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PJM400 MOD4 Discussion QuestionsPlease respond to both POST1: (A question from the professor) and POST2: I have included my original post as reference. ReferencesBaily, P., Farmer, D., Crocker, B., Jessop, D., & Jones, D. (2015). Procurement, principles & management (11th ed). United Kingdom: Pearson (Intl) Inc.Project Management Institute. (2017). A guide to the project management body of knowledge (PMBOK® Guide) (6th ed.). Newton Square, PA: PMI Publications. RequiredChapter 10 in Procurement, Principles & ManagementPart 1, Chapter 12, Sections 12.2.1.1, 12.2.1.2, 12.2.1.3, 12.2.2.1, and 12.2.2.5 in A Guide to the Project Management Body of KnowledgeRecommendedKumar, K. N. S. (2018). To analyze the effectiveness of e-negotiation with face-to-face negotiation. CLEAR International Journal of Research in Commerce & Management, 9(11), 22–23.Ilyas, M. A. B., & Hassan, M. K. (2015). Negotiate to win across cultures. Paper presented at PMI® Global Congress 2015—EMEA, London, England. Newtown Square, PA: Project Management Institute. Retrieved from https://www.pmi.org/learning/library/guide-to-negotiations-across-cultures-9886Original post:Procurement NegotiationsWhat are some steps the project procurement team can take to prepare for negotiations?Negotiation processes involve activities to resolve disputes of all
kinds through consultations between the parties involved to reach an
agreement. They can either be formal or informal. However, to prepare
for a negotiation, these are the steps that need to take place (Baily et
al., 2008):A team involved with the negotiation process should be carefully picked. A team cannot run without its leader; hence the second step will be leader installation. It is essential that a SWOT analysis of the teams be articulated.Involving each team player, objectives can be formulated, strategies
developed, determine the priorities, and set the scene of the agenda
plan. A psychological preparation would do well and, at the same time, ensure perfection through practice sessions. Describe three factorsthat you believe can derail the project procurement negotiation process.Over focus on prices compared to other negotiation interests. There is a loss in the exploration of other opportunities.There is no asking of sufficient questions. In a typical interaction
of the seller and the procurement agent, the buyer is always the one
asking the questions and the procurement department giving statements.
The one asking the questions is still the one running the process.Procurement departments focus more on price than specifications and
volume. 80% of opportunities to reduce cost comes from volume
specifications and only 20% from price specifications. How can contract management professionals avoid these challenges in their procurement negotiations?It is important to start early planning at the stage of Request of
Proposal (RFP). The terms of the contracts should be attached to the RFP
so that the desired outcome is achieved (Iyas & Hassan, 2015). Knowledge about the other party will assist in setting up the
strategy for the desired outcome. Negotiating from a strong position as
power originated from expertise. Vital preparation is important before engaging with suppliers. It is
important for individuals to be disciplined while controlling emotional
outbursts (Iyas & Hassan, 2015).ReferencesBaily, P., Farmer, D., Crocker, B., Jessop, D., & Jones, D. (2008). Procurement principles and management. Pearson Education.Ilyas, M. A. B., & Hassan, M. K. (2015). Negotiate to win across cultures.
Paper presented at PMI® Global Congress 2015—EMEA, London, England.
Newtown Square, PA: Project Management Institute. Retrieved
from https://www.pmi.org/learning/library/guide-to-nego…POST1: (Professors questions to me) XXXXX, these are essentially bullets and slightly difficult to group
together so it might be good to incorporate into a paragraph narrative
going forward. However, each point stands on its own merit and is well stated. Do you have a
source for supporting your points captured in the “factors that can
derail a project”? In particular, your points in item 8? They make for great “checklist items” for those who are planning their negotiation strategy.POST2:The route the procurement team prepares to take for negotiations is critical in gaining a successful result during procurement. Of the many activities to be considered, understanding the type of negotiations that you will be participating in maybe the most important, from market conditions to the number of competing suppliers. It is also important to note where the organization’s limitations and restrictions are in terms of budget and schedule. Once the parameters are understood there are steps to prepare for negotiations, they start with a carefully selected negotiation team and a well-chosen leader; perform and discuss SWOT analysis in the marketplace for factors impacting on the organization’s success, now and in the future; and prepare the team mentally and professional with mock negotiation sessions (Baily et al., 2015).Many factors may lead to derailment or outright failure during the
negotiation process. The negotiation process is complex and these
factors may be due to mistakes or poor assumptions in the areas of
authority, credibility, information, time, and emotional control and
communication skills (Dinnar & Susskind, 2018). Failure to document
the new conditions or agreed-upon terms may lead to unmet promises
later. Negotiated terms that were discussed and agreed upon must be
confirmed in writing to be upheld later. Failure for the seller to
listen or to ask detailed questions to fully understand the needs of the
buyer, may lead to missed opportunities later. Finally, when the
seller fails to understand the interest of fulfilling the need and
focuses on the bottom line price. As budgets are to be considered but if
you fail to fulfill the clients need they may find another vendor who
is willing to (Dinnar & Susskind, 2018). As with many things in project management, the documentation of
practices and lessons learned is key to increasing success. Knowing
what worked and what didn’t during a negotiation with a supplier can be
invaluable when a comparable situation arises in the future (Dinnar
& Susskind, 2018). .ReferenceBaily, P., Farmer, D., Crocker, B., Jessop, D., & Jones, D.
(2015). Procurement, principles, & management (11 ed.). United
Kingdom: Pearson (Intl) Inc. Dinnar, S., & Susskind, L. (2018). The Eight Big Negotiation Mistakes that Entrepreneurs Make. Negotiation Journal, 34(4), 401–413. https://doi.org/10.1111/nejo.12244

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