Commercial Negotiation: Theories, Methods, and Strategies

This presentation explores the theories, methods, and strategies of commercial negotiation. It discusses the different aspects of negotiation, such as seller and buyer perspectives, and the role of product or service. It also examines the various factors and methods for managing conflicts and engaging stakeholders. Additionally, it delves into the different theories and concepts of commercial negotiation, including structural, processual, integrative, strategic, and behavioral approaches. Overall, this presentation provides valuable insights into the world of commercial negotiation.

Commercial Project
Negotiation
Task 3: Presentation And
Written Assessment

INTRODUCTION
 In the commercial project when dispute comes into consideration
within working environment then negotiation procedure taken into
account for resolution.
 The present study reflects on several aspects and theories which are
relating to the negotiation process of dispute solving.
 Apart from this, various methods included in the project for
negotiation, dispute management and engaging stakeholders using
relevant theories.
 Beside this, the commercial negotiation concept and theories are
also explained in the present project.

MAIN BODY
Various aspects of commercial
negotiation
 Negotiation is one kind of discussion among two parties for reaching up to the
beneficial outcome.
 Further, it has various branches among them one is negotiation which comes
within workplace due to a particular aspect which is price.
 On the basis of pricing factor of any product or services the issue of
commercial negotiation arise among two parties. It has mainly three aspects
which are mentioned below:
Seller
 It is one party involved in the commercial negotiation who sales goods and
services up to the customers. It performs activities in the market for reducing
level of competition and attracting people.
 If seller provides low quality of the product and service then this issue arisen
among two parties.

CONTD....
Buyer:
 Another aspect is buyer who purchase goods from the seller but when
conditions are completed then issue came.
 Apart from this, if buyer not make payment of products on time or as
per the conditions then also create issue of commercial negotiation.
Product or service:
 The base due to which commercial negotiation arisen between buyer
and seller is product or service.
 If the seller not deliver high quality of goods to the buyer or not
charges fair and reasonable prices then conflict take place.

Arguments using several factors which
are applied in conflicting
 At the time arising disputes among two or parties then for making solution
various elements undertaken. Those types of the aspects which applied in the
conflicting are stated below:
Logic:
 It is one of the significant factor which helps to resolve the issue of dispute in
project. When logics and rules are implemented then overall negotiation
procedure and conflicting affected in favourable direction.
Persuasion:
 When one party persuade to another conflicting in order to proper
communication then process of negotiation become smooth.
 Therefore, conflicts will be resolved easily as well as appropriately from the
project. Further, it is one of the highly applied factor in the conflicting.

Project negotiation ways
 For making solution of the negotiation in the projects there are some
methods included and taken into consideration by the parties. Further,
some ways which act as the negotiation theories are mentioned below:
Positional negotiation:
 As per this method each party included in negotiation is with the
unjustified reasons as well as issues and at the extreme position.
 Under this, people belief on the ultimate solution rather than proper
justifications.
 Due to this, one party is in the win situation and another is in lose
condition. Further, this is less used way due to time consuming for
negotiation.

CONTD....
Principled negotiation:
 This theory of project negotiation
considered when conflicted parties
are creative and come up with
proper justifications.
 Further, principled negotiation
seeks towards the condition of win
where any party not face lose.
 It includes generally four aspects
like people, interest, options and
criteria.

Methods of managing conflict
 In the working environment of project completion conflict
takes place generally which are managed using several
ways. Further, methods which support to project manager
for resolving issue of conflict are stated below:
Accommodating:
 Under this, the employees and team members follow all the
rules and regulations which are framed for them. As they
consider all the frameworks and laws then issue of arising
conflict will be managed up to the greater extent.
Compromising:
 According to this, both the conflicted parties compromise
with each other and give up some aspects. Therefore, easily
disputes in the project will be managed in an effectual
direction.

CONTD....
Collaborating:
 In this method, two or more members integrate
their opinions for managing disputes. When all
the creative ideas collaborated in the firm then
quick solution can be generated.
 It is one of the best way for both party seller
and buyer for taking quick action in conflict.
Avoiding:
 As per this method, group of people either
ignore or delay issue arisen within the
workplace. Due to this, they hope that there is
not any kind of conflict and solved properly.

Ways for engaging stakeholder
 The manager of project when make
sure that all the stakeholders are
properly committed at all the phases
then engage them appropriately.
 Further, by ensuring that expectations
and wants of stakeholders are
achieved the manager able to engage
them with project.
 Another way is that, addressing
upcoming issues and potential
concerns of stakeholders throughout
the project life-cycle.

Commercial negotiation theories and
concepts
 There are different number of the approaches involved with the
commercial negotiation for resolving disputes of the workplace.
 Basic five theories are considered at the majority level which are
described below:
Structural:
 Under this approach, each issues and negotiations are initially defined
by both the parties.
 After that analysed and on the basis of that proper and valid solutions
of the dispute made between buyer and seller.
 Further, in this overall process of commercial negotiation gibe in a
proper structure.

CONTD....
Processual:
 As per this theory, both the conflicted parties react on each others for
resolving issue in the project.
 Moreover, it is combination of the structural and strategic theory of
negotiation which leads to make effectual resolution.
Integrative:
 It is another theory of negotiation in which opinions of the parties
involved are included.
 The reason is that multiple ideas are supportive to make an effective
solution for any conflict or project problem instead of one opinion.

CONTD....
Strategic:
 This approach considers for making solution of the specific issue and meet
with the goal of project. In this generally two theories involved which are
decision and rational choice.
 While resolving issue of conflict in project using strategic approach, the
rational choice theory is taken into account.
Behavioural:
 The theory of behavioural in negotiation refers to the role, personality as well
as the characteristic of negotiators for deriving outcome of the conflicts.
 This theory of commercial negotiation was derived from basically two
approach like experimental and psychological traditions.

CONCLUSION
 It can be concluded from the above analysis that with the commercial
negotiation three basic elements included which are seller, buyer and
goods or services.
 For resolving conflict issue from the working environment of project
positional and principled these two kinds of the negotiation methods
taken into account.
 Apart from this, by considering some ways project manager able to
manage disputes and engage stakeholders towards the workplace.
 It can be ascertained that in the commercial negotiation generally five
theories involved like structural, strategic, behavioural, processual
and integrative.

REFERENCES
Manage Stakeholder Engagement, 2016. [Online]. Available through:
<https://www.greycampus.com/opencampus/project-management-
professional/manage-stakeholder-engagement> [Accessed on 8th
September 2017].
Ehrman, J., 2013. The British Government and Commercial
Negotiations with Europe 1783-1793. Cambridge University Press.
Gatzlaff, D. and Liu, P., 2013. List Price Information in the Negotiation
of Commercial Real Estate Transactions: Is Silence Golden?. The
Journal of Real Estate Finance and Economics. 47(4). pp. 760-786.