1) Discuss the two different types of negotiation, along with their preparation, strategies, and tactics. In preparation for development and implementation of a strategic supplier alliance which of these types would be most useful?
2) Framing is generally considered the determination of what issues are at stake in a negotiation. Why is framing critical to understanding the negotiating issues, defining the expectations and preferences of the parties to the negotiation, selecting the information/data to support each party's position or case, and evaluating the outcomes actually achieved during the negotiation?
3) What is the role of Purchasing and Supply Management professionals in preparation for and negotiation of a one-time purchase of a major capital equipment item?
Types of Negotiation
Following are two different types of negotiation:
Distributive Negotiation: In this form of negotiation, parties compete on the basis of fixed value. In other words, claiming for the most value" is the main issue of parties involved in this form of negotiation (Harvard Business School Press, 2005). It is also known as win log negotiation. In preparation of distributive negotiation, the objective of a seller is to achieve as high price and buyer is to achieve as low price as possible. Information plays a crucial role in this negotiation. Relationship is not considered in distributive negotiation. Individuals follow strategies like control the anchor point, share information in shrewd way, learning about other party and don't overshoot to win the negotiation situation in distributive negotiation.
Integrative Negotiation: In this type of negotiation, parties integrate their values to attain maximum benefits by showing cooperation. So, in this form of negotiation, value creation is centered along with claiming the value. It is also termed as win-win situation that is very rare. In preparation, individuals should be skilled enough to create and claim the value. Under strategies, individual follow two approaches. In first approach, value creation tactics are followed by the individuals. In second approach, maximum value ...
Distributive and integrative negotiations are examined. The development and implementation of a strategic supplier alliance which of these typpes would be most useful.