Negotiation Objectives and Position Dynamics in Business

Question 3

Negotiation refers to a process in which individuals or parties discuss an arrangement or process that would benefit all parties involved. The most common example of negotiation is purchasing negotiations which are a key aspect of business negotiations (Fisher et al., 2011). Regardless of any type of negotiation, there is a need to establish objectives in advance, which helps create a favourable outcome. Objectives refer to specific, measurable results of a strategy. They specify what is to be achieved and when it will be achieved. This section differentiates types of objectives and also gives a typical occurrence in which the seller’s and buyer's positions are strong at the time of negotiation

One of the negotiation objectives includes preliminary objectives. These objectives are developed before the actual negotiation (Doran et al., 2012). Preparing before talks are the most vital element of the planning phase and often makes the difference between failure and success in a negotiation. It involves carefully thinking through what an individual wants to get from the negotiation process. Therefore, before starting a negotiation, an individual requires knowledge and expectations. Some objectives may be straightforward, though, might require deeper thinking which explores the long term and short-term implications of the negotiation. Simply, preliminary objectives cover the architecture capabilities desired by an individual (Doran et al., 2012) For example, in the negotiation purchase of a computer with a supplier, the preliminary objective might include purchase which covers additional factors like, delivery, warranty and payment terms. Besides, other additional factors such as service contracts, installation time frames, operator training as well as replacement costs are involved.

The behavioural objective is another goal to consider in negotiation. This objective, unlike the preliminary objective, is achieved in the actual negotiation. It often looks at changing the behaviours of people as well as the product of their behaviour (Peleckis, 2014). Studies reveal that, during negotiation, some people may create conflict and restless (Lewicki et al., 2011). Therefore, timely avoiding conflict is the best choice depending on circumstance. The objective is very critical to making decisions and controlling emotions. Thus, an individual with a behaviour objective can buy time and allow angry people to cool down and also refrain from making quick decisions. However, to create behavioural objectives in negotiation, individuals should consider developing communication skills, management skills, conflict resolution skills, patience, and stress Management/Resilience skills. For instance, some merchants abuse customers after they fail to agree on a price; therefore, developing behavioural objectives can help manage conflict and also assist in avoiding it as per the Thomas-Kilmann Conflict Model. Considering the business environment as well as the relationship between the seller and the buyer, some opportunities influence either the seller or buyer positions. Besides, business negotiation is part of daily activities. Most negotiation is business results in distributive bargaining, which includes “win-lose” bargaining. Besides, in this case, the objective of one party significantly and direct conflict with those of the other party. On the other hand, every party needs to maximize their share of scarce resources. An excellent example is seen in the relationship between the seller and buyers of a house. For instance, if the buyer bargains and gets the house at a less price, (that is a “wins”), then the buyer position is strong compared to the seller position who gets less money (loss). On the other hand, if the buyer buys the house at an increased price, the buyer loses, and the seller "wins" hence standing at a strong position. Therefore, it is seen that the position of the buyers and sellers in a negotiation is by profit outcomes.

Question 2

Fairtrade refers to an arrangement structured to assist farmers/producers in developing states to achieve equitable and sustainable trade links. It is based on transparency, respect and dialogue, which seeks higher equity in global trade. It contributes to sustainable development by offering better trading conditions and securing the marginalized producer’s rights. This section critically discusses the role and impact of "Fair-trade" for farmers as well as its impact on consumers.Fairtrade aims to promote equity in international trade. The relationship bargain for better farm product prices, fair trading terms, as well as decent working conditions for farmers. It also supports the development of a thriving farming society (Ruben & Fort, 2012). Furthermore, it creates a world in which farmers enjoy secure and sustainable livelihoods to fulfil their potential and decide on their future. Another role of the trade fair is to connect disadvantaged farmers with consumers, enhance fair trading conditions, and empower farmers to combat poverty. Similarly, the trade fair ensures that its standards have been met by the farmers who are part of the products' supply chains (Ruben & Fort, 2012). Also, it plays a great role in reassuring consumers of safe and standard products. Other trade fairs also coordinate the production of farmer’s products. For instance, the Swiss Fair-Trade organization, Claro, coordinates chocolate production for all of the European Free Trade Association (EFTA) members. In the production, the economies of scale derived make the product reasonably successful in all of the European markets. This, therefore, ensures that farmers get maximum benefits from their products. The Fairtrade also creates a venue where farmers interact with customers and suppliers in the agricultural sector.

Concerning the impact of Fairtrade to farmers, Fairtrade has been revealed to provide higher and stable market prices which allow small-scale farmers to make long-term investments and planning which includes better living conditions, education for children, as well as capitals to promote yields. Additionally, Fairtrade increase farmers’ incomes which create development in farmers’ life (Valkila, 2014). It also empowers small-scale farmers and workers, therefore, improving their lives. Trade fair enables consumers to provide direct support to development projects in developing states via their daily consumption hence an advantage to the farmer. More importantly, through the provision of standards and also quality seeds, Fairtrade promotes food security to farmers and their families, which also increases their economic growth and reduces the risk and vulnerability experienced by most farmers. Besides, with more income, a farmer can provide quality food to his family and also invest in growing more crops hence promoting the health of the farmer. Other studies have linked fair trade impact to an improved level of education, indigenous cultures preservations as well as other social benefits. More importantly, Fairtrade assists in breaking monopolies on prices and transportation, which increases small scale farmer’s income. For instance, Swiss Fair-Trade organization sets prices for agricultural products therefore creating average prices for farmers.

On consumers, Fairtrade gives consumers a chance to live and shop based on their principles. Additionally, Fairtrade usually improves the conditions for the people at the bottom of the commodity chain. Therefore, Fairtrade allows consumers to have access to various products such as tea, coffee, bananas, gold, flowers, etc. With the provision of various food products to consumers, trade fair ensures that consumers have food security, health foods which ensures that the health of the consumer is considered. Furthermore, the provision of standards to farmers ensures that farmers produce quality foods which means that the quality of life of the consumer is improved. Consumers can also choose from a wide variety of competitively priced Fairtrade products. It also ensures that new products are becoming available for consumers continuously hence increasing the health condition of the consumer (Yang et al., 2012). Also, with an increase in various products in the market, it helps the consumers boost their immune systems and become more resistant to various disorders and infections. Under-nutrition makes children vulnerable to diseases as well as impacts on both their physical and mental development. Similarly, Fairtrade offers consumers a chance to link with the individual who grows the products hence creating confidence in the products. For instance, if Fairtrade offers variety of products in the market, consumers will have to consume health diets hence improving their lives. Therefore, fair trade become critical to both consumers and farmers.

Question 5

An offer refers to an expression of willingness to enter into a contract on particular terms, which are created to bind both individual/parties once it is accepted by the addressed person. An offer contains intent objective manifestation by the offeror to be bound by the offer when accepted by the other individual. Invitations to offer include displays and advertisements of products on a shelf. In Mary's case, the coat at John's shop is the offer. Offers are either made by words or by conduct. To assess if two individuals or parties have agreed on the terms and if a valid offer has been created, courts utilize criteria referred to as 'the objective test' which is revealed in the Smith v. Hughes English case (Cartwright, 2016). However, an offer can form the basis of contract binding if it has all the major contract terms. For instance, in Mary's case, the terms of buying the coat were £400. However, price quotes or price lists alone as per the English law are not sufficient to constitute offers. Similarly, in an offer, unless the minimum requirements are met, the offer is not categorized as a legal offer.

Acceptance refers to a promise of an offeree showing a willingness to be bound by the offer terms. It is the last agreement of both parties concerning the terms of the offer. However, the terms of the offer can be negotiated before acceptance. For instance, Mary bargain by offering £350 other than the provided £400 for the coat. Studies indicate that acceptance can be made communications and formal acceptance of an offer is not required for a contract to be legally binding. Once valid acceptance is processed, a binding contract is created. There are various major rules relating to acceptance. Some of these rules include the fact that acceptance must be communicated to the offeree, the acceptance terms must precisely match the offer terms, and the agreement must be certain. There are various ways of accepting an offer. For instance, by paying for the coat, accepting Mary's price, acceptance will be made. However, the English law indicates that acceptance does not have any legal effect until it’s communicated to the offeror. Besides, in the Mary case, John can revoke the offer before its acceptance, though it must be communicated to the offeree. The buyer should get acceptance for it to be effective (Entorres v Miles Far East (1955) (McKendrick, 2014). Similarly, acceptance cannot be attached to further conditions. For incidence after acceptance, Mary is not expected to be given further conditions such as returning the coat, etc. The acceptance, in this case, is not unconditional.

Consideration refers to the benefit that each individual making a contract expect to get from the contractual deal. For consideration to create a valid basis for a contract, every party should make a change in their "position” (Chen-Wishart, 2012). More specifically, consideration is concerned with the bargaining of the contract. Therefore, every party/individual should be both a promise and promiser. Each must get a benefit, and each suffers a detriment. The detriment or benefit is thus known as consideration. However, the English law suggests that consideration should have value in the eyes of the law - (Thomas v Thomas) (1842) 2 QB 851 (Contract, 2017). Therefore, as per the case, consideration excludes affection, love, and betting, etc. Therefore, in the case of Mary and John, payment of the coat by Mary is a consideration to John'sJohn's promise to sell the coat. On the other hand, by John offering the coat after payment is a consideration for Mary’s payment for the coat. Besides, consideration does not consider one-sided promise such as in a gift. The fact that gifts are not consideration indicates that consideration should be sufficient. In case of legal issues, a court does not inquire whether an adequate value has been given since it does not interfere with the bargain made between the individuals.

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References

Question 3

Doran, J.M., Safran, J.D., Waizmann, V., Bolger, K. and Muran, J.C., 2012. The Alliance Negotiation Scale: Psychometric construction and preliminary reliability and validity analysis. Psychotherapy Research, 22(6), pp.710-719.

Fisher, R., Ury, W.L. and Patton, B., 2011. Getting to yes: Negotiating agreement without giving in. Penguin.

Peleckis, K., 2014. International business negotiations: innovation, negotiation team, preparation. Procedia-Social and Behavioural Sciences, 110(0), pp.64-73.

Lewicki, R.J., Saunders, D.M., Minton, J.W., Roy, J. and Lewicki, N., 2011. Essentials of negotiation. Boston, MA: McGraw-Hill/Irwin.

Question 2

Ruben, R. and Fort, R., 2012. The impact of fair-trade certification for coffee farmers in Peru. World Development, 40(3), pp.570-582.

Valkila, J., 2014. Do fair trade pricing policies reduce inequalities in coffee production and trade? Development Policy Review, 32(4), pp.475-493.

Yang, S.H., Hu, W., Mupandawana, M. and Liu, Y., 2012. Consumer willingness to pay for fair trade coffee: a Chinese case study. Journal of Agricultural and Applied Economics, 44(1), pp.21-34.

Question 5

Cartwright, J., 2016. Contract law: An introduction to the English law of contract for the civil lawyer. Bloomsbury Publishing.

Chen-Wishart, M., 2012. Contract law. Oxford University Press.

Contract, L., 2017. Consideration.

McKendrick, E., 2014. Contract law: text, cases, and materials. Oxford University Press (UK).