PRADES ALHAMDI TAQWIN – 29322523 - ENEMBA 8

MM5009 STRATEGIC DECISION MAKING & NEGOTIATION

1. Why is Robert having difficulties in Video (1)?

In video 1 saw an example of deadlock in negotiation. It happens when Robert as a Director tried
to negotiate the price of spring line. The deadlock happened when Robert tries to buy the product
just for $120,000. The vendor didn’t even want to reduce the price and stayed at $150,000.

In Video 1 the negotiation was done a little bit too ineffective. This happens because of Robert ask
for the price a little bit too hard and not trying to explore why Harry didn’t want to reduce the
price. The negotiation can’t be done by 1 way, there should be some more feedbacks and more
information that we get from our counterpart.

2. Why do you think Video (3) shows a better way to approach integrative negotiation?

In terms of negotiation I think the way we treat counterpart matters a lot. It really seemed when
Robert tried a different way to approach Harry with more polite and friendly way, so Harry
responded calmly as well. Robert implemented what the coach had said before, to explore and try
to get more information of why Robert insisted with the price.

There was finally an answer uncovered of why the price couldn’t be reduced anymore: This because
of Harry was looking for more sustain business with longer contract or bigger volume of selling, so
the price can be more flexible.

3. What new insights do you have that could benefit you or others in your workplace?

For me as a Corporate Procurement this is really practicable to deploy. I learn how to maintain the
relationship, giving treatment to our counterpart nicely so the long-term relationship can be
managed well. It often happened when negotiating with vendors that can seem unfair because of
do not want to know what other party’s constraint or concern with making the price or the terms
and conditions seem hard to be negotiated. After this subject, I’ll try to understand more about
exploring why the counterpart gives that terms or price.

4. What are your biggest opportunities for applying concepts from this Lesson in your workplace?

There are some lessons learned that in the middle of transaction there will be 2 parties that is
actually needy each other. The fairness aspect must be there when negotiating something with
counterpart. There are some important things and keys to reaching trust and healthy long-term
relationship:

• To ask what counterparts wants and why when negotiating

This is important to gather some more information which can be used to set strategical
moves further.
• One another things is to mitigate other party’s constraints
Our counterpart’s risks are our risks as well, the risk of being late finished project is there
if the counterpart faces the problems, se we have to care about it and solve those together.