Ch. 13 Negotiation and Conflict Management

Negotiation
a process of formal communication, where 2 or more ppl. groups, or orgs come together to seek mutual agreement about an issue(s)
BATNA
Best Alternative to a Negotiated Agreement

negotiator’s bottom line or reservation point

Negotiator’s position
his or her opening offer which represents the ideal (optimistic) value of the issue being negotiated
Negotiator’s Interest
the unspoken reason that underlies any given negotiation position
Triangle Talk
1) Know exactly what you want
2) Find out what they want and make them feel heard
3) Propose action in such a way that they can accept it
Negotiation Framework in Supply Mgt
1) identify/anticipate the sourcing requirement
2) determine if negotiation or commpetitve bidding is required
3) plan for th negotiation
4) conduct the negotiation
5) execute the agreement
Reasons for Negotiating with suppliers
-the total contract value or volume is large
-the purchase involve scomplex technical requrements
-the purchase involves utilization of capital-intensive planst and equipment
-agreement involves a special or collaborative relationship
-supplier will perform important value-added activites
Plan
a method/scheme devised for making or ding something to achieve a desired end
Objective
an aspiration or vision to work toward in the future
Bargaining or Settlement Zone