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Unit 5: Negotiation

5.5 Tactics and Strategies in Negotiation Notes

Sometimes the words tactics and strategy used in negotiation are confused. They should not be
taken as one. In martial terminology strategy refers to a basic plan of action chosen to achieve a
given objectives ‘whereas’ tactics refers to the means which is adopted to translate the plan into
action. Strategy is a plan of action but tactics is a means for its implementation. Strategy and
tactics are both needed in negotiation. They are considered an integral part of negotiation.
Strategy is concerned with the planning and directing of the negotiations to achieving the goals
and objectives.
“Tactics” deal with the moves and maneuvers employed to implements strategy.
Both strategy and tactics are accepted as integral part of a negotiation. While strategy once
chalked out is followed during the whole course of negotiation. It is seldom altered during the
course unless urgently required to do so. But tactics are thought out on the spot and undergo a
change time and again even during the course of negotiation.
In fact, tactics do not depend upon the tactics of the other party which cannot easily be thought
of before hand nor it can be strictly adhered to even if during planning the strategy it has been
discussed and thought over. The negotiation must have powers to change the tactics according
to the demand of the situation.

5.5.1 Factors Influencing Tactics

1. Personal characteristics of the negotiator.
2. Briefs given to the negotiator.

3. Power which a negotiator enjoys.
4. Strategy set out by the management.
5. History of past negotiations between the parties evidently on negotiation table.
6. Responses of the negotiator.

7. Ability of the negotiator.
8. Inherent dangers in a particular approach.
9. Potential results expected of a particular approach.
10. Necessity of psychological and motivational approach.

The negotiator tries to pressurize the seller to downcast his prices and on the other hand the
seller tries to resist all such pressure. However, it all depends upon the nature of goods and
services being negotiated. A monopoly seller can easily afford to stick to his point and brings
round the purchaser to his view point.
While exporting or importing goods outside the country not much negotiation is possible as
certain laws and conditions beyond one’s control governing these trades come to the fore and
they cannot obviously be by passed neither they can be over ridden. A negotiator should also be
cautious enough that where compromise or change is neither possible nor desirable it is fertile
to negotiate on that score. Certainly in such cases no strategy will work. All tactics will come to
a naught similarly on all aspects at all times and in all circumstances negotiation is not possible.
Quality cannot be negotiated when its conforms to a national or international standard or it is an
conformity with the buyers specifications, service, quality, price, and other terms are certainly
negotiable, provided of course, the materials are not scarce or not being transacted by a
monopolistic strategy and later tactics may pay good dividends provided each of the party is
ready to understand the view point of the others and have mutual confidence in each other.

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