Key Approaches of the Negotiation Process - Essay Example

Negotiation Process Table of Contents Table of Contents 2 Introduction 3 Key Approaches of the Negotiation Process 3 Evaluation of Equipments produced by Competitors 4 Two Potential USPs of the Product 4 Essential Steps for the Negotiation Process 5 Analysis of Two Negotiation Gambits 5 Major Reasons for the Negotiator to write the Contract 6 Two Reasons for not allowing Industry Members in writing the Contract 6 Body Language Attributes needed during the Negotiation Process 7 Conclusion 7 References 8 Introduction The paper focuses on the expansion of the market for a GPS enabled guide product produced by SensoMat limited such that it helps in meeting the needs of different stakeholder and investors to the company through rightly meeting the objectives of the negotiation process. The GPS Guide produced by SensoMat would also be analyzed based on the different needs and interests of the stakeholder groups and customers depending on the nature of sophistication generated in the products. Competitive analysis of the product would be carried out through comparing the benefits generated with that of the other stakeholder groups. The potential process for carrying out the negotiation activity to generate a win-win situation for the two parties would also be reflected while the different drawbacks relating to the meeting of the negotiation process and ways of countering such would also be rightly dealt with in the paper. Key Approaches of the Negotiation Process A key approach pertaining to the negotiation process that would contribute in researching the negotiators of the government and the potential of government’s operation related to the development and procurement of GPS product can be identified as the Integrative or the Interest-Based Bargaining approach. The Interest-Based Bargaining Approach contributes in generating a collaborative approach such that both the parties to the negotiation aim in understanding others’ needs to help in generating a win-win situation. Use of Interest-Based or Integrative Bargaining approach helps in building of trust between the different parties to the negotiation process such that the same helps in understanding the interests and potential of the other party to the negotiation agreement (Spangler, 2003). Evaluation of Equipments produced by Competitors Garmin Ltd. operating in United States can be considered as a key competitor relating to the production of small GPS Guidance Equipment. The GPS Products produced by the company contribute in providing street navigation advantages for automobile and motorcycle drivers. Similarly the company also provides navigation facilities for trucks and also helps in planning for trips. The GPS products contribute in generating effective navigation facilities in terms generating effective information and 3D imagery pertaining to landmarks, important buildings and also street names. GPS products produced by Garmin Ltd. are enabled with speech technology and also help in generation of real maps helping in generating effective directions to the drivers. Similarly the GPS products are also enabled with effective features that get linked to Smartphone and also Bluetooth devices thereby enabling drivers for hands-free calling (Garmin Ltd. , 2014). Two Potential USPs of the Product Potential Unique Selling Proposition (USPs) relating to the GPS Guided Guidance Equipments manufactured by SensoMat Ltd. can be identified both in terms of the quality and price parameters of the product. In terms of quality parameters the GPS gadgets generate multiple benefits to the consumers both in terms of generating 3D images of the external environment such that it helps in identifying potential obstructions and also other topographical features. The use of the GPS enabled guiding systems are meant for self allocation and installation with the trucks and other vehicles for helping in the meeting of both shprt and long term needs of the company . Relating to price parameters SensoMat focuses on using the segmented pricing strategy for its products such that higher prices are fixed for GPS products meant for automobiles and trucks while low priced products are generated for use in bikes and cycles. Value for money is generated by the company in terms of providing effective maps that can be printed through linking the device with printing devices through use of Bluetooth. Essential Steps for the Negotiation Process The first step relating to the negotiation process relates to the identification of the problem or opportunity that would help SensoMat is marketing its GPS Guided Guidance Equipments to the Federal Government. The problem or opportunity to be identified relates to the need of the Federal Government to help in developing driverless convoys that would help in transportation of goods and supply products. Identification of the above problem would contribute in enhancing the interests of the Federal Government Department to procure and try the product. Similarly it would also help the company negotiators to rightly prioritize on the advantages and benefits to help in meeting the needs of its stakeholders. The second stage would involve the development of effective consultation with the prospective consumers and buyers of the GPS product. The consultation phase can be enhanced through the development of effective presentations about the product to the government such that it helps in generating potential support for marketing the same to the concerned department (United Nations, 2005). Analysis of Two Negotiation Gambits Two specific gambits can be put in place by the negotiators of SensoMat to help in generating success relating to the negotiation. The negotiators need to appeal to the ego of the buying or procuring team of the Federal Government by rightly indicating on the different benefits and advantages that can be gained by the government department in terms of buying the product. The above strategy would make the government department figure a win-win situation which would encourage them in buying the product. The second gambit that can be used relates to the use of concessions and rebates for helping in attracting the mindset of the government department in purchasing the GPS Guidance Equipments in quantifiable volumes. This gambit can be exercised by the negotiators such that the negotiators are assured of the potential and position of the government department in buying the product (Duening, Hisrich, & Lechter, 2009). Major Reasons for the Negotiator to write the Contract The negotiator needs to draft the contract such that it serves as a written agreement reflecting on the needs and interests of the company independent of the representation of the external stakeholders. Drafting of a written contract thus helps the company in defining relationship with the external stakeholders to the business corporation. Further the generation of written contracts also helps in resolving of conflicts relating to the conducting of trade activities with other business partners and stakeholder groups. Reducing of business conflicts thus helps in conducting of business activities in a harmonic fashion which adds to the business productivity and profitability dimension (Rogers, 2010). Two Reasons for not allowing Industry Members in writing the Contract The needs and interests of companies relating to drafting of contract tend to vary from company to company. Thus it is required for the companies to draft individual contracts that help in suiting their business and stakeholder needs. Employing of industry members in writing down a contract fails to serve the needed purpose in that it reflects on a generalist tone that fails in meeting the specific company objectives. Further the employment of industry members in writing down the contract also fails to serve the needs and interests of the stakeholder groups to the different companies. Failure to meet the needs and interests of the stakeholder groups thus requires the business organization to not to depend on the industry members in writing down the elements of the business contract (Park, 2010). Body Language Attributes needed during the Negotiation Process Body language or the non-verbal communication activity that are needed to generate success in the negotiation process can be underlined as under. The negotiator is required to reflect effective kinesics through the presentation of effective facial expressions and also other non-verbal communication activities like use of effective gestures and postures to help in making the stakeholders understand the terms of the contract. Different types of gestures and postures employed by the negotiator tend to convey different types of meanings to the stakeholder groups pertaining to the contract. The same helps in resolving of potential conflicts emanating in the minds of different stakeholder to the business (Hill, International Business: Managing Globalization, 2009). Conclusion The paper tends to study the need and the pattern of forming business contracts at the hands of different contractors. It tends to reflect on the contents of the different business contracts that tend to satisfy the needs of the company and the different stakeholder groups. Further the manner in which the non-verbal communication is required to be practiced by the negotiators in helping in the implementation of the contract at the behest of the stakeholder groups and other interested parties to the contract. Similarly the steps required for conducting the business contract is also effectively elucidated in the paper while also reflecting on the gambits or strategies that need to be used by the negotiator to generate a win-win –situation for both the company and the government at large. Both place and time related to the implementation of the contractual guidelines are potentially evaluated in the paper with also indicating on the reasons as to the reason for writing of contracts based on the needs of different stakeholder and interest groups relating to the formation of the business contract. References Duening, T. N., Hisrich, R. A., & Lechter, M. A. (2009). Technology Entrepreneurship: Creating, Capturing, and Protecting Value. United States : Academic Press. Garmin Ltd. (2014). Real Navigation. Retrieved September 2, 2014, from http://sites.garmin.com/nuvi/#features Hill, J. S. (2009). International Business: Managing Globalization. United Kingdom SAGE. Hill, J. S. (U). International Business: Managing Globalization. Park, J. H. (2010). Patents and Industry Standards. United Kingdom: Edward Elgar Publishing. Rogers, W. (2010). The Professional Practice of Landscape Architecture: A Complete Guide to Starting and Running Your Own Firm. United Kingdom : John Wiley & Sons. Spangler, B. (2003). Integrative or Interest-Based Bargaining. Retrieved September 2, 2014, from http://www.beyondintractability.org/essay/interest-based-bargaining United Nations. (2005). Asia-Pacific Trade and Investment Review, April 2005, Volume 1, Issue 1. Thailand: United Nations Publications. Read More