Due to the complexity of the modern business environment, the element of negotiation is a constant process. It defines and establishes contractual rights; duties and obligations of parties; it governs the deployment of proprietary technology and processes and guards IP rights. It forms the basis of relationships between multi-cultural stakeholders and serves as a mechanism to resolve conflict and disputes. It is therefore, both essential and of critical importance in the commercial world. It is important to remember that not all negotiation is a formal, structured process – sometimes informal networks and the strength of relationships can be tremendously powerful.
Commercial Negotiation is a process between two or more parties involving a product or service and the bargaining of its price. It involves communicating the goals and interests of each party in order to reach with an agreement resulting mutually beneficial solutions. It is essential for the daily transactions of a business and helps in dealing with problems and managing future conflicts.
Effective negotiations ensure success of the business through:
Building better and long term relationship with customers and suppliers or stakeholders
Lower costs of raw materials, products and services from suppliers
Win customers’ loyalty and create business
Creates new opportunities or widen you sales coverage
There are complex set of skills that one needs in order to influence others and achieve his goals to win the business. The negotiator needs to be quick thinking and adaptable, they need to possess superlative communicative abilities, they need to be facilitators, problem solvers and above all they must understand people and what motivates and/or drives them within different situational environments and contexts. Further, one must gain confidence; charisma; the ability to ‘ad lib’ – thinking on ones feet; ability to assimilate complex and varied information; focus on the ‘core’ – processing information in a dynamic; high pressure environment to achieve effective negotiation.
One must understand the significant factors that could affect the negotiation process. Thus, knowing the environment within which the negotiation will occur; setting of the agenda – goals and objectives clearly; considering the needs of the other parties and having an insight of the market or organization; preparing for the strategies and tactics and planning for contingencies are the things you need to consider prior engaging in a negotiation.
There are several “intangibles” that can also affect the outcome of a negotiation. Some of which are:
The differences between the perspectives and attitudes / personalities based on their gender
Understanding non-verbal communication – facial expressions and body language.
Physical appearance and dress
Effective communication and comprehension
Organizational / national culture
Establishing and maintaining control / trust
To learn more and register, visit us at http://www.ctsolutionsglobal.com/advanced-commercial-negotiations
References: Christopher Lennon and Queensland Government