Negotiation Strategies and Challenges

This assignment delves into the complexities of negotiation, examining various strategies employed by parties involved. It analyzes both internal factors such as individual skills and preparation, and external factors like market conditions and socio-cultural beliefs that influence negotiation outcomes. The assignment also highlights common challenges faced in negotiations, including power dynamics and communication barriers. Finally, it emphasizes the importance of clear and effective communication throughout the negotiation process to achieve mutually beneficial agreements.

Running head: BUSINESS RELATIONSHIPS
BUSINESS RELATIONSHIPS
Name of the Student
Name of the University
Author note

1BUSINESS RELATIONSHIPS
Table of Contents
Answer to Question 1.................................................................................................................2
Answer to Question 2.................................................................................................................2
Answer to Question 3.................................................................................................................3
Answer to Question 4.................................................................................................................4
Answer to Question 5.................................................................................................................5
Answer to Question 6.................................................................................................................6
Answer to Question 7.................................................................................................................7
Answer to Question 8.................................................................................................................9
Answer to Question 9.................................................................................................................9
References................................................................................................................................10

2BUSINESS RELATIONSHIPS
Answer to Question 1
The chosen are is Service equipment: Glassware, cutlery, crockery etc.
Answer to Question 2
Before approaching customers, research must be done on the following:
 The demographics of the consumers
 Their purchasing power
 Their taste in terms of the product/service
 The main purpose of buying
 Geographic details
Before approaching suppliers, research must be done on the following:
 The demographic of the suppliers
 Their credibility in terms of quality
 Their credibility in terms of commitment
 The kind of products sold by them
 Terms of agreement
 Legal obligations of the supplier (Pruitt, 2013)

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Answer to Question 3
The two suppliers are:
 Cedar Hospitality Supplies- Located in Brunswick Victoria 3056. They have been
operating in Melbourne for over 20 years. They are open to business and public as
well. They provide both website and shop retail. They are the best in their dealings.
 Robert Gordon Australia- Located in Mulcahy Road, Pakenham, Victoria 3810,
Robert Gordon has been in business since 1945. They are the premium suppliers of
crockery items and are best at it. (Tableware International. 2017).
The owners of both the stores are Australians. They have been in this business since a
long time. The cultural factors to be considered are their duration of business, their premium
quality and selling policies. While dealing with them the business etiquettes, their manner of
negotiation, terms of meeting and basic introductory rules need to be understood in order to
establish a strong relationship.

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Answer to Question 4
Supplier Customer
Objectives
of
negotiation
 To establish profound
relationship with the supplier
 To come up with the clauses in
the agreement
 To decide on a price rating
system
 To determine the quality of the
products
 To determine the quantity and to
sign the agreement
 To establish a profound
relationship with the
customer
 To decide upon the pricing
policy
 To discuss the clauses of the
agreement
 To determine the kind of
products required.
Negotiable
requirement
s
 The price of the product
 The quantitative to be supplied
 Terms of payment
 Clauses in the agreement
 The price of the products
 The quantity to be brought by
the customer
 The delivery clauses(Ting‐
Toomey, 2015 )
Non-  The quality of the products is  The quality of the products

5BUSINESS RELATIONSHIPS
negotiable
requirement
s
non-negotiable
 The time of delivery is non-
negotiable
cannot be negotiated upon
 The terms of delivery
BATNA
 If the agreement does not work
out the best alternative will be
contacting another supplier or
just reducing the quantity of
order made from the supplier.
 The best alternative would be
to make a closing statement
about the offer and let the
customer decide. The next
customer could be
approached.
Answer to Question 5
Concessions to be made during negotiations:
 To alter the details of the agreement as per the needs of the consumer/supplier
 To make changes in the pricing policy up to the limit allowed
 To alter the delivery terms and credit payment details
 To customize the products based on the requirements of the customer
 To decide on the date of delivery (Firth, 2014).

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Answer to Question 6
 The team leader could be a chief negotiator however, the team as a whole should take
active participation while negotiation.
 Their roles are as follows:
 They must pay attention during the process
 They must have good patience and observational skills
 They must have sufficient technical knowledge regarding the subject matter of
negotiation and must guide the chief negotiator in their area of expertise.
 They must have good communication skills, which will play an important role in
making the negotiation process successful.
 They must understand the main purpose behind the negotiation process before hand.
 They must be at par with the basic negotiation substance.
 The must help the negotiator in collecting as much information as possible (Goldberg
et al., 2014).
 The responsibility of the team members does not end with the deal. They should also
play a role in follow up.

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Answer to Question 7
Supplier Customer
Internal
issues
 Absence of preparation and lack
of information could play a
major role in hindering a
negotiation
 The scenario and time could
also play a key role. If the time
of the negotiation is not
important then the negotiation
could fail.
 The personality and skills of
both the parties also play a key
role (Craver, 2012).
 If the seller is not prepared about
the kind of information relevant
to the consumer then the
negotiation could fail
 If the meeting is not kept at, a
place suggested by the
consumer, this could have a bad
effect on the relationship with
the consumer.

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External
issues
 The financial environment can
affect the negotiation. If the
market is not doing well then,
this could be harmful for the
deal
 The poetical environment also
plays a key role in determining
the nature and outcome of the
negotiation.
 The socio-cultural belief of the
party also plays a crucial role in
deciding the outcome of the
negotiation
 The technological
advancements also play a key
role in the negotiation process.
 The requirement and financial
needs of the consumers also play
a key role in determining the
outcome of negotiation
 The socio cultural belief of the
consumer also plays a key role in
determining the outcome of
negotiation
Challenges
 Power dynamics may play an
important role in determining
the challenges. If there are
plenty of suppliers then the
negotiation may be tilted
accordingly.
 Power dynamics play an
important role. If there are
various suppliers of goods for the
consumer, then he will be the
dominant party in this
negotiation.

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Answer to Question 8
The results o the negotiation will be communicated t the decision makers of the firm.
The senior management along with the supervisor will be provided with the explicit details of
the negotiation process (Rubin & Brown, 2013). A written document containing all the
details of the minutes of the meeting will be presented. Alternatively, the customers and the
suppliers will also be provided with the details of the process. A copy of the details will be
kept with the team as well
Answer to Question 9
Agenda for negotiations:
 To successfully establish a healthy relationship with the client
 To establish the terms of agreement
 To finalize the deal
 To engage in a win-win situation.

10BUSINESS RELATIONSHIPS
References
Craver, C. B. (2012). Effective legal negotiation and settlement. LexisNexis.
Firth, A. (Ed.). (2014). The discourse of negotiation: Studies of language in the
workplace (Vol. 15). Elsevier.
Goldberg, S. B., Sander, F. E., Rogers, N. H., & Cole, S. R. (2014). Dispute resolution:
Negotiation, mediation and other processes. Wolters Kluwer Law & Business.
Pruitt, D. G. (2013). Negotiation behavior. Academic Press.
Rubin, J. Z., & Brown, B. R. (2013). The social psychology of bargaining and negotiation.
Elsevier.
Tableware Directory | Tableware International. (2017). Tablewareinternational.com.
Retrieved 22 November 2017, from
http://www.tablewareinternational.com/tableware_directory/
Ting‐Toomey, S. (2015). Identity negotiation theory. The International Encyclopedia of
Interpersonal Communication.