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1 presentation PowerPoint Unit 303 (B&A 42): Negotiate in a business environment Understand the principles underpinning negotiation 2015 City and Guilds of London Institute. All rights reserved. 1 of 19

2 Today s objectives Recap on previous session Understand how to identify the purpose, scope and objectives of negotiation Understand the scope of your own authority for negotiating Prepare a negotiation strategy 2015 City and Guilds of London Institute. All rights reserved. 2 of 19

3 Prepare for negotiation When you have identified a scenario which requires negotiation you will need to ensure that you are fully prepared. In order to prepare yourself, you should define: the purpose the scope the objective City and Guilds of London Institute. All rights reserved. 3 of 19

4 The purpose The reason for which something is done or created or for which something exists. Can you think of an example? 2015 City and Guilds of London Institute. All rights reserved. 4 of 19

5 The scope The extent of the area or subject matter that something deals with or to which it is relevant. Can you think of an example? 2015 City and Guilds of London Institute. All rights reserved. 5 of 19

6 The objective A thing aimed at or sought a goal. Can you think of an example? 2015 City and Guilds of London Institute. All rights reserved. 6 of 19

7 Scope of authority when negotiating It is important to understand what decisions you can make dependant on your authority level. For example, a Managing Director could have ultimate authority whereas an Office Manager could negotiate on price, but not supplier City and Guilds of London Institute. All rights reserved. 7 of 19

8 Scope of authority when negotiating Think about each job role and what authority they could have when negotiating. Customer Service Assistant 2015 City and Guilds of London Institute. All rights reserved. 8 of 19

9 Scope of authority when negotiating Think about each job role and what authority they could have when negotiating. Checkouts Supervisor 2015 City and Guilds of London Institute. All rights reserved. 9 of 19

10 Scope of authority when negotiating Think about each job role and what authority they could have when negotiating. Department Manager 2015 City and Guilds of London Institute. All rights reserved. 10 of 19

11 Scope of authority when negotiating Think about each job role and what authority they could have when negotiating. Store Manager 2015 City and Guilds of London Institute. All rights reserved. 11 of 19

12 Scope of authority when negotiating Think about each job role and what authority they could have when negotiating. Company Director 2015 City and Guilds of London Institute. All rights reserved. 12 of 19

13 Prepare a negotiation strategy In groups you will need to prepare a negotiation strategy. See the slides below for a recap on topics covered at the previous session to help assist you City and Guilds of London Institute. All rights reserved. 13 of 19

14 Negotiation strategy In order to get a desired outcome, it is important that you have an effective strategy in place. Plan Tactic Approach 2015 City and Guilds of London Institute. All rights reserved. 14 of 19

15 Plan You should always start with a plan, this will help you lead to your desired outcome. You should ask yourself some questions: What is the issue? What is your position on each issue? What is the opening offer for each issue? What is our guess the other party will settle for? 2015 City and Guilds of London Institute. All rights reserved. 15 of 19

16 Tactic Its important to understand what your tactic will be when negotiating. Things you could consider include: researching on the other party consider alternatives anticipate the other parties needs break down the items that need to be negotiated identify your leverage points identify the decision-maker City and Guilds of London Institute. All rights reserved. 16 of 19

17 Approach When you start to negotiate you will need to consider your style. There are many different styles to negotiation including: The factual negotiator Knowing all the facts, sticking to the facts and providing information The relational negotiator Being sensitive to the other parties needs, building trust and being sensitive The Intuitive negotiator Coming up with unexpected solutions, seeing the big picture 2015 City and Guilds of London Institute. All rights reserved. 17 of 19

18 Approach The logical negotiator Set the rules for negotiation, discuss in a logical rather than an emotional way The lead negotiator This could be you, or someone within your organisation that has the ultimate decision 2015 City and Guilds of London Institute. All rights reserved. 18 of 19

19 Any questions? 2015 City and Guilds of London Institute. All rights reserved. 19 of 19

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