Solution

Table of Contents

1.0 Introduction. 5

1.1 Organisation Background. 7

1.2 Scope of Assignment. 8

1.3  Identifying Spend Category. 9

2.1 Reason for Negotiation. 11

2.2 Business Needs addressed in the Negotiation. 13

3.0 Stakeholders Analysis in Negotiation. 15

4.0 Negotiation Plan Implementation. 19

4.1 Strategy. 20

4.1.1 Buyers and Suppliers in Negotiation Analysis. 20

4.1.2 Market Analysis. 23

4.2 Planning. 27

4.3 Execution. 29

4.3.1 Environment of Negotiation. 29

4.3.2 Importance of Contract/Category to Organisation. 30

4.4 Evaluation. 31

4.5 Delivery. 32

5.0 Conclusion and Recommendations. 33

References. 35

Figure 1:RCU Areas of Operations. 7

Figure 2:Procurement Cycle and Negotiations Rationale. 8

Figure 3:Different RCU spend categories 9

Figure 4:Summary of products and services negotiated by RCU.. 12

Figure 5:Summary of RCU Business objectives. 13

Figure 6:Kraljic Matrix Analysis. 14

Figure 7:Stakeholders categories summary. 16

Figure 8:Mendelow Matrix Analysis 17

Figure 9:RACI Matrix Components. 18

Figure 10:Negotiation strategy phases. 20

Figure 11:Supplier Preferencing Model 22

Figure 12:Porter’s 5 Forces Analysis. 26

Figure 13:Persuasion Tools Model 27

Figure 14:CIPS Notes of 5 Rights of Procurement 29

Figure 15:4R’s Model of Negotiation. 31

Table 1:RCU Spend Categories 10

Table 2:Summary of potential RCU Suppliers. 21

Table 3:SWOT Analysis Summary. 23

Table 4:STEEPLED Analysis. 25

1.0 Introduction

1.1 Organisation Background

The Royal Commission for Al-‘Ula (RCU) is a non-profit organization dedicated to the preservation and sustainable development of the Al-‘Ula region. Established in 2017 by Royal Decree, the RCU is focused on preserving the archaeological, cultural, and environmental heritage of Al-‘Ula and surrounding areas (IUCN, 2022). The RCU ensures the preservation of Al-‘Ula’s historical and archaeological sites while promoting modern, sustainable infrastructure development. The RCU is responsible for preserving Al-‘Ula’s historical and archaeological sites (see figure 1);

Figure 1:RCU Areas of Operations

Source: Summarised from (IUCN, 2022)

Further, The organization is committed to preserving Al-‘Ula as an integral part of Saudi Arabia’s cultural heritage while promoting sustainable tourism and economic development. The RCU works to ensure that Al-‘Ula’s heritage is respected and protected and, at the same time, promotes the development of sustainable infrastructure. The RCU is also responsible for developing and implementing various conservation initiatives, including developing environmental policies, promoting sustainable tourism, and monitoring environmental conditions (RCU, n.d.). The entity works to raise awareness of the importance of preserving Al-‘Ula’s cultural and natural heritage while promoting sustainable economic development.

1.2 Scope of Assignment

Implementing commercial agreements is crucial for organizations to succeed in today’s business environment. Dos Reis and Gomes (2023) suggest that, as best practices, it is necessary to think about the relationships between various stakeholders, manage costs, determine the quality that is required, and get value for money. With excellent communication and the right kind of economic negotiation, it is feasible to do this and establish good relations with all parties involved. As a result, the many stakeholders’ interests, concerns, and expectations are taken into account in this integrated assessment’s negotiating plan. Furthermore, it is necessary to implement extensive communication by involving diverse stakeholders with a mutually agreed outcome, according to Flechsig et al. (2022). Key performance indicators (KPIs) and service level agreements (SLAs) in negotiation are shown in figure 1 summary as important considerations (Bals et al., 2019).

Figure 2:Procurement Cycle and Negotiations Rationale

Formalising RCU’s business negotiations is the primary emphasis of this integrative study. In order to do this, we will be making use of the existing data, statistics, factual information, and technologies. In addition to outlining the best approach in negotiations, we have highlighted the contradictory character of the procurement terms and conditions. When we talk about time, quality, quantity, and value for money, we’re talking about these things.

1.3  Identifying Spend Category

RCU is involved in procurement of an upward of 80 technology systems intended to enhance their operations in the cultural and archaeological exploration in Saudi Arabia (KSA). For success in this operation, they leverage on an appropriate sourcing strategy and pursue a detailed supplier appraisal for meeting demands. In RCU, this is important for achieving value for money outcomes controlling their entire supply and procurement approaches. In line with this, the purpose of this report is to evaluate the different sourcing approaches and recommend the best practice for RCU.

Figure 3:Different RCU spend categories

Source: Summarised from RCU (2023)

Using PS&M to affect the achievement of delivering value for money results, RCU is involved in sourcing the categories listed in figure 2. Their goal is to succeed in working collaboratively with local communities  while investing in education and learning for AlUla’s net generation and creation of training and employment opportunities for KSA Citizens (RCU, 2023). With a solid PS&M system in place, the organization improves the entire procurement process, generating value for money outcomes and sourcing the best products and services. They are leaders in this field. Considering the expenditure area of ultrasonic machines, the following subcategories may be established:

Table 1:RCU Spend Categories

Source: RCU (2023)

2.0 Rationale of Negotiation

2.1 Reason for Negotiation

Negotiation is defined as the process of reaching an agreement between two or more parties in an academic setting (CIPS, 2023). As a result, reaching an agreement is a key component of fruitful negotiations. Obtaining supplies, equipment, and services of the correct quality, quantity, and timing, as well as negotiating for the right terms on engagement, are among the many reasons why negotiations are conducted in RCU. Nevertheless, their approach to negotiations has evolved throughout the years, with a clear transition from a focus on costs to the present priorities of economy, sustainability, and reputation. Figure 3 shows a summary of the negotiated products and services for RCU.

Figure 4:Summary of products and services negotiated by RCU

Source: Summarised from RCU Internal documents

A successful negotiation will help this Saudi Arabian tourism sector giant reach its primary objective, which is to provide tourists with the best facilitation and support in accordance with their needs, so contributing to the Kingdom of Saudi Arabia’s (KSA) ambitions and the goals of Vision 2030 (RCU, 2023). Buying new things is the goal of the negotiation when it comes to the IT systems sourcing. The worldwide cultural and archaeological sector supply chain has been severely impacted by the COVID-19 pandemic, as shown in the research of Aljadeed et al. (2021). In addition, as a result of falling oil and gas economy, the Saudi government has cut spending on IT systems procurement for success of their operations. When taken as a whole, these factors have hurt Saudi Arabia’s ability to source IT Systems and other types of expenditure. Consequently, RCU would be able to keep the supply of IT Systems and other categories consistent through this negotiation. This is in line with the organization’s plans to fulfill their financial objectives and grow their business.

2.2 Business Needs addressed in the Negotiation

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