SCM340 DB

Theodore Hickman

Instructor: Johnny Maddox

Unit 2 IP

SCM340 1703A-01

11 July 2017

Negotiation strategy

Pertinent information

It is evident that for the negotiation process to turn out successful, written communication should be adopted. Written communication has been identified with different advantages that consist of ensuring that the parties take their time to evaluate the best arguments that they should post. Also, it is probable that with the initiation of the written communication, the parties will be placed in a better position to maintain an effective communication process (Gelfand, & Brett, 2004). Therefore, effective communication will allow the parties to control and maintain their relationship in a manner that they will all be willing to comment on other party’s suggestions and ideas.

Relationships and interdependence

Good relationships are of great assistance to the parties. It is because if they are in a position to relate well, the companies will ensure that the decisions that are made are bound to benefit each side equally. In other words, the creation of good relationships is meant to allow the parties to act fairly and equally in a manner that will allow them to resolve their differences. Therefore, regardless the fact that each party is focused on benefiting from the negotiation process, they need to be interrelated as they work towards coming up with the best decision that will meet their interests.

Discuss the importance of relationships in negotiations.

Therefore, it is made clear that good relationships are advantageous when conducting the negotiation processes. The primary reason for this is that the good relationships can be used by the parties to resolve any conflicts that may have occurred in the past (Gosselin, 2007). Also, negotiations are effective when each party allows the other party to make their suggestions without having to limit them. Also, good relationships provide that each party has equal power and rights when it comes making decisions. Therefore, good relationships allow the parties to take the time to discuss and agree on the best solution that will result in positive effects for both parties.

Describe at least two tactics for managing conflict in negotiations.

Conflict management refers to the situation by which parties make sure that they do not end up fighting and disagreeing as they decide on the best choice to select. The best tactics that can be used to eliminate cases of conflicts in negotiations include allowing each party to take part in the decision-making process. The parties should agree that each party has the right to leave if it does not agree to the terms and conditions that have been set. It allows the parties to be assured that the negotiation process does not benefit one side but will of assistance to the two sides. Conflicts can also be reduced through the struggle of forming good relationships between the parties.

Interests, desires, and motivations

My party’s motivation is to ensure that the materials to be used in the manufacturing process are acquired at the lowest price possible. It is determined to ensure that the cost of production is reduced. The other party’s motivation is to ensure that the plastics are used at a price that will help it to earn high profits. In other words, the other party is determined on ensuring that it earns high revenue from the sale of the plastics. The other party is obliged to reject an offer to sell the materials at a low price since that would suggest that it will make a low profit.

Strategy and tactics

Strategy and tactics refer to the methods and plans that are put in place to ensure that success is earned. The strategy that can be used is to provide information to the two parties that the best way to conduct the negotiation process is by understanding that each party has to benefit. In other words, the parties should be willing to drop their interests and work on fulfilling a common goal. The parties should begin by taking note of all the available choices and work together to choose the best course of action. Also, they parties should select the prices and commission that are reasonable.

Compare and contrast distributive and integrative negotiations.

Both distributive and integrative negotiations are similar because they are meant to come with the best outcome when conducting a negotiation process. They are both influenced by the desired goal of the negotiator. However, they are different because distributive negotiation occurs at a specific time while integrative negotiation is bound to occur as a continuous process. For instance, distributive negotiation is used by people when seeking for a discount during a business transaction while integrative negotiation is used to allow children to sleep at a specific time daily.

Discuss at least two integrative negotiation skills or tactics.

Integrative negotiation is used in a situation where it is possible to attain a better outcome when people work together than when they work alone (Raiffa, Richardson, & Metcalfe, 2002). Integrative tactics include taking the time to evaluate one’s interests and the other party’s interests so as to know how to work together. Also, it requires the sharing of information and data between the parties and making sure that they remain honest with each other. Moreover, one party should be willing to offer solutions that will provide the most value possible to the other party. The different parties should understand that it is not the end of the relationships and that they will have more issues to handle in the future that require them to assist one another.

References

Gelfand, M. & Brett, J. (2004). The handbook of negotiation and culture. Stanford, Calif: Stanford Business Books.

Gosselin, T. (2007). Practical negotiating: tools, tactics, & techniques. Hoboken, N.J: John Wiley & Sons.

Raiffa, H., Richardson, J. & Metcalfe, D. (2002). Negotiation analysis: the science and art of collaborative decision making. Cambridge, MA: Belknap Press of Harvard University Press.