Every business requires people with various skills to function optimally.
One such skill is negotiation. Many businessmen may agree that you don’t get what you deserve, you get what you negotiate.
While every business out there wishes to do more by spending less, the value of negotiation as a skill is going up. And for businesses that are doubtful whether this area deserves their attention, we are discussing the importance of negotiation for businesses, along with a few case studies to inspire and guide them.
What Makes Negotiation Important?
The following are the major reasons why negotiation matters so much for a business.
- Helps the entire employee line: The art of negotiation benefits everyone in the employee line. Junior employees can learn from their seniors and utilize the skill for better communication and results with clients and other partners.
- Negotiation can satisfy both the parties: Many times the other party may not like your offer. And their expectations may not sound feasible for their quote.
That’s when negotiation can help you reach a middle ground so both the parties are satisfied.
- Helps save money: By negotiating smartly, you can be saving yourself a great deal of money each year.
This money can help your business grow at a better rate.
- Useful while hiring new employees: Whether it’s for deciding a new employee’s roles & responsibilities or for determining their salary, your negotiation skills can be of great use while hiring.
Apart from this, these skills will also help you resolve conflicts among your team members. This is a quality that every leader must have.
Some Negotiation Case Studies to Learn From
H&M’s Factory’s Safety Arrangements In Bangladesh
An eight-story factory that used to manufacture garments for foreign retailers collapses. Nearly 1,129 people are killed.
After the tragedy, companies outsourcing their manufacturing work to Bangladesh for cheap labour faced pressure for improving the working conditions.
The Labors Union made efforts to convince Swedish manufacturer H&M to make required safety arrangements. The negotiation efforts from the Labors Union helped improve working conditions for all labourers so such accidents could be avoided in the future. [Source]
The world knows how Nokia and Microsoft once collaborated to make and market Windows Phones.
Some liked the idea, and some didn’t. Regardless of that, the entire deal was a result of a negotiation between the Finnish phone giant and Microsoft.
In 2013, Microsoft announced that they were buying Nokia’s handset and services business for $7.2 billion.
The negotiation helped Nokia join hands with Microsoft to bring the idea of Windows Phone to reality. And later they parted ways. [Source]
Apple’s Apology For Chinese Users
In 2013, a popular Chinese news channel spoke about how Apple was offering a shorter warranty to its Chinese customers and charging them for replacing faulty back covers.
Initially, Apple failed to respond to the situation. However, later Tim Cook released an open letter (written in Chinese), apologizing for the problems that the users had to face.
He also stated that this fiasco and the allegations cropped up due to his company’s lack of communication.
As a result, the apology helped Apple earn back the faith of its Chinese customers.
Clearly, good negotiation skills can do a lot of good for any business under the sun. Many companies have been using these skills, and many companies are planning to employ these tactics.
Are you one among those? It’s a good time to focus your efforts on negotiation skills. You may as well enroll for an online negotiation program for the best results.
Negotiation is a skill that can help you get the most out of any deal that you sign. In this post, we discussed its importance for businesses along with some examples.
Hopefully, this was helpful.