THE IMPORTANCE OF NEGOTIATION IN BUSINESS MANAGEMENT

Abstract

The current crisis has revealed that in the “war” between suppliers and customers the power balance has finally swung towards the latter, and since companies act as both suppliers and customers to other entities apparently complicates their situation. A high performance implies minimizing the cost of “inputs” and maximizing revenues from “outputs”, which in turn requires an effective negotiation from the company both as client and supplier. While negotiation skills can give them a strategic advantage, those skills alone are not enough, proper preparation of the negotiation having greater importance in achieving strategic advantage in negotiation. This aspect will be highlighted as a priority in this article.

Keywords

• negotiation
• self-assessment and analysis of the other side
• evaluation of context
• best alternative to a negotiated agreement
• zone of possible agreement