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Tài liệu tiếng Anh thương mại quản lý Chapter 16 Negotiation

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16-1
Chapter 16
Negotiation
16-2
Key Concepts

Objectives of Negotiation
»
Quality
»
Fair and Reasonable Price
»
On-time Performance
»
Control
»
Cooperation
»
Supplier Relationship Management

When to Negotiate
16-3
Key Concepts

Supply Management’s Role in Negotiation
»
The Supply Management Professional Acting Alone
»
The Supply Management Professional as the Negotiating Team Leader

The Negotiation Process


»
Preparation
»
Establishing Objectives
»
Identify the Desired Type of Relationship

Three Powerful Preparation Activities
16-4
Key Concepts

Face-to-Face Discussions
»
Fact Finding
»
Recess
»
Narrowing the Differences
»
Hard Bargaining

Techniques
»
Universally Applicable Techniques
»
Transactional Techniques
»
Collaborative and Alliance Negotiating Techniques

The Debriefing: An Incredible Learning Opportunity


Documentation
16-5
Key Concepts

Online Negotiation

Negotiating for Price
»
Price Analysis Negotiation
»
Cost Analysis Negotiation

Characteristics of a Successful Negotiator
16-6
Objectives of Negotiation

Quality

Fair and responsible price

On-time performance

Control

Cooperation

Supplier relationship management
16-7
When to Negotiate


When any of the five prerequisite criteria for competitive bidding are
absent

When many variable factors bear not only on price but also on quality
and service

When early supplier involvement is employed

When the business risks and costs cannot be predetermined

When a customer firm is contracting for a portion of the seller's
production capacity
16-8
When to Negotiate

When tooling and setup costs represent a large percentage of the
supplier's total costs

When a long period of time is required to produce the items purchased

When production is interrupted frequently because of numerous change
orders

When a thorough analysis is required to solve a difficult make‑or‑buy
decision

When the products of a specific supplier are desired to the exclusion of
others
16-9

Supply Management’s Role in Negotiation

The Supply Management Professional Acting Alone

The Supply Management Professional as the Negotiating Team Leader
16-10
Bidding or Negotiation?

Recall the prerequisites to bidding…
»
Dollar value must be large
»
Specifications must be clear
»
Market must consist of an adequate number of sellers
»
Sellers must be qualified and want the contract
»
Time available must be sufficient

If any of these are not true, then negotiation is the best choice
16-11
Conditions Demanding Negotiation

Impossible to estimate costs with a high degree of certainty

Price is not the only important variable

Purchasing firm anticipates a need to make changes in the specification


Special tooling of setup costs are major factors
16-12
Even if the previous list is met…
here are two arguments for Negotiation

The negotiation process is far more likely to lead to a complete understanding of all
issues of the procurement

Competitive bidding tends to result in sacrifices in product quality, development
efforts, and other vital services
16-13
Negotiation Teams

Cross functional members

Supply manager frequently serves as leader

Overall strategy is required

Roles are defined

Mock negotiations are needed
16-14
The Negotiation Process
1. Preparation
2. Establishment of objectives
3. Face to face discussions
16-15
Preparation


90% of the time involved in a successful negotiation is invested in
preparation

The negotiator must:
»
Possess a technical understanding of the item or service
»
Analyze the relative bargaining positions of both parties
»
Have conducted a price or cost analysis
»
Know the seller
»
Be aware of cultural nuances
»
Be thoroughly prepared
16-16
Determinates of the Seller’s Bargaining Strength
1. How badly the seller wants the contract
2. How certain he or she feels of getting it
3. How much time is available to reach agreement on suitable terms
16-17
Establishing Objectives Related to Cost Positions

An objective position
»
Best estimate of what the seller's actual costs plus a fair profit should be

A minimum position
»

Developed on the premise that every required seller action will turn out
satisfactorily and with minimum cost

A maximum position
»
Developed on the premise a large number of required seller actions will turn out
unsatisfactorily and with maximum cost
16-18
Traditional Cost Objectives

Quantity of labor

Wage rates

Quantity of materials

Prices of materials

Factory overhead

Engineering expense

Tooling expense

Administrative expense
16-19
Non-Cost Objectives

All technical aspects of the purchase


Types of materials and substitutes

Buyer‑furnished material and equipment

The mode of transportation

Warranty terms and conditions

Payment terms (including discount provisions)

Liability for claims and damage

F.O.B. point

General terms and conditions

Details on how a service is to be performed
16-20
Other Objectives

Progress reports

Production control plans

Escalation/de‑escalation provisions

Incentive arrangements

Patents and infringement protection


Packaging

Title to special tools and equipment

Disposition of damaged goods and off‑spec (non-conforming) materials
16-21
Identify the Desired Type of Relationship

The three primary approaches presented earlier in the book in Chapter 4
are:
»
Transactional
»
Collaborative
»
Alliance

The desired type or relationship is strongly related to the negotiation
tactics a negotiator should and should not use
16-22
Five Powerful Preparation Activities

The BATNA

The Agenda

“Murder Boards” and Mock Negotiations

Crib Sheets


Draft Agreements
16-23
Face-to-Face Discussions

Fact Finding

Recess

Narrowing the Differences

Hard Bargaining
16-24
Universally Applicable Techniques

Getting to Know You

Use Diversions

Use Questions Effectively

Use Positive Statements

Be a Good Listener

Be Considerate of Sellers
16-25
Transactional Techniques

Keep the Initiative


Never Give Anything Away

Frame the question

The Dynamics of a Transactional Negotiation

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