SITUATION ANALYSIS

Situation Analysis



Situation Analysis

Reference to the selection and negotiation of supplier and vendor services the following guidelines will help us to have a better upperhand but in conjunction with leadership skills. The challenge to understand the other party also exists in domestic negotiations, but as we will discuss in the following, understanding strategies and objectives across cultures is much more difficult. 

A lack of culture-specific preparation is a deadly sin in any international business negotiation.  There are many skilled and resourceful negotiators in the United States.  But without prior cross-cultural experience or preparation, most of them will assume that both sides share an implicit agreement over what represents legitimate negotiation tactics, and that both sides believe in or at least respect the value of a win-win approach.  Furthermore, they trust their ability to correctly interpret clues about where the other side stands in the decision making process. (Esmeralda Joyce 2001)

Foreign negotiations can look quite different in contrast.  For starters, long-term aspects will weigh more heaviliy.  Also, negotiators may have a less holistic view of the package being discussed.  Let's say an Asian buyer is interested in buying equipment from an American company that requires extensive training and maintenance provisions.  The initial negotiation may focus exclusively on the price of the equipment, in spite of efforts on the American side to use tradeoffs in training or maintenance cost to offset pricing concerns.  The set of objectives on the Asian side may indeed include a specific price target, and they may not be willing to move on to negotiating other aspects before that target has been met.  This sometimes becomes an issue of 'face', where not reaching their goal affects the self-esteem and reputation of the negotiator.  Such a situation can become uncomfortably emotional for the American side.

If goods or nonprofessional services are being procured, the selection committee shall select the vendor that, in its opinion, has made the best proposal, and shall recommend that the contract be awarded to that vendor. Before the selection is made, the following steps shall be complied with: Solicit best and final offers: After negotiations have been conducted with all of the vendors selected, the selection committee shall solicit best and final offers from each vendor. The request should inform the vendors that the negotiations have been concluded and should include a notice that vendors now have an opportunity to submit a best and final offer, and a common closing date for submitting the best and final offer. Evaluate best and final offers: The selection committee shall then evaluate the best and final offers and, if further negotiations and another round of best and final offers are not necessary, make a recommendation for award. Further round of best and final offers, if necessary: Best and final offers shall be submitted only once, unless the purchasing agent makes a written determination that it is in the County's best interest to conduct an additional round. It is in the County's best interest to conduct an additional round of ...