Answer to Question 1
B
Answer to Question 2
Negotiation is a process by which parties with mutual interests try to reach an agreement about something. The most effective negotiation is winwin, which involves compromise to reach a mutually acceptable agreement. This is the best approach if long-term vendor relationships are desired.
The negotiation process must focus on more than just selling price. Other features that add value, such as services received, are also an important concern. Effective communication is an important negotiation skill, as is the ability to make compromises, solve problems, and make decisions. There are three steps to the negotiation process, beginning with preparation by considering objectives and strategies and obtaining needed information. Participation involves beginning the meeting, conducting the discussion, and concluding with a summary of important agreements. The third step relates to follow-up activities such as preparing contracts.
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