1. define objectives

2. Determine negotiation site

3. Select team for negotiatiohn

4. Collect relevent information

5. Analyse sellers and purchasers positions

6. Review market and product conditions

7. Develop strategies and tactics

8. Determine possible culteral factors

9. Define fallback alternatives

Porters five forces

SWOTT ( strength, weaknesses, opportunities, threats, and trends).

1. extend and intensity of direct competition

2. threat of entrants

3. threat of substitute products/services

4. power of buyers

5. power of suppliers

Evaluation

of: price, delivery, specs or SOW, terms, and any  deviations from your requirements.

Setting objectives

is it lower price, higher quality, accelerated delivery, or comination of these?

1. Fair and reasonable price (do not drive cost excessively low)

2. Timely performance (address possible performance issues)

3. Meeting the min essential needs of the org. (secure adequate supply from supplier and hope volume of order will be attractive for a long term commitmnt)

3b. defining must haves and wants (wants are items that are not mandatory but nice to have)

4. Control over how the contract is performed (list all issues that might cause performance probelms and review steps that should be taken to resolve before occur. Include consequences of inability to perform such as cancellation clauses, penalites, and incentives)

5. max. supplier cooperation (avoid creating an adversarial atmosphere)

6. sound relations with suppliers (all parties operate profitably under the t &cs. Supplier schedule regular communication in order to establish and maitnain a positive relationship, problem solving should focus on achieving mutual satisfaction)

At buyers location.

Buyer most comfortable, all needed resources, and control of negotiations. Ability of buyer to walk away.

Product or service is complex and one person does not have sufficient knowledge of all issues. Teams represent all areas needing to be addressed.

Team members must only speak and answer questions regarding their areas and nothing more. 

1. Discuss Goals

2. Plan strategies

3. Review the strengths and weakness of both sides

1. Guide the team and to chair the prenegotation meetings.

2. Main point of contact between buyer and supplier.

3. Arrange times an dlocatiohns for the negotiating sessions.

What is a caucus and when is it used?

It is a planned/unplanned break in negotiations that gives the negotiation team time to discuss strategy, tactics, or progress before proceeding.

Caucus should be used immediately when disagreement, confusion, or misunderstanding occurs within negotiation team. Also used to slow down momentum if not going well. Should be used routinely during negotiations so calling a caucus does not provide any signals to other party.

1. Objectives

2. cost data & price history

3. financial reports & financial strength of suppliers

4. records of previous negotiations

5. market info

6. Stength & weakness of both parties

7. Quality history, delivery history, specs/service delivery issues

8. Negotiation styles and personalitiews of those with whom negotiationg.

9. time available

10.  Security, risk history, and issues

1. Sellers desire for a contract

2. sellers certainty of getting a contract

3. amount of time for negotation

4. Adequacy of cost/price analysis

5. Best alternative to a negotiated agreement (BATNA)

6. Sellers competitive positiohn (sole source or otherwise)

7. Skill and authority level of the negotiator/negotiation team

8. Extent of planning for negotiation

9. Sellers financial condition

10. Buyers financial condition

Long - Term Relationship

Short term market conditions give one an advantae but both should relaize taking excessive advantage of market conditions for short term gain may lead to long term problems.

1. Long range goals of the org.- select sources that will optimize attainment of overall goal.

2. Administrative planning - logistics of getting people & info in place for negotiations.

3. Tactical planning - achieving optimal results at table.. 

1. product/market mix

2. customer and environmental constraints

3. basic goals of the org. concerning technology

4. price and policy

1. issues & problems

2. Agenda questions

3. concessions

4. commitments

5. promises

6. pricing

7. quality

8. delivery performance

1. exploit strength and weaknesses

2. how to use time delays

3. deadlock tactics

4. plan timing

1. identify optimistic target and pessimistic positions for each issue with regard to org. and to supplier.

2. Be willing to agree to less than the pessimistic position on one issue if supplier makes concessions that exceed the optimistic position on another issue.

1. analyzing supplier proposal

2. establishing objectives

3. formulate optimistic/pessimistic targets supplier & org. on each issue.

4. defining and orgainizing the issues to identify points of similarity & difference between supplier/org. objectives.

5. Develop strategies and tactics

6. Select the negotiation team

7. Develop agenda