Objective of Negotiation
Objective of Negotiation
Several objectives are common to all procurement or sales negotiations:
To obtain the quality specified
To obtain a fair and reasonable price
To get the supplier to perform the contract on time
In additional, the following objectives frequently must be met
To exert some control over the manner in which the contract is performed
To persuade the supplier to give maximum cooperation to the purchasing company
To develop a sound and continuing relationship with competent suppliers
To create a long-term relationship with a highly qualified supplier
The Negotiation Process
Formal negotiation process consists of 3 major phases
1. Preparation
 90% or more of time involved in a successful negotiation is invested in preparation of the actual face-to face discussion. the negotiator must
1. Possess or gain technical understanding of the items or service to be purchased
2. Analyze the relative bargaining positions of both parties
3. Have conducted a price or cost analysis
4. Know the seller
5. Be aware of cultural nuances
6. in every conceivable and practicable way,be through prepared
1. Establishing objectives
 As a part of preparation process Negotiation objectives must be specific General objectives such as “lower that previous price”, “good delivery” are inadequate

2. Face-to-face discussion
 Establishing trust is a key ingredient in effective negotiations Several activities which can facilitate the development of a reasonable level of trust Agree on a common goal or shared vision

 Expand the pie Use fairness criteria that everyone can buy into
 Capitalize on network connection Find a shared problem or shared enemy
 Focus on the future (instead of past) Use shared procedures
3. Debriefing
 Most people have little opportunity how to learn how to negotiate effectively
 The problem is not lack of experience

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Pie Use Fairness Criteria And  Capitalize. (June 21, 2021). Retrieved from https://www.freeessays.education/pie%ef%81%b0-use-fairness-criteria-and-%ef%81%b0-capitalize-essay/