Integrative bargaining also called "interest-based bargaining," "win-win bargaining" is a negotiation strategy in which parties collaborate to find a " win-win " solution to their dispute. This strategy focuses on developing mutually beneficial agreements based on the interests of the disputants. Interests include the needsdesires, concerns, and fears important to each side. They are the underlying reasons why people become involved in a conflict.
Questions you absolutely must consider include: Buy Considerations when outsourcing to reduce cost The decision to outsource a part or assembly is often based on lack of internal resources, refocus of core competencies, or cost reduction.
The focus of this article is on outsourcing with the objective of lower cost. If you are attempting to outsource a part or assembly that is produced in-house based on lower cost, you must perform a thorough analysis. In many cases, cost can only be reduced if the supplier is going to use a more efficient process or significantly less expensive labor.
You must be careful in comparing costs. Unless you are going to eliminate some fixed costs, the only real cost reduction is the variable cost. If the supplier cannot produce the part for a price lower than your variable cost, you are not saving your company money.
If you are in the process of outsourcing a part or assembly in an effort to reduce cost, you should be searching for a supplier that can produce the part using a more efficient method than you or a much lower labor rate are currently using.
Even after they add in their overhead and profit, it is possible that the supplier can produce the part for less cost than you can in house. Total revenue received from sales of the product is N12, If we bought the entire N10, worth of the product on January 1st, at the end of the year we would have made a N2, gross profit on an investment of N10, But do we have to buy the entire N10, worth of the product at one time?
What if we bought N5, worth of the product on January 1st. Then, just before running out of stock, we bought an additional N5, worth of the product with part of the revenues received from selling the first shipment. Could we make the same gross profit on an even smaller investment?
What if we were to buy N2, dollars worth of material. Sell most of it. Buy another N2, dollars worth of the product.
Sell most of that shipment and then repeat the process two more times before the end of the year. The annual gross profit of N2, is now generated with an investment of about N2, Which investment option is better?Cases in Public Human Resource Management [T.
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Power in Psychotherapy and Counseling, a review of power of psychotherapists and clients in psychotherapy counseling, therapy, and psychiatry, including issues of undue influence. Sometimes, negotiations don't always end in a clear winner, and sometimes, that is acceptable.
This lesson will discuss positional bargaining and.
AET Internal Combustion Engine Theory and Servicing. This is a theory/laboratory course designed to introduce the student to basic heat engine types, their . May 04, · PURCHASING AND SUPPLY CHAIN MANAGEMENT DEFINITIONS AND CLARIFICATION PURCHASING Purchasing is the act of buying the goods and services that a company needs to operate and/or manufacture products.
Many people are ignorant of what purchasing is all about.
“Purchasing” is the term used in industries, commerce, public corporations to denote the act of and the. Positional bargaining is a negotiation strategy that involves holding on to a fixed idea, or position, of what you want and arguing for it and it alone, regardless of any underlying interests.
The classic example of positional bargaining is the haggling that takes place between proprietor and customer over the price of .