the negociation
TRANSCRIPT
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
JORGE MORENO HERNÁNDEZ
GRADO EN ECONOMÍA
THE NEGOTIATION
36
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.
JORGE MORENO HERNÁNDEZ
GRADO EN ECONOMÍA
THE NEGOTIATION
37
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
JORGE MORENO HERNÁNDEZ
GRADO EN ECONOMÍA
THE NEGOTIATION
38
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.
JORGE MORENO HERNÁNDEZ
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THE NEGOTIATION
39
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.
JORGE MORENO HERNÁNDEZ
GRADO EN ECONOMÍA
THE NEGOTIATION
40
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)
JORGE MORENO HERNÁNDEZ
GRADO EN ECONOMÍA
THE NEGOTIATION
41
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.
JORGE MORENO HERNÁNDEZ
GRADO EN ECONOMÍA
THE NEGOTIATION
42
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
JORGE MORENO HERNÁNDEZ
GRADO EN ECONOMÍA
THE NEGOTIATION
43
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.
JORGE MORENO HERNÁNDEZ
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THE NEGOTIATION
44
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
JORGE MORENO HERNÁNDEZ
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THE NEGOTIATION
45
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
JORGE MORENO HERNÁNDEZ
GRADO EN ECONOMÍA
THE NEGOTIATION
46
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)
JORGE MORENO HERNÁNDEZ
GRADO EN ECONOMÍA
THE NEGOTIATION
47
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.
JORGE MORENO HERNÁNDEZ
GRADO EN ECONOMÍA
THE NEGOTIATION
48
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.
JORGE MORENO HERNÁNDEZ
GRADO EN ECONOMÍA
THE NEGOTIATION
49
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GRADO EN ECONOMÍA
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