Why is negotiation a core managerial skill?

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MBA in a Box: Business Lessons from a CEO

A Complete MBA Training: Business Strategy, Management, Marketing, Accounting, Decision Making & Negotiation

11:28:33 of on-demand video • Updated November 2019

  • Receive an 'MBA in a Box' certificate of completion
  • Acquire the same business acumen as MBA graduates
  • How to start a company from scratch
  • Understand how a business functions and what makes a company successful
  • Get promoted and be ready for a managerial role
  • Transition into a career requiring solid business knowledge
  • Be able to perform an industry analysis
  • Understand what the critical success factors in an industry are
  • Carry out SWOT analysis
  • Use Michael Porter's Five Forces model
  • Apply Game theory in real-life business situations
  • Understand what a competitive advantage is and how to acquire it
  • Be able to choose one of the three core strategies: Cost leadership, DIfferentiation, and Niche
  • Apply best practices when managing people
  • Understand how to recruit, select, onboard, develop, and motivate employees
  • Carry out effective marketing research
  • Perform market segmentation
  • Select the right target client group
  • Set up the 4 Ps of Marketing in a coherent way
  • Calculate Customer-Lifetime-Value
  • Understand financials
  • Be able to read and prepare the three financial statements - P&L, Balance Sheet, and Cash Flow
  • Perform financial statement analysis
  • Calculate cash flows
  • Become a master negotiator
  • Enlarge the pie for all negotiating parties
  • Have experience and be aware of different negotiating tactics
  • Expand the pie for all negotiating parties
English [Auto] Let's begin simply negotiation is at its core a means to an end. We engage in negotiation when we must make a decision but our decision making authority is limited and we cannot do it without consulting other parties. Negotiation does not only happen in the world of business. It is necessary and always present in personal relationships and the humdrum of day to day life. It can be one on one or involve multiple people. Companies countries and so on. So who needs to know how to negotiate effectively. Simple everyone but having the tools and techniques to reach an agreement on favorable terms is especially important in a business setting where results are translated into their monetary value. Consider the dynamic of the business world today. There is constant turbulence and fierce competition in almost every market and situations and circumstances change on a daily basis. We can in fact identify for prime reasons why a successful manager needs to be an effective negotiator. Naturally dealing with competition heads our list to ensure a business continues to grow and accumulates revenue. A manager needs to navigate a landscape of competitors. They must be advocates for their products and make sure they stay informed about the alternatives on the market. Just for perspective over ten thousand FM C.G. businesses operate in the United States. Do you think there is enough space on the supermarket shelves for all of them. Learning how to stay on top of your negotiation game is essential when dealing with clients and suppliers. Now think about constancy and security in the world of business. It's not very high right. The current reality is that people are mobile and flexible and a venture manager must understand this. Studies show the average millennial will change jobs four times in the first 10 years after graduation. This means managers must constantly create new possibilities negotiate higher up and lower down for positions and find ways to fill them. Managers are in round the clock negotiation mode and must be good at it. But as you will learn in the next lessons this is often not the case. In addition if you consider the structure within a company both hierarchically and in terms of the relationship between employees you will notice people are becoming more and more dependent on each other as teams become more diversified and expertise is more narrowly defined. Employees need constant feedback and the terms of projects and agreements must be negotiated. It is the manager's duty to facilitate this. They must be able to promote the interests and well-being of the members of the company while at the same time making sure this won't hurt the financial results. To that end a manager needs to be well-versed in various negotiation strategies and tactics and able to communicate effectively and exert influence. OK so we can conclude the business culture today makes it imperative for a manager or any motivated individual to understand the art of negotiation. To be able to productively interact within between and across different organizational environments. Awesome. Now join us in the next lesson to learn why this is often not the case and why some people struggle with negotiating. Thanks for watching.