ASSESSMENT 1 – Question and Answer 1. Describe any four skills an effective negotiator needs to have. Any effective negotiator requires these four skills: Active Listening – negotiators need to have the skill of actively listening to the person they are communicating with. Active listening involves the ability to read body language as well as verbal communication. It is arguably more important to listen to the other party to find areas for compromise during the meeting than it is for the negotiator to speak themselves. Verbal Communication - negotiators must also have the ability to communicate clearly and effectively to the other person during a negotiation. Misunderstandings can occur if the negotiator does not state their case …show more content…
Is necessary to include all information related to: deposits, total payment amount, penalties, cancellation costs, etc. Time frame (Duration) – the length of the contract is another aspect of the negotiation that is likely to be an issue between both parties and an agreement on the duration needs to be reached. The completion date, milestones from each task finished should be detailed. Conditions – the conditions of the contract between the two parties is also likely to be another important topic and one that both parties will look to gain as much as possible from the negotiation. Risk Management – detailing guarantees, bonds, type of contract, insurance, services/ product standards. Technical specification – detailing warranty, maintenance required, support of the product or service . 6. Describe the basic issues to be considered in the following situation: * One-off agreement * Contracts for ongoing supply of goods and/or services * Contracts with interstate supplies * Contracts with international supplies One-off agreement – an issue that may arise in a one-off agreement is the supplier may not provide a high quality of service as the parties are unlikely to do business together in the future. Contracts for ongoing supply of goods and/or services – there are many factors to discuss prior to negotiating a long-term contract. Some of these include the agreed cost of purchase, length
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Ray Soles, the Vice President of Supply Chain Management at Sabor Inc. He has the task of making sure Sabor Inc. has enough supply of Marconil to keep up with demand. Recently, Ray’s three suppliers have all advised there is a possible supply shortage of Marconil, and without a form, long term contract Sabor’s suppliers cannot guarantee the raw material will be available. Needless to say, Ray has a few decisions to make but there are few things he must keep in mind. If long term contracts must be signed, at what price with this affect his procurement flexibility and what strategies are available to Ray for ensuring his demand of marconil? If Ray must sign long term contracts, what criteria must he establish to do so? With or without signing
As a negotiator, a few of my strengths include being a good listener with a calm composure and positive attitude. I have the ability to make my opponent feel at ease by being patient and attentive, and breaking the ice when needed with the use of humor.
The matters covered in a contract are the parties involved, any important dates (such as start and end dates), the definitions of terms used in the contract, the goods or services being provided, any payment amounts and dates for payment to be sent or received, potential interest on late payments, delivery or performance dates for services offered, insurance and guarantee promises, termination dates, renewal terms, damages for breach of contract and any extra special considerations.
University of Phoenix Material: Elements of a Contract Scenario Read the Elements of a Contract Scenario.
v. This is applicable to our case because the negotiation and contract signing payments can be considered arrangement considerations because the payments are fixed and therefore, should be allocated over the three
ii) When dealing with customers, Eden Sounds prefer to use a “Standard form contract”. Explain what a ‘standard form contract’ is, and list the advantages to both parties in using them.
Consequently, negotiation is a process that can be approached in many ways. No matter what strategy we choose, success lies in how well we prepared. The key to negotiating a beneficial outcome is the negotiators’ ability to consider all the elements of the situation carefully and to identify and think through the options. At the same time, negotiators must be able to keep events in perspective and be as fair and honest as circumstance allows. Because a common ground or interest has brought the parties to the negotiating table, a negotiator can benefit by trying to capitalize on this common
Pre-negotiation preparation is essential for the optimal outcome of a negotiation, as it allows one to design a strategy and plan that can increase the probability of a beneficial agreement. Good preparation means thorough understanding of one’s own and the other party’s relevant information, including interests, constraints, and tradable resources. An effective negotiator should know one’s own best
From the given situation, I believe that purchase contract negotiation involves clarification and mutual agreement on the structure and requirements of the contract and I acknowledge the positions of both parties to gain the first step of forming the contract. I utilize active listening and collaborative communication techniques at the first stage of forming a contract. These techniques allow me to focus on both sides must recognize basic areas of contract agreement and the importance of other terms and conditions.
These include perception, emotion, and communication. Perception focuses on understanding the other side’s thought process and putting on their shoes to understand their point of view on the negotiation. This is often difficult as you are commonly defending your own standpoint but must be done in order to make sense of what is and is not an acceptable deal. The best way to do this is to step back and look at the issue objectively as if you were not involved. Emotion is also an important trait to be aware of as a healthy mindset promotes healthy negotiation. If both parties have a strong emotional attachment to the issue, the are more likely to battle one another than to work together to solve the problem. In order to support emotions, consider all of them as legitamate and try to be understanding of the other parties issues. Also, do not react to emotional outbursts as emotions on one side can often generate emotions on the other side and both parties may lose focus of the overall goal. Lastly, communication must be supported between both parties and should focus on talking to, hearing, and understanding the other party (Ury, 1981). It is important to speak to the other party in a way that is easy to understand and not send mixed messages. Say what you mean and mean what you say. Also, hear the other party’s concerns and actually focus on them without dismissing them to address your own needs. Also, be sure that all
In planning for my negotiation, I reviewed the Supplier Payoff Matrix for each of the issues to be resolved. The issues which were likely to offer least resistance were the Electronic Integration and the Inventory. The next issues that were likely to have some pushback were the Quality and lot size. We kept to the last the more contentious issues that included price, volume flexibility, development fees and contract term.
These four areas are the key points of every long-term contract that it is written up. Long-term contracts now have the potential to improve in various ways thanks to these.