Comprehensive Report: Negotiation Strategies, Techniques, and Analysis

This report delves into the core of business negotiation, focusing on the strategies and techniques employed by Marks & Spencer. It examines the requirements of effective negotiation strategies, including the use of various techniques such as Win-Win and persuasion models, and the importance of researching the other party involved. The report highlights how cultural differences can significantly impact negotiation outcomes and emphasizes the importance of identifying negotiation objectives and the scope of authority. It further explores the preparation of negotiation strategies, including fall-back stances and compromise strategies, and the assessment of the other party's objectives. The report also discusses the importance of conducting negotiations within defined responsibility limits, adapting to changing circumstances, maintaining accurate records, and adhering to organizational policies, legal, and ethical requirements. The conclusion summarizes the key findings and reinforces the importance of strategic negotiation in business success.

BUSINESS
ADMINISTRATION
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Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY ..................................................................................................................................1
1.1 The requirements of a negotiation strategies........................................................................1
1.2 The use different negotiation techniques..............................................................................1
1.3 Research on the other party can be used in negotiation........................................................2
1.4 Cultural difference might effect negotiation.........................................................................3
2.1 identify the purpose, scope and objectives of negotiation....................................................3
2.2 The scope of their own authority for negotiating.................................................................4
2.3 Preparation of negotiation strategies.....................................................................................4
2.4 Prepare fall-back stances and compromises that align with the negotiating strategy and
priorities......................................................................................................................................5
2.5 Asses the likely objectives and negotiation stances of the other party.................................5
2.6 The strength and weakness of other parties..........................................................................6
3.1 Negotiation within responsibility limits in a way that optimises opportunities....................7
3.2 Adopt the conduct of the negotiation in accordance with changing circumstances..............7
3.3 Maintain accurate records of negotiation, outcomes and agreements made.........................8
3.4 Adhere to organisational policies and procedures, and legal & ethical requirement when
carrying out business negotiation................................................................................................8
CONCLUSION ...............................................................................................................................9
REAFREENCES ...........................................................................................................................10

INTRODUCTION
Business administration is an underlying of any excellent business structure. Thriving
business needs sound administration process in place and people complete for implementing
functions process successfully. Its a process of organising the business personnel and resources
to meet business goals and objectives. This report is upon Marks & Spencer which is British
multinational retailer headquarters in Westminster, London. They are specialised in selling
cloths, home products and luxury food products. This report includes requirements of negotiation
strategies, the techniques used in negotiation, effect upon negotiation die to different cultures.
Purpose, scope and objectives of negotiation and preparation of negotiation strategies. Conduct
of negotiation in accordance with different circumstances, records as well as outcomes,
organisational polices, legals and ethics requirement in negotiation.
MAIN BODY
1.1 The requirements of a negotiation strategies.
It's a method by which organisation settles differences, in this comparisons are made by
which disputes as well as arguments can be avoided. These negotiation tactics help to solve
problems, ease tension and build consensus in the workplace. If strategies are not formed
properly within a set time period negotiation strategies are formed so that conflicts as well as
disputes are been able to controlled. The negotiation agreement is between organisation and their
suppliers (Alvarez, ed., 2016). Its a process when a buyers sees the prices and expected to get
some negotiating when buying products. In this people use to pay more, if they don't know the
way of bargaining. Through this strategies compromise between supplier and organisation can be
consistent. As for competing strategies are formed in which people think which type approach
will be applied while implementing negotiation strategies. Yielding is a situation which is not
important for the parties but it is important for other party. This will solve issues and problems in
advance, so that at transaction time no disputes will be generated. These strategies are essential
for organisation to form in advance so that organisation can control problems while going
business with suppliers.
1.2 The use different negotiation techniques.
It' refers to styles used among the individuals of an efforts to come to a conclusion by
which all parties which are involved get satisfied. In negotiation people extremely understands
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the second party's needs and interest as well well. They don't impose ideas on anyone, it's must
have a dignified way while negotiating with suppliers (Baur, 2017). The organisation used
different types of techniques while doing negotiation with supplies. The techniques are:-
 Win-Win tool:- Its a negotiation tool in which settlement is an integrative negotiated
agreement. In this agreement is formed between parties after fully taking into account
with each others interest. It's important for organisation while formulating win-win
strategies they have to set multiple offers to suppliers, match with right contrast, prepare
the appropriate and contingent agreement. In this more than one situations are formed to
conduct negotiation.
 Berrien's persuasion tool model:- Negotiation is win when organisation persuade
people over their side. People those who are able to negotiate with a high success rate
trend to raise their business by using Persuasion tool model (Freel, 2016). The
organisation should chose the right tools like compromise, bargaining, emotion and logic
while doing negotiation with suppliers. Compromise is low intuition and low influence,
bargaining is high intuition and low influencing, logic is low intuition and high
influencing or emotion is high intuition and high influencing.
1.3 Research on the other party can be used in negotiation.
Negotiation is a way of getting what you want by putting all those thing in a right and
convening way. Its crucial to conduct research before entering a business negotiation. It's
basically an argument between parties those who are involved in negotiation. This research
helps them in identifies the ways to solve issues which are generated while doing negotiation. It's
an important part of negotiation to general information about background of the researcher. After
this it will become easy organisation to form strategies related to negotiation (Grusec and
Hastings, eds., 2014). Through this research the other party can individual as well as country, so
it's important to know about their personal preferences and culture which used in negotiation.
Through the proper research on other party it will create evidence as well after which issues,
problems and conflicts are solved easily by parties. Its essential for organisation to understand
these aspects prior conducting negotiation between parties. To know about their background, is
very necessary after which effective negotiation is conducted. Research helps organisation to
understand the preferences of other party by which its not become important own idea on others.
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1.4 Cultural difference might effect negotiation.
Different culture effect negotiation as every culture have different negotiation process. As
these different culture cause conflicts so, it's important for organisation to understand these
different culture in advance so that culture can't effect negotiation. The international business not
only doing business cross boundaries as they also deals with cross culture. The culture profound
the way people think, behave as well as communicate as these aspects also effect negotiation.
This also effects the kind of transaction they make as well as they way negotiation happen in
Marks & Spencer. The other party personal appearance, communication skills, way of
conducting business activities is also influence negotiation. So, it's essential to know about other
country culture as well as working after which it become easy to conduct business with other
party. It's become important to recognise about other country values and norms to interact with
each other by which culture can't effect negotiation. The negotiation between Marks & Spencer
and other party effect due to culture as their behaving power and communicating norms are
different from each others. If other parties norms, values and culture are understand issues are
easily solved and conflicts are not arise.
2.1 identify the purpose, scope and objectives of negotiation.
Purpose of negotiation
To get the deal closed on the best term and also leaving the buyers functions that they
have also got the good deal (Heald, 2018). This means preparing and planning of negotiation,
the things which people should enlist before negotiation are resorts the terms and lowest price,
like term in which what you get it should good deal as well, accept term in this acceptance would
ideally match your acceptation.
Scope of negotiations
The scope is related to marketing, making product available to each other with mutual
understanding, negotiation price should be feasible.
Objectives of negotiation
There are the range of key considerations in organisation to set objectives for purpose
negotiation. The Marks & Spencer sets certain kind of objectives are:
 The set the objectives related to price as more prices are not considerable. So, prices are
set after which no conflicts will arise.
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 The value for money and delivery related objectives where set by organisation, after
which whatever time is decided product will be delivered at that time only. No issues and
problems raised.
 The objectives related to after sales services and maintenance agreement quality.
 Payment terms objectives are also set. In this which kind of payment mode is used by
parties is determined.
2.2 The scope of their own authority for negotiating.
Authority is very important in business negotiations, this means when an organisation
deals in they also wants suppliers should also see the negotiation with same dealing. The
authority plays a significant role while doing negotiating with parties (Inman, 2016). The
authorised person should also know about the company, the understanding of other party
organisational structure. The authority is a power which is delegated to an individual who is
about to conduct agreement between supplier and organisation and also have the power to
negotiate with suppliers in terms of price. The effective negotiation is not conducted if
organisation is not think about the way other party process its decision making. The authorised
person should have full confidence to question. They have to also find out the prior negotiation
involve in approval process as well. The scope of authority is negotiation is large, as of
individuals are not authorised then it become difficult to from negotiation strategies. On the other
hand, authority helps in finding issues, and listen to problems of other parties and any leverage in
agreement. In this rules and regulation are formed by them so that it become easy to overcome
specific issues between parties.
2.3 Preparation of negotiation strategies.
There is predefined negotiation strategies which negotiator applied in particular
consistent work. This model consist of five stages of negotiation that helps negotiators to
simplified framework to analyse and absorb the best negotiation practices in Marks & Spencer.
The steps are:-
 Identification of potential values:- The preparation starts with identification of
potential collaborative situation, so that particular selective strategy can be adopted
while identifies particular values. As another is to researching information, analysing
data, leverage, identifying interest and position.
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 Discovering and creating values:- In this stage information is share and begin to
engage in other sides as well (Julien, 2018). The difference between interest and
positions are evaluated so that implementation of negotiation can be happen.
 Create and distributes the values:- The third stage is bargaining, give and take
situation is applied here. In this parties will satisfied as according to interest and build
the last-long relationships.
 Capture values and confirm interest:- At this parties reached to agreed stage where
they start finding that other stage have capacity to follow through other things.
 Expand value and addressing changing interest:- It's a last stage where execution of
strategies are implemented. They evaluate as well and after that changes in interest are
address in negotiation.
2.4 Prepare fall-back stances and compromises that align with the negotiating strategy and
priorities.
The fall-back stances is a situation choosing best second alternatives. In this materials are
offered to Marks & Spencer by one at £22 but another seller is offered at £20 then M & S will
chose second suppliers as in fall-back stances second best alternatives are chose. This is basically
priorities and formed certain strategies to implement fall-back situations in organisation
(Mustata, 2014). The compromises strategies are formed when suppliers offered material at £20
and Marks & Spencer wants to purchased at £17. At that time negotiation situation are arises
and company have to make strategies related compromise they settle the agreement at £18. It's a
negotiation as well as compromise stage where according to that strategies are formed. In this
addition both the parties have to agreed at cost so that it would not create more loss to suppliers.
They agreed to sell at £1 loss and company agreed to buy £1 more because they offered premium
quality material. It's a compromise stage as according to quality they prioritise the price. As they
are only suppliers which offers the premium quality material in market by which fine products
are made and customers demands also meet.
2.5 Asses the likely objectives and negotiation stances of the other party.
In this other party are those who supply materials to organisation. In this informations are
exchanged before starting negotiating with other party so that no conflicts are raised between
them. The objectives of other parties are to provide premium quality products to its buyers, so
that they are always retain with them and they don't buy material from other suppliers. As Marks
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& Spencer are large organisation so, for them it's every easy to shift their suppliers. So, suppliers
have to maintain the good quality. It's main focuses is on supplying premium quality raw
material to company so, that other suppliers are not been able to provide premium quality
materials to organisation (Osborne and et, all., 2014). On the others hand, negotiation stances
means buying materials from other party at some negotiated price. The material which suppliers
offers is at £22 as it's a premium quality raw material and best materials from other suppliers.
The company is not ready to accept that price as they want to negotiate for £3 and wants to
purchase at £19. As company is considered their material have medium quality not premium
quality. As suppliers have to accept the price which is offered by organisation otherwise they
shift to another suppliers.
2.6 The strength and weakness of other parties.
When negotiation is take place in between parties two considerable parties are involved
one is suppliers and another one is organisation (Marks & Spencer). The strength and weakness
of suppliers are:-
Strength
 The cost which suppliers offer to
company is legitimate. As the price of
material is appropriate as they offers
premium quality materials to company.
 The time is accurate, as according to
agreement material is delivered to
buyers on time. They don't do delays in
delivering the products to it's
customers.
 The material quality is good. As they
offered premium quality products to its
customers.
 The suppliers always maintain good
relations with customers. As they
maintain good relationship with
Weakness
 The suppliers have limited market
opportunities.
 They have less negotiation power as
organisation is big.
 They have power imbalance as well
will doing negotiation with
organisation.
 They are not liable to make certain law
and statement related agreement with is
made between suppliers and
organisation.
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company.
 The goodwill and brand image of
supplier is very strong. They also
offered premium quality products only.
 They are flexible and come control
over the process as well as in outcomes.
3.1 Negotiation within responsibility limits in a way that optimises opportunities.
The negotiation which comes do with suppliers should be conducted with in limit
otherwise it optimises opportunities of company. Marks & Spencer's should always do
negotiation with an appropriate target. To handle conflicts it's essential for organisation to form
appropriate negotiation between people (Papadopoulos, N. and Heslop, 2014). The
responsibility which companies limits as they don't accept more negotiation when prices of
product are very high as from this they lost the opportunity. If inflation rate increase then
organisation also think for suppliers as well. If they do more negotiation then suppliers might
have cut the quality of products. If inflation rate is low then organisation can do the negotiation
with suppliers. The negotiation should also done within certain limits otherwise it effect the
future opportunities of an organisation.
3.2 Adopt the conduct of the negotiation in accordance with changing circumstances.
Negotiation is conducted in business with appropriate style and tactics, so that in
changing circumstances the prices are also set according to situations (Pollard Minor, and
Swanson, 2014). As, if company has change it's policy then it become essential for them to take
material as per their budgets. The situation are:-
 If organisation budget deceased, then they demand material at lower price. The situation
changed and negotiation strategy are also changed as per organisation. The material are
offered £20 and they want this at £18 due to less budget.
 It's a situation when supplier wants to sell the material at lower price because there are
more suppliers in market. Then this will benefit organisation as they can cut down the
operations cost in business.
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3.3 Maintain accurate records of negotiation, outcomes and agreements made.
It' essential for organisation as well as other parties to maintain records related to
negotiation, outcomes and agreement. These records will lead to organisation towards successful
business (Raadschelders, 2015). If records are maintained properly no conflicts are been arise
between party and organisation. For company it's important to have a particular record keeping
system which is reliable as well as accurate, if better record keeping system is followed in
organisation then it become easy for them to meet financial requirements of company along with
providing information related to decisions making. The records are maintained as:-
 Maintaining records in negotiation:- In this it's very important for an organisation to
maintain the record related to each step through out the negotiation process. The smallest
discussions should also recorded which are related to negotiation. The records are related
durations of meeting conducted for negotiation and also record who are not been to attain
the meeting. They are record which type of techniques they used while conducting
negotiation between each others. They also required to maintain the record related to
strategies which are formed in negotiation (Talan and Bloom, 2018). As these are very
helpful in further negotiation process and conflicts are also minimised, if accurate as well
as reliable records are maintained by the company.
 Maintaining records in outcomes:- In this records are maintained related to gain and
loss for organisation as well as suppliers are recorded. These are also required to record
sign the outcomes of an negotiation.
 Maintaining records in agreements:- The outcome is record in particular agreement,
which is signed by all the parties. So, that conflicts and disputes can be minimised and
risk related negotiation are also controlled by agreement.
3.4 Adhere to organisational policies and procedures, and legal & ethical requirement when
carrying out business negotiation.
While conducting negotiation between each others, organisation should always followed
policies as well as procedures and legal & ethical rules so that illegal and unethical practices
can't conducted in business (Urwick, 2018). To conduct negotiation there are certain set rules
and practices which organisation should follow. As if organisation is get agreed at certain price
and set made agreement on this, then organisation is not liable to break the agreement and can't
decrease the price of product as well (Ziemba, ed., 2016). This is against the law and ethics of an
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organisation. According to set budget organisation should conduct their negotiation process. The
negotiation process handles the decision making, disputes and conflicts, problem issues etc.
Polices are formed related to agreement, documentation in negotiation, conflict resolution etc.
Whenever negotiation process conduct in organisation it shouldn't follow any unethical practices
and unlawful policies. These includes certain values, ethics, norms etc. as according to that
negotiation should be conducted. Otherwise organisation faced problems in other operations. If
they can follow ethics then negotiation will get effected as they might loss heir suppliers.
CONCLUSION
From the above report it can concluded that negotiation strategies are required by which
conflicts and disputes between each other can be solved. To implement those strategies, some
win-win techniques are used. To control the culture effect its essential to understand other party
culture. The scope, objectives of negotiation should set so that to control the disputes. The
authorised person is liable to formed certain rules related negotiation. Negotiation strategies are
formed to control the problems that will arise between parties. Fall back situation when
alternatives are chose rather than basic one, weakness as well as strength of parties are also
identified to control the disputes. Situations changes as according to negotiation also changes.
The organisation should always follow their ethics and polices to conduct appropriate negotiation
policies.
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