How to negotiate with Powerful Suppliers, Week 5 Discussion 2: Weekly Questions

Readings

How to negotiate with Powerful Suppliers– access through NU On-line library or summary
How to Negotiate with Powerful Suppliers.docx

Price/Cost Analysis–cost price analysis.pdf and Difference between Price and Cost Analysis.docx

Week 5 Discussion 2: Weekly Questions

Answer all three questions below.

1. (300 – 400 Word Min) Effective cost analysis requires a supplier to share their cost breakdown and respond to your “discovery” of line items where the supplier’s cost assumptions are out of line with similar products or industry standards. What steps can you take to compel your supplier to 1), share cost data and 2) respond with reductions where the cost assumptions are out of line?
2. (300 – 400 Word Min) Purchasing can be a very corrupt area of business. Think of kick-backs. Suppose that you are in charge of the purchasing department in a firm. How can you prevent your employees from engaging in unethical behavior when making purchases for your company?
3. (300 – 400 Word Min) Negotiations can be very tricky. It is often not possible to know whether one has made the best possible deal. What are some of the mistakes to avoid in negotiations? Please support your answer with a logical argument or an example.