Announced Firm Negotiation Position - Essay Example

The Negotiation Process and Announced Negotiation Positions Negotiation is the process where the buyer and the seller do their own research by planning, reviewing, and analysing the current market and other relevant factors to be able to reach acceptable agreements or compromises. Negotiation normally begins with the firm’s original set of requirements for particular products or services and ends with a resolution of all issues that arose during the negotiation conference. However, announcing a firm negotiation position oftentimes causes misunderstandings.

Negotiation is frequently visualized as a nefarious means of avoiding competitive bidding and of awarding large contracts surreptitiously to favoured suppliers (University of Maryland). Sometimes, including the product price or service fee in the company portfolio listing may not be advantageous at all. In this case, the company’s weak side may be exposed to the buyer and may give a certain impression that may actually affect the buyer’s interest to the deal. To avoid such, both the buyer and the seller should research well not only on the current market but the social factors which affect the negotiation process.

For the seller, it is important to know the type of buyers to be able to adjust strategies during the negotiation process before announcing any negotiation position. More often than not, negotiation can actually be flexible for both parties. Metz reported that “the seller can bend to the time constraints and resource limitations of a particular buyer.” There are a handful of reasons a buyer would be highly interested to the offered deal. It can be his desire to the product’s innovative technology, or his interest in the company’s market position, or his confidence to the seller’s customer base.

Negotiation can be absolutely strategic if there is a diversity of buyers that range from a number of large firms to a few small buyers. The seller’s problem lies in the situation where there is only one or no buyer. This case may be used by the buyer to his advantage if he is the only buyer in the negotiation. During the negotiation process, defining your official standpoint or stance is of prime importance important before finally entering the process itself. This negotiation position, regardless you are the seller or the buyer, should be strongly defended by the negotiator during the negotiation process.

Practically, the main reason why many people can’t find a good agreement is that each has taken of his own announced position. Your negotiation position is determined by the interests in the contract that a certain party propose or put forward to their counterpart. There are several ways on how to determine the specifications of a negotiation position and the limits to where you can compromise your interest. The firm’s announcement of negotiation position may not be recommended if it will unravel some of the company’s previous activities that may have a negative feedback on the negotiation.

Also, the limits of the position to be announced should be given big consideration. ReferencesClopton, S. (1984). Seller and Buying Firm Factors Affecting Industrial Buyers’ Negotiation Behavior and Outcomes. Journal of Marketing Research Vol. 21 No. 1 Page 39. Retrieved from http://www.jstor.org/pss/3151791 Lever, J. (2006). Selling Your Business: The Negotiation Process. Connections Magazine. Retrieved from http://www.connectionsmagazine.com/articles/6/056.html Metz, T. (n.d.). Auction vs.

Negotiated Sale. Retrieved from http://www.tvmetz.com/articles/auction-negotiated-sale.htm Negotiation Interests and Positions. (n.d.). The Negotiation Experts. Retrieved from http://www.negotiations.com/articles/negotiation-interests/ Overview and Aspects of Negotiation. (n.d.). University of Maryland. Retrieved from http://polaris.umuc.edu/~bgoodale/admn628/0202/lesson8.html. Qualification of Buyers. (n.d.). Prime Acquisitions Group, Inc. Retrieved from http://www.prime-agi.com/qob.php