Negotiation in Business Administration (7) INTRODUCTION 3 MAIN BODY3

Business Administration
(7)

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1.1 Requirement of negotiation strategy.....................................................................................3
1.2 Use of different negotiation techniques................................................................................4
1.3 How research on other party can be used in negotiation......................................................4
1.4 How cultural difference might affect negotiations................................................................5
2.1Identify purpose, scope and objective of negotiation.............................................................5
2.2 Explain the scope of their own authority for negotiating......................................................6
2.3 Prepare a negotiation strategy...............................................................................................6
2.4 Prepare fall back stances ......................................................................................................7
2.5 Assessment of likely objectives and negotiation stance of other party.................................8
2.6 Research strength and weakness of other party....................................................................8
3.1 Negotiation within responsibility limits in way that optimise opportunities........................9
3.2 Adapt conduct of negotiation in accordance with changing circumstances..........................9
3.3 Maintain accurate records of negotiations, outcomes and agreements...............................10
3.4 Adhere to organisational policies and procedures and legal and ethical requirements in
negotiations...............................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Business administration refers to the management of a business. This includes different
aspect of overseeing and management of operation of business which includes accounting,
finance and marketing. Negotiation is process where two or more parties who have different
needs and objectives discuss the problem in order to reach on a win win situation. The good
negotiation is helpful in the success of business and enables to build better relationship (What is
negotiation, 2018.). To better understand this concept Tesco Plc is selected for this report. The
requirement of negotiation strategy is being explained in this report. There are various
negotiation techniques which is used by parties as culture effect on negotiation is also being
explained in this report. As there are different purpose, scope and objectives of negotiation along
with negotiation strategy which is being discussed in this report. The adaption of the conduct in
accordance with changing circumstances is being explained in present report. There are some
policies and procedures and legal and ethical requirements when carrying out business
negotiations.
MAIN BODY
1.1 Requirement of negotiation strategy
Negotiation strategy plays an important role in the business environment in order to reach
to win win situation for parties. The negotiation strategy is required in order to build better
relationship for future business. As this strategy states that do not make first offer and never
negotiate with own. The conflict can be arisen during the negotiation so walk away strategy can
be very helpful to avoid conflictive situation during negotiation. In most negotiation, the main
goal is to be fair, so negotiation strategy can be very helpful to be open, fair and honest to gain
most from that negotiation process. A person doing negotiation must have proper knowledge
about the topic so that conversation must be effective and productive. As insufficient information
can not allow the manager to crack deal on a positive note. As all type of mentioned strategy can
be very helpful for the achieving win win situation for parties who all are included in the process
of negotiation (Houston, Jiang and Ma, 2014).
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1.2 Use of different negotiation techniques
Negotiation techniques is tool which is used by parties in order to do negotiation
effectively and efficiently. There are different negotiation techniques which are useful, is
discussed below:
Put ego aside:
This is a very important technique for getting successful deal while negotiation. As best
negotiator either do not care or do not show they care about gets credit for a successful deal. The
ego should be kept aside during negotiation because it can harm the business deal.
Have open ended question conversation:
The effective negotiation question should always be open ended as this allows party to
open up about their feelings and gain their trust. As nobody wants the simple responses like yes
or no because this close the conversation (Hesselbarth and Schaltegger, 2014).
Do homework:
This is a best tool for cracking a winning deal for negotiating parties. If managers enters
into a negotiation without any preparation than they are already lost the deal. There should be a
complete research of strength and weakness of other party in order understand their needs.
Stick to the principles:
The negotiator of business have set of guiding principles and values on which they never
compromise. So this is a tool which can be used by negotiators if they find negotiation deal is
crossing boundaries than one can leave that deal without any second thought.
These are techniques which are useful for negotiators to reach on positive outcome of a
deal.
1.3 How research on other party can be used in negotiation.
The research is an important tool in order to better understand behaviour of other party in
negotiation. For cracking a positive deal in the negotiation this is important to do research on the
other party. The investigation allows to the party to bargain at their side and grab the deal. As
different parties have their ways to do bargaining. For example, Tesco is planning to meet their
new supplier in order to make negotiation for their new deals. The manager of Tesco has done
some research regarding the supplier behaviour in market. As they found that supplier charges
higher price from its new customers and put a hidden clause in the agreement regarding that.. So
at the time of negotiation manager of Tesco has point out this issue and crack the deal on mutual
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