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Interviews about the importance of Negotiation


Interviews about the importance of Negotiation

Negotiation always has its importance to sort out problem and issues as it is said that the wars fight on the table have more importance than wars fight in the field. If give a look to understand the meaning of the term negotiation, then we found that negotiation is a communication in through dialogues in between the two people, or two parties which wanted to reach find a way to make an agreement on the basics of mutual agreement.

Negotiation is consider to have immense power as it is used to in every days life from small agreement in between individual to intense level of agreement in between the nations. Negotiations are made to design the agreements to satisfy different interests by considering the mutual advantages and collective interests.

If we prolong the discussion about the negotiation, so as I have mentioned above, that negotiation is take place from a very small level to solve highly intense situations. Negotiation is greatly use by the nonprofit or non-governmental organizations, governmental organizations, private businesses and most importantly if we look at the history of the world, we can find that negotiation helped to avoid great destruction such as an intense situation about the Cuban Missile crises were resolved by the negotiation and an expected destruction was avoided through dialogues.

In the current era, we have experienced that the globalization has given great extend to the businesses but on the other hand, businesses organizations have to concern many aspects to keep their business on run such as they have to negotiate with their shareholders and stakeholders i.e. the employees,  customers, conservative organizations,  legal and governmental issues as well. Therefore, in the modern businesses practices, power of negotiation is consider as one of the most important business strategy and business tool to manage various business processes.

Purpose of Writing

By considering the importance of negotiation, I proposed to create an understanding about the power of negotiation in modern business. For this purpose there is a plan designed to take interview from the experts of some of the most famous organizations of the world. For this purpose there is a questionnaire developed to get maximum information from the experts.

Interviews of the Wal-Mart Expert

To get information from the experts of the organizationone of the most famous organizations named as ‘Wal-Mart’ was selected and an interview was conducted by the experts of the organization. Wal-Mart is selected for the following purpose, because Wal-Mart is one of the largest retailing organizations in the world as it has long range of employees and suppliers, consumers, shareholders and other stakeholders such as conservative organizations, governments etc. Wal-Mart managing director was agreed for the interview and the interview was conducted through social network Skype which allowed having a video call.

In the start of the interview, the MD Wal-Mart was informed about the interview and the purpose of the interview and he was assured that the information was not used for any wrong purpose. MD gave us an introduction of the organization and explained the organizational operations.  After that introduction we came towards the core purpose of the interview and the first question was asked from the Wal-Mart expert as:

What type of negotiations theytypically engages in?

In the response of the questions, the aforementioned introduction about the organization operations were pointed out by the expert and he explained that being one of the greatest retailing store, Wal-Mart has to concern so many things during its business. Wal-Mart has been working with thousands of brands of different nature of business. Therefore, the organization has to negotiate to make an agreement over the purchasing prices of the products.

Secondly, organization used to negotiate about the selling price as a broker and a seller. One of the most important negotiation companies have to experience by focusing on the rights, rules and policies through which we have to consider the benefits and the advantages of the employees and their employees’ rights and we have to negotiate about the employees duties. According to the expert, their management needs to negotiate at the time of hiring new staff where they have to make salary negotiation by considering the experience and skills of the candidates.

Further he explained that the Organizational management has to negotiate over the legal and ethical issues to keep the organization up to the laws and policies of the companies. Expert negotiators of the organization also negotiate with the franchisees etc. 

Second question was asked by the Expert of Wal-Mart as follow:

Who do Wal-Mart Negotiation With?

For the answer of this question, expert explained that as it is a retailing organization, therefore, they have to negotiate with multiple parties. They have to negotiate with the suppliers, and this negotiation is not limited to the money, but in this negotiation they also consider the quality of the product, the delivery of the product, and at the same time company also negotiate about the way use by the suppliers for the production of various products.


Secondly, they have to negotiate with the employee at many stages. The first negotiation company make with the employees at their entry level, when they negotiate about their salaries. There have been many conflicts and issues raise by the employee and sometime these issues take serious turn which are required to be solve through the negotiation by listening the demands of the employees. If company found that there demands are acceptable, then the negotiation does not remains for long time.

Another negotiation company has to make with its consumers on multiple products on which discount or bargain possibilities are available. Store managers also negotiate with the customers by considering complains and issues they have to face because of our organizational services because, the company believesthat their customers and their employees are their assets therefore, they should be satisfied.

Wal-Mart usually have to manage its matter with the Conservative organizations because the conservative organization works to keep the organizational practices up to the standard, therefore, they have to negotiated so that the company could avoid any great problem. On the other hand, the company has to negotiate with the human resource organizations. To keep the organizational operations according to the governmental laws, company negotiate with its employees and government.

What is the challenges face in the Negotiation?

In the response of this question the Wal-Mart experts said that negotiation is never been an easy task as the purpose is to find the solution of the problems, therefore, there are great challenges which the company have to face in the negotiation.

Most commonly, the workers are the assets and one of the major part for the organization when they went on strike, then company have to bear great loss, as the company have been running its business worldwide, this the entire business process disturb by the employees strike. In this aspect, if the  employees demand are very high which raise question over the company’s capability, then company have to face great challenge, because if company do not fulfill their demands, then they keep their strikes on and the business have to bear the loss. Secondly, if company listen their demands, such as to increase their salary, then at the same time company would have to face great challenges, as the company have thousands of the employees, and their salary would be increase which is a great problem for the company.

Therefore, the greatest challenge company have to face in the negotiation is to find the best possible point of agreement which ensure the mutual benefits for both parties. Secondly, it is hard for the company to make any negotiation when there is no option available, therefore, in such situation a wrong decision or delay in negotiation could put question mark over the business progress.

What leads to negotiation in their field?

The Wal-Mart expert have strong believe in negotiation, as he said that negotiation means a lot for their field as it is used as one of the strongest tool of risk management. This application of negotiation most of time has helped the organization to resolve very sensitive issues successfully by tackling the expected danger associated. Secondly, he believed that negotiation gives them opportunity to avoid great business loss.

How do you take the meaning of the power of Negotiation in your life?

In the reply of the question about the negotiation power, the expert at Wal-Mart said that he has very strong believed in the power of negotiation. In this aspect, he shared an incident which took place few years before within their organization. He said that their suppliers were founded involve in some environmental violation practices, therefore, the conservative organization took serious step and the company had to stop its business. The company’s strategic management focused to solve that matter through negotiation. They developed a social corporate responsibility plan and implemented it on the organization as it was negotiated with the organization, and in the repose of it they organization not merely saved its business by negotiation realized the organization its social corporate responsibility.

What would be the consequences, If negotiation does not exist?

The expert beautiful replied this question he said that the same thing happened when issues solve in the battle field instead of solving them on the table talk through negotiation.

Interview from the experts of Apple Inc

For the second interview the Apple Inc. one the most successful technology products and services providing company, we have interviewed their experts to understand the importance of negotiation for the organization. The interview was taken from the expert of the company and same questions were asked to them. This interview also held by making cam to cam video chat through Skype social network.

What type of negotiation they typically engage in?

The apple experts replied that the company has so many responsibilities to fulfill andthe company has to run its business in a neck breaking competition. As the apple has been working globally, therefore the company has to negotiate with many parties. In this aspect, the company has to negotiate for the raw material prices and quality with the suppliers. Company has to make negotiation. Secondly Apple has to manage a huge pool of employees; therefore, it is one of the biggest challenges for the company, therefore, the management of the company usually engages in negotiation with the employees, to listen their demands and to make possibly available steps accordingly. Moreover, Apple also has to engage in negotiation to response over its social corporate responsibilities and its ethical business practices. 

Who do they negotiate with?

Apple expert said that they have to negotiate with multiple parties, as they have to negotiate with the suppliers, customers’ demands, Employees demands and other shareholder and stakeholders. Like Wal-Mart, Apple also has many times targeted by the human resource organizations and conservative environmentalists so that the company could keep its business practices up to the rules regulations and laws. However, they exposed that the company mostly have to get engage in negotiation with its employees who are working in other countries than America and usually the topic of the negotiation is employees benefits and increase in employees’ salaries so that they could improve their living standards accordingly.

What the challenges faced in the negotiation?

He said that the most concerning challenge they have to face during the negotiation when the negotiator come in between the both parties, i.e. it is state when the shareholders and the employees or other parties were not ready to make any deal unless their demands will not be fulfilled. Moreover, the negotiators also has to face great challenges to make successful negotiation when the demand from one party does not based on the possible reality then the negotiation lost its meaning as it shows the attitude as one party won’t solve the issues.

What leads to negotiation success in the field?

The Apple experts said that the negotiation means a lot in the big organizations to solve the great issues without any harm or with less harm. He further explain that the negotiation in their business is use as one of the strongest strategy to solve great problems by maintaining both parties interests and benefits. He further explains that negotiation is ultimately important for e everyone such as in conflicts in between employees and organization, negotiation realize the both parties towards their rights and their responsibilities.

How do you take the meaning of the power of Negotiation in your life?

The expert at Apple responds this question in the favor of negotiation as he said that negotiation always opens the ways to solve the great or minor issues with maximum possible effectiveness and it is like the shield that protects both parties to have any severer strike. Further he referred back to the history of the world and said that negotiation is the way to resolve the problem and when two parties come in front of each other, then one would have to dies, or the process take long and at the end negotiation seems as the only ways to solve it.

What would be the consequences if negotiation does not exist?

The expert at the Apple Company said, if we assume that there is no negotiation exists, then we can should always keep us ready and should go out with loaded guns by reminding that there is no way to solve the problem and no way to escape and you can only survivor if you completely destroy the oppressor or you can get rid of the problem by scarifying your life. Therefore, if we assume that negotiation does not exist, then there is no solution of the problem and the consequences can never be tackled at all. 

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