MAKERERE UNIVERSITY

BUSINESS SCHOOL
PROGRAM: PROCUREMENT AND SUPPLY CHAIN MANAGEMENT

COURSE UNIT: PROCUREMENT BUSINESS NEGOTIATION

ACADEMIC YEAR: 2020-2021

YEAR TWO: SEMESTER ONE

GROUP 4 MEMBERS (THE ELITE)

NAME REGISTRATION NUMBER SIGNATURE

NANSUBUGA WINNIE 19/U/20042/EVE
NASSUUNA JULIANA 19/U/20066/EVE
JAMILLAH ABDALLAH 19/U/24089/PS
OPIO GEOFREY 19/U/20161/EVE
KISAKYE MOSES 19/U/19701/EVE
LUKENEMBI SIMON 19/U/19753/EVE
IKIROR SARAH 19/U/19596/EVE
NALUZZE FLORENCE 19/U/19967/EVE
WANUME JOEL 19/U/20263/EVE

Negotiation is a process where two or more parties with different needs and goals discuss an
issue to find a mutually acceptable solution .negotiation can also be defined as the process of
bargaining that proceeds to an agreement.
E-Negotiation is a process of conducting negotiation between partners using electro means.
E-negotiation provides business partners with more efficient processes enabling them to draft
better contracts in this time.

Telephone negotiation can be defined as a way of communication through which parties

find a mutually, acceptable solution to a conflict using a phone.

Peter a supplier of car trackers has made it hard to meet up with Samson who wants to
negotiate with him over the supply of car trackers face to face due to the COVID19
pandemic. Tom a friend to Samson advised him to use a telephone to negotiate with peter but
Samson is still sceptical about using a telephone as he doubts whether this will yield the
desired positive results. We would like to take him through the benefits of a telephone
negotiation over face to face negotiation.

Telephone negotiation is associated with a number of advantages among which include the
following;

It’s cheap; given that it does not involve transport costs, refreshments, venue arrangements
and other preparation costs. A telephone negotiation would save Samson the above costs and
thus being more efficient.

Advantageous with those with less negotiation skills; since phone negotiation requires both
parties to be precise, it eliminates arguments and irrelevant information and this will enable
Samson avoid a deadlocked negotiation.

It’s faster than face to face; Due to the pandemic, a telephone negotiation would be faster
and quicker and there will be no time wasted during travelling to various places of neither
party since both parties that want to negotiate are geographically apart.

It’s easier to close the negotiation; Samson would find it easy to close the negotiation since
it’s easy to tell someone words like goodbye, see you then, okay which ceases the
conversation during a telephone negotiation.

It’s suitable for long distance negotiation; since negotiators can go on with negotiation
anywhere they are and thus Samson won’t have to travel to the negotiation venue.

Telephone conversations are less likely to follow a carefully crafted script.

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There are various approaches to negotiation for example, avoidance, competitive,
collaborative and accommodative.

Since Samson would want to reach a mutually acceptable agreement and is also interested in
sharing concerns of common interest, he is advised to use the collaborative approach where
each party gains without a corresponding loss for the other party that is to say both parties
win.

The negotiation process involves three distinct stages and these include;
1. Pre negotiation phase
2. Actual negotiation
3. Post negotiation

For a successful telephone negotiation with Peter, Samson should follow the following tips at
each stage of the negotiation process;

The pre-negotiation phase

Preparation is instrumental to the success of the negotiation as being well prepared generates
confidence and gives an edge to the negotiator and at this stage Samson is advised to do the
following to attain success using a telephone negotiation.

Having an agenda: For Samson to attain a successful telephone negotiation with Peter,
Samson should have a clear agenda on what to be discussed as this gives the conversation
focus and direction. This enables both parties to be well prepared and not caught unaware
since it is highly unwise to negotiate while unprepared.

Disruptions: In order to attain successful telephone negotiation between Samson and Peter,
Samson should avoid poor telephone signals as this would hamper the flow of conversation
and lead to frustration on the part of both parties. Samson must be sure to use a good
telephone service to avoid disruptions during the call.

Setting objectives: In this particular telephone negotiation, we would advise Samson to set
specific, measurable, achievable, realistic objectives which can easily be attainable in a very
shortest period of time possible. Samson in this case is required to define what he wants and
what he would like Peter to do for him.

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Preparing for possible tactics: To attain a successful telephone negotiation, we would
advise Samson to run through possible demands and tactics along with responses from Peter
so that he is not blind-sided into giving away something he didn’t intend to.

Speaking with the right person: For Samson to have a successful negotiation with Peter ,
they should schedule an appointment between both of them so that both are aware or
expecting each other’s call anytime as well as being prepared and knowing the kind of person
Samson is dealing with.

Gathering information: For a successful telephone negotiation, Samson should first carry
out research about the quality of the car trackers Peter is selling, and the various prices of the
car trackers. Disruptions: In order to attain successful telephone negotiation between Samson
and Peter, Samson should avoid poor telephone signals as this would hamper the flow of
conversation and lead to frustration on the part of both parties. Samson must be sure to use a
good telephone service to avoid disruptions during the call

Actual negotiation
This is also known as the discussion stage. It’s at this stage where Samson will have a
conversation with Peter over the telephone and the issues of offer and acceptance are to be
handled at this stage. At this point, Samson will have to express the specific terms on which
they will settle by stating the entry and exit point and to attain success during a telephone
negotiation, Samson is advised to do the following at this stage;

Listening: This involves hearing and interpreting messages in a communication process. We

would advise Samson to take notes as he is listening to Peter as this is a good practice and
makes clarifications where necessary between both parties.

Turn taking cues: In order for Samson to have a successful telephone negotiation with Peter,
he must ensure that one part doesn’t dominate the conversation. Speakers should not hold the
floor for too long as this can lead to information leak.

Being active and not passive: To attain a successful telephone negotiation, Samson should
keep a list of questions or issues at hand during the call. This enables Samson to cover as
much negotiation ground as possible.

Post negotiation

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This stage involves parties implementing what was agreed upon during the actual negotiation
phase.

During the post negotiation phase, we would advise Samson to prepare contracts in line with
the final agreement with Peter.

To attain a successful telephone negotiation, Samson should prepare a report on what was
agreed upon during the actual negotiation.

Samson is also advised to seek commitment to make the agreement work.

Follow up: After the phone has ended, Samson is advised to cement by following up using a
different media such as email. A simple and strategic email remind Samson’s prospects of
great deals that he is suffering and also keep his personality fresh in Peter’s mind.

Conclusion
With following the above advise, Samson will have a successful telephone negotiation with
Peter over the supply of car trackers.

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