Level 3 Diploma in Business Administration

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PowerPoint presentation

Understand the principles underpinning negotiation

Unit 303 (B&A 42): Negotiate in a business environment

Level 3 Diploma in Business Administration

© 2015 City and Guilds of London Institute. All rights reserved.

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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

Level 3 Diploma in Business Administration

© 2015 City and Guilds of London Institute. All rights reserved.

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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.

Level 3 Diploma in Business Administration

© 2015 City and Guilds of London Institute. All rights reserved.

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The purpose The reason for which something is done or created or for which something exists.

Can you think of an

example?

Level 3 Diploma in Business Administration

© 2015 City and Guilds of London Institute. All rights reserved.

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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?

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© 2015 City and Guilds of London Institute. All rights reserved.

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The objective A thing aimed at or sought – a goal.

Can you think of an example?

Level 3 Diploma in Business Administration

© 2015 City and Guilds of London Institute. All rights reserved.

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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.

Level 3 Diploma in Business Administration

© 2015 City and Guilds of London Institute. All rights reserved.

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Scope of authority when negotiating Think about each job role and what authority they could have when negotiating.

Customer Service Assistant

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Scope of authority when negotiating Think about each job role and what authority they could have when negotiating.

Checkouts Supervisor

Level 3 Diploma in Business Administration

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Scope of authority when negotiating Think about each job role and what authority they could have when negotiating.

Department Manager

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Scope of authority when negotiating Think about each job role and what authority they could have when negotiating.

Store Manager

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Scope of authority when negotiating Think about each job role and what authority they could have when negotiating.

Company Director

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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.

Level 3 Diploma in Business Administration

© 2015 City and Guilds of London Institute. All rights reserved.

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Negotiation strategy In order to get a desired outcome, it is important that you have an effective strategy in place.

Plan Tactic Approach

Level 3 Diploma in Business Administration

© 2015 City and Guilds of London Institute. All rights reserved.

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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?

Level 3 Diploma in Business Administration

© 2015 City and Guilds of London Institute. All rights reserved.

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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.

Level 3 Diploma in Business Administration

© 2015 City and Guilds of London Institute. All rights reserved.

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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

Level 3 Diploma in Business Administration

© 2015 City and Guilds of London Institute. All rights reserved.

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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

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© 2015 City and Guilds of London Institute. All rights reserved.

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Any questions?