groups.

Just one of them used the

bluffing when it came to

negotiate but, some of them

used the ultimatum with the

intention of obtaining a

better price.

-No member of the group

researched if the books

were updated. If they had

researched, they would

have discovered that the B2

book has changed the

edition and the book which

they were negotiating was

quite useless.

-Furthermore, none of them

gave a handshake to the

seller and therefore, they

began the negotiation

without a previous

presentation, which is a

great mistake.

-Half of the buyers tried to

look for other resources

such as accessories in case

of the mobile, some extra

hours in case of the book

sell. However, the buyers

showed more resources at

the time of negotiating for

the Dreambeach ticket. In

fact, just one person was

able to achieve a win-win

negotiation, concretely the

group 2, which offered a

promotional video. With

this video, the seller would

attract more customers and

the buyer obtained a lower

- There were three sellers.

- One of the seller was

excellent at negotiating

due to he had already

been working in his

village.

- As the seller of books as

the seller of the mobile

almost always focused on

offering the same

resources.

-Most of the sellers trying

to sell the product by

commenting on the

characters of the products

instead of the telling the

result of the product.

- There were five

groups despite the

fact we have recently

analysed four

groups. The reason

why the fifth group

has not been

analysed is because

of they were the only

one who did not

close a deal.

(Specifically, the

Dreambeach ticket).

They did not come

with a price on the

deal and also, they

did not look for other

new resources.

- None of them

introduce themselves

at the beginning of

the negotiation.

- On the other hand,

just one member of

the group usually

speaks with the

dealer. Meanwhile,

the rest of them

scarcely participated

in the deal. This

shows lack of

organization.

- Despite not

bluffing in most of

the process, they

looked for new

resources like, in

case of the books, try

to “convince” the

seller to purchase the

- No girl decided to

participate as a seller in

this experiment.

Consequently, there

was not any female

seller.

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price.

- There were a lack of

communication and

teamwork given in some

groups, one of them

launched a price to the

seller which the rest of the

group disagreed with.

- Apart from that, there

were a lack of organisation

in some of the groups due

to they all negotiated at the

same time while each of

them could be assign one

specific task. (One of them

could read the non-verbal

communication, the other

one could have done a

research into the market,

and the rest of them could

have put into practice some

techniques). Despite this

fact, some of them searched

for information.

book and lend this

one to the other

members of the

group by obtaining a

lower price.

- As it happened with

the male gender,

women did not

rsearched if the

books were updated.

If they had done this

fact, they would have

attained an excellent

price because they

might have

negotiated in a better

method.

- Most of the groups

did not search for

information on the

market so as to

compare prices. If

they did, they would

have discovered that

same product has a

lower price in the

market and therefore,

they may have had a

larger margin.

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Table 4. Negotiation Experiment. Second year at the University. Economics degree.

Second year at the University. Public Sector. 2ºA. Economics degree.

Mobile phone: ZTE

skate

PET and FIRST

books; English

Dreambeach Tickets.

Men Women Men Women Men Women

Group 1 24

- Charger

(5 euros)

-Screen protector

(3 euros)

25

85

- Extra cds

100 90

105

Group 2 26,5

Exchange

-Exchange Sony for Zte

-Value Sony: 100 euros

-Value Zte: 60 euros.

Difference

40

90

80

58

55

Group 3 25

- Earphones (4 euros)

-Mobile case (6 euros)

35

20

55

Exchange of

seller

TOTAL 75,5

+ 18 euros

(accessories)

65 + No deal

210

200

203

160 + no

deal

MEN

490,5

WOMAN

505 (Supposing the

same prices)

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NOTES

MEN WOMEN

Buyer Seller Buyer Seller

- Buyers exposed some of

their conditions to negotiate

by indicating the place they

required to negotiate in.

- One huge mistake from

one of the buyers was

telling the seller that they

said they were not good at

English (According to the

PET and FIRST books).

This fact produced an

increase on the price due to

they already presented a

weakness.

- Amongst some of the

groups there was a lack of

communication. In addition

to that, they did not show

any proofs (regarding the

object) to the seller so as to

achieve a better price.

- One of the groups tried to

bluff during the negotiation

but this one was quiet

untrue due to their

incapability to maintain

their own bluff. Therefore,

this produced as mistrust as

a high price on the

negotiation.

- There were two male

sellers.

- One of the sellers

presented a demanding

attitude. Despite this fact,

the seller exhibited an

affable treat with the

buyer. Furthermore, this

one searched for new

resources.

- In order to gain the

buyer’s confidence, this

seller showed some

proofs.

- The other seller

presented lack of

confidence with his own

product.

- There were no signals of

handshaking at the

beginning of the

negotiation.

- There were no intentions

of communicating in

English with foreign

students when it came to

negotiate.

- Some of them

were uninformed

about the prices on

the market. This fact

can be reflected in

the exchange of the

Mobile Zte (Group

2), due to the

exchange had a

bigger value from

the buyer and

furthermore, she lost

the deal.

- However, the rest

of them were

informed about other

products such as the

festival tickets.

- One person attained

a better price at the

festival tickets on

account of her own

experience with the

object to deal.

-As it happened with

the men, in some of

the female group

there was a lack of

communication.

Moreover, the girls

exhibited a more

passive attitude

regarding the

negotiation.

- Only one female

negotiator bluffed

during the deal.

-There was one female

seller.

- From my point of

view, this woman has

been the best participant

at selling amongst all

the sellers. This is

because she

comprehended

completely how the

market works.

- A form of selling the

product was by assuring

the efficacy of the

product.

- At the time of

negotiating with foreign

students, this seller tried

to communicate with

them in English.

- When the exchange of

sellers came, the other

one was not so good at

negotiating, so she had

troubles at the time of

dealing.

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Table 5. Negotiation Experiment. Third year at the University. Economics degree.

Third year at the University. Growth and development; Economics. 3ºA

Mobile phone: ZTE

skate

PET and FIRST

books; English

Dreambeach Tickets.

Men Women Men Women Men Women

Group 1 40 33

- Charger ( 5 euros)

-Mobile case (6 euros)

50 40 59

61,50

Group 2 27,5 45

- Charger ( 5 euros)

-Mobile case (6 euros)

45

30 62

60,50

Group 3 35 25 60 50 61,50 60,50

TOTAL 102,5

103

+ 22 euros

(accessories)

155

120

182,5 182,5

MEN

440

WOMAN

405,5

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NOTES

MEN WOMEN

Buyer Seller Buyer Seller

- Despite some of the

buyers were not updated at

market, the other ones

comprehended how the

prices in the market were.

- These ones who were

unconscious of the market

did not research the prices

on Internet.

- During the negotiation

process, there was only a

buyer who either negotiated

the price or spoke on his

own. The rest of the team

hardly spoke in this

process. Nevertheless, this

one dealer requested the

team’s opinion.

- There was a lack of

looking for new resources

at the time of closing the

deal. They were just

concentrated on aiming a

price rather than attempting

to research new

alternatives.

- As we can see on the

table, the buyers exhibit

lack of creativity when it

comes to research new

resources to close the deal.

- There were two male

sellers.

- One of the sellers was

the only one who

introduced himself and

gave a handshake.

- A basic error amongst

the sellers was the “how-

sell”. This is, the sellers

did not focus on what the

customer could gain with

the pertinent object, but in

the features of the

product.

- In case of negotiation

with Chinese students, the

seller did not show

abilities at speaking

English. However, he

presented some fluent

speaking and he tried

communicating with the

Chinese students in order

to close the deal.

- Some of the buyers

exposed lack of

interest at the time of

negotiating.

- Additionally,

buyers did not search

how the prices were

on the market.

- As in the same case

as men, female

buyers showed lack

of creativity at the

time of searching for

new resources so as

to come to an

agreement.

-There was hardly

communication in

the group. This fact

produced a sense of

powerless opposite

the seller.

- There was a female

seller.

- The seller was good at

negotiating due to she

searched for new

resources so as to sell

the product.

- Unlikely the men, this

seller did not introduce

herself to the buyers.

- This woman tried to

persuade the buyers to

buy the product by

demonstrating the price

on the market.

- One negative aspect to

emphasise regarding the

seller is the form of

selling the product. This

is, she tried to sell the

product by describing

the performances of the

products, while the best

form of selling is

demonstrating what the

benefit the product

reports.

- Furthermore, the seller

provided facilities to the

foreign students by

speaking in the

pertinent language.

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Once the experiment results have been expressed and continuing with the project, it is

showed below some graphics so as to analyse the possible interpretation according the

experiment:

Graph 1: Comparison per objects.

Source: Own elaboration.

This graphic represents the total negotiation per group depending on each object. There

were normally four groups in each class and consequently 120 students in total. Therefore

they are found altogether according the gender. On the other hand, each object is analysed

individually.

First year of the degree. Microeconomics. University of Almería.

The appraisal will begin by analysing the first year of university. In this case, students of

microeconomics (1ºG) will be analysed. As it can be seen in the chart, these students

0,00 €

50,00 €

100,00 €

150,00 €

200,00 €

250,00 €

Men Women Men Women Men Women

First year. Microeconomics Second year. Public Sector Third year. Growth and development

Pri

ce

COMPARISON PER OBJECTS (ALL THE GROUPS)

Product (supposing the accesories as prices) Mobile Zte Skate

Product (supposing the accesories as prices) PET & FIRST books

Product (supposing the accesories as prices) Dreambeach ticket

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exhibited lack of negotiation and a harsher attitude in order to lessen their respective

prices.

In contrast, I was noticed about the strong creativity which the members presented. In fact,

they searched more resources than any other group during the experiment. Therefore, it can

be said that as we entered into the university, the students displayed willingness, creativity

but most of all, a sense of how not to do business yet.

Finally, it seems the male negotiators are better at negotiating than female ones when they

hold their first course at the university.

Second year of the degree. Public Sector. University of Almería.

By following with the second year of the degree, whose students belonged to Economics

degree, specifically, these students were situated to Public Sector class (2ºA). According to

the experiment, it is recognizable seeing how the students closed the deal. As they develop

the degree, it is seen how the prices lowed due to a better conscience about the prices to

deal. However, some factors influenced in this course. For instance: One of the excellent

sellers. This fact produced a higher price on one of the product.

According to their attitude, I must say they showed not too much creativity when it came to

negotiate the corresponding product. Despite this fact, there was only a case barter.

As a final point according to the second degree, it is known the male negotiators still keep

being better than female ones.

Third year of the degree. Growth and development. University of Almería.

Students who are in the third year of the degree are being analysed, in particular those ones

who studied Growth and development subject. (3ºA). To begin with, we must emphasise

these students revealed better negotiating skills owing to a decrease on the prices of the

products such as we can see on the chart.

It is marked they had a developing business attitude on account of some gestures they did

such as introducing themselves at the beginning of the negotiation. In addition to these

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facts, they disclosed a more clever strategy in order to negotiate the belonging products

since some of the buyers used to search the prices on the market.

On the contrary, it is remarkable to say that they showed an incredibly lack of looking for

new resources, due almost all the students closed the deal by according the price in euros

instead of barters, win-win deals, etc.

To end with, we ought to see how the female negotiators achieve a better price regarding

the corresponding products. Thus, it can be deduced the female students acquire some

better negotiating skills along the degree.

Subsequently, it is showed a general graph which indicates the comparison per objects.

This graph represents the total sum of money per class and this one does not differentiate

among objects, but they are altogether.

Graph 2: Amount of euros spent per gender according to the pertinent year in the degree.

Source: Own elaboration.

0,00 € 100,00 € 200,00 € 300,00 € 400,00 € 500,00 € 600,00 € 700,00 €

Men

Women

Men

Women

Men

Women

Firs

t ye

ar.

Mic

roec

on

om

ics

Seco

nd

ye

ar.

Pu

blic

Se

cto

rTh

ird

yea

r. G

row

than

d d

eve

lop

me

nt

Total € per gender/year(supposing the accesories as prices)

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To conclude the experiment, it can be seen in the chart how the students develop better

negotiating abilities along the degree, since as they advance the pertinent courses, they

attained a lower price. Therefore, this indicates a more sensible attitude according how to

do business.

Additionally, it can be deduced how the men are better at negotiating at the beginning of

the degree, (including first and second year) but when the third year comes, there is a

change of tendency by being the women those who dominate at negotiating.

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12. CONCLUSION

If I might return to the objectives mentioned previously in the introduction, it could be said

these objectives have been fulfilled, given in the project it has been researched how a

person should negotiate in different conditions, such as negotiation in teams, negotiation

with foreign people, etc.

But the second and the most important objective regarding the project has successfully

been fulfilled, due to during the experiment it could see how the students react to the offers

and on the other hand, it could be seen if they behaved naturally and applied the acquired

knowledge.

Secondly, it must be assumed that although the sample was taken towards 120 students, the

fourth year of the degree was not available to test the experiment because of lack of time in

this course. Then, it may be emphasised the experiment has a 75% of trustworthiness.

Thirdly, a noticeable aspect to consider is the change of tendency at the third year of the

degree by being the female gender who dominates at negotiating whereas the first and

second year is the male gender who is the best at negotiation. However, both of the

genders hardly appreciate the non-verbal communication in the negotiation, which from my

point of view, is essential at the time of negotiating.

Returning to the trustworthiness of the project, I encourage researches to verify the

reliability of this project and demonstrate if this pattern continues along the years.

Furthermore, I believe this project could be well-used in the business community with the

aim of fomenting the competition and demonstrating some negotiating theories up to now.

Moreover, this project could be followed by many teachers who wish to test their

negotiating models and it might also be used to foment the teamwork among the students.

To end with, I would really like to emphasise the great experience that I have obtained

throughout the experiment and the different situations. I firmly believe there should be

taught a specific subject called “negotiation” by the universities, since it is a matter we will

daily have to confront but, from my point of view, we are not regrettably trained enough.

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