Project Materials

NEGOTIATION A VITAL TOOL IN ACHIEVING ORGANIZATION OBJECTIVE

ABSTRACT

This study project effort is intended to conduct an in-depth survey on bargaining, a critical instrument in accomplishing organisational goals. The significance of negotiation as a major role in achieving organisational goals can be shown by considering the fair pricing for certain quality items selected through strategies.

This project work is separated into five chapters, each of which generates a system for achieving the project’s purpose and objective.

Chapter one

INTRODUCTION

1.1 Background of the Study 

For the sustainability of any organisation, whether large or little, efficient management of human and material resources is the most important component. This involves coordinating the greatest contributions from each essential function of the organisation.

Every day of our life, we engage in negotiations with another individual or group of people since negotiation is a critical component and the most exciting responsibility in organisational chain management.

Furthermore, in the purchasing role, negotiation cannot be avoided because it is the decision-making process of planning, reviewing, and analysing utilised by the buyer and seller to reach an acceptable agreement on all aspects of the business content.

It is also the most delicate, because it entails dealing with a seller whose goal is to maximise profits. As a result, experience with buyers demonstrates that at least 20% of their time is spent preparing for and conducting discussions with suppliers.

Buyer suppliers must be able to negotiate effectively. Knowledge of negotiation skills is required for the buyer to be able to offer resistance to the frequently well-trained salesman in the procurement of materials. Some level of trust exists between cost, the buyer, and the seller, particularly when negotiating deals.

However, in negotiation, several essential actions must first be agreed upon; the buyer will determine the specification, sample, and terms and conditions for the seller to consider.

It would also be beneficial to agree on the extent of price justification offered at this point; if the seller did not agree on the specification to meet the programme, the disagreement should be resolved before the form of price negotiation is used; otherwise, there would be no basis for agreement.

Price justification is usually a significant aspect; the buyer, on the other hand, has the opposite goals: to limit the seller’s profit through prices to acceptable circumstances or levels. In other words, if the purchase is capable of accurately predicting what the price should be

the objective is primarily to get the seller’s price in a form and supporting material that allows for comparison with the buyer’s estimate and the identification of any differences that may be negotiated. This collaborative approach to challenges may benefit by improving payment conditions and ensuring timely contract execution.

1.2 Statement of The Problem

Several issues develop during organisational negotiating efforts. This study will look into how the organisational objective of consolidated breweries Awamama in Imo State, Owerri, may be made more effective and significant to the company’s core goals. Some of the general problems encountered by the merged breweries Awamama and Owerri are as follows:

1. Hiring an unqualified buyer as purchasing officer will result in inefficiency in the bargaining process.

2. When the purchasing officer does not receive a fair and reasonable price, the organisation will be unable to achieve their goal, which will have an impact on the cost of materials.

3. when the organization’s buyer failed to appropriately bargain with the supplier to ensure timely delivery and timetable. The single most common supplier failure seen in purchasing operations is inability to meet delivery timetables.

4. When the organisation is lacking to gain maximum co-operation from the supplier, this provides a difficulty to the organisation because the working relationship and co-operation are not existing well, and obtaining more future orders from the supplier can be difficult.

5. when the organisation lacked control over its vendors’ performance. Supplier performance deficiencies can have a significant impact on the buyer’s operations, and in some cases entirely disrupt them.

1.3 PURPOSE OF THE STUDY

This study is centred on negotiation, a critical instrument in accomplishing organisational goals in relation to the above-mentioned challenges. The goal of this research in consolidated Breweries Awamama Owerri will be:

1. To demonstrate that an adequate and well-trained purchasing officer is employed, capable of carrying out efficient negotiation actions.

2. to achieve or receive a fair and reasonable price throughout the period of negotiation

3. To have the provider deliver on time.

4. to ensure that effective and efficient bargaining is carried out, allowing them to receive the best buyer, which is the ultimate goal of the organisation.

5. to establish a strong and ongoing supplier relationship.

6. Maintain adequate or maximum cooperation from supplier.