Sound organizational control and structural foundation paves the way for an organization to be run in a professional manner and effective business negotiation is an essential part of it as be viewed in the Capital Mortgage Insurance Corporation case study involving Randall and Dolan. However, the major learning curve in this context is the proper formulation of negotiation guideline, followed by proper identification of steps of the negotiation process. Similarly, it is important to apply the guidelines that will enable Capital Mortgage Insurance Corporation to facilitate effective communication during the negotiation. Here identification of questions asked during the negotiation is very important. Alongside, it is also important to identify characteristics of the negotiation styles and apply the guidelines that the company should follow when this negotiation becomes challenging.
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From the point of view of Capital Mortgage Insurance Corporation it is important that while negotiating the deal one must have to be careful in some aspects. At the very beginning, the negotiator has to know the deal thoroughly, including all the clauses of the deal. He has to understand what the standpoint of the company he is representing is and what are the different aspects of the deal that can help his company and if there are any which will restrict the company in any aspect.
Next in the line will be the verifications of the resources that the company will use. This is a very important aspect in the negotiation process, and it will help to clear any type of misunderstandings that can take place after the materialization of the deal (Lewicki, Saunders and Barry, 2010).
The negotiator has to try to keep some options open which will be helpful to come out of the deal if the deal goes wrong.
In some simple steps we can design a successful negotiation process, and they are as follows:
- Identifications of the weaknesses of the parent company.
- Determining the goal of the partnership.
- Acquire as much knowledge about the other party.
- Try to establish a relation before the negotiation process, which will surely help both the parties.
- An agenda must be created, and everyone should stick to the agenda.
- Always differentiate between the personal and business matters.
- If anything goes wrong try to find out the problem of the company you are representing.
- In the case of a deadlock, always try to find out some time.
Steps of negotiation
- Before negotiating the deal, one has to know all the things about the company with whom they are dealing.
- They have to clearly understand what will be the short term and long term benefits from the deal.
- After that there will be the legal aspects that will come before the materialization of the deal.
Guidelines for effective communication
During the process the communication must be the deal oriented, and both the parties have to be clear about all the different aspects of the deal. Both the parties have to be careful about the facts if there are any unclear aspects in the deal. And most importantly one should carefully avoid any common pitfalls in the process. It should be noted that competitiveness has to remain the key for the organization and the top management at the helm of affairs cannot refuse this fact at all. An organization to function in vacuum merely dependent on its revenues over a period of time is just not acceptable in this day and age. Organizational structure should mingle itself with the policies that are coming in every now and then in the business world and try to play its respective part. The usefulness of its resources can only be harnessed when there is a decent enough endeavor to understand the dynamics of the market, the overall industry and more than anything else, the stakeholders who have invested huge sums of money within the realms of the organization and last but not the least the customers themselves for which the company strives to run a business in the first place and without whom the organization will not even be what it is in current state.
Types of Questions to ask
There are some questions that must be discussed during the process:
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- What are the expectations of the company from the parent company?
- What are their expectations from the deal?
- What will be the immediate helps that the parent company will get immediately after the deal?
- If the visions of both the companies match?
Characteristics of the Negotiation Style
In the case, there are two parties in the negotiation, and so the process is quite simple. We all have to be careful that there must not be any clash of interests between the two parties. In recent times it has seen that the parties always try to reach in an agreement, rather than fight openly. Some times, in the cases where one side dominates the negotiation breaks. In a proper negotiation this is unexpected. It is said that a successful negotiation does not limit itself in the management of intangibles but they try to resolve the tangibles (Lewicki, Saunders and Barry, 2010).
In some cases the negotiation process becomes challenging. In these aspects, both the companies have to be prepared with all their documents. The documents will be the most important weapons in the materializing of the deal.
The method of positive and effective business negotiation as shown in the case study Capital Mortgage Insurance Corporation is appreciative inquiry, which is undertaken for the generation of a set of collective images of an improved future by discovering the best aspects within the organization, realizing what creates those superior aspects and amplifying the various elements contributing to the improved performance of the organization. In today’s context, this improvement of performance depends mostly on effective negotiation.
Lewicki, R., Saunders, D., and Barry, B. (2010). Negotiation: Readings, Exercises, and Cases. New York: McGraw-Hill.