During the second lesson we got right into action, simulating a negotiation on a large oil trade in groups of 4 students. The premises were pretty strict and during the second phase of negotiation there was new information appeared for both parties. In a real life situation I guess there would not have been a way to find a deal between the seller and the buyer. This simulation though was more about learning to share and gather information. We had an open and kind atmosphere during the simulation, and I would not mind negotiating with our counterparty in the future :)

From theoretical point of view, an integrative approach should have been used, since the negotiables were valued differently by the buyer and the seller in the simulation. Integrative approach allows value creation by deciding on the negotiables according to preferences and priorities of both parties. Distributive approach is used when it's possible only to divide a cake of certain size between the parties. However, in business-to-business negotiations, one must take into account that there might be (and usually will be) business to conduct with the counterpart in the future. Therefore it is often beneficial for both parties to make deals in a way that allows the growth for both businesses in the long term.

For effective negotiating, one needs to be good at pitching and presenting his ideas and opinions. Listening is a key skill: the more information you can grab the better you can adjust your negotiating strategy and form the content of your proposals. Reflecting on my own performance yesterday, my view on my greatest weakness in negotiating was confirmed: I'm easily persuaded out of the boundaries I've decided to be the absolute minimum I'm willing to accept. I might overvalue pleasing other people in negotiations, or fear that I am going to lose a friend if I don't agree to his or her terms. Well, as I am now on the right course to become a better negotiator, I will set a goal to eliminate this weakness :) One way to do that would be turning into this kind of object:

                                          (Sheela Sharma/National Geographic)

At least I imagine it would be hard to persuade a rock!

For the next lesson, I am planning to prepare by observing body language of the people I will meet during the rest of the week. Every time there is a situation that even slightly resembles a negotiation I will carefully watch what kind of posture the other person takes, how he moves his hands, how intense eye-contact he takes etc. By doing this consciously I might learn a trick or two and even if I can't immediately make useful conclusions, this exercise is going to be pretty fun!