PURPOSE OF NEGOTIATION 4 Theodore Hickman Instructor: Johnny Maddox Unit 3 IP SCM340 1703A-01 16 July 2017 Power and leverage Sources of power What leverage or power can people apply to achieve their goals? The buyer of the plastics has power considering that it’s the company that is need of the materials. In other words, the fact that the business can decide to buy or not proves that it has the power to make its choices. Therefore, it has the power to bargain with the use of its financial capability. Moreover, the company has the authority to purchase the goods from another firm based on the fact that it is not mandatory to buy from the same firm that it has entered into the negotiation process. Also, the supplier has power considering that it is in possession of the goods that are required for the manufacturing process. Therefore, if it decides not to sell the goods, the buyer will face difficulties when it comes to where to acquire the goods. Also, the supplier’s power can be earned through the provision of high-quality raw materials that are in a position to attain the production of products that are of the highest quality possible. Power and influence Define power and influence in the negotiation process. Power refers to the ability to influence parties in the bargaining process to do according to your will (Zartman, & Rubin, 2000). In other words, power is the activity by which one party can make use of its knowledge and bargaining skills to influence the other parties to do what it wants. For instance, where the supplier decides to convince the buyer that the goods are of good quality and assure the buyer that the goods are going to him best so as to end up purchasing the goods. The word influence in the negotiation process refers to the situation by which people are not forced to do something. It is the use of the available information and knowledge to convince the one party to do something at their own will without having to use force. Describe at least two sources of power and influence in negotiations. Some of the sources of power include the position at which the organization is placed. For instance, the supplier can be holding the top position in the industry that allows the other firms to believe that they products are of better quality than any other organization in the same industry. Also, knowledge is another source of influence and power that arises with the initiation of the same knowledge to win over something. People gain knowledge that can be used to act as power during the negotiation processes by researching and going through a wide variety of data so as to acquire the statistics and facts that are related to a particular situation. Walk-away alternative Best alternative to negotiated agreement (BATNA) BATNA suggests that the organizations should go for the choice that provides the highest level of benefits when agreement becomes a problem (Winkler, 2006). It is required that t ...

1. PURPOSE OF NEGOTIATION
4
Theodore Hickman
Instructor: Johnny Maddox
Unit 3 IP
SCM340 1703A-01
16 July 2017
Power and leverage
Sources of power
What leverage or power can people apply to achieve their goals?
The buyer of the plastics has power considering that it’s the
company that is need of the materials. In other words, the fact
that the business can decide to buy or not proves that it has the
power to make its choices. Therefore, it has the power to
bargain with the use of its financial capability. Moreover, the
company has the authority to purchase the goods from another
firm based on the fact that it is not mandatory to buy from the
same firm that it has entered into the negotiation process. Also,
the supplier has power considering that it is in possession of the
goods that are required for the manufacturing process.
Therefore, if it decides not to sell the goods, the buyer will face
difficulties when it comes to where to acquire the goods. Also,
the supplier’s power can be earned through the provision of
high-quality raw materials that are in a position to attain the
production of products that are of the highest quality possible.
Power and influence Define power and influence in the

2. negotiation process.
Power refers to the ability to influence parties in the bargaining
process to do according to your will (Zartman, & Rubin, 2000).
In other words, power is the activity by which one party can
make use of its knowledge and bargaining skills to influence the
other parties to do what it wants. For instance, where the
supplier decides to convince the buyer that the goods are of
good quality and assure the buyer that the goods are going to
him best so as to end up purchasing the goods. The word
influence in the negotiation process refers to the situation by
which people are not forced to do something. It is the use of the
available information and knowledge to convince the one party
to do something at their own will without having to use force.
Describe at least two sources of power and influence in
negotiations.
Some of the sources of power include the position at which the
organization is placed. For instance, the supplier can be holding
the top position in the industry that allows the other firms to
believe that they products are of better quality than any other
organization in the same industry. Also, knowledge is another
source of influence and power that arises with the initiation of
the same knowledge to win over something. People gain
knowledge that can be used to act as power during the
negotiation processes by researching and going through a wide
variety of data so as to acquire the statistics and facts that are
related to a particular situation.
Walk-away alternative
Best alternative to negotiated agreement (BATNA)

3. BATNA suggests that the organizations should go for the choice
that provides the highest level of benefits when agreement
becomes a problem (Winkler, 2006). It is required that the
parties should adopt the best choice that they will agree. During
negotiations, it is necessary that the parties have to come up
with different suggestions and ideas that can be used to perform
the task in hand. Alternatives come from the two parties. In
other words, no specific party has the mandate of selecting the
best option that should be adopted. It results in a situation
where the parties involved have to intimately understand their
options and take the time to analyze them. It is because
different options contribute to different results. Therefore, it is
required that the parties should take the time to research the
options based on their outcomes once adopted. Once the choices
have been investigated, it becomes the responsibility of the
parties to rank the choices according to their outcomes
beginning with the one that has the highest results possible.
Therefore, the company is expected to select the prices that
when adopted will allow the two companies to benefit and
continually appreciate their relationship.
Discuss options and alternatives to agreements.
Some of the options that are available when conducting
negotiations include the acceptance of the different choices and
suggestions that are raised. In other words, the parties can
decide to accept what they have discussed together considering
that the choice is of great value to them. Also, the parties have
the mandate of rejecting the offers and decisions that are raised
during the negotiation process. Rejection is a walk away
alternative that suggests that the party that does not feel to
appreciate the decision can walk away by rejecting the offer.
Negotiation processes do not force any of the parties to accept
all the offers that are raised. All the parties have the right to

4. forget about the offer and search for other better choices.
Discuss 2–3 tough or hardball negotiation tactics.
Some of the hardball negotiation tactics include the commitment
tactics that arise when opponents tend to provide extreme
demands that are known to do away with one's expectations
(Gelfand, & Brett, 2004). It is required that one should be ready
to support his claims and do not all the other opponent to use
his aggressiveness to win over him. The other tactic is the take-
it-or-leave-it offers which are meant to prove that negotiations
are limited. Therefore, it is necessary that one takes the time
view the constituents of the offer and not the demand.
References
Gelfand, M. & Brett, J. (2004). The handbook of negotiation
and culture. Stanford, Calif: Stanford Business Books.
Winkler, K. (2006). Negotiations with Asymmetrical
Distribution of Power: Conclusions from Dispute Resolution in
Network Industries. Heidelberg: Physica-Verlag.
Zartman, I. & Rubin, J. (2000). Power and Negotiation. Ann
Arbor: University of Michigan Press.
PURPOSE OF NEGOTIATION
1
Theodore Hickman
Instructor: Johnny Maddox
Unit 2 IP
SCM340 1703A-01
11 July 2017
Negotiation strategy

5. Pertinent information
It is evident that for the negotiation process to turn out
successful, written communication should be adopted. Written
communication has been identified with different advantages
that consist of ensuring that the parties take their time to
evaluate the best arguments that they should post. Also, it is
probable that with the initiation of the written communication,
the parties will be placed in a better position to maintain an
effective communication process (Gelfand, & Brett, 2004).
Therefore, effective communication will allow the parties to
control and maintain their relationship in a manner that they
will all be willing to comment on other party’s suggestions and
ideas.
Relationships and interdependence
Good relationships are of great assistance to the parties. It is
because if they are in a position to relate well, the companies
will ensure that the decisions that are made are bound to benefit
each side equally. In other words, the creation of good
relationships is meant to allow the parties to act fairly and
equally in a manner that will allow them to resolve their
differences. Therefore, regardless the fact that each party is
focused on benefiting from the negotiation process, they need to
be interrelated as they work towards coming up with the best
decision that will meet their interests.
Discuss the importance of relationships in negotiations.
Therefore, it is made clear that good relationships are
advantageous when conducting the negotiation processes. The

6. primary reason for this is that the good relationships can be
used by the parties to resolve any conflicts that may have
occurred in the past (Gosselin, 2007). Also, negotiations are
effective when each party allows the other party to make their
suggestions without having to limit them. Also, good
relationships provide that each party has equal power and rights
when it comes making decisions. Therefore, good relationships
allow the parties to take the time to discuss and agree on the
best solution that will result in positive effects for both parties.
Describe at least two tactics for managing conflict in
negotiations.
Conflict management refers to the situation by which parties
make sure that they do not end up fighting and disagreeing as
they decide on the best choice to select. The best tactics that
can be used to eliminate cases of conflicts in negotiations
include allowing each party to take part in the decision-making
process. The parties should agree that each party has the right to
leave if it does not agree to the terms and conditions that have
been set. It allows the parties to be assured that the negotiation
process does not benefit one side but will of assistance to the
two sides. Conflicts can also be reduced through the struggle of
forming good relationships between the parties.
Interests, desires, and motivations
My party’s motivation is to ensure that the materials to be used
in the manufacturing process are acquired at the lowest price
possible. It is determined to ensure that the cost of production is
reduced. The other party’s motivation is to ensure that the
plastics are used at a price that will help it to earn high profits.
In other words, the other party is determined on ensuring that it
earns high revenue from the sale of the plastics. The other party

7. is obliged to reject an offer to sell the materials at a low price
since that would suggest that it will make a low profit.
Strategy and tactics
Strategy and tactics refer to the methods and plans that are put
in place to ensure that success is earned. The strategy that can
be used is to provide information to the two parties that the best
way to conduct the negotiation process is by understanding that
each party has to benefit. In other words, the parties should be
willing to drop their interests and work on fulfilling a common
goal. The parties should begin by taking note of all the
available choices and work together to choose the best course of
action. Also, they parties should select the prices and
commission that are reasonable.
Compare and contrast distributive and integrative negotiations.
Both distributive and integrative negotiations are similar
because they are meant to come with the best outcome when
conducting a negotiation process. They are both influenced by
the desired goal of the negotiator. However, they are different
because distributive negotiation occurs at a specific time while
integrative negotiation is bound to occur as a continuous
process. For instance, distributive negotiation is used by people
when seeking for a discount during a business transaction while
integrative negotiation is used to allow children to sleep at a
specific time daily.
Discuss at least two integrative negotiation skills or tactics.
Integrative negotiation is used in a situation where it is possible
to attain a better outcome when people work together than when

8. they work alone (Raiffa, Richardson, & Metcalfe, 2002).
Integrative tactics include taking the time to evaluate one’s
interests and the other party’s interests so as to know how to
work together. Also, it requires the sharing of information and
data between the parties and making sure that they remain
honest with each other. Moreover, one party should be willing
to offer solutions that will provide the most value possible to
the other party. The different parties should understand that it is
not the end of the relationships and that they will have more
issues to handle in the future that require them to assist one
another.
References
Gelfand, M. & Brett, J. (2004). The handbook of negotiation
and culture. Stanford, Calif: Stanford Business Books.
Gosselin, T. (2007). Practical negotiating: tools, tactics, &
techniques. Hoboken, N.J: John Wiley & Sons.
Raiffa, H., Richardson, J. & Metcalfe, D. (2002). Negotiation
analysis: the science and art of collaborative decision making.
Cambridge, MA: Belknap Press of Harvard University Press.
Negotiation Strategy Planning Template
Purpose of Negotiation
(Price, Commission, Price Improvement, etc.)
Characteristics of negotiations
Some of the features that are involved in the negotiation
process include the presence of a minimum of two parties, the
parties always have different goals that they are determined to
attain, and the goals by each of the party are meant to conflict
with the other party’s goals. Also, the different parties are
ascertained that they will manage to come up with a particular
outcome that will satisfy their needs.
Discuss the purpose of negotiations in the supply chain.
Some of the reasons for conducting negotiations
concerning the supply chain are so as to make sure that the
parties come up with an amicable solution that is related to the

9. price of the different commodities (Dudek, 2004). Also,
different parties tend to come into negotiations as a way of
discussing the commission that should be offered when a certain
amount of goods is purchased. Moreover, the negotiations are
meant to provide an opportunity to improve the price preceding
that includes understanding how to improve the quality of goods
so as to increase the prices.
Discuss at least two situations where negotiation is appropriate.
Negotiation can be adopted when trying to educate workers
on the best ways to improve the performance of the business.
The negotiation process is meant to help the organization to
obtain various strategies that can be involved in the current
operations to acquire improved performance. Also, it can be
used when buyers and suppliers are discussing the prices of the
different commodities. Therefore, the negotiation can help the
buyer to request for a commission with the purchase of different
goods.
Discuss at least two common negotiation situations.
Negotiations are common when organizations are trying to
discuss and choose the best individuals for the vacant positions.
The management team enters into negotiations processes to
select the best individuals that are fit for different duties in the
firms (Monczka, Handfield, Giunipero, & Giunipero, 2015). The
main idea behind the negotiation activities is to be in a position
to go through the applicants’ qualifications and abilities. It
helps the firm to choose the highly-skilled professionals that
will act appropriately.
Desired outcome
(identify your organizations goals and objectives)
Discuss the desired outcomes of your organization.
With the negotiation process in place, the organization will
manage to come to an agreement with the supplier of the
plastics. If the organization takes the time to plan for the
negotiation process, it will make sure that the plastics are sold
at a reduced price. Therefore, it will allow the firm to acquire

10. the goods at a lower price suggesting that it will incur increased
levels of profits. Also, effective negotiation processes will
allow the organization to build good relationships with the
supplier. With this in place, the organization will always be in a
position to acquire a continued and regular supply of the raw
materials. It will, therefore, manage to attain a continuous
production activity enabling it to meet the market demand.
Discuss the importance of identifying the organization's goals
and objectives as a part of negotiation planning.
The identification of the organizational goals is essential
when it comes to the alignment of the activities associated with
the negotiation process (Siedel, 2014). In other words, the
identification of the organizational objectives allows the
management team to be in a position to lay down the different
strategies that will help it to meet the objectives. With the
implementation of objectives, an effective team is selected to
ensure that the manufacturing process turns out to achieve the
desired results. Therefore, organizational goals and objectives
have different advantages to the firm.
Define and describe the term most desirable outcome (MDO).
The most desirable outcome is the specific outcome that is
the most important to the organization when it decides to
implement different strategies. For instance, when an
organization decides to conduct the negotiation process, there is
what drives it to carry out the different activities. What the
organization intends to achieve from the negotiation process is
what is called the most desirable outcome. It is because it is the
main target of the firm and with the attainment of the goal; the
organization can be termed to be successful. Therefore, for this
case, the most desired outcome from the negotiation process can
be improved price decisions.
Pertinent information
(What facts do I have for both parties that support my
proposal?)
Pertinent information

11. It is evident that for the negotiation process to turn out
successful, written communication should be adopted. Written
communication has been identified with different advantages
that consist of ensuring that the parties take their time to
evaluate the best arguments that they should post. Also, it is
probable that with the initiation of the written communication,
the parties will be placed in a better position to maintain an
effective communication process (Gelfand, & Brett, 2004).
Therefore, effective communication will allow the parties to
control and maintain their relationship in a manner that they
will all be willing to comment on other party’s suggestions and
ideas.
Relationships and interdependence
Good relationships are of great assistance to the parties. It
is because if they are in a position to relate well, the companies
will ensure that the decisions that are made are bound to benefit
each side equally. In other words, the creation of good
relationships is meant to allow the parties to act fairly and
equally in a manner that will allow them to resolve their
differences. Therefore, regardless the fact that each party is
focused on benefiting from the negotiation process, they need to
be interrelated as they work towards coming up with the best
decision that will meet their interests.
Discuss the importance of relationships in negotiations.
Therefore, it is made clear that good relationships are
advantageous when conducting the negotiation processes. The
primary reason for this is that the good relationships can be
used by the parties to resolve any conflicts that may have
occurred in the past (Gosselin, 2007). Also, negotiations are
effective when each party allows the other party to make their
suggestions without having to limit them. Also, good
relationships provide that each party has equal power and rights
when it comes making decisions. Therefore, good relationships
allow the parties to take the time to discuss and agree on the
best solution that will result in positive effects for both parties.
Describe at least two tactics for managing conflict in

12. negotiations.
Conflict management refers to the situation by which
parties make sure that they do not end up fighting and
disagreeing as they decide on the best choice to select. The best
tactics that can be used to eliminate cases of conflicts in
negotiations include allowing each party to take part in the
decision-making process. The parties should agree that each
party has the right to leave if it does not agree to the terms and
conditions that have been set. It allows the parties to be assured
that the negotiation process does not benefit one side but will of
assistance to the two sides. Conflicts can also be reduced
through the struggle of forming good relationships between the
parties.
Interests/desires/motivations
(What are my party’s motivations? What are the other party’s
motivations? What do I anticipate the other party will object
to?)
Interests, desires, and motivations
My party’s motivation is to ensure that the materials to be
used in the manufacturing process are acquired at the lowest
price possible. It is determined to ensure that the cost of
production is reduced. The other party’s motivation is to ensure
that the plastics are used at a price that will help it to earn high
profits. In other words, the other party is determined on
ensuring that it earns high revenue from the sale of the plastics.
The other party is obliged to reject an offer to sell the materials
at a low price since that would suggest that it will make a low
profit.
Strategy and tactics
Strategy and tactics refer to the methods and plans that are
put in place to ensure that success is earned. The strategy that
can be used is to provide information to the two parties that the
best way to conduct the negotiation process is by understanding
that each party has to benefit. In other words, the parties should
be willing to drop their interests and work on fulfilling a

13. common goal. The parties should begin by taking note of all the
available choices and work together to choose the best course of
action. Also, they parties should select the prices and
commission that are reasonable.
Compare and contrast distributive and integrative negotiations.
Both distributive and integrative negotiations are similar
because they are meant to come with the best outcome when
conducting a negotiation process. They are both influenced by
the desired goal of the negotiator. However, they are different
because distributive negotiation occurs at a specific time while
integrative negotiation is bound to occur as a continuous
process. For instance, distributive negotiation is used by people
when seeking for a discount during a business transaction while
integrative negotiation is used to allow children to sleep at a
specific time daily.
Discuss at least two integrative negotiation skills or tactics.
Integrative negotiation is used in a situation where it is
possible to attain a better outcome when people work together
than when they work alone (Raiffa, Richardson, & Metcalfe,
2002). Integrative tactics include taking the time to evaluate
one’s interests and the other party’s interests so as to know how
to work together. Also, it requires the sharing of information
and data between the parties and making sure that they remain
honest with each other. Moreover, one party should be willing
to offer solutions that will provide the most value possible to
the other party. The different parties should understand that it is
not the end of the relationships and that they will have more
issues to handle in the future that require them to assist one
another.
Sources of Power
(What is my power? What is the other party’s power?)
Walk-Away Alternative
(If we can’t come to agreement, what then?)
Ethical Considerations
(What are the ethical pitfalls or morally ambiguous issues)

14. Negotiation Team
(Roles & Responsibilities)
Recommended Negotiation Strategy
(identify your preferred Negotiation Strategy)
5