Project Materials

APPRAISAL OF THE APPLICATION OF NEGOTIATION TOOL IN SMALL SCALE FIRMS IN NIGERIA

ABSTRACT

Obviously, this project focusses on evaluating the use of negotiating tools in small-scale enterprises in Nigeria. As a result, professionals in the field of study will gain valuable theoretical and practical knowledge of negotiation functions and strategies. The project effort is intended to prepare managers and other interested individuals or organisations for professional careers in the managerial cadre of this field of research. It guides the user through a step-by-step process of applying and coordinating the numerous functions involved in the application of negotiation principles in order to achieve the concept’s goals and benefits in the business world. As a result, in order to stay in business and thrive in the manufacturing industries, the use of negotiation tools is required, which enables a continual flow of the right pricing and quality requirements in a difficult and unpredictable marketing environment. As a result, I believe that the project work will be a valuable resource for users of all levels, from students to professional managers.

Chapter one

Introduction

1.1 Background of the Study

Negotiation is both a vital and intriguing aspect of purchasing and materials management. In these days of material shortages, high prices, galloping inflation, and an overall unfriendly supply market, it would be suicidal for any business firm, particularly small-scale firms, to neglect bargaining in its purchase activities. In purchasing, negotiation, it is critical to always be on guard when negotiating a contract to ensure that the agreement achieved is not to our harm or disadvantage.

According to UZOR (2004:280), bargaining is one of the most significant responsibilities of purchasing experts. It’s also the most sensitive and challenging. It’s delicate since you’re dealing with a vendor whose primary goal is to maximise profits, and thus pricing.

The buyer, on the other hand, has the opposite goal: to keep the seller’s profits and prices reasonable. It is consequently inconceivable to carry out purchase functions without first negotiating. According to Webster, negotiation is widely defined as conferring, talking, or negotiating to reach an agreement.

Where the buyer is unable to generate an accurate estimate, price verification becomes more challenging. Again, the beginning point is to receive the supplier’s price breakdown, along with supporting information and verification, which will allow the purchasers to validate that the pricing basis is appropriate.

1.2 STATEMENT OF THE PROBLEM.

For any firm to thrive, grow, remain competitive, and increase productivity, it is necessary to identify, create, and apply negotiation strategies that will undoubtedly contribute to organisational profitability. Despite this, certain circumstances might be an impediment or disadvantage.

1. The parties to the negotiation are unable to think quickly, articulate themselves clearly, or possess analytical skills.

2. Unable to consider other people’s ideas and objectives.

3. A common issue is a failure to adequately prepare.

4. A faulty time allocation may be more accurate.

5. Trying to achieve a tremendous win rather than finding a mutually suitable settlement.