Negotiation Skills Assignment: Analyzing Different Business Scenarios

This assignment explores negotiation skills through three distinct scenarios. The first scenario focuses on a head chef negotiating chicken prices with a supplier, emphasizing the importance of mutual benefit, counteroffers, discounts, and building a business relationship. The second scenario involves a head chef and an environmental officer, highlighting the need for effective communication and compromise regarding a safety issue with the restaurant's ceiling. The final scenario addresses the sale of a business, from both the seller's and buyer's perspectives, emphasizing the valuation of tangible and intangible assets, and the importance of understanding customer base, suppliers, and creditors in determining a fair sale price. The assignment underscores the significance of effective communication, assertiveness, and understanding the other party's objectives in achieving successful negotiation outcomes.

Running head: NEGOTIATION SKILLS 1
Negotiation Skills
Name
Institution
Date

NEGOTIATION SKILLS 2
Negotiation 1
As a head chef, I have to negotiate the prices of chicken with the suppliers. Since the supplier
wants to make higher profits and I want a lower rate, there is a need for a negotiation. First, I will
have to convince the supplier that doing business with the bistro is a mutual benefit. I would ask
for lower prices by giving a counter offer. However, if the supplier will not budge, I could
negotiate for discounts that would work towards lowering the rates. It is imperative that the
supplier has the idea that there are other suppliers as it will bring competitive pricing. Besides, I
could agree to purchase more substantial amounts, and payments made in time and build a
business relationship with the supplier. Keeping notes for different customers such as negotiation
in progress, promises to buy, inability to pay, and scheduling of the buyers’ date is key to this
negotiation.
On the other hand, as the supplier I need higher profits and the head chef wishes me to lower the
prices. To ensure competitive pricing, I would prefer that I offer discounts where the head chef
purchases a certain amount of chicken. If I have to lower the price, the chef has to guarantee a
long lasting business relationship. It ensures the stability of revenue. Agree to pay in time could
guarantee that the chef may get discounts and the conflict would be solved. On both sides,
effective communication and assertiveness are essential. Revenue stabilization is critical to
business profitability and sustainability. The increased assertiveness in the communication
criteria I use depicts a lot in the establishment of excellent customer relationship. I always ensure
that I follow up on the customers that promised and agreed to pay for some goods like chicken
and ensure that the right price is offered and paid for the same. Profitability is the main objective
behind the sales I make.
Negotiation 2

NEGOTIATION SKILLS 3
As the head chef, a safety council approved the restaurant twelve months ago. However, the
environment officer states that the ceiling presents safety conditions. I should communicate with
the officer effectively, and negotiate for a reasonable period to make the repairs. I should also
reach an agreement to repair it by a month’s time. Besides, I should request for other approvals
to ensure all standards are met. However, I would seek to place a complaint with the city council
to ensure that a clarification is made and the industry criteria are met.
As the environment officer, the head chef is on the wrong side of the law. The celling’s condition
does not meet the required standards. It is a threat to food safety in the consumer. The head chef
needs to understand that the ceiling should be repaired as soon as possible. However, as the chef
states, the same council approved the restaurant twelve months ago. There is a conflict. Since the
head chef has presented a fair case, the problem may be solved by giving a statutory warning and
requiring that the ceiling is repaired as soonest possible.
Negotiation 3
As the seller of the business, my goal is to reach a sale price gives a return on equity. Besides, it
will be more beneficial that I get a higher sale price. First, I should effectively communicate to
the buyer the assets that he/she will inherit after transfer of the business. Apart from the assets
that can be measured in monetary terms, the buyer should be aware of the intangible assets such
as goodwill. As a going concern, the business has relations with suppliers, consumers, and
employees all of which cannot be quantified. These benefits should be accounted for in a better
price. The proper quantification of intangible assets in monetary terms depicts the materiality
level of that asset offered by the seller to the bargaining customer. The proper communication of
the assets price by the seller to the buyer is key to increased business inheritance.

NEGOTIATION SKILLS 4
As the buyer of the business, negotiating a lower price is the primary objective. However, the
seller is pushing for a higher rate. To ensure that the amount agreed upon depicts the actual value
of the business, I would request for information on the customer base, suppliers, and the
creditors. Unlike the quantifiable resources, the strength of the business relations with other
suppliers should provide an avenue to bargain for a lower price. Given bargaining power,
customers would easily negotiate their suitable pay and hence ensure easy customer retention by
the concerned business.