Prenegotiation Objectives: Price vs. Quality Analysis

At the same time, I also realized that the negotiation partners are not always having the conflict interests during the negotiation. In this case, for some of the issues, we actually have the same goals. So baring this in mind, in the future negotiation case, I would first seek the common goals for both of us first to create a win-win situation.

1. How did you plan for the negotiation? Explain how you decided on a strategy?

Negotiation is an important part of the role of the purchasing professional. It is a skill that is learnt and training can help purchasing staff in understanding what is needed when negotiating something.

When negotiations follow a structured bid process (RFP, RFQ, auction, and so forth) or when accurate cost data is known for the product or service in question, buyers can usually leverage a negotiation technique known as "competitive bargaining." This is the traditional way of hammering out a deal, marked by hard discussions focused mainly on price and based upon concrete facts. Competitive bargaining can be applied in a wide range of circumstances, even including single-source

I feel that the most important part of negotiation is relationship building. When you build a solid relationship on trust, you are more likely to come to agreements even if you have to come up with different alternatives. I know that when I buy or negotiate things, I like to go to people I have a solid foundation with. If I don’t know someone then I ask

Global business environment has become more unstable, supplier negotiations have taken important new role on helping improve corporate competitiveness. The goal of most supplier negotiations today is no longer just to get the lowest price. It is also to find new and innovative ways to meet a wide variety of business challenges, often by tapping into the knowledge and expertise of the supplier community and a good relationship.

b) Another alternative should be using the negotiation method in order to develop a “win-win” situation. A negotiating party would have to be applied, “When a long period of time is required to produce the items purchased” (p 375). In these circumstances, suitable economic price adjustment clauses must be negotiated. Opportunities for various improvements may develop, such as the new manufacturing methods, new packaging possibilities, substitute materials, new plant layouts, and new tools. Negotiation permits an examination and evaluation of all these potential improvements. Competitive bidding does not. The advantage would be assurance of a long-term business with the Company along with reasonable profit for the supplier and reasonable cost for the buyer.

Selecting a strategy is a key foundation in negotiation. Depending on the situation between your position and that of the other party, different negotiation strategies may be used. Picking the right strategy could improve the odds of a successful outcome. Chapter 1.3 of our book demonstrates five basic strategies to use during negotiations. Each strategy has its own set of advantages and disadvantages depending on the circumstances, and in most instances, a mixture of strategies will be used.

In many interactions throughout life, there comes the need to negotiate. Negotiation comes in many forms and fashions. Often when there is an issue, when there is a purchase, when a person has a need, when we have a want and many other instances can require the use of negotiation to achieve the desired outcome. In the world of business, negotiations are a staple of every interaction. Depending on the situation, the direction of a negotiation can often lead in different directions. In this paper, two negotiation articles that describe a negotiation setting employing different negotiation strategies will be described. The two

We are skilled negotiators and when we achieve the maximum from the buyer, it will be your decision whether to accept it or move on. Whatever you decide, we will back you.

In the end both firm come to agreement of on cost both firms would then come to terms with a viable option discussing money.

(Cialdini, 2001). This initial rapport building is aimed at assisting the recruiter to understand my justification for later requests and make it clear that I wish to work for them (Malhotra, 2014). Another aim is to understand the other person’s interests and so that I can identify possible constraints (Malhotra, 2014). This will require that I engage in active listening not just effective communication. The main issue going into this negotiation is understanding and addressing Computron’s constraints as well as the recruiter’s. As the candidate I know some market estimates, which guide my bargaining zone estimates, but I don’t know what the constraints and preferences of the recruiter are. Therefore my strategy is to make installment concessions that would allow me to better gauge the bargaining zone.

Certain forms of cooperation agreements between enterprises are deemed not to restrict competition and therefore are exempted. Such abuse may, in particular, consist in: directly or indirectly imposing unfair purchase or selling prices or other unfair trading conditions; limiting production, markets or technical development to the prejudice of consumers; applying dissimilar conditions to equivalent transactions with other trading parties, thereby placing them at a competitive disadvantage; and making the conclusion of contracts subject to acceptance by the other parties of supplementary

The first step in pricing is the consideration of the product production cost or service delivery cost as a unit cost. The calculations is the cost of acquiring raw materials, cost of manufacturing, handling costs and other costs that may be involved (Benton, 2014). For instance, if the product will require to be transported to a customer; hence, the shipping cost should also be included as well. The next one is having a competitive bidding process in order to determine which supplier can meet the requirements of the buyer at the lowest price. In order for a company to be determine they must enter a competitive bidding which aims at obtaining their goods and services at the lowest prices and further avoids favoritism in a procurement method in which competitive vendors, contractors and suppliers are invited to advertise and evaluate the scope, terms and conditions and specifications of the proposed contract as well as the criteria in which they evaluate and provide their feedback (Johnstone, Bedard & Ettredge, 2004). Therefore, suppliers should ensure that their bid covers any associated costs and reflect that they can indeed offer the best value and an organization should be

From different aspects and purposes of business negotiation, the company needs to see issues from various angles to find out real pictures from JYP’s view and others’ views combining with relevant information from enquiry stages. To prepare before negotiation, the company has to know basically what we are.