Year of Award
Master of Business Administration (MBA)
College of Business & Professional Studies
government, price, factfinding, business, manufacture, airline
The entire purpose of a negotiation meeting is to convince a potential customer that a proposal is sound and that the price is fair. In addition, it is usually necessary to work with customers to arrive at a mutually beneficial agreement that is in accord with a host of factors that must be taken under consideration, including funding limitations, technical goals and other elements. As part of the process of arriving at this mutually beneficial agreement, several bridges may need to be crossed, including pre-negotiation audits, factfinding sessions and other customer contacts.
The only way to be successful in a negotiation is for all members of the negotiation team to come to the table fully prepared. Everyone should know their role during the negotiation meeting and how they can support the price contained in the proposal. Additionally, negotiators should come to the table prepared to discuss optional arrangements that may lead to a final settlement. There is often more than one road to a settlement and it is incumbent on all participants to plan for contingencies along the way to help the company reach an agreement.
It is important for everyone involved in a negotiation to understand how a customer views a job. This is because the Government generally uses a very structured approach in analyzing negotiated profit objectives. Thus, to know how to justify the maximum earnings possible on individual proposals, it is essential to know how the customer will evaluate the work.
The fact that circumstances may dictate the tone of negotiations does not mean that we have no control over the outcome and future ramifications of our settlements.
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Kintz, Bruce Gerard, "Effective Air Force Aircraft Contract Negotiations" (1988). All Theses, Dissertations, and Capstone Projects. 332.
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