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slides - negotation - Negotiation Summary Review Defining...

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Negotiation Summary Review
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2 Defining Negotiation Negotiation is a process of formal communication, either face to face or via electronic means, where two or more people come together to seek mutual agreement about an issue or issues
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3 Negotiation Process The process involves the management of time, information, and power It is a time-consuming process that requires extensive planning and a commitment of resources--90% of the negotiation process involves preparation, not execution
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4 Objectives for Negotiation The primary objective of a purchase negotiation is to (try to) reach an agreement that satisfies both parties Better to walk away from a bad agreement then settle for an unfavorable agreement Negotiation involves relationships between people, not just organizations
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5 Negotiation Framework Purchase negotiation involves a five-step process Identify or Anticipate a Purchase Requirement Determine if Negotiation is Required Plan for the Negotiation Conduct the Negotiation Execute the Agreement
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6 Step 1: Identify or Anticipate a Purchase Requirement The purchasing cycle begins with identifying a material need or requirement for a component, raw material, subassembly, service, supplies, piece of equipment, or completely finished product
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7 Step 2: Determine if Negotiation is required Not all purchase requirements require detailed negotiations with suppliers Negotiation is a time consuming process!
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8 Step 3: Plan for the Negotiation A plan is a method or scheme for achieving a desired end Planning, therefore, is the process of devising methods to achieve a desired end Preparation and planning are considered the most important part of negotiation
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This note was uploaded on 07/02/2011 for the course MGSC 487 taught by Professor Jayaram during the Spring '10 term at South Carolina.

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slides - negotation - Negotiation Summary Review Defining...

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