Negotiation is a part of the business world just as it is part of the wider social world. Negotiation is part of the process by which an individual goes to work for a company, it is part of the process by which suppliers are selected, and it is part of the process by which companies and unions arrive at contracts. Negotiations can be formal, such as in a bid process, or informal, such as determining which employees take which days off for vacation. Negotiations can involve millions or billions of dollars, or affect the company's ability to meet a deadline on time. Over the years, much has been written about the art of negotiation, including how to win negotiations, how to create win-win scenarios, even what to wear to the negotiating session. This research considers a relatively new approach to negotiation, one that suggests that negotiations can be approached from an organization-wide perspective, and one that takes a broader view of the negotiating process.
ANALYSIS OF NEGOTIATION AS A CORPORATE CAPABILITY
According to Ertel, many negotiators focus on the immediate deal rather than on a long-term relationship with the negotiating party. Cost may often be the overwhelming consideration in negotiations when other considerations--product quality, delivery capability, and strategic focus--may be of greater importance to the organization as a whole. Ertel points out that it is possible to "win" a deal, but cause irreparable harm to a long-term business relationship (1999).
Ertel suggests that organizations take a long-term, organizational and strategic approach to negotiations. Rather than focus on an immediate deal, organizations should frame all negotiations in terms of the larger strategic vision of the company. This has applications regardless of whether the institution involved is a bank or a manufacturing company negotiating with suppliers. By ensuring that each negotiation is in line with the company's
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