Essay Sample on 7 Elements of Negotiation: Improve Your Skills Now!

Introduction

Negotiation refers to a communication process that is designed to help people reach an agreement when they have a common interest, especially when one person possesses the other person's attention. Negotiation can also be an interpersonal process of decision-making that is used when people cannot achieve an objective single-handedly. Negotiation has seven elements. Despite the majority of the people not being natural-born negotiators, most people can improve their skills through preparation, continuous practice and education. There are proposed frameworks that can be used to help individuals prepare adequately for the process of negotiation. The seven elements framework identifies the most goals to allow them to develop while minimizing surprises. The first element is exciting, which is the main underlying drivers in negotiation. People's basic needs and wants to the day with their motivation are often hidden, but they guide people and what they say. It is essential to rob the other person's stated position to understand their fundamental interests. The other element is legitimacy. A legitimate or fairness in decision-making is always a factor in negotiation. In case the other person is taking advantage, where is the high likelihood of rejecting the offer laving an individual different. The relationship is the other element where negotiators have to manage the relationship as it unfolds.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

Specific Negotiation Tactics About Purchasing Relationships

When it comes to purchasing relations, some specific negotiations Tactics can be used. One of them is discrediting the value of the preposition for deflecting its value. The goal of this negotiation tactic is to attempt to discredit the opposition to get there least common denominator pricing and get the best deal. The tactic builds a strong relationship with the unit buyer (Dygert, &Barrett, 2016). The other purchasing tactic in negotiation is to commodities and to control the responses. The procurement goal is to control every aspect of the sale to avoid surprises and avoid comparison with its competitors. This tactic convinces the unit seller that there are other options if they do not lower their prices. It is always essential to build a strong network in the business organization. Leveraging the outside and inside sources angel with knowing the rules that can allow people to agree quickly. Using past performance or history against one's self is a specific tactic to the purchasing relations. It is vital to have more ammunition to use against the vendors to drive down the price in the negotiation deal. Negotiators always have hard resources and a trend background research about the vendors and determine if the information used is correct. It is also essential to anticipate concerns and have their responses initially prepared. A preemptive discloses the negative information to allow the purchaser to be in control of the discussion. Good Cop lousy cop decision-maker is the other strategy commonly used.

Importance of Supplier Relationship Management in Negotiations

Without the supplier, relationship costs of purchase Could Be Higher and Efficiency in the transaction could be difficult. Pricing structures can also fluctuate, and therefore supplier relationship management can help companies Drive efficiency and sustain better levels of profitability. Supplier relationship management is a methodological approach that allows the assessment of supplier contribution and the influence they have on the success to determine the tactics that minimize the supplier performance and development of an appropriate strategic approach ( (Dygert, & Barrett, 2016). Supplier relationship management helps in creating positive engagement. It improves and streamlines the supply of goods and services in a similar way the customer relationship management streamlines the relationship between the Enterprise and the customer. This management also Focuses on developing a mutual relationship that benefits but the supplier and their brand, thereby promoting innovation and quality provision. Supplier relations management allows a quick decision-making process to happen when identifying the risks and vulnerabilities in the supply chain. This is a knowledge that helps in improving strategies by managing various suppliers. It also leads to a consolidated supply team, especially when the company suppliers understand their business models. This way, it leads to better preparation from every individual and good relations between the parties.

Examples of Successful Negotiations

Studying different actual negotiations can help in figuring out the most appropriate strategy that can work for an individual. Some of the most commonly known successful negotiations include Disney's purchase of Lucasfilm, which took place in the year 2013 after Walt Disney Company announced that it acquired Lucasfilm. Lucasfilm had a successful store brand from the founder Mr George Lucas who was acquired for 4.05 million, which was split between stock transaction and cash transaction. George Lucas was the shareholder of the company. The other example is the case of apple at the United States book publishers. This transaction took place in the year 2012 after the United States Department of Justice raised complaints that apple and the other five publishers had conspired to raise the price of their e-books. The three publishers settled for a suit which apple and other two publishers were not willing to settle. The publisher has negotiated the new model for the e-book pricing, and apple was prepared to launch an iPad in exchange for a 30% commission. Apple left the publishers to sell at their price. The other example of a successful negotiation is the Chicago teacher's strike, which took place after the election of the Chicago mayor in the year 2011. Former President Barack Obama's chief of staff to numerous actions to alienate Chicago teachers from the resounding pay rise that was promised. Daily noise states limited the issue to negotiate with the ongoing strike.

Pitfalls to consider when entering into supplier negotiations

numerous pitfalls should be avoided when entering into a supplier negotiation. The first pitfall is poor planning. Successful negotiators have to make a detailed plan where they know their priorities and the existing alternatives and what to do in case they fail to reach an agreement. Understanding the bottom line helps in knowing about the opponents within the negotiations. After planning one's own schedule, it is essential to outline the same for the opponent including things that they prefer and other alternatives to get the bottom line of the hypothesis before entering into the supplier negotiation. Failing to pay attention to the opponent is the other people to consider when entering into a supplier negotiation. A Negotiator has to review and analyze the possible biases for the opponents likely to be brought to the table. It is crucial to explain how the office will be evaluated. For instance, a purchasing manager negotiating an hourly rate contract with a subcontractor has to tell the first buyer says before entering into the process of negotiating.

The other pitfall is the function of cross-cultural negotiation. It is important to remember that differences exist that may not necessarily negatively affect the outcome of the result, but they can create a potential benefit. If ignored, cultural differences can create a huge problem.

The Type of Negotiations Team that the Company Should Develop

There are negotiations that are simple, while others need a negotiation team because of their complexity. The type of negotiation team that a company should include team leaders, stakeholders, and Bridge builders as well as technical experts. The team leader is well-versed with the Principals of negotiation. The stakeholder set the Beginning table while the Bridge builders are essential in creating Trust. Technical experts are those who have the experience and technical knowledge of dealing with negotiation partners.

Financial outlook - the impact on business results

Financial results are usually put out to reflect the cash inflow into the company. When financial results are represented in the income statements and balance sheets, they can have a significant impact on the business because they allow the investors to understand how the company is financially performing. The primary importance is having an effect on the stock price where financial statements affect the stock price of the company as investors look for business results to make decisions as to whether to invest them in the company or not. If the information presented is better than expected who it is unexpected, it will drive the price of the company up or. Making financial decisions also depend on the economic outlook for the results. Financial statements allow a business to take a loan as the lender will look at the economic wealth of the company. If the information is flattering, it may prevent the company from getting the loan. The other impact is attracting new investors. Financial statements attract new investors because they are distributed to the potential investors who make decisions on whether to put their money into the company or not. Other companies also depend on the financial outlook to make their decisions on whether to adjust they are competitive strategies or not.

References

Dygert, C., & Barrett, H. (2016). Building your licensing and negotiation skills toolkit. The Serials Librarian, 70(1-4), 333-342. https://doi.org/10.1080/0361526X.2015.1013384