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CTU The Five Stages of Negation Russia and Saudi Arabia Discussion

CTU The Five Stages of Negation Russia and Saudi Arabia Discussion

CTU The Five Stages of Negation Russia and Saudi Arabia Discussion


First we shall discuss about the five stages of negotiations and relate the same with the above situation.

The five stages are as follows: 

1) Preparation & Planning: Before the start of the negotiation, one must be aware of the topics, the history leading to the negotiations, the people who are involved and what are their perceptions of the topic it also needs to prepare an assessment of the requirements of the negotiating parties

2) Definition of ground rules: Once the planning and strategy are developed, one has to begin defining the ground rules and procedures with the negotiating party. We must decide the place of meeting, the timings for the same, and any specific procedures to be followed if any, if an impasse is reached.

3) Clarification & Justification: Their initial positions have been exchanged, both the parties will clarify and justify their original demands. It is an opportunity for educating and informing each other on the issues, which are important and how each party has arrived at their initial demand.

4) Bargaining & Problem Solving: This is the essence of the entire negotiation process, in this process parties try to arrive an agreement and it is here where concessions will undoubtedly need to be made by both parties.

5) Closure & Implementation: This is the final step of negotiation. a formalization of agreement is done and procedures necessary for implementation are performed

You are about to embark on an international negotiation. You work for a multinational oil company, and your company has decided to set up a joint venture with Saudi Arabia and another one with a company in Russia. You are leading the negotiations.What are the 5 stages of negotiation, and how might you prepare for them? To answer this question consider the following:  Is the preparation different with each country? Would inductive or deductive reasoning work better for different cultures?What cultural differences do you need to be sensitive to in the process? For example, what would you expect from the Arab negotiator versus the Russian negotiator who will be working with you, the American negotiator? What would be some of the political, legal, economic, and ideological issues that may come up? How would you manage conflict if it should come up in the negotiations

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