Commercial Negotiation
an exploration of negotiation
its concepts and techniques
and the financial consequences
The Task
• Work as groups of buyers & sellers
• Plan your strategy aided by a
computer model
• Negotiate
• Reach a WIN-WIN agreement
Time Table
• Familiarisation & planning
• Information gathering meeting
• Preparation of initial proposal
• Initial negotiation
• Modification of proposals
• Final negotiation
• Review & discussion
The Situation
• Board Negotiation
• New Relationship (initiated by buyers)
• No Current Competitor (new purchase)
• Generalised & Simplified
But
• A Specific Business
– A supermarket chain
– A brewery
– An own brand lager
Areas of Negotiation
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Price
Volume
Length of Contract
Payment Terms
Brew Strength
Launch Support
Using the Microcomputer
Buyers & Sellers separately have a computer
model to help them assess the financial
consequences of their proposals.
To use this you:
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Enter a team name & password
Enter the proposal(s)
Review & Compare the proposals
Display & Print
Recess for negotiation meetings
Observations
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Think about your objectives
And those of the other party
Plan carefully the information you need
And the information required by the other party
Plan how your meeting
But be flexible
Remember the computer provides financial
information
• It is up to you to think and manage the negotiation
• And reach a WIN-WIN agreement!