Q.1. explan below five circumstances under which negotiation takes place. 1. Cost effectiveness 2. Technology 3. Management approach to supply 4. Quantities 5. Competition in the market
The accidental baker
Mamello Morongwe, a certified food technologist was working on a biscuit recipe for her employer, a leading biscuit manufacturer, when she discovered a muffin recipe. The employer expressed no interest in pursuing this segment of the market and gave Mamello the clearance to use the recipe in her private capacity for personal benefit, as part of their employee development program.
After utilising this recipe to bake muffins for special events only, which she distributed over weekends, Mamello finally resigned from her job and is now pursuing her business on a full-time basis – her former employer is now a customer and has placed a full-year weekly order for 20 dozens of muffins every Friday. Armed with a business plan and registration documents for her business, Muffin Boffin, Mamello feels ready to take the country by storm.
“Effective negotiators recognise that very few negotiations are conducted in a purely win-win or win-lose context. Moving towards win-win negotiations means that the negotiator must be willing to use a blend of win-win and win-lose strategies” (Badenhorst-Weiss et al., 2018:227).
Muffin Boffin is a fairly new business on the market – pairing that with the market opportunities identified, the purchasing and supply management team is likely to initiate a considerable level of negotiations with a number of suppliers and service providers, to get the business off the ground and to pursue expansion.
Q.1. explan below five circumstances under which negotiation takes place.
1. Cost effectiveness
2. Technology
3. Management approach to supply
4. Quantities
5. Competition in the market
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