We are the team representing the XYZ Airport Services to negotiate with the Airport Authority, attempting to reach an agreement of contract renewal.

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M07034 Assignment 1: Negotiation        Hoi Ying WONG, 00047378                       16-6-2003

INTRODUCTION

We are the team representing the XYZ Airport Services to negotiate with the Airport Authority, attempting to reach an agreement of contract renewal. Here is the strategic plan of negotiation, adopting the skills of negotiating and influencing, which are a complex network of interacting skills and must be used together to turn out the best mutual agreement.

We create value by listening very carefully to the Authority’s needs and interest, and help them to learn about ours then look for ways to integrate the interests together, when we get our needs and interests met, we claim value. Balancing these two tasks is essential (McRae,1998).

Skills of Negotiation

According to Guirdham (2002), negotiation is the process of back and forth communication aimed at reaching agreement with the Airport Authority in our case, when we are both sharing and opposing some interests.  (definition)

Stages of effective negotiation

We have to follow the four stages of effective negotiation (Week 7 video clip; Fowler, 1996:136):

Prepare: It is analytical and the essential part of working out the trade-offs, central issue, subjective and barriers. This has to concentrate on the common interests of both parties – to solve the problems of delay in luggage delivery to rebuild the reputation and renew the contract. We have to value, which are the most valuable for XYZ and cheap to give away plus to make sure we get all facts and all assumptions are valid.

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Debate: Launch out what we want but not necessary what we settle for; questioning and listening rather than interrupting with counter-argument. This is the stage to work out a beneficial mutual solution / agreement, because a success of contract renewal in this case is more important than winning.

Proposal: We take the “if-then” theory to have more exchange of the proposal by interaction – promise to improve the workforce management in a given period in exchange of purchasing new equipments and facilities in both terminals by the Authority.

Bargaining: This is a trade for specification. To ...

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