APPRAISAL OF THE APPLICATION OF NEGOTIATION TOOL IN SMALL SCALE FIRMS IN NIGERIA
ABSTRACT
Obviously, this project deals on the appraisal of the application of negotiation tool in small scale firms in Nigeria. And thereby provide essential theoretical and practical information on negotiation functions and techniques for professionals in the area under study. The project work is meant to equip managers as well as other interested individuals or bodies for professional careers in the managerial cadre of this topic of research.
It is taking the user through a step by step guide in the application and co-ordination of the various functions included in the application of negotiation concepts to attain the objectives and benefits of the concept in the business word.
Therefore, to remain in business and survive in the manufacturing industries, there is the need for rightful application of negotiation tools concept which ensures a continuous flow of right price and quality requirements in the harsh and unpredictable marketing environment.
I therefore believe that the project work will be a very useful resource material for all grades of users, whether students, and practicing managers.
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Negotiation is one of the most important as well as one of the most interesting elements of purchasing and materials management. In these days of material shortages, high price and galloping inflation and general unfriendly supply market, it will be suicidal for any business firm and indeed small scale firm’s to ignore negotiation exercise in its purchasing activities. In purchasing, negotiation it is important to always be on the alert when negotiating a contract to ensure that agreement reached are not to out detriment or disadvantages.
According to UZOR (2004:280) negotiation is one of the most important tasks of purchasing professionals. It is also the most delicate and difficult. It is delicate because it involves dealing with a seller whose primary aim is to maximize profits, hence price. The buyer on the other hand, has the opposite objective, to hold sellers profits and prices to acceptable levels.
The execution of the purchasing functions with out negotiation is therefore unthinkable.
According to Webster defines negotiation broadly as conferring, discussing or bargaining to reach agreement.
Where the buyer cannot compile a reliable estimate price verification is more difficult. Again, the starting point is to obtain the suppliers price breakdown, supporting evidence and substantiation, is sufficient to enable the buyers to confirm that the pricing basis is reasonable.
1.2 STATEMENT OF THE PROBLEM.
For any company to survive, grow, remain competitive and enhances productivity, there is need to identity, develop and implement those negotiation techniques will surely contribute to organizational profitability.
Despite all this certain situation can be a hindrance or drawback.
1. the inability of the parties to negotiation to think fast, express himself very well, unable to posse analytical ability.
2. Unable to consider other persons ideas and objectives.
3. A common problem is failure to prepare thoroughly enough.
4. Faulty allocation of time might be nearer the mark.
5. Trying to score a great victory instead of arriving at a mutually satisfactory solution.
1.3 OBJECTIVES OF THE STUDY
The underlying principle governing this study is to find out how the application of negotiation tools is applied in various firm and Mevok enterprise as my case study;
1. This study will explain how valuable a firm may become, if the negotiation tools is properly applied and managed.
2. It will also outline the fact that application of negotiation tools in small scale firm are of the paramount importance of the achievement of corporate objective.
3. The study will also view the extent to which negotiation tools is been apply in Mevok enterprises.
4. To examine the calibre of staffs involved in the various activities includes negotiation, competitive bidding and progressing etc.
5. To find out the contribution of the application of negotiation tools in small firm, to profitability and efficient running of the industrial as a whole.
