Coercive Negotiation Strategy Overview PPT

This PPT slide, part of the 72-slide Best Practices in Negotiations Strategy PowerPoint presentation, presents a structured negotiation strategy characterized by a coercive approach. The central theme emphasizes the necessity of price reduction from the supplier to maintain the business relationship. The content is organized into 4 key columns: Situation, Method, Qualifications, and Benefits.

In the Situation column, the message is clear. The organization values its historical relationship with the supplier, but is pressing for enhanced competitiveness in pricing. This sets the stage for a negotiation where the supplier's current terms are deemed insufficient for continued partnership.

The Method column outlines the tactical approach being employed. It indicates that the organization is undergoing a Strategic Sourcing process, which mandates the selection of the best value offers. This method signals a formalized and possibly rigid framework for negotiation, implying that the supplier must adapt to new expectations.

The Qualifications column adds a layer of context, revealing that the organization has previously disqualified suppliers with long-standing relationships based on similar criteria. This serves as a warning to the current supplier, indicating that loyalty alone may not suffice in the face of evolving business demands.

Finally, the Benefits column attempts to reassure the supplier. It suggests that despite the pressure to lower prices, the supplier will still gain significant business volume and a positive brand association by remaining a partner. This dual message of urgency and potential reward encapsulates the complex dynamics of the negotiation process, highlighting the tension between maintaining relationships and achieving cost efficiency.

EXPLORE MORE SLIDES FROM THIS PRESENTATION

EXPLORE MORE PRESENTATIONS ON

Negotiations Best Practices Strategic Sourcing