C Negotiations - Value proposition

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Assignments

Name of assignment

Negotiations - Value proposition.

Situation

This part puts you in a situation, many B2B people find themselves daily. You have to negotiate in order to fit into the given budget. You have limited amount to spend in order to bring your [ttps://www.investopedia.com/terms/v/valueproposition.asp#:~:text=A%20value%20proposition%20refers%20to,a%20company's%20overall%20marketing%20strategy. Value Proposition] to life.
You will be negotiating with your Key Partner for the VP. Examples:

• If your VP is all about refurbishing a large part of your hotel, you shall negotiate with the contractor
• If your VP is about bringing a whole new service to life and need outside people for it, you shall negotiate with an outsourced service provider or a new employee/freelancer
• If your Key Activity for bringing your VP to life is to have a great marketing campaign or advertisement campaign you will have to negotiate with the ad production team or the broadcaster
• etc.

The partner you will be negotiating with, shall be announced later on.

Goal

Through negotiating your main goal is to keep your VP as close to planned as possible and stay within the budget.Keep the interest of all stakeholders in mind, and think of the impact of the negotiations in the long term.

Task, deliverable

The negotiation is made tougher by the time window. You only have a limited time window to reach the deal. If the deal is not reached within the given time, the team loses some valuable points. Use materials and resources on the basic structures and steps for negotiating. You need to prepare 'a structure' before going into the negotiations, like:

1. Goals
2. Summary of how you got “there” (to the negotiations)
3. Risks
4. Questions
5. Alternatives
6. Influencers

And you will have to do the negotiations for real.

Assessed elements

• Has the structure been prepared correctly?
• Does the method match our hotels strategy?
• Did the negotiations go well?
• Are all the sources accounted for?

Additional information

• strategy
• “Negotiating” by R. J. Lewicki
• Tips on negotiations
• Tactics in negotiations
• Managing relationships

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