Project Definition: Role of Negotiation in Purchasing - Singapore

This project definition outlines a research project focused on the role of negotiation in purchasing materials, using Charles & Keith Wong, Singapore, as a case study. It defines the problem as the company's need to strategically enhance its purchasing activities and negotiation power with suppliers. The research objectives include defining the conceptual understanding of negotiation, addressing its role in purchasing, and suggesting strategies for improvement. The project aims to contribute to fair pricing, contract performance, and stronger supplier relationships, serving as a reference for Charles & Keith Wong and future researchers. It addresses research questions related to understanding negotiation, its role in purchasing, and strategies for enhancement.

Running head: PROJECT DEFINITION

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Table of Contents
Introduction/background..................................................................................................................3
Problem definition...........................................................................................................................3
Research questions...........................................................................................................................4
Research significance and contribution...........................................................................................5
Reference.........................................................................................................................................6

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Introduction/background
Negotiation is an essential business process to build the trade association and purchasing the
material. Negotiation with the suppliers is requiring regularly with the practice of internet-based
technologies such as extranet and internet. The negotiation procedure has become essential in the
literature and incorporates in the field of procurement. There is a different element of developing
a relationship that could be influenced by negotiation such as the association between parties,
interaction and their degree of trust (Johnson, 2014).
There are different actors involved in the negotiation procedure to solve the supply management
concerns such as suppliers with procurer. This investigation will emphasize on the role of
negotiation in purchasing the material in the case study of Charles & Keith Wong, Singapore.
This investigation is essential to identify the approaches to enhance the negotiation of purchasing
the material (Sartor, Orzes, Nassimbeni, Jia, and Lamming, 2015).
Problem definition
In the current business scenario, purchasing is defined as an activity to consider strategic
importance. But, Charles & Keith Wong focuses on purchasing as a function that undertaken by
the proficient department. It also considers this activity to perform more appropriately. This
company also hires dedicated team and specialist in purchasing and supply department
(Nakajima, Kimura, and Wagner, 2015). The negotiation procedure has become a significant
sector in the procedure of supply chain as, Charles & Keith Wong can decline the expenditure
and increase their purchasing power. It is also analyzed that purchasing professionals have to
need to negotiate on effective rates with the suppliers. As a result, it would be beneficial to
maintain the quality in products and services. Charles & Keith Wong face a challenge in terms of
identifying the procurement requirement. In this way, negotiation procurement professionals can

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make sure that the needs are commercially sound and deliver the added value (Araujo, Gadde,
and Dubois, 2016).
Negotiation is required for Charles & Keith Wong in circumstances where the terms of sale
involve many and diverse clauses and when the buyers suppose that the quoted rate is unfairly
high. It is also used in open with less prescription specification in order to agree on better
advantageous, value for money and total package. It can also be used in conflict resolution amid
the buyers and suppliers (Geiger, 2017).
Research objectives
The key aim of this investigation is to identify the role of negotiation in purchasing the goods in
the case of Charles & Keith Wong, Singapore. The given below objectives would be practiced
for accomplishing the key aim of this investigation:
RO1: To define the conceptual understanding regarding negotiation: A case study of Charles &
Keith Wong, Singapore.
RO2: To address the role of negotiation in purchasing the material: A case study of Charles &
Keith Wong, Singapore.
RO3: To suggest the strategy in order to enhance the negotiation of purchasing the material: A
case study of Charles & Keith Wong, Singapore.
Research questions
RQ1: What is conceptual understanding regarding negotiation in case of Charles & Keith Wong,
Singapore?
RQ2: What is the role of negotiation in purchasing the material in case of Charles & Keith
Wong, Singapore?

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RQ3: what are the strategies in order to enhance the negotiation of purchasing the material in
case of Charles & Keith Wong, Singapore?
Research significance and contribution
This investigation will offer the opportunity for the investigator to compare the theoretical aspect
with the practical aspect regarding the significance of purchasing. The investigation will also
provide the benefit to the investigator in terms of increasing their understanding of the
negotiation as practiced in Charles & Keith Wong in against of what is written in the textbooks.
It is required for purchasing and supply function of the business. For Charles & Keith Wong, it
will serve as a reference text and offer probable recommendation to address the issues. Finally, it
would be advantageous for future investigator because all aspect of negotiation will fully explain
in this investigation; hence it will serve as a base for further investigation (Hesping, and Schiele,
2015).
Contribution
This research will contribute to settling a fair and reasonable price in Charles & Keith Wong. It
would also make sure that the contract would be performed at a specified time. It would also
contribute to remove obstacles and exercise control over the manner in which contract is attained
(O'brien, 2015). This research will also give their contribution to influence the supplier in order
to offer maximum co-operation to Charles & Keith Wong. It will also contribute to building the
cordial association with competent suppliers and also aids to make a reduction in price. This
investigation will contribute to obtaining higher trade discount on bulk purchase and reduction in
charges of packing. This research will also contribute to making a further research regarding
negotiation in purchasing the material (Steele, and Beasor, 2017).

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Reference
Araujo, L., Gadde, L. E., & Dubois, A. (2016). Purchasing and supply management and the role
of supplier interfaces. Imp Journal, 10(1), 2-24.
Geiger, I. (2017). A model of negotiation issue–based tactics in business-to-business sales
negotiations. Industrial Marketing Management, 64, 91-106.
Hesping, F. H., & Schiele, H. (2015). Purchasing strategy development: A multi-level review.
Journal of purchasing and supply management, 21(2), 138-150.
Johnson, P. F. (2014). Purchasing and supply management. UK: McGraw-Hill Higher
Education.
Nakajima, M., Kimura, A., & Wagner, B. (2015). Introduction of material flow cost accounting
(MFCA) to the supply chain: a questionnaire study on the challenges of constructing a
low-carbon supply chain to promote resource efficiency. Journal of Cleaner Production,
108, 1302-1309.
O'brien, J. (2015). Category management in purchasing: A strategic approach to maximize
business profitability. USA: Kogan Page Publishers.
Sartor, M., Orzes, G., Nassimbeni, G., Jia, F., & Lamming, R. (2015). International purchasing
offices in China: roles and resource/capability requirements. International Journal of
Operations & Production Management, 35(8), 1125-1157.
Steele, P. T., & Beasor, T. (2017). Business negotiation: A practical workbook. UK: Routledge.