Negotiation
Class 12 Entrepreneurship — Meaning, Importance and the Five Methods of Negotiation
What is Negotiation?
Why good negotiations contribute to business success
Help in building better relationships.
Deliver lasting, quality solutions — rather than poor short-term solutions that do not satisfy the needs of either party.
Help in avoiding future problems and conflicts.
Methods of Negotiation
Five methods of negotiation — tap each card to expand it. The badge on each card tells you the win/lose outcome or the direction of the approach.
Key Takeaways
Key Takeaways
- Negotiation is a process where two or more parties with different needs discuss an issue to find a mutually acceptable solution.
- Good negotiations build better relationships, deliver lasting quality solutions, and avoid future problems and conflicts.
- Integrative negotiation is "win-win" — expand the pie; distributive is "win-lose" — divide the pie.
- Inductive negotiation works upward from small details; deductive negotiation works downward from an agreed strategy and formula.
- Mixed negotiation — the most common — blends inductive and deductive methods.
- ⭐ Be ready to classify a given scenario into the correct negotiation method — the lease (distributive) and pension plan (inductive) examples are classic exam anchors.
Think about it: When your family haggles with a shopkeeper over a sofa, each side gives a little — that is distributive (win-lose). When your parents discuss your college budget and both end up with a plan that satisfies everyone, that is integrative (win-win). You negotiate every day without realising it.
Syllabus Note — Sections F–I Excluded
Syllabus Note — No questions expected
The remaining sections of this chapter in the textbook — Customer Relations (CRM), Employee and Vendor Management, Quality and Customer Satisfaction, and Business Failure and its Causes (Sections F to I) — are part of the CBSE syllabus text, but per the official CBSE rationalised curriculum no questions are expected from them. You may skip them for board exam preparation. (Covered for completeness in the textbook only — including case studies like Subhiksha, Boo.com, Chrysler, Corfam, Blockbuster and Google Wave.)