Negotiation refers to a process by which agreement and compromise are reached in order to settle differences. To achieve this, it is essential to create a plan on the expected outcome of this process to make sure you gain control and conduct an effective negotiation process. During the negotiation, process, persuasion techniques and leverage are used to ensure that the best deals are settled for both parties. The purpose of this negotiation is to establish the best price for a client to our printing business. The client who has been a regular buyer of our products and services has requested price adjustments in order to continue making use of our printing services on a regular basis. The desired outcome is to create a win-win situation for both the business and the customer. It is of the essence to ensure that both parties walk away from the negotiation process with a positive feeling about achieving their goals. This will ensure that our printing business retains a valuable customer and that the client continues to receive quality services at a better price.
For the printing business, our objectives include meeting our customer’s expectations on the quality of printing. Additionally, the company aims at achieving the highest percentage of annual sales in order to get high revenues and profits. Our clients are the priority, such that we seek to meet their requirements on time through a highly trained personnel. The end goal of the printing business is to make sure that we become the preferred choice for a company for printing services in this industry, On the other hand, our client seeks to purchase more printing from our business at a more affordable price. Although the customer recognizes our consistency in offering quality services, his only concern is the price.
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The client requires printing materials on a weekly basis and is looking forward to increasing his order if the company agrees to adjust the prices for the bigger supply. The interest of the printing business is to ensure that they retain a valuable company and at the same time increase their sales at a profitable rate. For the client, the only motivation in our business is the quality of printing service, which is of significant benefit to his work (Blavoukos, 2008). As such, he wants to continue purchasing these services at this particular business, at a lower price due to his increased demand.
The power of the printing business revolves around the fact they provide quality services, thereby becoming a preferred choice for this client. Moreover, consistent, timely deliveries are made according to the customer’s requirement. Therefore, there are no complaints from the client on products and services received. On the other hand, the client purchases the printing services on a regular basis; as such, he brings significant revenue to the company. In addition, he seeks to increase the order of printing products and services in the printing business (Bjurulf, & Elgström, 2004). Therefore, he will help the company in accomplishing their objectives in terms of increased sales in the firm. It is evident that every side has its strengths and at the same time depends on the other party for its success.
In case, both parties fail to agree during the negotiation, then the result will have been a lose-lose situation. Essentially because, the printing business will not agree to supply printing products and services to this particular client at low prices, which cannot generate them enough revenue and profit. Agreeing to such a situation will lead to incurring losses for the printing business and will not be able to provide quality products and services. For the client, he needs to make sure he gets a better price for increasing the order of products and services. Also, he has to ensure that the price he agrees to do not hurt his work in a negative way leading to losses. As such, if the prices are not affordable, he will not agree to the terms, and the result of negotiation will be a lose-lose situation
There are several ethical issues that should be put into considerations to ensure a fair and effective negotiation process and as such, to also to manage any conflicts that may bedevil the negotiation process. Firstly, both parties must be present and should not withhold any information in the negotiation table. Moreover, neither of the two sides should employ coercive tactics in order to win against the other; both parties should work towards winning for each team. At the end of negotiations, both parties should determine the effects of the agreements with each party and whether they are fair to all sides (Blavoukos, 2008). The printing business free to select the members they want to represent in the process. This could be on the basis of knowledge and negotiate skills of the various members. The client is also allowed to bring an assistance or expert in the negotiating table to help him bargain for the best deal.
The recommended negotiation strategy is integrative bargaining, which will ensure that both parties collaborate to achieve a win-win solution to the current situation. The goals and aims of both sides are integrated through creative and collaborative problem solving to come up with mutually beneficial agreements based on their interests. This strategy focuses on the value creation for all parties involved in order to yield considerable gains to each party. As such, parties must be willing to make trade-offs on various issues so that each party is satisfied with the outcome (Bjurulf, & Elgström, 2004). Two tactics involved in the integrative negotiation that makes it successful include clear and accurate communication, and motivation and commitment to work together through trust. These strategies ensure that negotiation process will seek to achieve a mutually acceptable joint solution. In addition, working together will lead to a more successful integrative negotiation as parties will be willing to collaborate to reach beneficial agreement.
There are two main ways to any negotiation process namely; integrative and distributive strategies. Although each is useful in various contexts, the two have different outcomes depending on the goal of negotiation. Integrative negotiation occurs when it is possible to produce a mutual agreement that benefits the parties involved. It is useful when parties are seeking to establish a relationship; parties should share information without withholding, honestly share priorities, be willing to compromise for the good of all. The result is a win-win situation for all sides involved in the negotiations (Blavoukos, 2008). On the other hand, distributive negotiation is appropriate in a win-lose situation where there is a division of scarce resources. Here, the parties do not know each other and as such, parties do not share information regarding their priorities and alternatives. However, all those involved in negotiations should be willing to make concessions to help them reach a realistic outcome.
References
Blavoukos, S. (January 01, 2008). Negotiating in stages: National positions and the reform of the Stability and Growth Pact. European Journal of Leadership and Management, 47, 2, 247-267.
Bjurulf, B., & Elgström, O. (January 01, 2004). Negotiating transparency: The role of institutions. Journal of Common Market Studies, 42, 2, 249-269.
