SCM340 DB

Purpose of Negotiation

(Price, Commission, Price Improvement, etc.)

Characteristics of negotiations

Some of the features that are involved in the negotiation process include the presence of a minimum of two parties, the parties always have different goals that they are determined to attain, and the goals by each of the party are meant to conflict with the other party’s goals. Also, the different parties are ascertained that they will manage to come up with a particular outcome that will satisfy their needs.

Discuss the purpose of negotiations in the supply chain.

Some of the reasons for conducting negotiations concerning the supply chain are so as to make sure that the parties come up with an amicable solution that is related to the price of the different commodities (Dudek, 2004). Also, different parties tend to come into negotiations as a way of discussing the commission that should be offered when a certain amount of goods is purchased. Moreover, the negotiations are meant to provide an opportunity to improve the price preceding that includes understanding how to improve the quality of goods so as to increase the prices.

Discuss at least two situations where negotiation is appropriate.

Negotiation can be adopted when trying to educate workers on the best ways to improve the performance of the business. The negotiation process is meant to help the organization to obtain various strategies that can be involved in the current operations to acquire improved performance. Also, it can be used when buyers and suppliers are discussing the prices of the different commodities. Therefore, the negotiation can help the buyer to request for a commission with the purchase of different goods.

Discuss at least two common negotiation situations.

Negotiations are common when organizations are trying to discuss and choose the best individuals for the vacant positions. The management team enters into negotiations processes to select the best individuals that are fit for different duties in the firms (Monczka, Handfield, Giunipero, & Giunipero, 2015). The main idea behind the negotiation activities is to be in a position to go through the applicants’ qualifications and abilities. It helps the firm to choose the highly-skilled professionals that will act appropriately.

Desired outcome

(identify your organizations goals and objectives)

Discuss the desired outcomes of your organization.

With the negotiation process in place, the organization will manage to come to an agreement with the supplier of the plastics. If the organization takes the time to plan for the negotiation process, it will make sure that the plastics are sold at a reduced price. Therefore, it will allow the firm to acquire the goods at a lower price suggesting that it will incur increased levels of profits. Also, effective negotiation processes will allow the organization to build good relationships with the supplier. With this in place, the organization will always be in a position to acquire a continued and regular supply of the raw materials. It will, therefore, manage to attain a continuous production activity enabling it to meet the market demand.

Discuss the importance of identifying the organization's goals and objectives as a part of negotiation planning.

The identification of the organizational goals is essential when it comes to the alignment of the activities associated with the negotiation process (Siedel, 2014). In other words, the identification of the organizational objectives allows the management team to be in a position to lay down the different strategies that will help it to meet the objectives. With the implementation of objectives, an effective team is selected to ensure that the manufacturing process turns out to achieve the desired results. Therefore, organizational goals and objectives have different advantages to the firm.

Define and describe the term most desirable outcome (MDO).

The most desirable outcome is the specific outcome that is the most important to the organization when it decides to implement different strategies. For instance, when an organization decides to conduct the negotiation process, there is what drives it to carry out the different activities. What the organization intends to achieve from the negotiation process is what is called the most desirable outcome. It is because it is the main target of the firm and with the attainment of the goal; the organization can be termed to be successful. Therefore, for this case, the most desired outcome from the negotiation process can be improved price decisions.

Pertinent information

(What facts do I have for both parties that support my proposal?)

Pertinent information

It is evident that for the negotiation process to turn out successful, written communication should be adopted. Written communication has been identified with different advantages that consist of ensuring that the parties take their time to evaluate the best arguments that they should post. Also, it is probable that with the initiation of the written communication, the parties will be placed in a better position to maintain an effective communication process (Gelfand, & Brett, 2004). Therefore, effective communication will allow the parties to control and maintain their relationship in a manner that they will all be willing to comment on other party’s suggestions and ideas.

Relationships and interdependence

Good relationships are of great assistance to the parties. It is because if they are in a position to relate well, the companies will ensure that the decisions that are made are bound to benefit each side equally. In other words, the creation of good relationships is meant to allow the parties to act fairly and equally in a manner that will allow them to resolve their differences. Therefore, regardless the fact that each party is focused on benefiting from the negotiation process, they need to be interrelated as they work towards coming up with the best decision that will meet their interests.

Discuss the importance of relationships in negotiations.

Therefore, it is made clear that good relationships are advantageous when conducting the negotiation processes. The primary reason for this is that the good relationships can be used by the parties to resolve any conflicts that may have occurred in the past (Gosselin, 2007). Also, negotiations are effective when each party allows the other party to make their suggestions without having to limit them. Also, good relationships provide that each party has equal power and rights when it comes making decisions. Therefore, good relationships allow the parties to take the time to discuss and agree on the best solution that will result in positive effects for both parties.

Describe at least two tactics for managing conflict in negotiations.

Conflict management refers to the situation by which parties make sure that they do not end up fighting and disagreeing as they decide on the best choice to select. The best tactics that can be used to eliminate cases of conflicts in negotiations include allowing each party to take part in the decision-making process. The parties should agree that each party has the right to leave if it does not agree to the terms and conditions that have been set. It allows the parties to be assured that the negotiation process does not benefit one side but will of assistance to the two sides. Conflicts can also be reduced through the struggle of forming good relationships between the parties.

Interests/desires/motivations

(What are my party’s motivations? What are the other party’s motivations? What do I anticipate the other party will object to?)

Interests, desires, and motivations

My party’s motivation is to ensure that the materials to be used in the manufacturing process are acquired at the lowest price possible. It is determined to ensure that the cost of production is reduced. The other party’s motivation is to ensure that the plastics are used at a price that will help it to earn high profits. In other words, the other party is determined on ensuring that it earns high revenue from the sale of the plastics. The other party is obliged to reject an offer to sell the materials at a low price since that would suggest that it will make a low profit.

Strategy and tactics

Strategy and tactics refer to the methods and plans that are put in place to ensure that success is earned. The strategy that can be used is to provide information to the two parties that the best way to conduct the negotiation process is by understanding that each party has to benefit. In other words, the parties should be willing to drop their interests and work on fulfilling a common goal. The parties should begin by taking note of all the available choices and work together to choose the best course of action. Also, they parties should select the prices and commission that are reasonable.

Compare and contrast distributive and integrative negotiations.

Both distributive and integrative negotiations are similar because they are meant to come with the best outcome when conducting a negotiation process. They are both influenced by the desired goal of the negotiator. However, they are different because distributive negotiation occurs at a specific time while integrative negotiation is bound to occur as a continuous process. For instance, distributive negotiation is used by people when seeking for a discount during a business transaction while integrative negotiation is used to allow children to sleep at a specific time daily.

Discuss at least two integrative negotiation skills or tactics.

Integrative negotiation is used in a situation where it is possible to attain a better outcome when people work together than when they work alone (Raiffa, Richardson, & Metcalfe, 2002). Integrative tactics include taking the time to evaluate one’s interests and the other party’s interests so as to know how to work together. Also, it requires the sharing of information and data between the parties and making sure that they remain honest with each other. Moreover, one party should be willing to offer solutions that will provide the most value possible to the other party. The different parties should understand that it is not the end of the relationships and that they will have more issues to handle in the future that require them to assist one another.

Sources of Power

(What is my power? What is the other party’s power?)

Walk-Away Alternative

(If we can’t come to agreement, what then?)

Ethical Considerations

(What are the ethical pitfalls or morally ambiguous issues)

Negotiation Team

(Roles & Responsibilities)

Recommended Negotiation Strategy

(identify your preferred Negotiation Strategy)