Negotiation

Negotiation

Negotiation is a process of bargaining with one or more parties to arrive at a solution that is acceptable to all. This process involves five basic steps: Planning Interpersonal relationship building, exchanging task-related information, persuasion, and agreement.

As learnt negotiation takes place between two or more people to meet their means, through process of bargaining, persuasion and followed by the agreement signed by both the parties. This can take place between two or more individuals, businesses, cross border businesses, businesses and governments, and between governments of two countries. Negotiation is step by step process of preparing or planning, bargaining and persuasion, and agreement, the parties also have to look into the cultural, political elements prior to going for negotiation in international business.

The core of negotiation is bargaining and persuasion. Either side would look into it that they do not give away more that it has to, both the sides are aware that concessions also plays an important role in converting the negotiation into a final deal. Bargaining and persuasion is successful only when one side understand the position of other side. Know-how of shared characteristic and differences between them, their abilities to work on alternatives and their readiness to work for a solution.

After bargaining a persuasion the final phase of negotiation is agreement. This is achieved through allowing concession from either sides and preparing an agreement. Negotiations approaching this phase are usually successful, and signed of agreement binds both the parties into a contract. In western countries the agreements are signed immediately after the negotiations are done, while in Asian countries this is believed to be a beginning of long time relationship, and the terms of the agreement can be modified as and when required, with mutual understanding.

Whenever we do negotiation we do it with people and they have emotions, perceptions, personality and communication and all this has a process to go through. These emotions can affect the result of negotiation extremely, producing unsatisfactory outcomes. It becomes very important for negotiation to be successful to distinguish between the people (emotions, perceptions, personality and communication) and problem (objectives).

It is important to understand the interests of other side, as it will help in understanding the other side in well manner, this will also help working on solutions. Concentrating on position of other side can divert the negotiation on wrong directions. Highlighting the mutual gain during the negotiation will help the process of negotiation in correct direction and both the side will work towards solving the problems rather than creating one.

Focusing on objective is core of all negotiations. Both the parties have to agree on that the negotiations will not turn in debate and which divert the main point of negotiation. This mutual agreement between both parties will help in saving time and reaching a successful negotiation process.

Social And Economic Impacts Of Gold Mining

Social And Economic Impacts Of Gold Mining

Gold mining is a global industry. Currently, there are more than 600 productive gold mines spread over 70 different countries, and these figures do not include artisanal and small-scale mining operations. Yet, despite the scale and geographic reach of the industry, gold mining’s impacts on economic growth and development are not well understood. Indeed, they are frequently neglected or misreported.

The World Gold Council set out to address this ‘information gap’ and offer the industry’s very diverse set of stakeholders – gold mining companies and their employees, government representatives, community leaders and wider civil society – empirical evidence of gold mining’s socio-economic impacts and a firm set of indicators by which change and progress might be judged.

A research program was initiated resulting in a series of research outputs, including those produced in collaboration with our Member companies, including Newmont, finally culminating in the recently published research report, and the social and economic impacts of gold mining. We believe this work, with its greater scope and more extensive inputs, advances our collective knowledge on the ‘shared value’ created by gold mining.

The findings from this research provide insights into how formal gold mining contributes to:

  • Supporting global economic growth
  • Supporting the development of host nations
  • Investing in people
  • Supporting community development

In 2013, gold mining made a total contribution of more than US$171bn to the global economy. Globally, the gold mining industry directly contributed around US$83.1 billion to the global economy in 2013. Taking indirect economic impact into account, this contribution increases to US$171.6 billion. This is greater than the GDP of more than 150 countries and more than the world’s total overseas aid budget.

Gold mining’s direct economic contribution to the global economy has increased seven-fold from 2000 to 2013. This is greater than the rise in the value of gold over the same period.

Total number of jobs that result from commercial gold mining estimated at 4.2 million globally. Globally, gold mining companies directly employed more than one million people in 2013, with three million more people employed as a result of the industry’s suppliers and support services. In most gold producing countries, more than 90 percent of the industry’s employees are local workers.

The report shows that gold mining has made good progress in seeking to develop local human capital and skills. More than 60 percent of the countries covered in the report are low or lower-middle income with substantial socio-economic development needs. However, the report indicates that growth in the economic contribution of gold mining often coincides with a marked improvement in income status of host nations.

70 percent of the value that gold mining companies distribute within an economy relates to payments to local suppliers and employees. The majority of government revenues from gold mining are derived from indirect sources, such as corporate and income tax rather than from money relating to permits and royalties or direct minerals taxes.

Overall, the research presents a picture of an industry that has developed significantly in terms of how it benefits the global economy and helps drive growth and progress at the national and community level, particularly in the developing world.

Of course, the gold mining industry still faces considerable challenges, not least in ensuring the growth and momentum of the socio-economic contributions detailed in this report are sustainable. Furthermore, this is unlikely to be done in isolation, by the gold mining industry on its own. Our ambition for this research is that it may help improve shared understanding around the industry to better inform productive engagement between stakeholders to maximize the growth and development potential of responsible gold mining.

Customerization

Customerization

A new type of mass customization is redefining marketing and business strategies. Many companies now offer highly customized products in a wide range of categories, including sneakers, coffee, dental products, newspapers, vitamins, bicycles, cars, golf clubs, eyeglasses, garden design cosmetics, and greeting cards. Some companies, such as priceline.com and DealTime.com have customized the price determination process; they let customers specify their own prices and then try to locate providers who are willing to sell at those prices. Companies, such as Dell, establish custom websites (called premier pages) for their business customers, whose employees can then order computer configuration that have already been approved by their companies. These are examples of what we call Customerization, a redesign of marketing from the customer’s perspective. These companies are doing more than catering to new markets or delivering custom-made products at lower prices; they are transforming the practice of marketing from being seller-centric to being buyer-centric. Customerization encompasses more activities and functions than mass customization of products. Mass customization as defined by Hart (1996) is “using flexible processes and organizational structures to produce varied and often individual customized products and services at the price of standardized mass-produced alternatives.”

Both mass customization and Customerization are attempts to provide products and services that better match the needs of customers-they are two sides of same coin. Both are IT-intensive. However, mass customization is IT-intensive on the production side, whereas Customerization is IT-intensive on the marketing side. Also, Customerization is inherently dependent on internet and related technologies as a vehicle for implementing this concept in an economical way.

In developing a strategy for Customerization, a company should be guided not only by customer’s wants and needs that are best satisfied by customized offerings, but also its operational capabilities. Customerization is a critical aspect of the emerging new marketing paradigm, which has enormous implications for a firm’s marketing strategy, and, more importantly, for the entire business strategy and operations of the firm. Fundamentally, Customerization requires and effective integration of marketing, operations, R&D, finance, and information.

Mass Marketing

Mass Marketing

Mass marketing will never die – as long as there are international brands with mass appeal, this type of advertising and promotion will continue to exist. Those who argue that “mass marketing is dead” are probably getting better marketing results by targeting niche market segments with a defined demographic. This type of marketing is common on the Internet, where search engine keywords are used to attract potential buyers who are looking for a particular product or service. Mass marketing requires lots of money, a cohesive marketing plan and access to mass media, such as magazines, popular websites, national or international radio, and cable television networks. Those who argue that mass marketing is dead will probably not have access to the type of multi-million dollar budgets that mass marketing requires. Instead, they will do smaller marketing campaigns, using Internet websites, blogs, social networking, and word-of-mouth advertising. While mass marketing may be on the wane, companies such as Coca-Cola and Nike use it extensively to retain their brand’s appeal throughout the world.

Here are some known benefits of mass marketing:

  • Uses mass media to build brands
  • Reinforces a company’s mission statement
  • Creates an image, or lifestyle, associated with a brand name
  • Gets attention from millions of people

Mass marketing also has drawbacks. This may include:

  • Expenses – mass marketing costs a lot of money
  • The money spent on ads may not be recouped through sales
  • This marketing doesn’t connect with niche audiences

Smaller marketing initiatives can be low-cost or free; often, creative or “guerilla” advertising is used to attract attention without access to radio, TV, etc. For those who believe that mass marketing is dead, finding a niche market and targeting that market segment in ads is preferred over spending a lot of money on a mass marketing campaign.

Great Stories – TATA

Great Stories – TATA

Great stories succeed because they are able to capture the imagination of large or important audiences.

  • A great story is true
  • Great stories make a promise.
  • Great stories are trusted.
  • Great stories are subtle.
  • Great stories happen fast.
  • Great stories don’t appeal to logic, but they often appeal to our senses.
  • Great stories are rarely aimed at everyone.
  • Great stories don’t contradict themselves.
  • Most of all, great stories agree with our world view.

Apart from the Seth Godin elements of great/good story the stories should also be:

  1. Simple – Good stories are easy to understand. They’re also told in a language that matches the way the intended audience communicates, so they don’t need to spend time interpreting and then absorbing. Simplicity also aides in memorability, because the overall lesson is easy to grasp in summary.
  2. Emotional – Good storytelling requires an emotional component. Most of the memorable ones have humor, pain or joy (sometimes all three). If every story were simply facts stated, one after another, most of us wouldn’t listen or remember any of it.
  3. Truthful – Not truth in the scientific sense, where there’s an objective fact stated, but true in so far as the tellers believe in what they’re saying and are honest with themselves and their audience about it.
  4. Real – Good stories are first-hand experiences the teller actually witnessed. Even if it’s a story that’s passed on generationally, an effective one still has an element of how that story relates directly to the teller, told in the teller’s own words.
  5. Valid – Regardless of the audience size, a good story works for any One to one million. It isn’t concerned with how many people can hear it, just that someone, somewhere is listening to it.

TATA

There is a difference between making money for oneself and creating wealth for others. This is the story of a business house that has created wealth for a nation. It is a story of struggle, anxiety, adventure and achievement. This is the story of our pioneers.

Jamsetji Tata, the Founder of the Tata group began with a textile mill in central India in the 1870s. His powerful vision inspired the steel and power industries in India, set the foundation for technical education, and helped the country leapfrog from backwardness to the ranks of industrialized nations.

The Tata group is the only business conglomerate in India which has contributed several leaders of stature to public life. Their leadership and values have guided the destiny of the Group and built a heritage that has made the Tata’s India’s most respected corporate group.

Over the past 100 years, the Tata’s have invested in industries and worked in areas which have been of specific importance to nation building and industrial development. This has been done while upholding the values cherished by the group: innovation, leadership, trust and fair play. In today’s fiercely competitive times, the Tata group has shown that material goals can be achieved without abandoning belief in core values and principles. In a world where values such as commitment, integrity and nationalism are eroding, the Tata group is a sparkling example of how they continue to be the guiding principles of all its endeavors.

The elements of great/good story Godin mentioned which align with TATA are they are true, make promise to the nation to bring in the development and infrastructure, they are trusted, and no contradiction in the stories.

Concluding the blogs on Leadership

Concluding the blogs on Leadership

Self-Management A leader sets examples that are exemplary. Self-management involves, time management, being motivated, planning. I need to work on my self-management as I lack on time management

Willingness to admit a mistake Human tendency is to make mistakes but the ability to accept and admit that one has done a mistake is courageous.

Time management will help day to day activities and work towards the future. One of the qualities that differs leaders from others is his/her visionary ideas. Concerning about today, now and tomorrow can be mitigated by improving time management.

Staying up to date on the current topics either it’s about global economy or technological innovations, reading books on different and varied topics can enhance the know-how across the globe. This can be achieved only by keeping abreast with the latest news around and improving knowledge on various topics. It is not just in the organizations that we find leaders but also in personal life.

From the above discussions we know the various types of leadership skills that exist. During the research of the three companies i.e. Microsoft, GE, and British Railways, it is clear that most of the organizations follow transformational style of leadership. From the blogs I have shared with you so far we can say that the best forms of leadership styles that nurture inspire and get the most of an individual or an employee is transformational style of leadership. As per the previous blogs we also found out that a leader has a vision and works towards that mission. A leader without a vision does not serve any purpose. Though there are various styles of leadership, it is beneficial for an organization to adapt transformational form of leadership. Working on these leadership blogs, it helped me to give a deep thinking about myself as a leader and the areas that I need to work on to become a good leader.

I would like close to my blogs with one of influential leader in the american history and give brief details about his achievement, information source is from Wikipedia.

Raised in a poor family in small towns of Northern Illinois, Ronald Reagan graduated from Eureka College in 1932 and worked as a sports announcer on several regional radio stations. Moving to Hollywood in 1937, he became a television and film actor, starring in a few major productions. Reagan was twice elected as President of the Screen Actors Guild, where he tried to root out Communist influence. At this time he was an FBI informant, under the codename “Agent T-10”. In the 1950s he was a spokesman for General Electric. Having been a lifelong Democrat, his views changed, and he switched to the Republican Party in 1962. In 1964, Reagan’s speech, “A Time for Choosing”, in support of Barry Goldwater’s presidential campaign, earned him national attention.

Entering the Presidency in 1981, Reagan implemented sweeping new political and economic initiatives. His supply-side economic policies, dubbed “Reaganomics”, advocated tax rate reduction to spur economic growth, control of the money supply to curb inflation, economic deregulation, and reduction in government spending. In his first term he survived an assassination attempt, escalated the War on Drugs, and fought public-sector labor. His economic policies saw a reduction of inflation from 12.5% to 4.4%, and an average annual growth of GDP of 7.91%; while Reagan did enact cuts in domestic spending, military spending increased federal outlays overall, even after adjustment for inflation. During his reelection bid, Reagan campaigned on the notion that it was “Morning in America”, winning a landslide in 1984 with the largest Electoral College victory in history.

Leaving office in 1989, Reagan held an approval rating of sixty-eight percent, matching those of Franklin D. Roosevelt, and later Bill Clinton, as the highest ratings for departing presidents in the modern era. While having planned an active post-presidency, in 1994 Reagan disclosed his diagnosis with Alzheimer’s disease earlier that year, appearing publicly for the last time at the funeral of Richard Nixon; he died ten years later at the age of 93.

Leadership – Part Seven

Leadership – Part Seven

The common factors of a leadership are:

  • They are Principled
  • Always set out to change things
  • Had thoughts and ideas that motivated others
  • They were noticeable.

Leaders get up thinking about tomorrow, are very focused on a group, walk with a collective passion of the entire organization towards a great future and use their talent to widely spread a shared commitment.

Leadership styles can be broadly classified into four categories. They are:

Autocratic Leadership Style In this style of leadership, the leader has all the power. It’s a monarch kind of a system wherein the employees are not considered for any but orders made.

Bureaucratic Leadership Style In this style of leadership the leader strictly abides himself and the teams as per the rules and follows documents for every decision to be taken.

Democratic Leadership Style In this style, the employees are consulted before a decision is taken unison is maintained in any work done.

Laisezz – Faire In this type of leadership, the leader avoids any kind of activity and the complete decision making lies in the hands of the employees.

Some other characteristics other than the ones mentioned above are:

Act on opportunity  Leaders have the tendency to spot an opportunity and work on it immediately. This is an important quality of a leader and the one that separates leaders from others.  

Considerate  Being considerate towards team members and standing against the management to support my team is much needed.  This builds a strong relation of trust between team members.

Inspiring and Motivational Inspiring team members by helping them to realize their own potentials and work accordingly towards the achievement of their goals. When the work being done by the team members helps them to achieve their goals, it is quite easy to motivate them and inspire them. This method helps to attain great results in terms of productivity from the team members.

Decision Making  Consulting opinions from the team before a decision is made builds a strong feeling of being a part of the team, a part of the organization.

To know their team:  When you acknowledge the team members with their names and remember them, it gives them immense pleasure and feel valued by the organization.

Photo credit – http://pixshark.com/good-leadership.htm