Month: March 2022

1. Profit maximization – This is a traditional and a cardinal objective of a business. This is so for the following reasons: • To earn acceptable returns to its owners. (i.e. Must not be less than bank rates + inflation Read More …

Definition of terms Financial Management is a branch of economies concerned with the generation and allocation of scarce resources to the most efficient user within the economy (or the firm). The allocation of these resources is done through a market Read More …

A variety of conditions can affect the success or failure of negotiations. The following conditions make success in negotiations more likely. Identifiable parties who are willing to participate. The people or groups who have a stake in the outcome must Read More …

Purchasing staff should enter all negotiations with clearly defined objectives. Without having objectives the possibility for the purchasing professional to concede on price, quality or service is significantly raised. The negotiator should enter into discussions with the vendor with precise Read More …

Negotiation in the purchasing process covers the period from when the first communication is made between the purchasing buyer and the supplier through to the final signing of the contract. Negotiation can be as simple as trying to obtain a Read More …

The disadvantage is that if the viewpoints of the parties are too distant then progress is difficult to achieve. A particular negotiation may have a successful outcome. However, parties may be of unequal power and the weaker party/parties may be Read More …