A STUDY OF THE REGIONAL FRAMEWORKS IN NEGOTIATION PROCESS FOR FREIGHT FORWARDING FROM DUBAI SYNOPSIS SUBMITTED TO AZTECA UNIVERSITY IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF DOCTOR OF PHILOSOPHY IN MANAGEMENT By MR. SIBY KURIAN Registration No: Under the Supervision of XXXXXXXXX LOGO DEPARTMENT OF MANAGEMENT
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A STUDY OF THE REGIONAL FRAMEWORKS IN NEGOTIATION
PROCESS FOR FREIGHT FORWARDING FROM DUBAI
SYNOPSIS SUBMITTED
TO
AZTECA UNIVERSITY
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR
THE DEGREE OF
DOCTOR OF PHILOSOPHY
IN
MANAGEMENT
By
MR. SIBY KURIAN
Registration No:
Under the Supervision of
XXXXXXXXX
LOGO
DEPARTMENT OF MANAGEMENT
AZTECA UNIVERSITY
Mexico
(2013-14)
Chapterisation
CHAPTER NO. CHAPTER NAME PAGE NO.
1 BRIEF INTRODUCTION OF RESEARCH
1.1 Rationale of the Research
1.2 Research Questions
1.3 Research Aims & Objective
1.4 Research Hypothesis
1.5 Review of Literature
1.6 Scope of the Research
2 ABOUT DUBAI
2.1 About Dubai
2.2 About Freight Forwarding
2.3 About Freight Forwarding from Dubai
3 NEGOTIATION
3.1 About Negotiation Process
3.2 Negotiation process in Freight Forwarding
4 RESEARCH METHODOLOGY
4.1 Research Strategy
4.2 Research Design
4.3 Research Population, Sample & Questionnaire
4.4 Data Collection
4.5 Data Analysis
5 INTERPRETATION
5.1 Findings
5.2 Recommendation
5.3 Conclusions
5.4 Future Scope
Chapter 1
BRIEF INTRODUCTION ABOUT THE RESEARCH
The research focuses on the negotiation process in freight forwarding from Dubai. The
research focus is aligned by maintaining the research direction which is supported with the
research aim, objective & hypothesis so formulated to arrive at a negotiation framework.
The researcher has created the tabulated format of Freight transaction type across the set of
selected Market regions in the world. The research design shows the whole pathway to
reflect on the negotiation process in freight forwarding from Dubai.
1.1 RATIONALE OF THE RESEARCH:
Since export & import is a popular business in Dubai therefore businesses ships large
amounts of products over a wide geographic area, and rely on transportation that goes
above and beyond parcel delivery. At this time, a freight carrier is a crucial intermediary
which ensures the safe delivery of the products to the end customer.
A contract with a freight carrier is a necessity if businesses plan to get products to your
customers in a timely and cost-efficient manner. This is especially true for small businesses
that need to build a customer base while expending as little capital as possible.
Businesses identify the best freight carrier by negotiating with them so as the freight
should be delivered in their particular market region satisfying their needs. Freight
forwarder has the responsibility to judge the right shippers & negotiate with them at good
price to ship the product.
Freight forwarder should know about the market regions to which they want to ship their
freight through shipping company and fully responsible for any lost or damage until
delivered to the end customer as well. Choosing the right shipper is a crucial task for
freight forwarder to satisfy their customers.
As a freight forwarder, it is their prime duty to know about the shipment carrier and seek
answer to the following:
Will the shipments move primarily via ocean, air, or truck?
Do the ocean shipments consist primarily of container loads or do they sail as break
bulk or heavyweight freight?
If the product moves via air, will most of the cargo fit into the bellies of passenger
aircraft or must it travel via more expensive main-deck configuration?
If the freight moves by truck, is it a full truckload or less than truckload?
Businesses know that using a large freight carrier does not necessarily ensure excellent
service. They tend to learn about a freight carrier and its way of doing business, to ensure
that the relationship is a good fit.
Choosing the right freight carrier can help business focus on broad management strategies,
and leave the nitty-gritty business of moving freight to the experts.
Finally, the set of Research Questions are formulated keeping in the view of the above
discussed research.
1.2 RESEARCH QUESTIONS:
1. What are the factors influencing regional criterion that affect negotiation process in
Business?
2. What are the factors influencing regional criterion that affects negotiation process in
Freight Forwarding?
3. What are the criterions which facilitate the negotiation process in Freight Forwarding?
4. Identify that what type of the attributes/environments, Freight forwarding countries are
operating in?
5. Identify that what type of Freight forwarding transaction type they use the most?
1.3 RESEARCH AIM:
To study the criterion involved in negotiation process for different freight transaction types
in different market regions.
1.4 RESEARCH OBJECTIVE:
1. To identify Freight forwarding transaction type & subtype called Freight Transaction
Type (FTT) independently, for SEA, AIR and ROAD freight.
2. To identify countries with similar attributes/environments of Freight forwarding from
Dubai & club them together to form the Market Regions (MRs).
3. To find out the framework for negotiation process for each unique combination of FTT
& MR.
4. To find out one or more solutions for given framework of a combination of an unique
MR and FTT.
5. To find out the factors influencing negotiation process for each market regions.
6. To identify the different market regions for freight forwarding from Dubai.
1.5 RESEARCH HYPOTHESIS:
H0 1: There is no different criterion for negotiation process for each MR& FTT.
H0 2: There is no solution for every combination of a unique MR& FTT.
H0 3: There is no optimal solution based on negotiation framework for each MR& FTT.
1.6 LITERATURE REVIEW:
The geographic variation in the provision of air cargo services and the manner in which the
types of services a forwarder offers vary with firm size (John Bowen, Thomas Leinbach,
Volume 95, Issue 2, pages 174–188, April 2004).
A great number of enterprises source transportation tasks out by entrusting independent
freight forwarding companies with the execution of the necessary transportation activities.
For each transportation task the forwarding company is allowed to choose the mode of
fulfillment, i.e., own vehicles can be used for execution of the corresponding entrusted
tasks (self fulfillment) or an external freight carrier (subcontractor) receives a fee for a
request fulfillment (subcont- raction). Independent shipment contracts of different types &
specifications are awarded to the subcontractor for completion. The involvement of the
subcontractor can occur due to two incentives (Chu, 2005).
The purpose of the cooperation of freight forwarding entities is to find equilibrium
between the demanded & the available transport resources within several carrier entities by
In ongoing globalization process large international freight forwarding companies are more
competitive than small companies due to their wider portfolio of disposable resources & a
higher ranking in the market power structure (Marta Anna Krajewska et.al. July
2006, Volume 28, Issue 3, pp 301-317).
A freight forwarding company generates its profit from the difference between the price
that the customer is obliged to pay for the request execution & the cost of request
fulfillment. These costs result either from the fulfillment by own transportation capacity, or
from the external processing of orders in consequence of involving a subcontractor (Marta
Anna Krajewska et.al. July 2006, Volume 28, Issue 3, pp 301-317).
1.7 SCOPE & LIMITATIONS:
The scope of this research is the negotiation process with respect to freight forward from
Dubai. It is from a point of view of a major freight forwarder in Dubai and its multitude of
plans around the world. However the research results could be applicable to any freight
forwarder with in Arabian Gulf.
Chapter 2
3.4 About Freight Forwarding from Dubai
3.5 Negotiation process in Freight Forwarding
Chapter 4
RESEARCH METHODOLOGY
Introduction:The Research design, Research strategy, Questionnaire, Data Collection & Data Analysis forms the basis to arrive at an apt research methodology. My design of the research is being laid out in the form of flowchart although it falls into the category of Quantitative Research design. The nature of the study is exploratory wherein I have found out different FTTs preferred in different MRs by the freight forwarders from Dubai. I have come out with the negotiation framework by identifying the personalities & styles of an individual in their MRs. Myers Briggs Type Indicators (MBTI) have been used to find out the personality so as to understand the style of negotiation with the person in their MRs therefore to come out with Negotiation Framework.
Research Design:
→
↓
←
↓
Analyze the factors influencing regional criterion that affect negotiation process in Business using the Secondary Data and Primary Data may be employed.
Analyze the factors influencing regional criterion that affect negotiation process in Freight Forwarding using the Secondary Data and Primary Data may be employed.
Analyze the criterions which facilitate the negotiation process in Freight Forwarding using the Secondary Data and Primary Data may be employed.
Identify countries with similar attributes/ environments of Freight forwarding, to club them as a Market Region (MR).
Identify Freight forwarding transaction type called Freight Transaction Type (FTT) independently, for each SEA, AIR and ROAD freight.
Finally, Given a MR and FTT, the researcher will arrive at one or more solutions for every combination of a unique MR and FTT. That would serve as a Negotiation Framework.
→
Figure 1: Research Design
BLOCK 1:As in the Research design discussed and formulated, the literature will be collected by exploring the various research content/studies over the Internet on Google Scholar, Online databases i.e. EBSCO, SCOPUS, WEB OF SCIENCE etc. and Research Journals etc. as well. After this, Researcher will try to find out all the factors influencing regional criterion that affect negotiation process in Business.
BLOCK 2:There might not be a lot of literature (Published data/Secondary data) available about negotiation process in Freight Forwarding so the researcher would analyze the factors in regional criterion for business in general & will try to find out the factors influencing regional criterion that affect negotiation process in freight forwarding from Dubai.
BLOCK 3:Here the researcher will try to find out criterions which facilitate the negotiation process in freight forwarding. Researcher will search the various databases and get the facts and figures about the criterion chosen for freight forwarding. Researcher could also collect the primary data as well from the respondents.
BLOCK 4:Here the researcher will try to find out the countries with similar attributes & environments for freight forwarding business. After identifying all the countries or maybe even a part of a large country or a region, the Researcher will club them together as a group which is called as Market Region to form mutually exclusive and collectively exhaustive list of Regions referred as MR1, MR2, MR3 and so on.
BLOCK 5:Here the Researcher will try to identify the different freight forwarding transaction type (FTT) depending on whether the freight is by Sea, Air or Road. Each type could have two or more sub type, generating an enumerated list such as S1, S2, S3….; A1, A2, A3….. and R1, R2,R3.. for SEA, AIR and ROAD freights. The classification so done is based on the ground that such classification will enable the researcher to formulate Negotiation
framework for each type or subtype that are practical and which can be implemented by the end user with ease. The researcher could get the data about the FTT for each SEA, AIR and ROAD from the research portals, online databases as well as some other published resources, if any.
BLOCK 6:Here the research will provide solutions on the basis of given MR& FTT. Since there might be many market region (MR) & number of Freight Transaction Type (FTT), depending on the number of combinations between MR& FTT, the research will arrive an ideal solution for each combination. The solution so provided will be practical, easy to be used by the end user at the Transactional level, would enable the generation of reports at the Management level and ultimately feed reports at strategic level so that whole system could be fine tuned over time.
Research Strategy:1. To achieve the objective 1 (To identify Freight forwarding transaction type & subtype called Freight Transaction Type (FTT) independently, for SEA, AIR and ROAD freight), the researcher has conducted the survey to understand what type of Freight transaction type/shipments the participants use. Also secondary resources have been explored out to find the Literature & therefore to review it to identify the apt FTT.
2. To achieve the objective 2 (To identify countries with similar attributes/environments of Freight forwarding from Dubai & club them together to form the Market Regions (MRs)), the researcher has conducted the survey among 9 countries approximately to identify the Market Regions. The researcher has analyzed four factors namely Assertiveness, Temperament/Aggressive, Reflexive/Passive & Passive Aggressive which constitutes the nature of the participants. Along with it, the researcher has also measured out the other two factors namely personality & persuasive ability. At last, the negotiation approaches & styles have also been identified in order to arrive at an apt formulation of Market Regions (MRs). The researcher has taken the measure like Standard Deviation & Mean accordingly & displayed the results in the form of Histogram eventually. After identifying the factors among the countries or maybe even a part of a large country or a region, the Researcher has clubbed them up together as a group which is called as Market Region to form mutually exclusive and collectively exhaustive list of Regions referred as MR1, MR2, MR3 and so on.
3. To achieve the objective 3 (To find out the framework for negotiation process for each unique combination of FTT & MR), the researcher has found out the criterions based on the results of objective 2 wherein the factors of negotiation process have been identified to arrive at an negotiation process in Freight Forwarding. The researcher has also analyzed the factors in regional criterion for business in general & found out the factors influencing regional criterion that affect negotiation process in freight forwarding from Dubai.
4. To achieve the objective 4 (To find out one or more solutions for given framework of a combination of an unique MR and FTT), the researcher has formulated the framework of negotiation process for each combinations of MR & FTT. The Researcher has identified the different freight forwarding transaction type (FTT) depending on whether the freight is by Sea, Air or Road. Each type could have two or more sub type, generating an enumerated list such as S1, S2, S3….; A1, A2, A3….. and R1, R2,R3.. for SEA, AIR and ROAD freights. The classification so done is based on the ground that such classification will enable the researcher to formulate Negotiation framework for each type or subtype that are practical and which can be implemented by the end user with ease.The researcher has collected data about the FTT for each SEA, AIR and ROAD from the research portals, online databases as well as some other published resources in order to arrive at negotiation process for each market region.
5. To achieve the objective 5 (To find out the factors influencing negotiation process for each market regions), the researcher has found out the factors based on the results of objective 2, 3 & 4 wherein the factors etc. of negotiation process have been identified to arrive at an negotiation process in Freight Forwarding. The researcher has also analyzed the factors in regional criterion for business in general & found out the factors influencing regional criterion that affect negotiation process in freight forwarding from Dubai.
6. To achieve the objective 6 (To identify the different market regions for freight forwarding from Dubai), the researcher has provided solutions on the basis of given MR& FTT. Since there might be many market region (MR) & number of Freight Transaction Type (FTT), depending on the number of combinations between MR& FTT, the researcher has tried to arrive at an ideal solution for each combination. The solution so provided to be practical, easy to be used by the end user at the Transactional level, would enable the generation of reports at the Management level and ultimately feed reports at strategic level so that whole system could be fine tuned over time.
Research Population & Sample:Research population of the study is all freight forwarding industries across the globe. The researcher has chosen the sample of 9 countries out of all countries in the world. The research sample has been managed in such a way that at least one participant must be interviewed from the country. Sampling method chosen is simple random sampling where in the researcher has selected the participants randomly from the different countries. The countries selected based on random sampling are Spain, India, Argentina, Canada, Palestine, Jordan, Sri Lanka, ---------, ------------, ------------.
Data Collection
The primary data is being collected by the countries selected based on random sampling are Spain, India, Argentina, Canada, Palestine, Jordan, Sri Lanka, ---------, ------------, ------------. The questionnaire developed & designed consist of two major sections namely Demographic & Business Related factors.In demographic section, the freight transaction type & Main business activity have been asked in order to find out the type of FTT is being used in that region. On the other hand, in business related factors section, there are four subsections namely Nature with 4 point scale, Personality with 5 point scale, Persuasive Ability with 5 point scale and Negotiation approaches & styles with 5 point scaling system. The nature subsection has also further divided into four sub sections namely Assertiveness, Temperament/Aggressive, Reflexive /Passive & Passive Aggressive basing the 4 point scaling. The validity & reliability of the questionnaire has been tested & verified using the pilot test among two participants & found to be reliable & valid. The expert’s reviews were taken to verify the degree of accuracy of the questions asked in the questionnaire along with the scaling system. Although the questionnaire formulated has been reported time consuming for the participants because it was lengthy therefore I realized in couple of times that the responses recorded by the participants may not fall exactly how they should be, however I have checked each responses and cross verified in order to track the participant’s answer whether they are logically correct.The method for the data collection was Email, Face to Face & Telephonic Interview however I have conducted online sessions with the participants in order to verify & check their interest level while answering the questionnaire & found OK therefore I hope that the data collection carried out by me is systematic & valid as well as reliable. Nevertheless the data is being recorded by me into the Excel file with the definition of each variable identified & category of the variables itself such as Nominal, Ordinal, Interval & Ratio which falls in the category of Categorical & Continuous variables.
Data AnalysisThe data is being analyzed using the Excel & SPSS 21.0 in order to arrive at a proper analysis of data. The advance version of Excel has been employed to churn out the results such as Histograms, Normal Probability Curve etc.The methods have been validated based on the responses as well as the behavior of the data in order to find out the trend across. Chi Square Test has been applied for the hypothesis testing therefore to ensure the factual results & consistency throughout the research.Nevertheless analysis of data is a set of numerous tools & in the modern era there is a paradigm shift as the researchers are using their own models & way of analysis in order to maintain the research direction & arrive at an apt finding. As per my view & observation, They are trying to incorporate & consider deeply the extraneous variables in the research to set out the better reliability & validity of the results however the independent, dependent & intervening variables sets apart the mainstream of the analysis of data.
Cronbach alpha has been deployed for checking the validity & reliability of the questionnaire.
Chapter 3.
A STUDY OF THE NEGOTIATION PROCESS IN FREIGHT FORWARDING IN DUBAI
Freight forwarding a part of the huge Shipping industry dealing primarily with the movements of
commercial and personal cargoes from one place to another. The various modes of transportation
and a combination of them ie. Air freight, sea freight, road freight, sea-air, air- road are some of the
elements of it. It emphasizes on the booking of freight in containers/ less than container loads, on
weight / volume basis for air and land transportation. It also entails the handling of out of gauge,
abnormal load capacity cargoes and over dimensional cargoes with the costs and selling to be
determined according to the nature of the shipments.
Negotiation process in Freight Forwarding is influenced by the place, culture and service rendered
by the provider. The result can be influenced by the buyer and the seller with the study of this
process and influencers to it to either one's favour.
This study will help the provider and the receiver in determining and protecting their own interests
and that of their organisations.
PROPOSED CHAPTER FLOW:
1. INTRODUCTION
2. IMPORTANCE OF THE STUDY
3. OBJECTIVES / SCOPE OF THE STUDY
4. HYPOTHESIS
5. METHODOLOGY - SAMPLE POPULATION
6. TOOLS FOR DATA COLLECTION
7. ANALYSIS OF DATA - STATISTICAL TECHNIQUES
8. SCOPE AND LIMITATION
A. IMPORTANCE OF CULTURE OF NATIONS ESPECIALLY IN ARAB REGION
B. SPECIALITY OF CULTURE AND HERITAGE OF UAE
C. IMPORTANCE OF CULTURE IN NEGOTIATION PROCESS
D. INTERNATIONAL STANDARDS IN BUSINESS NEGOTIATION
E. BUSINESS NEGOTIATION IN FREIGHT FORWARDING IN DUBAI
F. THE SPECIALITY IN BUSINESS NEGOTIATION IN FREIGHT FORWARDING IN DUBAI
G. CONCLUSION
Testing the basis of the variables to Negotiation process namely Language, Religion,
Tradition, Practices, History, Sociology.
Negotiation:
What is meant by Negotiation process?
What constitutes a negotiation?
- Business finance motive
- Strategic aspect
- Technological aspect
- Inter- regional aspect
- Religion
- Set of beliefs, racial traits
All elements are present for Negotiation, these are the elements which we are taking in this study.
Thanks and regards
Why Negotiate?It is inevitable that, from time-to-time, conflict and disagreement will arise as the differing needs, wants, aims and beliefs of people are brought together. Without negotiation, such conflicts may lead to argument and resentment resulting in one or all of the parties feeling dissatisfied. The point of negotiation is to try to reach agreements without causing future barriers to communications.
Find more at: http://www.skillsyouneed.com/ips/negotiation.html#ixzz2tCo0rVG2
Stages of Negotiation
In order to achieve a desirable outcome, it may be useful to follow a structured approach to negotiation. For example, in a work situation a meeting may need to be arranged in which all parties involved can come together. The process of negotiation includes the following stages:
1. Preparation2. Discussion3. Clarification of goals4. Negotiate towards a Win-Win outcome5. Agreement6. Implementation of a course of action
1. PreparationBefore any negotiation takes place, a decision needs to be taken as to when and where a meeting will take place to discuss the problem and who will attend. Setting a limited time-scale can also be helpful to prevent the disagreement continuing.
This stage involves ensuring all the pertinent facts of the situation are known in order to clarify your own position. In the work example above, this would include knowing the ‘rules’ of your organisation, to whom help is given, when help is not felt appropriate and the grounds for such refusals. Your organisation may well have policies to which you can refer in preparation for the negotiation.
Undertaking preparation before discussing the disagreement will help to avoid further conflict and unnecessarily wasting time during the meeting.
2. DiscussionDuring this stage, individuals or members of each side put forward the case as they see it, i.e. their understanding of the situation. Key skills during this stage are questioning, listening and clarifying. Sometimes it is helpful to take notes during the discussion stage to record all points put forward in case there is need for further clarification. It is extremely important to listen, as when disagreement takes place it is easy to make the
mistake of saying too much and listening too little. Each side should have an equal opportunity to present their case.
3. Clarifying GoalsFrom the discussion, the goals, interests and viewpoints of both sides of the disagreement need to be clarified. It is helpful to list these in order of priority. Through this clarification it is often possible to identify or establish common ground.
4. Negotiate Towards a Win-Win OutcomeThis stage focuses on what is termed a Win-Win outcome where both sides feel they have gained something positive through the process of negotiation and both sides feel their point of view has been taken into consideration.
A Win-Win outcome is usually the best result. Although this may not always be possible, through negotiation, it should be the ultimate goal.
Suggestions of alternative strategies and compromises need to be considered at this point. Compromises are often positive alternatives which can often achieve greater benefit for all concerned compared to holding to the original positions.
5. AgreementAgreement can be achieved once understanding of both sides’ viewpoints and interests have been considered. It is essential to keep an open mind in order to achieve a solution. Any agreement needs to be made perfectly clear so that both sides know what has been decided.
6. Implementing a Course of ActionFrom the agreement, a course of action has to be implemented to carry through the decision.
Failure to AgreeIf the process of negotiation breaks down and agreement cannot be reached, then re-scheduling a further meeting is called for. This avoids all parties becoming embroiled in heated discussion or argument, which not only wastes time but can also damage future relationships.
At the subsequent meeting, the stages of negotiation should be repeated. Any new ideas or interests should be taken into account and the situation looked at afresh. At this stage it may also be helpful to look at other alternative solutions and/or bring in another person to mediate.
Informal NegotiationThere are times when there is a need to negotiate more informally. At such times, when a difference of opinion arises, it might not be possible or appropriate to go through the stages set out above in a formal manner.
Nevertheless, remembering the key points in the stages of formal negotiation may be very helpful in a variety of informal situations.
Find more at: http://www.skillsyouneed.com/ips/negotiation.html#ixzz2tCooaank