Building Targets for Negotiation

A negotiation target is defined as the aim for a negotiation at its conclusion, sometimes referred to as an ‘aspiration’. Negotiation ranges are the best and worst case scenario that the negotiator is prepared to agree. The worst case scenario is often referred to as the bottom line, or a ‘resistance point’.

Targets in negotiation strategy

The spread between the best and worst scenarios is the zone of potential agreement. Both parties will identify a zone of agreement and, for …

Meeting Arrangment in Negotiation

Comparing typical negotiation meetings for a distributive and an integrative situation reveals different stages. It is important to consider different strategies for the stage of meetings.

Stage of Meeting in negotiation

1. Opening offer. Whether too high or too low, the opening offer influences the outcome and research suggests that a high opening offer often results in a higher agreement . The message the opening offer sends to the other party may immediately erect a barrier to reaching agreement, or …

Resources Allocation in Negotiation

A further consideration for the preparation and planning phase is that of developing and refining the protocol. The process of a negotiation implies the requirement for certain resources to support it.

 

Negotiation Protocol

The process is determined by the protocol that is to be followed, relating to:

  • The agenda for the negotiation: this can be prepared in advance; sometimes, however, especially for complex negotiations, the content of the agenda may well also be part of the negotiation.
  • The location of

Phrases of Negotiation Process

Negotiation is any form of verbal communication whereby parties to a conflict of interest discuss, without resort to arbitration or other judicial processes, the form of any joint action which they might take to manage a dispute between them. Bargaining is the process of negotiating for agreement. The process of bargaining itself is characterized by exchanges of information on offers, counter-offers and concessions which incorporate the parties’ beliefs and expectations. The process incorporates argument and persuasion to influence the other …

Approaches of Negotiation Strategy

There is consensus that two distinct negotiating situations occur. Firstly, there are those where agreement is sought through collaboration and problem solving and those where agreement is reached by distributive means.

A general ideal of negotiation is to achieve outcomes which are integrative in nature. Integrative outcomes are those that provide high joint benefit. They are represented in decisions where there exists no agreement that all parties would prefer more. This is in contrast to distributive outcomes, where one party …

Risk Assessment in Negotiation

An organization’s view of the risks associated with supply will differ according to its view of purchasing. If the view is that the organization is a ‘production unit’, then emphasis is placed on ‘inputs’ in terms of raw materials, components and other constituents to the production process. Other views of the organization are as a ‘communicative unit’ or a ‘capital-earning unit’. These views necessarily emphasis different types of inputs, for example in terms of knowledge and financial efficiency, all with …

Legal Framework in Negotiation Preparation

Various legal implications arise from the outcome of successful negotiations.  Most obvious is that the agreement becomes the basis of a contract between the purchaser and the supplier. Thus the law of contract is an important consideration when preparing for the negotiation, in order that the parties generate an agreement that both are happy to abide by.

Legal Term in Negotiation Preparation

Experts have identified that agreements may include a number of different terms:

  • Express terms: those agreed by the

Tendering Evaluatin before Negotiation

Tenders can be open, restricted or selective , where the supplier may be self-selecting or already known to the purchaser. Other forms of tendering enable the purchaser to engage the supplier in a negotiation, which is an exception rather than a rule.

 

Supplier Tendering Evaluation

When you are selecting potential supplier for business purchasing, you need to first issue tendering to your selected suppliers. there are some general guidelines for tendering issuing and evaluation:

  • Ensure suppliers are treated equally by