Business Negotiation and Market Survival

The assignment provided is an analysis of business negotiation techniques and strategies for market survival. It includes references to books and journals on topics such as sensemaking in business networks, the role of IT competences in gaining value from e-business, and corporate responsibility for sustainable development. The document also provides online resources and a guide to designing greener goods. The assignment is likely related to a course or module on business strategy and negotiation techniques.

Business Administration
Table of Contents

INTRODUCTION...........................................................................................................................4
1.1 Requirements of negotiation strategy....................................................................................4
1.2 Use of different negotiation techniques................................................................................5
1.3 Research on party can be used in negotiations......................................................................5
1.4 Cultural differences affect negotiations................................................................................6
2.1 Purpose, scope and objective of negotiation.........................................................................6
2.2 Scope of authority for negotiating.........................................................................................7
2.3 Preparing negotiating strategy...............................................................................................7
2.4 Preparing fall-back stances and compromises that align with the negotiating strategy and
priorities......................................................................................................................................8
2.5 Objectives and negotiation stances of the other party..........................................................8
2.6 Strengths and weaknesses of the other party.........................................................................9
3.1 Carrying out negotiations within responsibility limits in a way that optimises opportunities
.....................................................................................................................................................9
3.2 Conducting negotiation in accordance with changing circumstances.................................10
3.3 Maintaining records of negotiations, outcomes and agreements........................................10
3.4 Organisational policies and procedures, and legal and ethical requirements when carrying
out business negotiations...........................................................................................................11
CONCLUSION..............................................................................................................................11
.......................................................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Business administration is process of managing business which includes aspects of
supervising and overseeing operation of entity related with marketing, accounting and finance. It
also includes management or performance of enterprise operations and decision making for
achieving goals and objectives with efficient resources and people of organisation.
Administration is management function related with personnel, finance and MIS service. Report
is about negotiating business environment which means bargaining process that is between two
or more parties having its own viewpoints, needs and aim within surrounding. The scenario is
created where supplier is selling goods to buyer at different price and they do negotiation in
order to provide benefits to both of them (Abrahamsen, Henneberg and Naudé, 2012). This
scenarios helps to understands various questions mentioned in assignment. Here will be
discussing about requirement and use of negotiation strategy and techniques with help of
research. Cultural differences can affect negotiations with changing circumstances and
explaining purpose, scope and objective of same.
1.1 Requirements of negotiation strategy
Negotiation strategy is approach which is taken by individual to exchange proposals and
counterproposal with another person while settling conflict or negotiating. It is influenced by
para-diagram which means attitudes or way of thinking which guide behaviour. It provides
mutual benefits which use cooperative than competitive approach for finding solution. There are
various types of negotiation strategy which has different requirements in business described
below:
Win-Win- In this strategy, people understand and see problem from other perspective and
give their decisions. This is required in business in order to provide benefits to both parties. For
example, if supplier provide timely products to company then they can earn profit which creates
win -win situation.
Win-Lose- It use competitive approach for finding solution and negotiator focused on
their own needs rather than individual. Sometime, people problem is not very big than negotiator
so they focused to solve their issue. It is focus on achievement of goals with no chance in
building relationship in future (Ashurst, Cragg and Herring, 2012). For example, if supplier have

supplied product to company but firm does not supply to its customer then it create win- lose
situation.
Lose-Win- In this strategy negotiator identifies own needs and get solution. Here, both
parties want value from negotiation and one party loss is another gain. For example, supplier has
fixes its cost at $11 but company want to purchase it at $10. Here, supplier is not ready to give at
firm price as it has high quality goods and it is compulsion for purchaser to purchase at that
price. This creates lose to company and win to buyer.
Lose-Lose- In this strategy, if one falls then they want other to fall down also.
Negotiation is done on resources such as products, service of supplier. For example, both
supplier and buyer are stick to their own decided prices which is lose for both.
1.2 Use of different negotiation techniques
Negotiation is defined as style of discussion among people through efforts in order to
come conclusion for satisfying parties involved. It is way through which people settle their
differences. In order to settle disputes negotiation techniques should be prepared to provide
accurate solution to parties. These techniques are prepared by skilled and knowledgeable person
for negotiators. Some of negotiation techniques to achieve result are as given below:
Stick to principles- Both individual and business owner should have some set of guiding
principles and values. In case of crossing those boundaries result cannot be achieved and solution
wont be find (Banerjee, 2012). Supplier should stick to principles in which they decide not to sell
below or high set prices.
Don't absorb their problems- In every negotiations, negotiator hear other side reasons
and problems but they don't provide relevant information required to them. Though they come to
provide solution to parties and deal with them.
Focused- One should be aware about their need and requirement. They should ask
themselves about purpose, affordable price, and other relevant things. They should be very
specific, clear about their goal and objectives.
1.3 Research on party can be used in negotiations
While conducting negotiation, research should be done whether it is related with
business, society or community. Various points should be covered for research such as
background and information, personal preferences and culture of parties. When one can know
about background and general information about their way of dealing, market share, penetration,

corporate culture, stock pricing leadership then proper negotiation can be done. If supplier knows
about likes and dislikes and culture about parties which helps in making effective. For example,
if business is performed in China, then people of Chinese focused on concessions which should
be know only after doing proper research and negotiation is done with party. Each and every
factors should be considered very effectively and efficiently for providing benefits to both parties
in terms of negotiation (Bansal and Hoffman, 2012).
1.4 Cultural differences affect negotiations
Negotiation is not easy because there are two parties trying to beat each other. When
working internationally and cross culturally negotiation is more tough and hard. People have
different language, culture and values which affect negotiation. As business is conducted
between various places and people having different culture for effective decision making. In this
assignment, supplier is selling goods and services to other person residing in another place. As
they both have culture and language variations so need to work as per their requirement. It is
very important to understand need and want of each other and supply products accordingly. If it
is understand in better way then negotiation is done easily. Thus, in this way cultural difference
among people affect negotiating power and result is achieved accordingly (Campling, 2012). For
example, if supplier is selling goods to people of China then they should understand their culture
and accordingly do negotiation for better outcomes. In case if there is miscommunication
between any supplier and purchaser related with culture then it will effect process of negotiation.
2.1 Purpose, scope and objective of negotiation
The purpose, scope and objective of negotiation are described below:
Purpose- Negotiation has three important purpose such as:
 Agreeing on details and scientific of project such as milestones, dissemination level,
timing, work plan and list of deliverables.
 Finalising legal aspects such as consortium, start date, special clauses and financial
viability. Agreeing on budgetary matters such as total budget, activity type, budget breakdown.
Scope- Scope of negotiations covers reaching following aspects such as:
 Scientific- European research area, clustering, workplace includes milestones, deliverable
and objectives
 Legal- special clauses, contract options, eligibility issues.

 Financial- timing of audit certificates, pre-financing, costs, budgets
Objective- The objective of negotiation is firstly achieving uncertainty, recording of
supplied, quantities and standards and consequences for failure or delay in order to meet agreed
requirements (Conrad and Newberry, 2012). For example, if supplier has set objective of
providing high quality goods then it focus on it.
2.2 Scope of authority for negotiating
Authority is right to exercise power that can be formalised by state, exercised by judges,
appointed government executives. Each and every people participating in negotiation have
various authorities in order to solve problems or issues. People having different skill and
knowledge participate in authority or negotiation. It is very important for understanding
decisions which are made by authority level independently. Scope of authority in business for
different level negotiation are as follows:
Customer Service Assistant- Customer service assistant should understand their roles and
responsibility in an organisation. They should provide solution to consumer problem which arise
in business. It can be related with price, quality and others. They should possess good negotiation
skill within themselves in order to give best solutions (Ferraro and Briody, 2013).
Checkout supervisors- Checkout supervisors should supervise & manage operations &
workers of both supermarkets and retailers. They should ensure that customers are met with
service, ethical standards and efficiency. In case of any lack of service, supervisor should play
role of negotiator and provide best solution.
Department Manager- Department manager is responsible for sales related functions.
They oversee workers and implement those strategies which increase productivity. In case of
failure of getting raw materials from suppler then play role of negotiators. Also conducting
seminar and training for motivation and building skills of team for solving issues.
Company Director- Company director helps in improving chances of selling which they
have deal with others. It also assist business for securing sustainable agreements, profit margins
and reputation. Directors of company have to negotiate every day in different ways and with
various people (Greco, Baldissin and Nonino, 2013).
2.3 Preparing negotiating strategy
Strategy is approach used for conducting negotiation and tactics are actions for
implementing strategy. This is used by every company in order to solve problem and achieve

goal and objective effectively and efficiently. There are various strategy required in business to
solve problems. The steps of preparing negotiation strategy are as follows:
Determination of negotiation goals- It is first step in negotiation to determine
appropriate goal which needs to be achieved. Goal should be very specific and measurable for
better outcome.
Developing examining questions to protect goals- Here, various questions are examined
in order to protect goals. It should be related with assigned work and company. Through helps of
goal, position of company is determined.
Answering questions- Various questions are being asked and are answered such as in
terms of lower and upper boundaries, profitability plans, general negotiation approach, power
balance analysis and evaluating parties. These questions should be answered in negotiation
strategy.
Determination of appropriate tactics- Each and every tactics used in particular situation
for implementing strategy should be determined. Through help of such tactics one can
differentiate right and wrong and chose best one. Also result can be achieved from actions that is
tactics (Hacklin and Wallnöfer, 2012).
Integrating tactics in negotiation strategy- After evaluating all above steps, last stage is
integrating various tactics for negotiation strategy. Thus, it is important step for preparation of
negotiation strategies through help of tactics.
2.4 Preparing fall-back stances and compromises that align with the negotiating strategy and
priorities
Buyer of company purchase goods and services from suppliers. They both have different
perspective regarding price and quality of product. Here, supplier is supplying goods at $11 but
buyer want to purchase at $10. This situation is called fall back instances as both are cutting each
other price. In this scenario, supplier and purchaser both should make mutual understanding for
goods. When manufacturer as well as customer both agrees upon same cost then it is called
compromise. Here, supplier and buyer decide price which can be $11 which is beneficial to both
parties. Fall back stances and compromise considers following positions during negotiation such
as opening, secondary, subsequent, fall back and bottom line.
This fall back stance and comprises should align with negotiating strategy and priorities.
As main purpose is to provide benefits to supplier and buyer in terms of negotiation and

achievement of goal and objective. Thus, it is possible only if both are ready to purchase and sale
product as common price (Hamilton and Webster, 2018).
2.5 Objectives and negotiation stances of the other party
It is very important to gather much background information about other parties. It can be
done through interviews with those they have done business in past. Information can be
exchange about targets on initial proposals with other party before beginning of negotiation. Also
consider parties negotiation style and strategy which they commonly use. Individual past
negotiating behaviour helps in knowing about behave in future. The objectives and negotiation
stance of parties can be different from one another.
Here, buyer need to understand objectives and negotiation instance of other party very
carefully. Objectives can be earning profit, supplying high quality products, capturing market
and sustainability and negotiation instance can be very less because of good quality and service.
Buyer should go through objectives of other party very carefully and make negotiation
accordingly for attaining goal and objective for both parties in terms of profit, success and
sustainability. Thus, through help of market image, goodwill and past experience objectives can
be well known by one party (Heikkurinen and Bonnedahl, 2013).
2.6 Strengths and weaknesses of the other party
It is necessary element to understand positive and negative aspect of other party. Buyer
should know about power of their manufacture in market and accordingly make plan for
effective result. This also helps in achieving set goal and objective of both buyer as well as
supplier. Discussing about strengths and weaknesses of other party are as described below:
Strengths- It means characteristics of party that provide it an advantage over others. Here
supplier provide goods at $11 to buyer possessing high quality value. There are no any other
parties in market who could provide better quality than this. Party has full right to charge any
prices from buyer. Purchaser is compelled to pay $11 which is high than other supplier for
products.
Weaknesses- It is characteristics that party have disadvantages relative to others. Supplier
has only limited individual who purchase goods from them. There should be not be loss between
both parties. If in case buyer refuse to purchase products from supplier then they have to bear
loss. Thus, suitable price should be decided and supply should be done. Supplier produce only
limited goods for particular parties (.Jayaraman and et. al., 2013).

3.1 Carrying out negotiations within responsibility limits in a way that optimises opportunities
There are various responsibilities which are lies between supplier and buyer for
optimizing resources and gain competitive advantages. Those responsibilities should be within
particular limit of both parties. It should provide benefit in terms of profit and success. Here,
supplier responsibility is to provide high quality goods to buyer. Negotiating team should possess
skills and responsibility for carrying out task. Technical knowledge, patience, relationship,
behaviour analysing are important responsibilities required by parties for negotiation. For
example, supplier has set target to sell product at high $12 to buyer but they want to purchase at
$11 which should be negotiated and accepted by both parties for achieving final goal and
objectives. In case of performing any activities, it should be within limit of parties. Both should
get chance for optimising maximum opportunities in terms of quality, price and outcome
(Kutvonen, Norta and Ruohomaa, 2012).
3.2 Conducting negotiation in accordance with changing circumstances
During negotiation party should adapt negotiation style, conduct or tactic. This can be
done through effective planning and understanding positions. Environment is dynamic which
keeps on changing frequently. Party should prepared themselves about circumstances which can
be occurred in future. Here, supplier is ready to sell buyer at $11 but in case of change in price of
raw materials, transportation, policies they should be prepared to adopt situation. In order to
remove conflict at time of changing conditions, it is better for both parties to make agreement
which include sign of party, price, cost. Agreement is an evidence which is kept by both parties
in order to avoid future conflicts. It is very important for party to adopt changing need and want
of people as well as society for growth, success and sustainability. Thus, every individual,
business and parties should accept dynamic situations for better negotiation for goods and
services (Lewis and et. al., 2017).
3.3 Maintaining records of negotiations, outcomes and agreements
It is important to maintain records throughout process in negotiation. Here,
documentation should be broken into negotiation, outcomes and agreements made. Discussing
about all three terms separately given below:
Maintaining accurate records Negotiation- Effective way for keeping record of
negotiation is taking minutes for discussion of problems. Minutes are tangible records of meeting

and information source for parties. After analysing all data and information from discussion
negotiation can be done very effectively and efficiently.
Maintaining accurate records Outcomes- Through help of negotiation, outcome is
reached which is important for recording of information and documented in meeting of minutes.
In this it should be ensure about signing of parties in agreement. Outcome can be positive s well
as negative and helps in future for taking decisions.
Maintaining accurate records- Agreements- If any agreements has made because of
negotiation then it is vital and documented and signed by all parties. It helps to reduce risk when
it come up in future. It can be in form of contract of an agreement. It is very important for
contracting paper to be signed by all parties involved in performing task.
3.4 Organisational policies and procedures, and legal and ethical requirements when carrying out
business negotiations
In order to carry out business negotiation and achievement of better results, policies,
procedures, legal and ethical values should be followed. Every organisation have different
policies and procedures which need to be followed. Under rules and regulations and stages of
company following points should be covered to get better outcome such as authorisation levels,
agreement documentation, ultimate decision maker and handling disputes. All should be studied
very properly for doing negotiation. Similarly, in terms of legal consideration there are number
of laws and acts that should be considered in negotiating business. It includes such as data
protection, Sarbanes oxley and Bribery act. Data protection means keeping all relevant and
necessary information for business and bribery act guide for not taking bribes for any activities
of business while conducting negotiation. Ethics means moral principles which governs a
person's behaviour or conducting activity. It is necessary to follow principles of ethical
negotiation. It assist in providing reputation, sustainability and growth of firm. Here, scenario of
supplier and buyer is taken so they both need to follow policies, procedures, legal and ethical
values required in business negotiation (Abrahamsen, Henneberg and Naudé, 2012).
CONCLUSION
From above assignment it can be concluded that negotiation is important in solving issues
and problems arise in business. There are some strategies that are made in order to resolve
conflicts between parties such as avoidance, competitive. Before solving circumstance, steps are

required to follow for better achievement of result. Negotiators should possess skill and
knowledge in order to give best decision in favour of both parties. Supplier and buyer negotiation
in terms of price to provide advantage to both and achieve their goal, objective and results. Thus,
it is very important to understand between both parties for doing negotiation and surviving in
market.

REFERENCES
Books and Journals
Abrahamsen, M. H., Henneberg, S. C. and Naudé, P., 2012. Sensemaking in business networks:
Introducing dottograms to analyse network changes. Industrial Marketing Management.
41(6). pp.1035-1046.
Ashurst, C., Cragg, P. and Herring, P., 2012. The role of IT competences in gaining value from
e-business: An SME case study. International Small Business Journal. 30(6). pp.640-658.
Banerjee, S. B., 2012. Critical perspectives on business and the natural environment.
Bansal, P. and Hoffman, A. J. eds., 2012. The Oxford handbook of business and the natural
environment. Oxford University Press.
Campling, L., 2012. The tuna ‘commodity frontier’: business strategies and environment in the
industrial tuna fisheries of the Western Indian Ocean. Journal of Agrarian Change. 12(2‐
3). pp.252-278.
Conrad, D. and Newberry, R., 2012. Identification and instruction of important business
communication skills for graduate business education. Journal of Education for Business.
87(2). pp.112-120.
Conrad, D. and Newberry, R., 2012. Identification and instruction of important business
communication skills for graduate business education. Journal of Education for Business.
87(2). pp.112-120.
Ferraro, G. P. and Briody, E. K., 2013. The cultural dimension of global business. Upper Saddle
River: Pearson.
Greco, M., Baldissin, N. and Nonino, F., 2013. An exploratory taxonomy of business games.
Simulation & Gaming. 44(5). pp.645-682.
Hacklin, F. and Wallnöfer, M., 2012. The business model in the practice of strategic decision
making: insights from a case study. Management Decision. 50(2). pp.166-188.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Heikkurinen, P. and Bonnedahl, K. J., 2013. Corporate responsibility for sustainable
development: a review and conceptual comparison of market-and stakeholder-oriented
strategies. Journal of Cleaner Production. 43. pp.191-198.
Jayaraman, V., and et. al., 2013. Offshoring Business Process Services and Governance Control
Mechanisms: An Examination of Service Providers from I ndia. Production and
Operations Management. 22(2). pp.314-334.
Kutvonen, L., Norta, A. and Ruohomaa, S., 2012, September. Inter-enterprise business
transaction management in open service ecosystems. In Enterprise Distributed Object
Computing Conference (EDOC), 2012 IEEE 16th International(pp. 31-40). IEEE.
Lewis, H., and et. al., 2017. Design+ environment: a global guide to designing greener goods.
Routledge.
Online
Negotiation Techniques. 2018. [Online]. Available through:
<https://blog.hubspot.com/marketing/negotiation-tips>.

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