What are the four phases of negotiation?

What are the four phases of negotiation?

• A. Bargaining
• B. Preparation
• C. Opening
• D. Closure

Answer: (B)

Beginning with thorough preparation sets up everything that follows in a negotiation. This phase isn’t just about gathering facts; it defines your objectives, identifies your BATNA (best alternative to a negotiated agreement) and reservation point, and plans your overall strategy, including what concessions you’re willing to make. When you know what you want, what you can concede, and how you’ll respond to the other party, you can approach the opening with clarity, steer the bargaining effectively, and reach a solid closure. In many models, negotiation is described as four stages: preparation, opening, bargaining, and closure. Preparation is the foundation that makes the rest possible, which is why it’s the best answer to this question. Without solid preparation, the subsequent stages are much harder to execute well.

Beginning with thorough preparation sets up everything that follows in a negotiation. This phase isn’t just about gathering facts; it defines your objectives, identifies your BATNA (best alternative to a negotiated agreement) and reservation point, and plans your overall strategy, including what concessions you’re willing to make. When you know what you want, what you can concede, and how you’ll respond to the other party, you can approach the opening with clarity, steer the bargaining effectively, and reach a solid closure.

In many models, negotiation is described as four stages: preparation, opening, bargaining, and closure. Preparation is the foundation that makes the rest possible, which is why it’s the best answer to this question. Without solid preparation, the subsequent stages are much harder to execute well.