Answer & Explanation:”Cultural Differences” Please respond to the following:Compare at least three (3) of the differences between a culture with a large-power distance and one with a low-power distance (e.g. the U.S. and China). Determine the crucial roles that these types of cultures play during negotiations between the cultures. Provide a rationale for your response.
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BUS340 WEEK 8: Closing the Negotiation, Documenting the Negotiation, and the
Conclusion
Slide 1
Introduction
Welcome to Contract and Purchasing Negotiation Techniques.
In this lesson we will discuss closing the negotiation,
documenting the negotiation, and the conclusion.
Please go to the next slide:
Slide 2
Objectives
Upon completion of this lesson, you will be able to:
Design the negotiation closing;
Generate the documentation from the negotiation; and
Describe the documentation used to support the negotiation
process.
Slide 3
Closing the
Negotiation
Please go to the next slide:
How you close the negotiation is just as important as how you
start the negotiation. Because you are the leader of the
government team, it’s your responsibility to lead both sides
toward closure, and to signal when it’s time to end the
negotiation and document the results.
You’ve got to be a good closer. If you’re not, the negotiation
could wander interminably. The longer it does, the more
opportunity there is for additional problems to crop up,
situations to change, and conflicts to arise over small issues.
You need to put the pup to bed when the time’s right.
We will now look at a few of the most common methods of
closing, how to prepare the ground to execute the close, how to
make sure everyone is truly in agreement, and how to make
everyone feel like a winner.
Please go to the next slide:
Slide 4
Methods of
Closing
There are a few common ways a government negotiator can
choose to close.
First is the total agreement close. It’s simply summarizing and
agreeing in total to all the individual issues you have discussed
and agreed to so far. Throughout the give and take of the
negotiation, both sides have made concessions that have been
agreeable to all. You may have wanted more on this issue, they
may have wanted more on that issue, but you all can at least
agree on the total package, even if it includes some warts.
Second is the ambiguous authority close. Use this close if you
still have an unresolved issue or issues that you do not want to
or have no more room to move on, but closing the negotiation
now is in the best interest of the government. The ambiguous
authority close would sound something like, “I’ve made the
best argument I could, but the review committee has given me
no authority to make any other offer” or “Sorry , folks, but this
has to be my final offer.
The next method is the power close. This close assumes you
are in the power position and the other side needs the deal
more than you do. It could be viewed by some as intimidation,
and usually weakens your important ongoing relationship with
the other side. The power close is essentially the ambiguous
authority close without the ambiguous authority.
Slide 5
Methods of
Closing
(continued
Please go to the next slide:
The next method is the either/or close. With this closing
method you give the other side a choice between two
acceptable alternatives. Either alternative must be acceptable
to both sides.
This close is best used when you have reached agreement on
everything but one major issue and you have some tradeoff
flexibility on that issue.
The next closing method is the silent close. The silent close is
used commonly by salespeople all over the world. You simply
present the other side with your final offer and be quiet. Be
absolutely silent. Who knows? The other side just may say
yes.
The next method is the split-the-difference close. This method
is a common way many negotiations, government and
otherwise, end up being concluded. It’s used when both sides
have agreed on everything else but that all-important issue –
price. You’re down here and they’re up there, and that
difference is the only thing holding agreement back. At this
point, many, many government negotiators make the mistake
of offering to split the difference 50/50 to reach an agreement,
but that’s not the split the difference close.
Please go to the next slide:
Slide 6
Check Your
Understanding
Slide 7
Ensuring Total
Agreement
Whatever method of closing you use, you must make sure that
both sides fully understand the terms and conditions they are
agreeing on, because they will control the party’s mutual
relationship, performance, and expectations after they are
cemented. You want to make sure all parties agree to the same
thing.
Lay out the terms in writing and have the other side look over
them and agree to them. Have them sign the agreement and
give them a copy. This doesn’t have to be your official
documentation of what went on in the negotiation, but it should
be clear and complete enough to make sure the other side fully
understands and agrees to the entire deal. If you have been
keeping good notes and doing interim summaries as the
negotiation progressed, this should be very easy to do. The
majority of the work has already been done.
You can never close a negotiation knowing there’s a mistake in
the other side’s understanding of the agreement, reasoning,
expectations, facts, or figures. As a government negotiator,
you must be fair and reasonable to all sides.
Please go to the next slide:
Slide 8
Making
Everyone Feel
Like a Winner
Your job as a government negotiator is not to beat down the
other side and win the negotiation. Your job is to negotiate a
fair and reasonable agreement for both sides that satisfies your
mission requirements. There should never be a winner or a
loser after a negotiation.
Make sure to congratulate the other side for a job well done. It
doesn’t matter how well they actually performed during the
negotiation; congratulate them. Praise them for their
professionalism and their negotiation skills. Tell them you
learned something from them. They probably spent long hours
preparing for the event just like you did, so let them know their
time investment was productive.
Slide 9
Document the
Results
Please go to the next slide:
The next, and final, job of the negotiation process is to
document the results.
You’ve probably been harped on your whole career about the
importance of properly documenting your work actions, and at
no time is this more crucial than it is now.
You should already be pretty prepared for your task of
documenting the negotiation. If you kept good minutes, did
your written interim summaries, and did a good job of
summarizing the final results of the negotiation immediately
after it concluded, your job will be a whole lot easier. In
addition, the results will be much more accurate, enforceable,
and defensible.
Next you must document your results.
Please go to the next slide:
Slide 10
Check Your
Understanding
Slide 11
PNM
One of the things a government CO must determine, before
going into any agreement that will obligate federal funds, is
that the agreement is being entered into at a fair and reasonable
price. In most cases this determination has to be backed up by
some kind of written justification.
For contract award decisions, this justification is usually called
a price negotiation memorandum, or PNM for short.
This is the record of your negotiations and how you have
determined the final outcome to be fair and reasonable.
Different agencies vary widely on content, format, and dollar
thresholds for written PNMs and justifications, so you’ll have
to check your agency’s own particular guidance on how, what,
and when to write.
Slide 12
Release of
Claims
Please go to the next slide:
If you have negotiated a modification to an existing contract,
you may have another step you must, or can, elect to take
along the documentation trails. You may be required to obtain
a release of claims from the contractor. Even if you are not
required to, you may elect to obtain a release of claims if you
determine that doing so is in the government’s best interest.
A release of claims is not required for contract award or for
most contract modifications. It’s only required for bilateral
modifications that definitize negotiated settlements resulting
from change orders issued against noncommercial contracts.
Please go to the next slide:
Slide 13
Reviews and
Approvals
After you have prepared your documentation of the results of
the negotiation, you still may not be quite done. Your agency
may require some reviews and approvals before you can move
to formalize the actual agreement.
If you have awarded a competitive contract, the unsuccessful
offerors in the competitive range have the right to request a
post-award debriefing. These debriefings are designed to let
those offerors know why they weren’t selected and how they
can do better in the future. They are also great at defusing the
possibility of a protest.
You’re now ready to create the document that will stand in
lasting tribute, for good or bad, to your negotiation efforts.
Usually this is the contract award document, but not always.
Remember, you have many reasons and opportunities to
negotiate. Each of these documents will have their own
particular preparation requirements. Whatever document you
produce or procedures you follow, your goal is the same: to
create a legally enforceable document that will govern both
sides’ conduct and accurately represent the mutual intent of the
parties. You establish the scope and boundaries of an ongoing
and hopefully mutually satisfying relationship.
Please go to the next slide:
Slide 14
Summary
We have reached the end of this lesson. Let’s take a look at
what we have covered.
Discusses first were methods closing a negotiation. These
included: total agreement close, ambiguous authority close,
power close, either/or close, silent close, and split-thedifference close.
After your negotiation method is complete you must make sure
that both sides fully understand the terms and conditions. Your
job is to negotiate a fair and reasonable agreement for both
sides that satisfies your mission requirements. There should
never be a winner or a loser after a negotiation. Make sure to
congratulate the other side for a job well done.
Next we discussed how to document the negotiation. If you
kept good minutes, did your written interim summaries, and
did a good job of summarizing the final results of the
negotiation immediately after it concluded, your job will be a
whole lot easier in documenting your results.
We concluded the lesson with a discussion on reviews and
approvals. Your agency may require some reviews and
approvals before you can move to formalize the actual
agreement. If you have awarded a competitive contract, the
unsuccessful offerors in the competitive range have the right to
request a post-award debriefing. These debriefings are
designed to let those offerors know why they weren’t selected
and how they can do better in the future.
This concludes this lesson.

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