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Negotiation Process In Purchasing Materials

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Discuss about the Effectiveness Of Negotiation Process In Purchasing The Materials By Charles And Keith Wong, Singapore.



Negotiation is an important business procedure in order to develop the trade association and purchasing the materials. Negotiation with the suppliers is required frequently with the practice of internet based technologies like extranets and internet. The negotiation procedure has become a significant concern in the literature and notified in the sector of procurement. There are several factors could be affected by negation like reliability of the suppliers, communication and delivery lead time (Johnson, 2014).

With the incorporation of several actors in the negotiation procedure like suppliers and purchaser, supply management issues of the company can be resolved. This research will focus on the role of negotiation in purchasing the materials in the case of Charles and Keith Wong. This research is significant to address the strategy on how to improve the ability of negotiation in purchasing the material (Monczka, 2015).

Charles and Keith Wong procures the material by developing and implementing contract management and procurement frameworks, negotiate agreements, sourcing strategies, draft and manage contracts.  Head of Supply Chain procure the material and all the materials are sourced due to their distinctive qualities and cautiously crafted. Moreover, there are more than 1,000 new shoes and accessories are procured annually by Charles and Keith. In the company, there is greater freedom in crafting agreements.

Problem Statement

Charles and Keith has been facing issue in negotiation due to high bargaining power of suppliers. Supply chain manager is experiencing the issue in negotiation due to poor communication, power dynamics and lack of resolution skills. It has created adverse impact on procuring the material such as high price can be charged by suppliers due to slow down and ineffective relationship with them. Another impact is resources will not be readily available and resistance and the threat of sabotage increase. Hence, this investigation study is worthy for this company as it helps to avoid the issue of negotiation from communication and helps to make better relationship with suppliers.


Research objectives

The main aim of this research is to evaluate the effectiveness of negotiation process in purchasing the materials.  Following is the objectives that will be used to complete the main aim of this research:

Research Objectives

Objective 1:

 To reviewing literature on the subject of negotiation

 Objective 2:

To critically assess the effectiveness of negotiation process in purchasing the materials

Objective 3:

To recommend the strategy to improve the negotiation of purchasing the materials Methodology

Research methodology also known as a method of gathers the information regarding research concern in a systematic and proper manner. There are different methodologies which will be practiced by the investigator in this research (Sartor, et. al., 2015). It is discussed as below:

Research philosophy

Research philosophy is a way of gathering the real phenomenon associated with the research issue. There is two philosophy such as interpretivism and positivism research philosophy. In this research, interpretivism research philosophy will be used to gather the opinion and ideas with participants. This philosophy will be used due to the subjective nature of research concern i.e. effectiveness of negotiation process in purchasing material (Araujo, Gadde, and Dubois, 2016). It would be also beneficial to get the best prices and most reliable supply. .Thus, this philosophy will be effective to obtain the reliable outcome associated with the effectiveness of negotiation in purchasing the material.  


Research approach

The research approach is used to choose the systematic way to complete the research study. There are different kinds of research approach named inductive and deductive approach, which could be used by a researcher to complete the investigation. For this research, the inductive approach will be used due to its relevancy with interpretivism research philosophy (Jia, et. al., 2014). This approach will be also practiced to generate the theory regarding the role of negotiation in purchasing the material in the case of Charles & Keith Wong, Singapore. 

Research type

Research type is a sort of research that aids an investigator to address the particular design of research. These types of research are causal, exploratory and explanatory. In this research, the researcher will use causal research type that is also known as causal research (Dzeng, and Wang, 2017). It will be practiced to assess the cause and effect relationship between two variables that are negotiation and price of material. 

Research design

The research design is used to attain the research aim and objective in an appropriate way. There are different kinds of research design such as qualitative, quantitative and sometime it can be mixed of both qualitative and quantitative. In this research, mixed of both qualitative and quantitative design will be used as it will contain the characteristics of both qualitative and quantitative research design. Qualitative research design will be used to collect the theoretical data such as effectiveness of negotiation of purchasing the material while quantitative research design will be practiced to pool the numeric information such as responses with regards to research concern (Kim, Lee, and Lee, 2017). Questionnaire will be related to negotiation on prices and supply of material in company. 

Research strategy

The research strategy is a systematic method by which research study will be resolved. For this research, interview and literature review strategy will be used to complete the investigation (Hjaila, et. al., 2016). Interview will be practiced on people who are involved in the negotiation process to get the in-depth data regarding the effectiveness of negotiation in purchasing the material. Literature review strategy will be used to gather the data by reviewing the articles of different authors.


Data collection method

Data collection method is used to collect the data in a chronological way. There are two data collection methods which is primary and secondary data collection. For this research, primary data will be gathered from interview as it would be significant for acquiring the first-hand data that is not published earlier. Secondary data would be collected from different sources like journal articles, books, and online websites. These data collection method will take no longer time and less cost that helps to complete the research effectively and efficiently (Birou, Lutz, and Zsidisin, 2016). It would also provide genuine and authentic information regarding the research issue.

Sampling design

Sampling design is used to choose the sample from a larger amount of the population. In this research, random probability sampling method will be practiced to select the sample on a random basis. This random probability technique will be selected as it declines the chances of biases from research (Geiger, 2017). For this research, 10 employees will be selected who are involved in negotiations of purchasing the material in different areas of Singapore. These people were selected as they can provide the actual information regarding the effectiveness of negotiation in purchasing the material. These employees will be selected from the purchasing department. 

Data analysis method

Data analysis method is used to assess the pool the data in a comprehensible way. For this research, the statistical method will be used to measure the pool data in a statistical way such as mean, mode, median, correlation, and regression analysis. Furthermore, MS-excel software will be practiced for demonstrating the gathered information through different charts, graphs and bar diagram (Ward, 2016). It would be effective to understand the information in a meaningful way.


Ethical consideration

Ethical consideration is significant for a research study to conduct the research activities in an ethical manner. In this research, research will use the privacy act by which they cannot share the confidential data with other people during and after the research. The researcher will also use their own words to complete the project as it will improve the authenticity of data. An investigator will use the in-text citation in each paragraph to complete the research in an ethical way (Hesping, and Schiele, 2015). For conducting the interview, researcher will take the permission from the organisation to conduct the investigation in an ethical way.

Research limitation

There is some constraint that restraint the investigation to complete it in a specified time period. In this research, time, cost and resources will be a certain constraint that could limit the researcher to complete the investigation in the targeted time period and also create complexity to collect the in depth information regarding research concern (Ward, 2016). 


Table 1: Timescale

The above time scale show that conducting the survey through questionnaire and gathering information via primary and secondary sources will take a longer time period as compared to another activity which would be executed.


Research resources will be gathered via the experience of the investigation. It will also be gathered via journals, newspapers, books, and other electronic sources like the internet. Resources will also be gathered through a survey questionnaire. For this research, printer and computer will be required to assess the in depth information regarding research concern (Ward, 2016).



Araujo, L., Gadde, L.E., and Dubois, A., 2016. Purchasing and supply management and the role of supplier interfaces. Imp Journal, 10(1), pp.2-24.

Birou, L., Lutz, H., and Zsidisin, G.A., 2016. The current state of the art and science: a survey of purchasing and supply management courses and teaching approaches. International Journal of Procurement Management, 9(1), pp.71-85.

Dzeng, R.J., and Wang, P.R., 2017. C-negotiation game: An educational game model for construction procurement and negotiation. Automation in Construction, 75, pp.10-21.

Geiger, I., 2017. A model of negotiation issue–based tactics in business-to-business sales negotiations. Industrial Marketing Management, 64, pp.91-106.

Hesping, F.H. and Schiele, H., 2015. Purchasing strategy development: A multi-level review. Journal of purchasing and supply management, 21(2), pp.138-150.

Hjaila, K., Laínez-Aguirre, J.M., Puigjaner, L. and Espuña, A., 2016. Scenario-based dynamic negotiation for the coordination of multi-enterprise supply chains under uncertainty. Computers & chemical engineering, 91, pp.445-470.

Jia, F., Lamming, R., Sartor, M., Orzes, G., and Nassimbeni, G., 2014. International purchasing offices in China: A dynamic evolution model. International Business Review, 23(3), pp.580-593.

Johnson, P.F., 2014. Purchasing and supply management. USA: McGraw-Hill Higher Education.

Kim, K.T., Lee, J.S. and Lee, S.Y., 2017. The effects of supply chain fairness and the buyer’s power sources on the innovation performance of the supplier: A mediating role of social capital accumulation. Journal of Business & Industrial Marketing, 32(7), pp.987-997.

Monczka, R.M., Handfield, R.B., Giunipero, L.C. and Patterson, J.L., 2015. Purchasing and supply chain management. USA: Cengage Learning.

Sartor, M., Orzes, G., Nassimbeni, G., Jia, F. and Lamming, R., 2015. International purchasing offices in China: roles and resource/capability requirements. International Journal of Operations & Production Management, 35(8), pp.1125-1157.

Ward, G., 2016. The Project Manager's Guide to Purchasing: Contracting for Goods and Services. UK: Routledge.


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