Tài liệu tiếng Anh thương mại quản lý Chapter 16 Negotiation

Tài liệu tiếng Anh thương mại quản lý Chapter 16 Negotiation

Richard Pinkerton

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Objectives of Negotiation

ontro

Cooperation Supplier relationship management

When to Negotiate

competitive bidding are

n price but also on quality

When early supplier involvement is employed When the business risks and costs cannot be predetermined When a customer firm is contracting for a portion of the seller's production capacity

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When to Negotiate

arge percentage of the

roduce the items purchased When production is interrupted frequently because of numerous change

Supply Management's Role in Negotiation

rofessional as the Negotiating Team Leader

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Bidding or Negotiation?

»» Market must consist of an adequate number of sellers

»» Sellers must be qualified and want the contract

»» Time available must be sufficient

If any of these are not true, then negotiation is the best choice

Conditions Demanding Negotiation

5 in the specification

Special tooling of setup costs are major factors

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Even if the previous list is met

here are two arguments for Negotiation

complete understanding of all

Competitive bidding tends to result in sacrifices in product quality, development efforts, and other vital services

Negotiation Teams

° Overall strategy is required

Roles are defined

° Mock negotiations are needed

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The Negotiation Process

3 Face to face discussions

Preparation

otiation is invested in

» Analyze the relative bargaining positions of both parties

»» Have conducted a price or cost analysis

»» Know the seller

»» Be aware of cultural nuances

» Be thoroughly prepared

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Determinates of the Seller s Bargaining Strength

3 How much time is available to reach agreement on suitable terms

Establishing Objectives Related to Cost Positions

dlus a fair profit should be

Developed on the premise that every required seller action will turn out satisfactorily and with minimum cost

A maximum position

» Developed on the premise a large number of required seller actions will turn out unsatisfactorily and with maximum cost

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Traditional Cost Objectives

Factory overhead Engineering expense Tooling expense

Non-Cost Objectives

Warranty terms and conditions Payment terms (including discount provisions) Liability for claims and damage

F.O.B point General terms and conditions Details on how a service is to be performed

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Other Objectives

Incentive arrangements Patents and infringement protection Packaging

Title to special tools and equipment

Identify the Desired Type of Relationship

ier in the book in Chapter 4

» Collaborative

» Alliance The desired type or relationship is strongly related to the negotiation tactics a negotiator should and should not use

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Five Powerful Preparation Activities

Draft Agreements

Face-to-Face Discussions

Hard Bargaining

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Universally Applicable Techniques

@

Be a Good Listener

Be Considerate of Sellers

Transactional Techniques

rame tne question

The Dynamics of a Transactional Negotiation

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Dynamics of a Transactional Negotiation

Heart of Transactional Negotiation

Collaborative and Alliance Negotiating Techniques

2blem (quality, price)

Invent options for mutual gain Insist on using objective criteria

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The Debriefing: An Incredible Learning Opportunity

Online Negotiation

ation tend to have problems

nication are sustainable

The best relationships are those that go beyond other forms of communication

to involve face-to-face meetings

Advantages to Online Negotiation

rsonalities

pplier from location

If the negotiation is not being done ‘live’ on the Internet, the time for conducting the negotiations is relatively flexible

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Drawbacks to Online Negotiation

Hypotheses Regarding Negotiations

y itis that it will be

ore likely it is that it will be

If either negotiator will be personally affected by the outcome, that person may want to conduct the negotiation in person

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Hypotheses Regarding Negotiations

y, such as trade secrets or

likely to take place face-to-

Bived as more distant, the more

online communication and negotiation are used Less formal planning will occur prior to online negotiations than for

those conducted face-to-face

Negotiating for Price

Characteristics of a Successful Negotiator

2 required to become an effective

anding negotiating objectives than their counterparts, and generally they achieve them

All are pragmatic and flexible in their capability to deal with different negotiation techniques from “hardball” to “collaborative”

All are included, or are destined to become included, among an organization's most highly valued professionals

Concluding Remarks

which competent professionals

, the negofiation process benefits the negotiating firms and the nation's economy as a whole

The increasingly common collaborative approach to negotiations substitutes a win_iwin approach for the more traditional, transactional one

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