Business administration is a broad field that carry out many types of management positions. From better corporations to independent businesses, every operation needs skilled administration in order to succeed. Negotiation strategies are using as a method that reduce to differences to settle people. In the present report select the company Airdri limited based on UK, it is first manufacturer company of hand dryer in the world.
In this report covers requirements of negotiation strategy and their different techniques. Cultural differences, purposes, scope and objectives of the negotiation. The scope of their own authority for negotiating and prepare strategy.
Assess the likely objectives and negotiation stances of the other party and research the strengths and weakness of other party. Carry out negotiations with responsibility, conduct of the negotiation with changing circumstances. Maintain accurate records of negotiations, outcome and agreements made and adhere to organisational policies and procedures to carry out legal and ethical requirements.
1.1 The requirements of a negotiation strategy
A negotiation strategy pre observed approach that are helping to prepare plan of action to accomplish specific goal or objectives to possibly find and make a statement or contact on a negotiation with another party or parties. It describes any communication process between individuals that is conscious to reach a compromise agreement to the satisfaction of both parties. It is consist of examining the facts of a situation, exposing the both the common and opposing interests of the parties involved and bargaining to resolve as many issues as possible. Negotiation strategies are important to business because it helpful to create strategies and achieve to specific goals and objectives. There are requirements of negotiation strategy, are as follows -
- Offering the best assignment writing help
- Delivering the orders as fast as possible
- Providing maximum satisfaction at affordable rates
It beneficial to everyone in business because with the help of negotiation set of mind specific clients to employees.
Creates win win situations –
Negotiation strategy not only beating the opposition but also create to win win situation in business. In this situation ever one walking for good deals and there is no questing finding to deal. It makes happy to every one in difficulty and it is highly valued.
Good negotiating can improve to bottom line –
Negotiation is using as a method that helping to reduce differences through communication. When employees are communicate with their employer so it will helping to improve bottom line.
Negotiation skills build respect –
In the business respect is important part so there is getting respect from employees through the most productivity.
1.2 The use of different negotiation techniques
For effective negotiation there are using different techniques in business to achieve their specific goals and objectives. Some techniques are helping to run business in effective ways, they are as follows -
Implement a number scale –
In Airdrie limited wants to dealing on time and in right way so it is helping to implement number scale and according to this scale every employee work to achieve goals. These number scale through measure performance of the employees and according to their performance these are increases.
Don't focus just on winning –
It is saying that only winning it's not aim of the business there is need to focus acquire those objectives that are important of the business.
Share information –
With the help of these strategies share information related to deal because it is process to communication between clients and employees. It is provided appropriate information regarding to deal.
Clarify any misconceptions –
It will provide right concepts that are implement in business during to deal because many times in Airdri limited origin misconception that are clarify with the help of negotiation.
Be prepared to give something up –
It helping to prepare to give something related to goals because achieve to positive outcomes there is need to active all time and prepare strategies for collect all the information related to business.
These are the techniques of negotiations that are helping for business and achieve to desirable objective and positive outcomes.
1.3 Research on the other party can be used in negotiations
In the business before dealing with other parties there is need to know about their financial statements and other informations and these are collect through research. So for this research using negotiations because it will allow to investigate to the party to bargain at their side and according to that achieve the deal. In this business environment have different types of parties that are during to deal they are bargaining. Airdri limited is planning to meet their new suppliers in order to make negotiation for their new deals. They are firstly research about their new clients and during negotiate investigation they found that parties are chargers high from their customer.
So they are in agreement set hidden clause regarding to price and at the time of negotiation manager of Airdri limited mark those issues and after that grab the deal. But they are present their mutual agreement that are specific related to price, goods and quality, if other party agree with that so they are signed on agreement. The negotiation research helping to find out those points that are related to deals and after that garb the deal for positive results.
1.4 Cultural differences might affect negotiations
In present time international business deals not only cross borders, they also cross cultures. Culture deeply influences communication, thinking of people and behaviour and it also affects to different types of transactions that are making through the negotiations. There are different world's culture makes impossible to any negotiator, there is no matter how skilled and experienced, to understand all the cultures that may be en-counted. There are different cultural differences that are affect to negotiations -
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Negotiating attitude: win lose or win win?
Due to cultural differences, personality or both business persons are coming together to making deal with one of two basic attitudes. In this process may be Airdri limited and other party are gain win win or struggle because there one side is wins and other side loses. Win win negotiators always dealing to making collaborative and also known as problem solving processes. Other side win lose negotiators is see as confrontational.
Negotiating goal: contract or relationship?
Different cultures related to negotiators that tend to view the purpose of a negotiation differently. For making deal with different cultures have goal of a Airdri limited to crack the deal and signed on contract of the parties. Other cultures relate to consider the main goal of negotiation is not only signed on contract but also establish relation between the two sides.
Communication: direct or indirect?
According to cultures different methods of communications that are shows to way of talking. When Airdri limited and other party are coming together for business perspectives so they are using style of communication like direct and indirect.
2.1 The purpose, scope and objectives of the negotiation
Purpose of negotiation
The purpose of attractive in negotiations is to achieve business objectives that are relating to price, terms or aim to resolve. Negotiation is reach on an agreement in order to participate in an activity which create mutual agreements. In negotiation is provide training to among the employees to achieving goals and objectives for which are related to different phases.
The purpose of negotiation from seller's perspective to read out possible terms of buyers and if they are suitable so deal is closed on the best possible terms. And it is helping to maintain relation with buyer and giving good feeling.
The purpose of buyer's perspectives is negotiation is applying as tool that are helping to reach on a common understandings through bargaining according to requirements of agreements like as – price, delivery time and quality.
Scope of negotiation
There are scopes that are related to the negotiations, they are as follows -
- 1. Taxation policy
- 2. Marketing, business and sales
- 3. The main scope of negotiation increases rules and hierarchy because they are play a diminishing role.
- 4. Maintain relations of industries like provide compensation and appropriate work conditions.
Objectives of negotiation
Creation of a long term relationship between the parties –
The objective of navigations is create long term relationship between the long term parties.
The best deal –
It should achieve the best deal and it merely point out the both parties to a negotiations have to understand what it is that they have agreed.
Achievement of organization's objectives –
It is a main objective of negotiation because it is pre determined for accomplish goals and objectives.
2.2 The scope of their own authority for negotiating
Authority is important in business negotiations because after all negotiating a deal, to be dealing with other party is able to see the deal through. If they are not, the agreement may not be enforced or may even change later. In Airdri limited would be ideal if they are all parties negotiating have the power and authority to grab a deal. The scope of negotiations mention to the at which point to those party can make negotiation. If two or more parties are in negotiation so have have authority to bargain to a certain degree. This scope of authority is very helpful in a bargaining deal as negotiator can clearly say no to seller for the reason that have limited authority. It is important to authority giving power and delegation for to dealer in negotiations because they are not free to deal with seller.
2.3 Prepare a negotiating strategy
For win win situation there is need to prepare a strategy, that are explain in following steps -
- Firstly know the overview of Airdri limited to know why need to prepare of negotiation strategy after know that prepare strategy according to need.
The meaning of strategy in negotiations –
After that explained meaning of strategy in negotiation and elaborate those reasons that are related prepare particular strategy
Short term objectives –
Every strategy prepare for particular time because they are change according to time so set short time objective of negotiation strategy.
Long term objectives –
Some strategies are related to long time so set strategies according to long time that fulfil by strategy.
Planning requirements –
There is many times some strategies are need to planning according to requirement so it will set according to requirements.
Key consideration -
In strategy preparation need to some words that mostly consider that are quality, cost or schedule.
Intra organizational problems –
There is point out those problems that are related to intra organisation like functional disputes, discipline, cohesion, team development, management involvement and organizational involvement.
Inter organizational problems –
There is mark some problems that are considering these problems such as Security, market position, past – present – future leadership and intelligence.
These problems are solving by preparing negotiation strategy that helping to resolve these problems and helping to achieve desirable objectives and goals.
2.4 Prepare fall-back stances and compromises that align with the negotiating strategy and priorities
Fall back stances is a alternative option that are alternation and second choice option that are helping to Airdri limited those times when actual negotiation not properly work. When in new deals related company have not any existing strategies so that time needed to fall back stances. This is described as below -
Completion stance –
In this stance taking those task who are accurately done in good manner but with the modest investments. In this including past activities that are similar to those activities.
Performance stance –
This stance including task to see that perform in good way or not so performance need to show in effective way.
Development stance –
In this stance task will be done really well and use it as a springboard to doing such things even better in the future. In this shows how to they develop task in this stance for fall stance position.
These stances are not completely separate, they lie along a time. Each stances focuses on a different attribute position toward the task.
2.5 Assessment of objectives and negotiation stances of the other party
Assessing those objectives who are interrelated to negotiation stances because they are working for relevant information relating to other party. The objectives and stances can be assessed by following ways these are as follows -
Objective or interest
This is very important to know what is the objective of other party and in which deal they are taking interest to done. Because it will provide negotiator to prepare a particular strategy of particular deal.
Assessment mainly based on direct or indirect so there is shows indirect assessment in which includes observation, consult and communication, document and many more.
Resistance points and alternatives
The other party have many time other option related to their interest.This point provide violable option according to given and collect interest.
In this method includes those are thinking straight forward and getting relevant and key information related to clients.
2.6 Research the strengths and weaknesses of the other party
The research is important part when dealing with other party because it helping to get those information that needed to contract with other party. During the research point out strengths and weakness to the part and it will helping to decision making. Airdri limited research to other party before signed the agreement. There are identify strengths and weakness of other party that are as follows -
Strengths are the ability of individual or a team to present the company result that are shows in positive way. When research to about clients that time point out clients strengthen was confidence for grab the deal with full efficiency, always shows positive outcomes, earning capacity. Apart from this, there is marked those strengths that are related to personality like communication skills, broad thinking and clear doubts. Supplier was good at negotiating on prices bully beneficial deal.
During the research point out with strengths also weakness because it helping to clear strategy of supplier. The main weakness of supplier was that they are showing their products are best. As other part shows weakness of supplier as a understanding when did not recognise hidden clause in agreement and ready top deal with Airdri limited. Some time they are present feature are good of their product but it is not always right because they are expert to communicate false.
3.1 Carry out negotiations within responsibility limits in a way that optimises opportunities
Negotiation affects the business environment of organisation as it limits the opportunities. For all the business entities it is very important to keep information of all type of negotiation whether it is related to customers or suppliers. If Airdri is not able to negotiate with its suppliers than they may supply them goods on higher price that will result in decreased profit margin. Customers of Airdri will also negotiate on the selling prices if it is not according to their paying capacity hence it is very important for the company to set appropriate prices for its products. High negotiation rate of customers and low negotiation rate with suppliers will result negatively for Airdri. If the company is willing to remain competitive in the market and trying to increase its profits than it is very important to negotiate appropriately with suppliers and set relevant prices for the products so that customer's negotiation rate can be decreased.
3.2 Adapt the conduct of the negotiation in accordance with changing circumstances
In business situations are flexible so they are change any time. The negotiation is also flexible so it can change according to situation. It was conducting according to circumstances and they are not fix of particular behaviour that are relate to the business. Negotiation helping to search out different options in critical situation
3.3 Maintain accurate records of negotiations, outcomes and agreements made
There is need to keep accurate records or negotiations because it will help to acquire desirable goal and objectives. With the help of this getting positive results and crack the deal what the Airdri limited want. In business dealing with different parties and they are applying different rules and regulations so for there is needed to maintain records and related there outcomes that are helping to made agreements. An agreement is a legal documents that are proof to show specific information regarding to all data.
3.4 Organisational policies and procedures, and legal and ethical requirements when carrying out business negotiations
Airdrie limited carry out business negotiations according to policies or procedures for legal and ethical acquirements which needs to be followed by the parties in order to fairly process of negotiation. In organisations plans are set according to policies and procedures that will be use by the negotiator parties for doing right things and proper functioning of negotiation. Legal and ethical requirements are present when all the policies are in favour with fair practices and doing right things in negotiation. The ethical and legal requirements carrying out ion business negotiations, they are as follows -
- End result ethics
- Social ethics
Legal requirements -
- Reduce risk before enter in agreement
- Do not misdirect
- Be aware from all bribery in every departments
From the above report it is concluded that in business negotiation is important because it helping to grab the appropriate deal. Negotiation is process that are deciding to dealing with other parties and search out about the part before dealing. It is important to know strengths and weakness of other party.